(Read more on the industrial market.)
CHICAGO-DSC Logistics, based in Des Plaines, is leasing 111,500 sf at 1401-1501 E. 96th St. The 254,703-sf building is part of the Calumet Business Center, a 12-building industrial park owned by Ashley Capital LLC, headquartered in New York City.
The term of the lease is five years, says Cindy Bischof, principal with Elmhurst-based Darwin Realty & Development Corp. Bischof and Chris Gary, also with Darwin Realty, represented Ashley Capital in the lease transaction. Lynn Reich, with Colliers, Bennett & Kahnweiler, represented DSC Logistics.
DSC Logistics is moving into the empty building. DSC Logistics has 30 logistic centers in 13 states for consumer goods, grocery, electronics and healthcare companies. The building will be an additional location for the company, Bischof says. The company chose the location because the building is rail served, she says. DSC Logistics will be able to receive 11 standard Norfolk & Southern rail cars at a time. The building has been undergoing “significant renovations” during the past year including “new docks, new lighting and a new sprinkler system,” Bischof says.
The Calumet Business Center has more than two million sf and is on the southeast side of the city along Interstate 94. “Its leading attribute is rail infrastructure,” Bischof says. “It provides cost-effective solutions to users.” The park also has a lot of trailer parking, which is highly sought after and rare in the city, she says. The business park has an occupancy rate of nearly 80%. Major tenants in the park include Dedicated Logistics, Midwest Warehouse and Mead Paper.
The asking lease rate for the park was not disclosed but the asking lease rate for warehouse and distribution buildings in the South Chicago submarket is $3.78 per sf, according to Grubb & Ellis' second quarter market report. Ashley Capital has owned the building since the late 1970s and acquired the rest of the buildings in the late 1970s and early 1980s, Bischof says.
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