(To read more on the industrial market, click here.)
HUNTLEY, IL-LDI Industries has acquired an eight-acre site in Huntley Corporate Park, located at Interstate 90 and Route 47 here. The firm's new facility will be the first industrial building in the park which currently has about 130 acres available to be developed.
The manufacturer of lubrication equipment and hydraulic components will relocate from its current facility in Elgin. The deal represents an expansion and relocation as 100 new jobs will be added. The firm is headquartered in Manitowoc, WI.
Adam Reiche, a VP at Reiche Construction of McHenry, negotiated the land sale for the private ownership group, Reiche Partners LLC. The manufacturing facility will total 100,000 sf and include 5,000 sf of office space and 24-ft ceiling height. Plans call for construction to be completed by early fourth quarter 2006. Grubb & Ellis SVPs Brian Carroll and Frank Griffin and VP Dominic Carbonari negotiated the purchase of the build-to-suit site on behalf of LDI.
Carroll tells GlobeSt.com. that his client liked the overall feel of the park in addition to the tollway frontage. "We started looking for proposals for our client back in March 2005. We had proposals from five builders in four different parks and they made a decision by September 2005."
Steve Bass, an industrial broker at Trammell Crow, explains that this market, which is about 45 minutes west of Chicago's Loop and 30 minutes west of O'Hare International Airport, has been booming for several years. He tells GlobeSt.com that "there's been around one to 1.4 million sf of absorption in the market for the last few years."
He points out that "access to the city is good, especially for those users who need to get there on a regular basis. In addition, the location has a good labor market for employers, employees. Next, lots of good housing has been built there recently."
But, Bass emphasizes that the key attraction is "lots of land that's less expensive." He explains that the vacant land market near the intersection of Randall Road and Interstate 90 averages close to $5 per sf. "By the time you get further west, around Huntley, prices can be found at just under $4 per sf."
Bass tells GlobeSt.com that one of the triggers for the vast supply of vacant land is the sale of acres and acres of farm land. "Many farmers have been offered prices that they just can't refuse."
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