Los Angeles-based industrial real estate firm Reich Brothers recently completed the acquisition of an industrial property previously owned by Stellantis. In keeping with Reich Brothers’ strategy of investing in well-located, highly functional assets in dynamic growth markets, this property marks the firm’s first foray into the Toledo market.

Located off Interstate 75 at 1435 Matzinger Road, the asset incorporates more than 300,000 square feet of modern Toledo warehouse and industrial space and will continue to be occupied by Stellantis for the company’s parts distribution business.

Originally built in 2000 for Stellantis to service its local Jeep Wrangler and Gladiator Assembly facility, the recently sold property is a concrete tilt-up, cross-dock facility that features ESFR fire suppression systems; 32-foot clear ceiling heights; 102 truck docks; 50’ by 50’ column spacing; and more than 200 trailer spots.

“The Toledo industrial market is on the rise with growing momentum,” said Michael Reich, managing partner of acquisitions and operations at Reich Brothers. “Located along interstate I-75 with a dynamic labor force and diversified economic base, there is a reason why so many of our great companies — both domestic and international — continue to locate their operations in this region. Reich Brothers is very excited to expand its industrial portfolio to Toledo and will look to further expand its presence in the region as opportunities arise.”

The national industrial real estate investment group specializes in repurposing underutilized industrial assets for modern-day manufacturing and distribution uses. Notably, it reportedly manages approximately 18 million square feet of industrial space across the United States. During the previous two years, Reich Brothers had made several acquisitions in the metropolitan Detroit region.

The latest national industrial real estate report published by CommercialEdge noted that industrial markets in the Midwest had been seeing growth in terms of rents and occupancy. However, it has been relatively slow compared to the national average, which can be significantly lifted by leasing activity in historically tight coastal markets. Specifically, national in-place rents for industrial space in September marked an increase of 7.4% year-over-year. For comparison, rent increases in key Midwestern markets were among the slowest growing in the country in Chicago (3.4%), Cincinnati (3.5%), Detroit (3.6%) and Indianapolis (3.6%).

Meanwhile, during the first eight months of the year, transactions of industrial space in the U.S. amounted to more than $40 billion, and property traded for an average of $135 per square foot. Even so, the only Midwestern market to see industrial sales surpass the $1 billion mark was the Chicago metropolitan area, where $1.45 billion in assets changed hands for an average price of $83 per square foot.

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