NAPERVILLE, Ill. (September 14, 2009)—Ryan Companies US, Inc. has completed the sale of a fully-leased, 100,294-square-foot industrial building in Elgin to Seigle Investments LLC, a private investment trust of the Seigle family. The sale comes almost six months after Ryan completed a lease with Iron Mountain for the building at 2755 Alft Lane within the Randall Crossings Business Park.
Lee & Associates markets the buildings and land parcels in Randall Crossings on behalf of Ryan, and also represented the buyer in the transaction.
“This series of transactions demonstrates that while activity levels are lower than in the last 12-18 months, sound leasing and acquisition or sale opportunities do exist,” said Tim Hennelly, vice president of development for the Chicago office of Ryan Companies. “Deals are taking longer to complete and the competition is pretty intense; so it is important to take advantage of opportunities that come up, and to move quickly.”
In the most recent transaction, Ryan Companies completed the disposition of 2755 Alft Lane, selling the building to the Seigle family who four years ago sold their lumber and building supplies company. Financial terms of the transaction were not disclosed.
According to Hennelly, the opportunity to acquire the building, completed in 2007, was attractive because the building was fully-leased on a long-term basis to Iron Mountain, a publicly-traded records storage firm that completed its lease earlier this year. That lease contains built-in rental rate increases over the term of the lease.
Iron Mountain is based in Boston, Mass. A new government contract prompted the need for more space. As part of its expansion of operations into the Elgin area, Iron Mountain is making a rather substantial investment, according to Hennelly, in its storage and racking systems.
“With that type of investment,” Hennelly said, “Iron Mountain confirmed its long-term commitment to the building.
“There really are no sure things in today’s real estate and investing climate,” Hennelly added. “But I think the Seigles believed that acquiring a new industrial building in Elgin that is fully leased to a great credit tenant is a good investment.”
The building at 2755 Alft Lane features five percent office space, eight exterior docks (expandable to 22) and two drive-in doors. The building also offers 30-foot clear ceiling heights. Power in the building is 800 Amp and 277/480 volt service. The building features an Early Suppression Fast Response (ESFR) sprinkler system.
The marketing team for Randall Crossings Business Park is Ken Franzese and John Cassidy, principals, Lee & Associates. Chris Porter, senior director of the Industrial/Technology Services Group, Cushman & Wakefield, represented Iron Mountain in the earlier lease transaction.
Randall Crossings Business Park is a 70-acre park located less than one-half mile from the Randall Road and the Northwest Tollway interchange. The park features land sites from four to 30 acres. Depending on the type of business that locates to Randall Crossings, buildings ranging from 25,000 square feet to 500,000 square feet can be situated on the different parcels in the park.
About Ryan Companies US, Inc.
Ryan Companies US, Inc., a nationally recognized design-builder, developer and real estate manager, has specialized in providing fully integrated solutions for more than 70 years. In 2007, the National Association of Industrial and Office Properties (NAIOP) named the firm National Developer of the Year. Ryan is also currently ranked 76th in Engineering News-Record’s (ENR’s) list of Top 400 Contractors. In its first 10 years of operation, Ryan’s Midwest Division (based in Chicago) has completed over $1 Billion in projects for customers such as Sears, Deere and Company, Isle of Capri, Target Corporation, Dominick’s and C. H. Robinson. In addition to its Chicago office, Ryan has offices in Minneapolis, San Diego, Tampa, Phoenix and Cedar Rapids, Davenport and Des Moines, Iowa.