(Read more on the industrial market.)
FRANKLIN PARK, IL-TA Associates Realty, headquartered in Boston, has acquired a 325,000-sf industrial building at 3708 N. River Rd. The seller was CenterPoint Properties, based in Oak Brook, says Brian Colson, executive vice president with NAI Hiffman's industrial services group.
Colson and Lawrence Goldwasser, also with NAI Hiffman, represented both CenterPoint and TA Associates in the transaction. Colson would not disclose a sales price but said that it was "far below" the more than $100 per sf to construct a similar building in the area. Sources peg the amount at around $22 million. A cap rate was not disclosed.
The building is currently 65% leased. Tenants in the building include J.S. Pauluch and Dealer Tire LLC, Colson says. The asking lease rate is $5.50 per sf, net. NAI Hiffman will lease and manage the property. TA Associates plans to add about 100 parking spaces to the site and may retrofit the building for freight-forward tenants, Colson says. The firm typically has a minimum hold of four to six years, he says.
The building was constructed in 2002 on a 14.7-acre parcel. The building has 30 foot clear ceiling height and has 3,000 sf of office space. CenterPoint had owned the property since January 2005 when it paid $17.3 million for the building, Colson says. CenterPoint had acquired the property as part of a $96-million portfolio from HSA Commercial Real Estate, which had stayed on as manager of the properties, as previously reported by GlobeSt.com. CenterPoint decided to sell the property because "They saw a good opportunity with the change of market value in the O'Hare submarket," he says. "Land value has gone through the roof."
The property, which is located near Interstates 294 and 90 and is also near O'Hare International Airport, was "one of the only class A assets that were available for sale," Colson says. "Granted, there are a lot of teardowns" occurring in the submarket but the new construction is only about 5% of the 130 million sf in the O'Hare submarket, Colson says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
