NGKF Capital Markets recently represented both the buyer and seller in the investment sale of 2501 Galvin Drive in Elgin, Illinois. The 345,000-square-foot, Class A 100% leased industrial facility was developed in a joint venture partnership between Conor Commercial Real Estate, a member of The McShane Companies, and Globe Corporation. The transaction was valued at approximately $29 million and sold for a sub 5% yield. Newmark Grubb Knight Frank was also selected as the property manager for the building.
NGKF Capital Markets Executive Managing Director Kenneth Szady and Managing Director Krysti Galvin represented the property owner and developer Conor Commercial and joint venture partner Globe Corporation in the transaction. Szady and Galvin also represented the buyer of 2501 Galvin Drive, Zurich Alternative Asset Management, Zurich Insurance Group’s (Zurich’s) dedicated alternative asset management platform. This transaction represents Zurich’s first real estate investment purchase in Chicago.
“This transaction represents a record yield based on cap rate for the Chicago industrial market, which is further empirical evidence that the Chicago market is stronger than ever,” Szady said. “2501 Galvin Drive is a high-quality asset, well-positioned in the suburban industrial market. We are pleased to have assisted both parties in this transaction and to have further been selected to manage the asset.”
“The purchase by Zurich signifies one of the best industrial investments in the country,” suggested Galvin. “A combination of the strong tenancy, quality construction and location within the best master-plan park (Northwest Business Park) combine to make this one of the finest investments available in the U.S. and aligns with Zurich’s portfolio of best-in-class assets.”
“We are very pleased with the outcome of this high-quality development in one of our core markets,” stated David Friedman, President of Conor Commercial Real Estate. “2501 Galvin Drive is a prime example of how Conor Commercial’s successful partnership with Globe Corporation can develop, stabilize and sell Class A industrial space. Working with NGKF during the sale was a pleasure, and we are delighted by the seamless process and favorable results.”
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.
About Conor Commercial Real Estate
Conor Commercial Real Estate is the integrated real estate development and investment arm of The McShane Companies headquartered in suburban Chicago, Illinois with regional offices located in Dallas, Houston, Phoenix and Irvine. Conor Commercial Real Estate is active on a local, regional and national basis in the development of master-planned industrial and office parks, medical office developments, speculative industrial and office properties and build-to-suit projects for lease or purchase. For more information on Conor Commercial Real Estate, visit the firm’s web site at www.conorcommercial.com.
About Globe Corporation
Founded in 1901, Globe Corporation is a diversified investment holding company engaged in real estate investment, development and property management. Globe’s real estate portfolio totals over 2.5 million square feet of property located almost entirely in Illinois and Arizona. Globe has also developed or co-developed an equal amount of property over the past two decades. Globe Corporation is wholly owned by the Getz family and is currently managed by fourth generation family members with offices in Scottsdale, Arizona and Deerfield, Illinois.