Dividend Capital Acquires Midwest Industrial

DENVER-Dividend Capital Total Realty Trust Inc. has acquired a 1.15 million-sf Midwest industrial portfolio for $67.3 million. The locally headquartered REIT acquired the fully leased portfolio in a joint venture with DCT Industrial Trust Fund II LLC that is in the process of acquiring $150 million on industrial real property assets. The JV has under contract an as yet unspecified $80-million acquisition that it expects to close on before the end of the year.

The Midwest industrial portfolio is 100% leased to a variety of corporate tenants, including Conagra Foods, DHL and Hitachi. According to SEC filings, the largest of the three Ohio properties is Rickenbacker IV, a 330,179-sf development in Columbus that is leased to Essilor of America, Airborne Freight and Cole Vision and was acquired for $14.7 million. The others are Park West Q, a 198,600-sf development was acquired for $10.9 million and is leased to Hitachi Transport, Pre-Flex and Cincinnati Machine, and Park West L, a 150,1000-sf development acquired for $8.2 million and leased to IDI and Owens and Minor Distribution.

The largest of the Minnesota properties is Minnesota Valley III, a 232,804-sf development acquired for $14.2 million that is leased to Conagra Foods. The two others are Eagle Creek West, a 132,068-sf development acquired for $10.2 million and leased to Chief Manufacturing and Voyager Vend Supply, and Eagle Creek East, a 107,451-sf development acquired for $9.1 million and leased to STS Operating Inc. and Novus Inc.

The assets are being acquired in part with what Dividend Capital refers to as its $200-million REPO facility with JP Morgan Chase Bank. Dividend Capital Realty Trust declined to comment on the transaction beyond its press release and related SEC filings.