We Need More Solo Cups
Those of you nostalgic for college were probably thinking it’s for beer pong. But Solo Cups also spurred the largest corporate distribution space sale in Chicago since ’06, hopefully a harbinger of a big year for industrial.
A WP Carey non-traded REIT affiliate paid about $85M for Dart Container Corp’s 1.6M SF facility at 701 Central Ave in University Park. (Dart acquired Solo Cup, which was founded in 1936, for $1B in 2012.) The sale is proof of a rabid market appetite for core product in core markets (net-leased can’t hurt), says Avison Young’s Erik Foster, who repped the institutional seller (advised by Fulcrum Asset Advisors) with Mike Wilson and Brendan Kelly. (We’ll have to teach all the national and foreign capital eyeing industrial how Midwesterners have fun.) Pre-recession pricing will ramp up both spec and build-to-suit development in markets like I-55 and I-80, Erik predicts, especially with tenants looking to expand and move into newer facilities.