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VOL. 127 | NO. 251 | Wednesday, December 26, 2012

Milwaukee Electric Tool Building Bought by Monmouth for $28 Million

By Sarah Baker

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Freehold, N.J.-based Monmouth Real Estate Investment Corp. has acquired the Milwaukee Electric Tool Corp. building at 12385 Crossroads Drive in Olive Branch for $28 million.

The Class A, 615,305-square-foot industrial property is located on 39 acres in Atlanta-based Industrial Developments International Inc.’s Crossroads Distribution Center Building E. IDI built the facility for Brookfield, Wis.-based Milwaukee Electric Tool this year.

Building E is net-leased for 10 years to the heavy-duty electric power tool and accessory manufacturer and is guaranteed by its parent company, Techtronic Industries Co. Ltd. Founded in 1924, Milwaukee Tool has been in Olive Branch for more than 20 years.

“Olive Branch is situated near Memphis, which represents one of the most strategic logistics hubs in the country containing FedEx’s World Hub, five Class I railroads, seven interstate and U.S. highways, and the nation’s fourth-largest inland port,” Monmouth chief operating officer Michael P. Landy said in a statement. “This new acquisition further enhances Monmouth’s already strong presence in this important market.”

Monmouth acquired Anda Pharmaceuticals Inc.’s 234,660-square-foot industrial warehouse in March for $16.2 million. That facility was also a build-to-suit by IDI and is net-leased for 10 years in Crossroads Distribution Center Building C.

The activity underscores a theme touted by area brokers at several recent commercial real estate-related gatherings: capital is finally being set free in the Memphis industrial market, as public and private institutional buyers alike make large plays.

“The institutional capital in this market really likes our industrial – the 32-foot clears, they like the SFR sprinkler systems, they like our tenant basis,” Johnny Lamberson, executive vice president of CB Richard Ellis Memphis recently told The Daily News. “We’ve got good developers, we’ve got good market fundamentals with the rail service, the water, the air and FedEx obviously being here.”

Monmouth financed its Building E purchase with $17.5 million in mortgage debt with an interest rate of 3.76 percent. The building is designed for Leadership in Energy and Environmental Design (LEED) certification and is expandable by an additional 215,000 square feet.

Building features include 32-foot and 36-foot clear height ceilings, Early Suppression Fast Response sprinkler systems and land for trailer storage.

Monmouth was organized in 1968 and is a publicly owned Real Estate Investment Trust (REIT) specializing in net-leased industrial properties subject to long-term leases primarily to investment grade tenants.

The company’s property portfolio consists of 73 industrial properties and one shopping center across 26 states. Monmouth also owns a portfolio of REIT securities.

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