(Read more on the industrial market.)
ELK GROVE VILLAGE, IL-First Industrial Realty Trust Inc., based in Chicago, plans to develop a 142,000-sf distribution building at 2000 Arthur Ave. The project is part of FirstCal 1, the company's joint venture with the California State Teachers' Retirement System.
First Industrial acquired the seven-acre site from Quebecor World Inc., headquartered in Montreal, for nearly $6.5 million, sources say. Colliers Bennett & Kahnweiler represented Quebecor in the sales transaction. A cost for the project was not disclosed.
The 142,000-sf speculative building will have 38 dock doors and 30 foot clear heights. Construction is expected to begin in the spring, and should be complete by the end of 2008. The building is expected to have two tenants such as air cargo, freight forward or third party logistics companies, says Michael Powers, regional development officer for First Industrial. "I think we will see a number of different of types of users look at it," Powers says. NAI Hiffman will market the building. An asking lease rate has not been determined yet but the average asking lease rate for the area is currently between $8.75 per sf and $9.50 per sf net, says Keith Stauber, regional director of the Chicago region for First Industrial.
The property is in the O'Hare submarket and First Industrial expects the submarket to tighten as the expansion of O'Hare International Airport progresses, Stauber says. "We see the O'Hare market area as continuing to be a very strong long-term growth market," he says. The site was a surplus property for Quebecor, Stauber says.
There is currently an older building on the site that will be demolished in the second quarter of next year. The current facility has low ceiling heights and does not have a lot of docks, Powers says.
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