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SAUK VILLAGE, IL-DP Partners, based in Reno, NV, has started construction on a 496,260-sf speculative building on Railroad Drive, near the intersection of Illinois State Highway and Sauk Trail. DP's overall investment for the project will be about $25 million with the building located in the $150-million LogistiCenter at Sauk Village, says TJ O'Brien, development manager for DP's Midwest region.
The facility will be on a 24-acre site with the ability for the building to be expanded up to 1.2 million sf. The building, which will have cross-docks with the option for rail service at the rear of the building, is expected to be completed in the first quarter of next year. The asking lease rate is $3.25 per sf net, O'Brien says. George Maragos and Scott Duerkop, both with CB Richard Ellis, will handle leasing for the building. Harris Architects Inc., based in Palatine, is the project architect and Jacob and Hefner Associates PC, based in Oakbrook Terrace, is the civil engineer.
The speculative building is the third building DP is constructing at the business park. A 258, 950-sf building, at 21701 Mark Collins Dr. and a 776,420-sf building, which Warehouse Specialists Inc. leases 516,072 sf, were "sold in July as part of a larger portfolio sale that involved many other properties," O'Brien says. The portfolio was sold to ProLogis for an undisclosed price.
In 2005, DP began developing the LogistiCenter at Sauk Village, a 325-acre business park bordered by Illinois State Highway 394 on the east, Cottage Grove Avenue on the west, Sauk Trail on the south and the Elgin, Joliet and Eastern Railway on the north. The land is owned by the village of Sauk Village and the park is a joint venture between the village and DP, O'Brien says. "Currently, there is about one million sf. This new building will bring it up to about 1.5 million sf," he says. "The total park can accommodate about five million sf with full build out." DP estimates that park will generate $60 million in local taxes during the next 20 years and create between 1,500 and 2,000 jobs. Tenants in the park include Del Monte Corp. and Clark Steel Framing Systems.
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