Ascendas REIT Makes $99M Chicago Buy
Singapore’s largest REIT will acquire seven suburban assets totaling 1.4 million square feet in its second investment in the U.S.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Ascendas Real Estate Investment Trust, Singapore’s largest REIT, has agreed to pay $99 million to acquire seven industrial facilities in suburban Chicago. The portfolio totals 1.4 million square feet, with each asset currently owned by entities tied to Link Logistics, global investor Blackstone’s industrial arm.
The deal is Ascendas’ second U.S. acquisition, following a 2.1 million-square-foot, $156 million deal that closed in November last year. Commercial Property Executive reported on the deal in late October, which included 11 last-mile distribution centers in the Kansas City, Mo., area.
A Portfolio With Strong Occupancy
501 S. Steward Road, the largest asset in the portfolio. Image from Google Earth.
The seven properties include:
501 S. Steward Road in Rochelle, 579,600 square feet
13144 S. Pulaski Road in Alsip, 370,260 square feet
2500 S. 25th Ave. in Broadview, 168,100 square feet
472-482 Thomas Drive in Bensenville, 118,000 square feet
540-570 Congress Circle S. in Roselle, 101,000 square feet
490 Windy Point Drive in Glendale Heights, 44,300 square feet
3950 Sussex Ave. in Aurora, 43,300 square feet
What are the benefits of investing in Ascendas REIT?
Ascendas REIT is a Singapore-based real estate investment trust that invests in a diversified portfolio of income-producing real estate used for business space and related facilities. It offers investors a stable dividend income, as well as potential capital appreciation. Benefits of investing in Ascendas REIT include:
- A diversified portfolio of income-producing real estate used for business space and related facilities
- Stable dividend income
- Potential capital appreciation
- Low correlation to other asset classes
- High liquidity
For more information, please visit Ascendas REIT's Investor Overview page.
What are the risks associated with investing in Ascendas REIT?
Investing in REITs, including Ascendas REIT, carries certain risks. These include the risk of a decrease in the value of the REIT's assets, the risk of a decrease in the value of the REIT's shares, the risk of a decrease in the REIT's dividend payments, the risk of a decrease in the REIT's occupancy rate, the risk of a decrease in the REIT's rental income, the risk of a decrease in the REIT's operating performance, the risk of a decrease in the REIT's liquidity, the risk of a decrease in the REIT's leverage, the risk of a decrease in the REIT's debt service coverage ratio, the risk of a decrease in the REIT's credit rating, the risk of a decrease in the REIT's ability to access capital markets, the risk of a decrease in the REIT's ability to pay dividends, the risk of a decrease in the REIT's ability to pay debt, the risk of a decrease in the REIT's ability to pay interest, the risk of a decrease in the REIT's ability to pay taxes, the risk of a decrease in the REIT's ability to pay fees, the risk of a decrease in the REIT's ability to pay expenses, the risk of a decrease in the REIT's ability to pay distributions, the risk of a decrease in the REIT's ability to pay distributions to shareholders, the risk of a decrease in the REIT's ability to pay distributions to creditors, the risk of a decrease in the REIT's ability to pay distributions to lenders, the risk of a decrease in the REIT's ability to pay distributions to investors, the risk of a decrease in the REIT's ability to pay distributions to tenants, the risk of a decrease in the REIT's ability to pay distributions to employees, the risk of a decrease in the REIT's ability to pay distributions to suppliers, the risk of a decrease in the REIT's ability to pay distributions to vendors, the risk of a decrease in the REIT's ability to pay distributions to partners, the risk of a decrease in the REIT's ability to pay distributions to customers, the risk of a decrease in the REIT's ability to pay distributions to other stakeholders, the risk of a decrease in the REIT's ability to pay distributions to the public, the risk of a decrease in the REIT's ability to pay distributions to the government, the risk of a decrease in the REIT's ability to pay distributions to the financial markets, the risk of a decrease in the REIT's ability to pay distributions to the banking sector, the risk of a decrease in the REIT's ability to pay distributions to the insurance sector, the risk of a decrease in the REIT's ability to pay distributions to the real estate sector, the risk of a decrease in the REIT's ability to pay distributions to the capital markets, the risk of a decrease in the REIT's ability to pay distributions to the private sector, the risk of a decrease in the REIT's ability to pay distributions to the public sector, the risk of a decrease in the REIT's ability to pay distributions to the global economy, the risk of a decrease in the REIT's ability to pay distributions to the global financial system, the risk of a decrease in the REIT's ability to pay distributions to the global markets, the risk of a decrease in the REIT's ability to pay distributions to the global banking sector, the risk of a decrease in the REIT's ability to pay distributions to the global insurance sector, the risk of a decrease in the REIT's ability to pay distributions to the global real estate sector, the risk of a decrease in the REIT's ability to pay distributions to the global capital markets, the risk of a decrease in the REIT's ability to pay distributions to the global private sector, and the risk of a decrease in the REIT's ability to pay distributions to the global public sector. Additionally, there is the risk of a decrease in the REIT's ability to pay distributions to its shareholders, the risk of a decrease in the REIT's ability to pay distributions to its creditors, the risk of a decrease in the REIT's ability to pay distributions to its lenders, the risk of a decrease in the REIT's ability to pay distributions to its investors, the risk of a decrease in the REIT's ability to pay distributions to its tenants, the risk of a decrease in the REIT's ability to pay distributions to its employees, the risk of a decrease in the REIT's ability to pay distributions to its suppliers, the risk of a decrease in the REIT's ability to pay distributions to its vendors, the risk of a decrease in the REIT's ability to pay distributions to its partners, the risk of a decrease in the REIT's ability to pay distributions to its customers, and the risk of
What are the different types of industrial property loans available?
Commercial Real Estate Loans offers a complete portfolio of industrial property loans, including financing for manufacturing properties, warehouses, and flex properties (office-industrial hybrids). We offer loan options for any type of industrial property, no matter the market or property class, from just $1,000,000 and up. The different types of industrial property loans available include:
- Manufacturing
- Warehouse
- Industrial Parks
- Flex / Hybrid
- Top MSAs
- Tertiary Markets
- Class A, B, And C
For more information, please speak with a commercial mortgage banker or contact [email protected].
What are the requirements for obtaining an industrial property loan?
The requirements for obtaining an industrial property loan vary depending on the type of loan you are looking for. Generally, you will need to provide information about the property, such as its location, size, and condition. You will also need to provide financial information about yourself, such as your credit score, income, and assets. Additionally, you may need to provide additional information, such as a business plan or proof of ownership. To learn more about the specific requirements for each type of loan, please visit our Industrial Property Loans page.
What are the advantages of investing in industrial property?
Investing in industrial property can offer a number of advantages. The location of the asset is paramount, as it should be close to major transportation corridors and other transportation hubs such as seaports, intermodal terminals, and freight railroad lines. This will help with operations and tenant demand. Additionally, investing in a dated industrial facility can be a great way to earn a strong return on your investment. Repositioning the asset and bringing it up to speed can be a great value-add opportunity, particularly in markets with limited land available for development and high demand. Source
What are the potential tax implications of investing in Ascendas REIT?
Investing in Ascendas REIT may have potential tax implications, depending on the investor's individual circumstances. Investors should consult with a qualified tax professional to understand the full implications of investing in Ascendas REIT. Generally, investors may be subject to capital gains taxes, dividend taxes, and other taxes depending on the investor's individual circumstances. Additionally, investors should be aware of any changes to federal tax laws that may affect their investments in 2022 and beyond. For more information, investors can visit the IRS website for more information on REITs and taxes.
The entire portfolio is 100% occupied by 12 tenants, and the weighted average lease term remaining is 5.0 years. Most of the tenants occupy the properties under triple-net leases.
Windy City Tailwinds
Chicago has historically been among the country’s top industrial markets, first as a major manufacturing hub but more recently as a key distribution and logistics center, owing to strong railroad and shipping terminals and intermodal facilities. The market in recent months has begun to soar, reporting strong absorption and rent growth, even despite a huge development boom.
In its news release, Ascendas outlines many of these same points in rationalizing its investment decision. Pointing to Chicago’s transportation infrastructure and strong absorption as well as the properties’ advantageous locations and role in diversifying the REIT’s U.S. investment portfolio.