California firm buys real estate portfolio for $30M
A California firm has purchased five industrial buildings in the region for more than $30 million.
CrossLake Partners sold the buildings, which total more than 1.1 million square feet, to California-based Core Realty Holdings, according to Colliers West Michigan today.
The deal closed on Friday, following two months on the market and six offers.
Colliers advisors Steve Marcusse and John Kuiper represented the seller. The firm also represented the buyer.
“We are seeing more investors, like Core Realty Holdings, looking at Grand Rapids as a top choice for real estate investment, due to its relative value compared with primary markets,” Marcusse said.
The buildings are spread across three cities in the region: 1100 Hynes Ave. SW in Grand Rapids; 3056 Walker Ridge Dr., 2966 Wilson Dr. and 3111 Wilson Dr. in Walker; and 1269 E. Mount Garfield Rd. in Norton Shores.
CrossLake Partners purchased the portfolio in 2013, with Colliers handling leasing.
Colliers will continue to lease the buildings for the new owner, Core Realty Holdings.
The five buildings have 15 tenants and two vacancies.
Colliers said occupancy increased from 75 to 95 percent in the last three years.
When CrossLake Partners purchased the portfolio, it was 1.5 million square feet and included two other buildings: 900 Hynes Ave. SW in Grand Rapids and a property in South Bend, Indiana.
Both properties have since been sold off, with the 191,000-square-foot 900 Hynes Ave. SW building going to Founders Brewing Co. for its second brewery.
Core Realty Holdings
With its third investment in the market since 2004, Core Realty Holdings now owns nearly 2 million square feet of property in West Michigan.
Core Realty Holdings VP of Leasing and Dispositions Nels Billsten said the new properties fit well with the firm’s existing West Michigan portfolio, as the firm desired to expand its presence in a “healthy and stable” market.