Bayerische Versorgungskammer (BVK), Germany’s largest pension fund, has invested in a 1m sqft newly-completed distribution and warehouse property in the Chicago area via CBRE Global Investors and Universal-Investment.
The two investment management firms bought the asset in Gateway 57 Corporate Park, which is located in University Park, Illinois, for the separate account of the €84bn Bavarian public sector pension fund.
Alexander Tannenbaum, managing director at Universal-Investment in charge of the real estate division, said: “BVK continues to be attracted to investments in North America as part of their geographical diversification strategy.”
The building is 100% triple-net leased — meaning the tenant is responsible for property taxes, insurance, and maintenance — to Georgia Pacific Consumer Products, CBRE Global Investors said.
The price paid for the building was not disclosed.
CBRE Global Investors said the new building has the main specifications currently required by users of bulk warehouse and distribution, being fully cross-docked and having 102 exterior dock doors, among other features.
It is the only building in University Park with a clear height above 32 feet, giving it a competitive advantage in attracting tenants such as e-commerce retailers that need more height for large racking systems, the manager said.
“With industrial demand in this submarket bolstered by the expansion of e-commerce and the growing investment in the logistics space among traditional retailers and distributors, Gateway 57 consequently is a strategic addition for the BVK mandate,” Tannenbaum said.
Last month, BVK invested in a large office and retail property in Miami Beach, Florida, via CBRE Global Investors and Universal-Investment, buying 1111 Lincoln.
In May, the German pension fund bought the retail property North Point MarketCenter in Atlanta.