Although some red flags have been raised lately about the strength of the local industrial market, Holmes estimates a 60-day marketing period will be necessary to sell Heartland's 30% share after Grubb & Ellis completes its initial underwriting process, which is expected to take about two weeks.
"I think it's very true, that we have some softness in the industrial market, as well as other sectors," Holmes tells GlobeSt.com. "But I would say this is a superior location. There will be demand."
Located about two miles northwest of the Loop, Goose Island is a redeveloped industrial site in the north branch of the Chicago River. It is surrounded by neighborhoods that have seen significant residential redevelopment, as well as retail, including the Clybourn Corridor. The park was developed in 1996 by a joint venture that included CMC Heartland Partners II LLC, a subsidiary that holds Heartland's 30% stake; principals of Colliers Bennett and Kahnweiler as well as Wooten Construction. The joint venture's property has been fully leased since 1997, Holmes says.
However, Sara Lee has announced it will leave its 150,000-sf facility a few blocks away at 900 N. Branch St., also on Goose Island, within two years, and reportedly is seeking to sublease its space.
Prospective purchasers for the Heartland share could be a REIT, a pension fund or other institutional buyer or perhaps a well-heeled individual investor, Holmes suggests. "It's a fairly broad spectrum," he adds. "It's institutional quality real estate in the hottest location in Chicago."
Tenants of the industrial park include Jetro Cash & Carry, Associated Materials, Five Star Laundry, Cook-Tek Inc., Stewart-Dean, Delivery Station and Charter ABS.
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