Cawley Chicago Orchestrates First Highland’s Sale of Indy Properties; Plymouth Industrial Uses UPREIT Structure to Expand Portfolio


OAK BROOK, IL  (November 1, 2017)—Representing both a private seller and a real estate investment trust, Cawley Chicago has completed the disposition of a two-building, 607,231-square-foot portfolio in Indianapolis. The total value of the transaction was approximately $16.9 million.

Plymouth Industrial REIT used a tax-beneficial UPREIT structure to complete the acquisition of the two buildings, a 562,497-square-foot building and another building totaling 44,734 square feet within the Shadeland I-70 Business Park. The properties were sold by First Highland Real Estate.

The buildings are located one mile from the I-70 and I-495 interchange. At the time of the acquisition, the properties were 94 percent leased. Of the five tenants that currently occupy space in the buildings, the largest are Pratt Visual Solutions and MicroMetl. Combined, these two tenants occupy 89 percent of the buildings’ area. The weighted average remaining term for all tenants was over 6 years, offering long term stability for the buyer.

In completing the transaction and expanding its portfolio, Plymouth structured the acquisition as an UPREIT, a vehicle that allows the buyer to use shares in the REIT as a means for acquiring property and growing its portfolio.

“We are in the middle of one of the strongest runs in industrial real estate investing with so much capital chasing quality acquisitions,” said David Conroy, Vice President of Industrial Practices, Cawley Chicago. “At the same time, this transaction shows that regardless the strength of the market, creativity and persistence are still required to satisfy client needs and to ensure transactions are completed that are a benefit to all parties involved.”

According to Conroy, these two buildings represented the last of First Highland’s holdings in Indianapolis. First Highland elected to sell the assets in an UPREIT fashion so that it could participate in the future upside of Plymouth REIT while deferring the impact of capital gains taxes.

About Cawley Chicago

Cawley Chicago is suburban Chicago’s dominant submarket specialist in commercial real estate; specializing in leasing, sales, investment disposition/acquisition, consulting and asset/property management. Cawley Chicago helps business and property owners understand and create value. Founded in 1998, the firm has completed transactions totaling over $1 billion.


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