(Read more on the industrial market.)
BUFFALO GROVE, IL-Bridge Development Partners LLC, based in Chicago, and McMorgan & Co., based in San Francisco, have bought 29 acres at the intersection of Aptakisic Road and Leider Lane with plans for an industrial park. The partnership acquired the property from Peerless of America for $16.6 million, confirmed Tony Pricco, a principal with Bridge Development.
John Hauser, with Cushman & Wakefield, represented Bridge Development for the land acquisition. The joint venture plans to construct two speculative industrial buildings on the site in addition to retrofitting an existing warehouse building. The estimated cost for the Aptakisic Creek Corporate Center, which will have a total of 508,000 sf, is $45 million, Pricco says. Project financing is being provided by LaSalle National Bank.
PrimeSource, which is currently in Elk Grove Village, has signed a 12-year lease for the existing warehouse facility, he says. The 173,000-sf building is currently being retrofitted and PrimeSource is expected to move into the facility in January. PrimeSource signed a letter of intent to lease the building before Bridge closed on the property, he says. The partnership will spend approximately $2.5 million to retrofit the facility, including installing ESFR sprinklers and bringing the building up to code and compliant with the Americans with Disabilities Act, Pricco says.
Construction is under way on an 188,215-sf industrial building and a 146,850-sf industrial building. Both buildings will have 30-foot clear ceiling height. The 188,215-sf building will have 16 docks and be divisible to 40,000 sf. The 146,850-sf building will have 16 docks and be divisible to 25,000 sf. The typical sized tenant in the area is between 50,000 sf and 100,000 sf and the partnership is seeing interest in users for spaces from 50,000 sf up to 200,000 sf, he says. There is some manufacturing in the area as well as light assembly and local distribution. This area tends to have a heavier office requirement and the space usage tends to be more labor intensive, he says. The asking lease rate for the two speculative buildings is $6.95 per sf, net, Pricco tells GlobeSt.com. Hauser and Charlie DesRosiers, also with Cushman & Wakefield, are the marketing agents for the Aptakisic Creek Corporate Center. The two buildings are expected to be completed in the summer.
The joint venture was attracted to the property because of a lack of available land in the Southern Lake County submarket and the ability to have multi-tenant industrial buildings, Pricco says. Peerless of America, which manufactures refrigeration coils and aluminum extrusion, moved out of the building to a facility in Effingham about five years ago. "It had been a piece that kind of everyone had been keeping their eye on," Pricco says. A 173,000-sf warehouse facility has been vacant since that time, Pricco says. The buildings are the first speculative industrial facilities to be constructed in the submarket since at least 2000, Pricco says. The lack of available land is the main reason for the lack of speculative projects, he says.
Bridge Development is also constructing an office building across the street on Aptakisic Road in Lincolnshire, Pricco tells GlobeSt.com. Bridge Development currently has a 12-acre site under contract, he says. The contract sales price was not disclosed. Bridge Development is buying the property from Sunrise Tree Care and Wirkus Nursery and plans to close in the spring. The plans for the office building are very preliminary but the building is expected to be four stories and about 162,000 sf, he says.
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