Interstate Partners LLC and Zilber Ltd.'s Towne Investments of Milwaukee today announced what is believed to be the largest industrial property portfolio sale in the Midwest since the Great Recession began in late 2007.

The portfolio that was sold includes seven buildings in two adjacent industrial parks in Elgin, Ill., and the RidgeView Corporate Park in Pewaukee. The 120,000-square-foot Ridgeview property is the home of A.L. Schutzman Co., a nut and snack processor. The Elgin properties are the NorthWest Corporate Park and the NorthWest Business Park.

The buyer in the transaction is Stockbridge Real Estate, which is based in San Francisco and has a regional office in Chicago.

Combined, the industrial properties in the sale span more than 2 million square feet. Sources said the value of the transaction was more than $100 million.

"We are extremely pleased.  The sale of a property is the final stage in the cycle of any successful real estate project and this transaction provides the opportunity to expand and enhance both our portfolios with new product." Francis Brzezinski, chief executive officer of Interstate Partners LLC, and John Kersey, executive vice president of Zilber Ltd., said in a joint statement. "This is another indication of the strong economic climate for quality industrial properties in good locations, particularly in the Midwest.  Our ventures have proven to be extremely rewarding for both parties and we will continue to look for opportunities to work together on real estate projects."

Cushman & Wakefield Sonnenblick Goldman both advised the sellers and secured financing for the buyer in the transaction.

Jim Carpenter, senior director, and Ken Szady, executive director, from Cushman & Wakefield's Capital Markets Group, represented the joint venture between Interstate Partners and Towne Investments in the marketing and sale of the portfolio.

Industrial investment volume for the Chicago market showed improvement during the second half of 2010, following record-low volume in 2009. The current pipeline of transactions closed or in the market and expected to close totals more than $500 million, putting the market on pace to return to normal industrial sales volumes in 2011, according to CDushman & Wakefield.

"As the market leader, we're very pleased to have completed the first of many large transactions we will see in 2011," Carpenter said. "Going forward, it's our view that the investment market will now broaden to include Class B assets as well as properties with lease rollover and vacancy as investors become more comfortable underwriting risk and seek higher yields. You'll see offerings like that from us in the not too distant future. Get ready."

Interstate Partners has regional offices in Chicago, Minneapolis and Milwaukee.