Clear Height Properties/Buligo Capital JV Acquires Kenall Lighting HQ in Kenosha; Core Plus Asset Buy Expands Acquisition Philosophy
A joint venture partnership consisting of Chicago-based Clear Height Properties and Israel-based Buligo Capital Partners has acquired the 354,000-square-foot headquarters, manufacturing and distribution facility constructed for and fully leased to Kenall Lighting, Inc. The sale price was undisclosed.
The Seller, a private investor, was represented in the transaction by Jeffrey B. Devine and Steve Disse, both Principals with the industrial investment group from Colliers International in Chicago.
The acquisition of the headquarters and industrial facility represents an expanding acquisition philosophy for Clear Height Properties and may be the first in a series of acquisitions being targeted by the Clear Height-Buligo Capital joint venture.
“We believe there is an opportunity, at this point in the market cycle, to find value within the Core Plus Industrial segment of the market,” says Dominic Sergi, President and Co-owner of Clear Height Properties. “Through our JV with Buligo, we are looking to acquire more assets of this caliber over the next 24 months.”
According to Gary Rose, Clear Height Properties, the property was intriguing to the joint venture because of the strength and stability of Kenall Lighting, which was recently acquired by Legrand, (S&P Long Term Rating: A-) and the commitment Kenall has made to the area.
Kenall Lighting is a market leader in the production of durable lighting fixtures, with applications in corrections, healthcare, public spaces, food processing, cleanroom, and transit.
The Kenall facility, located at 10200 55th Street within the Business Park of Kenosha, was strategically designed and constructed for Kenall taking into consideration the firm’s immediate production and business needs while being forward thinking to accommodate future growth.
Completed in 2014, the building sits on a 20.41-acre site and includes 50,000 square feet of office space. The manufacturing/distribution center space in the building features 32-foot clear ceiling heights, 50’ x 50’ column spacing, 8 exterior docks and one drive-in door. There are 442 car parking stalls.
The Kenall facility is strategically located within minutes of two four-way interchanges providing almost immediate access to north/south interstate system. This particular location was chosen specifically by Kenall to maximize the company’s access to skilled and unskilled labor in neighboring communities to the north and east, while minimizing its distance to logistics corridors.
Southeastern Wisconsin continues to be a highly sought-after user location with nearly 59 million square feet of inventory and over 850,000 SF of new leasing last year. The area has seen significant positive activity and growth in recent years, highlighted by new deliveries completed or in planning for Amazon, Uline and Foxconn.
This latest acquisition by Clear Height Properties continues to demonstrate the versatility and depth of the firm’s acquisition philosophy. The firm currently owns and manages a portfolio of over two and a half million square feet of space. While Clear Height has established and maintains a reputation of acquiring small to mid-size multi-tenant assets, tailored for growing and expanding tenants, recent high-profile acquisitions demonstrate the firm’s ability to utilize its platform to achieve strong returns for investors across multiple strategies.
In late 2018 Clear Height acquired 26TWENTYFIVE, the approximately 215,000-square-foot office building at 2625 Butterfield Road in Oak Brook, formerly known as Butterfield Office Plaza. The firm currently is in the process of a comprehensive renovation and repositioning of the property. The property was part of a larger, $30 million portfolio acquisition made by Clear Height.
With the acquisition of the Kenall Lighting facility, Clear Height has effectively expanded its acquisition capabilities to include Core and Core Plus assets.
“This is an exciting venture, and another demonstration of the growth and evolution of Clear Height,” says Sergi. “We’re always looking for the right opportunities in the Chicagoland market, and there was no better way to showcase the depth and breadth of our capabilities, and the strength of our joint venture partners, that by partnering with Buligo Capital on this acquisition.”