A Chicago-area real estate investment group has acquired the North 540 Distribution Center in north Raleigh for $16 million, the company's first-ever real estate investment in the region.
Hamilton Partners of Itasca, Illinois, has bought the 235,404-square-foot warehouse in Raleigh, confirms partner Paul Sheridan, and the group, he says, will be looking to partner with local developers of office, industrial and retail projects to expand its options in the region.
"We decided we wanted to establish a foothold in a market where the wind was at our backs and not in our face," Sheridan wrote in an email message to TBJ. "Raleigh seemed to fit the bill perfectly and actually shares similar size and growth characteristics to Salt Lake City where we've been very successful."
Hamilton Partners currently has a portfolio of more than 20 million square feet of office, industrial and retail properties in mostly the Chicago and Salt Lake City areas, but Sheridan noted that increasing commercial property tax rates and a "dire fiscal situation" in Chicago led the company to recently sell some of its existing assets in Cook County. The deal necessitated a like-kind property exchange that led to the acquisition of the North 540 Distribution Center acquisition in Raleigh.
The Raleigh warehouse was 100 percent occupied at the time of the sale. The seller was Meridian Development Group of Tampa, which had purchased the building for $8.2 million in 2013 when the building was 45 percent vacant. Meridian invested about $2 million in the building's renovation over the next year.
The building's tenants include DHL, eCommerce and Ranpak Holdings.
Chris Norvell with the HFF brokerage firm of Raleigh represented Meridian in this sales transaction.