A London real estate investment group has picked up a La Vergne industrial building as part of a $470-million portfolio acquisition from USAA Real Estate Co.
Strategic Real Estate Advisors bought the 770,000-square-foot building housing part of Toronto-based Cinram International's DVD-making operation in La Vergne's MidSouth Logistec Center. The building is part of a 23-property, 10.6-million-square-foot portfolio. Other buildings were in Memphis, Columbus, Ohio, and Sacramento, Calif. CB Richard Ellis handled the sale and Carter & Associates represented the buyer.
The price wasn't broken down by property. But at an average of $44 per square foot for the entire portfolio, that puts the La Vergne building's value in the neighborhood of $34 million. USAA bought the building in 2005 for $30.4 million.
Dave McGahren, an industrial broker with Colliers Turley Martin who was independent of the deal, said the per-square-foot price is about what recent sales have fetched in the area. Last year, Des Moines, Iowa-based Principal Real Estate Investors bought three buildings totaling more than 1.5 million square feet in MidSouth Logistec Center for $67 million. That works out to just under $44 per square foot.
Last October, Chicago-based First Industrial Realty sold the Cinram-leased 518,000-square-foot building at 1707 Heil Quaker for $17.4 million.