Cincinnati, Ohio

A Boston-based real estate investor has purchased a $31.5 million portfolio of warehouses in Tri-County and Columbus. The deal, which closed June 27, includes 1.2 million square feet in Cincinnati and Columbus. Sixteen of the buildings are located at the Capital Center 1 in Cincinnati, and the Springdale Commerce Center also is part of the portfolio. Two buildings are in Columbus' Westbelt Business Center.

Cabot Properties bought the portfolio from Denver-based ProLogis, bringing Cabot's local holdings to 2 million square feet.

"We know this market. We see these properties as stable and cash flowing through time," said Charlie Forbes, Cabot's senior vice president of investments. During the last decade, Cabot has bought and sold 15 million square feet in Cincinnati and Northern Kentucky.

"We're constantly looking and active there," he said. The acquisition, made through the firm's second investment fund, is part of a plan to purchase $1.3 billion of industrial property in North America.

Forbes said the firm will make cosmetic improvements to some of the buildings to boost value - occupancy is just under 90 percent. He declined to share return estimates.

But Colliers Turley Martin Tucker broker Tom Powers said these properties typically yield investors a leveraged low- to mid-teen percentage return. Cabot likes these middle-range, second-generation properties because they are less in demand than new buildings, Powers said.

"They're interested in the cash flow," he said.

Investors have flocked to Cincinnati in recent years on the promise of better returns than bigger industrial markets like Chicago, Dallas or New Jersey. The Tri-State's industrial base bodes well for keeping or finding tenants. The biggest issue here has been lack of buildings for sale, Powers said.

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 10,092 employees span the world in 267 offices in 57 countries. On a worldwide basis, Colliers manages 672,945,918 square feet, and has revenue of $US 1,620,958,349.

Contact Information

For more information, please contact:

Carol L. Hayfer

Marketing Coordinator/Cincinnati

513-763-3017

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