(To read more on the industrial market, click here.)
BOLINGBROOK, IL-Territorial Business Campus, a 21-acre business park here, has been acquired by TCB Development Co. The park includes 600 Territorial Dr., a 97,142-sf industrial facility, and two seven-acre sites for build-to-suit or future speculative development.
Territorial Business Campus is located west of the intersection of I-55 and Route 53 in, in the midst of Remington Lakes Business Center. TCB is marketing industrial condominium units within the existing facility, 600 Territorial Dr. The industrial warehouse condominiums are being offered either for lease or for sale, with units ranging from 12,000 sf to 97,000 sf.
Plans call for the campus to eventually accommodate more than 300,000 sf of development in three buildings. In addition to the existing industrial condominium building, TCB is planning Building Two, a proposed 97,142- sf facility, and Building Three, a potential 121,202-sf building. These plans are designed to accommodate either speculative or build-to-suit development.
TCB Development has selected Shalvis Group to design the two development sites, and TCB Construction will be the general contractor for the project. The fact that users can either lease or buy their space gives this building a unique flexibility, says Terry Grapenthin, associate broker and exclusive listing agent with Cawley Chicago Commercial Real Estate.
This acquisition resulted from quick decision making by TCB and a late night call from a broker. The call came from broker Dan Cawley, president, Cawley Chicago Commercial Real Estate, to Randy Tieman, TCB Executive vice president. Cawley needed a 48-hour commitment on the first $20,000 in non-refundable earnest money. TCB made that commitment and closed the deal quickly thereafter.
Cawley tells GlobeSt.com that Molex Inc., the seller of the property, had originally acquired the site back in 2000. "They made the decision to shut down this facility and sell the site," he says. "I originally had the property under contract with a potential buyer back in January, but they decided to back out of the deal. TCB became my back-up buyer. The site sold for just north of $7 million, according to Cawley.
Cawley adds that they did quite a bit of market research in order to find a buyer that was the right fit for this property. "In this market, properties totaling from 10,000 sf to 15,000 sf have a vacancy of 6%," he says. "This was one of the deciding factors as to why TCB became interested and decided to develop the location as industrial condominiums."
Construction on Building 2 is planned to start in late third quarter 2006. "We're looking to have the first building at least 50% sold or leased before we start new construction," Randy Tieman, an executive vice president with TCB, tells GlobeSt.com.
Traci Buckingham and Kip Hennelly, senior associates at CB Richard Ellis, represented Molex in the sale. Cawley Chicago will be the agent to sell or lease the industrial condos. "We have two under contract already," Dan Cawley tells GlobeSt.com.
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