Sealy Buys 1.1 MSF Industrial Portfolio

Mid States Industrial Portfolio in Dayton, Ohio. Image courtesy of Sealy & Co.

Sealy & Co. has acquired the Mid States Industrial Portfolio, a 1.1 million-square-foot assemblage of industrial assets in Dayton, Ohio, Sealy announced Monday. The seller was local firm Culmen Real Estate Services, a Sealy spokesperson told Commercial Property Executive.

The transaction’s dollar value was not disclosed.

The portfolio is 85 percent occupied by a diversified roster of 22 tenants. The buildings are of concrete tilt-up construction and reportedly were purchased at a significant discount to replacement cost.

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The assets are in two separate submarkets along I-75, Moraine and Airport/Vandalia, the former serving the south end of the Dayton market and Airport/Vandalia providing industrial supply in the north.

Sealy’s Jason Gandy, managing director of investment services, and Davis Gibbs, director of investment services, led the transaction for Sealy & Co. John Hassler of Newmark represented the seller.

Midwestern stability

Dayton’s industrial market continues to show strong fundamentals, with nearly 2.0 million square feet of net absorption so far this year, according to first-half 2022 figures from CBRE.

The local construction pipeline totals about 3.5 million square feet of industrial projects, which is 38 percent higher year-over-year and one of the largest figures on record for the area.

CBRE also reports that vacancy declined 30 basis points in the first half to 3.9 percent, and the average lease rate increased to $4.94 per square foot.

Sealy has been quite active just in the past couple of quarters, in a variety of markets.

In April, the company acquired a 437,580-square-foot logistics facility in the Columbus, Ohio, metro.

Then in June, Sealy bought a pair of 300,000-square-foot logistics buildings in the western suburbs of Detroit.

And in August, the company announced two acquisitions: two logistics facilities totaling 841,849 square feet, in Lakeland, Fla., in the Tampa area, in a $98 million deal, and a 70,00-square-foot distribution facility in Kansas City, Mo.