MINOOKA, IL-Swedish-based appliance manufacturer Electrolux announced Thursday that it has leased 500,000 square feet here for a new regional distribution center. The company currently leases about 363,000 square feet at a building in Plainfield, IN, but the company wanted to move closer to an area that allows more speed to customers.
The new lease is at the 965,183-square-foot 801 Midpoint Rd. building, constructed by Opus Development Corp. in 2008. The building, adjacent to Interstate 80, has been empty since completion. Electrolux remains the only occupant.
A company spokeswoman tells GlobeSt.com that the new facility will store and ship Electrolux, Electrolux ICON and Frigidaire major appliances. The building will also feature a 1,200-square-foot showroom.
She says the new building is bigger and more efficient than the Plainfield location, and excellent availability to road and intermodal transportation, being just a few miles from Union Pacific’s Joliet Intermodal Terminal. “The Chicago area location allows faster delivery to a significant share of our customers in the Midwest,” she says. The company will move out of Plainfield in October.
Chris Wood, Anthony Burns and Jordan Decker with UGL Services represented Electrolux in the lease. James Estus with Colliers International represented Opus, which also had in-house representation by Greg Terwilliger and Mike Yungerman. The terms of the deal were not released.
Wood tells GlobeSt.com that while there’s been a couple of large transactions completed in the Chicago area, it’s still a tenant’s market, and will stay soft until at least next year. “The distribution center market is very company specific,” he says. “If you do a lot by truck, certain submarkets make sense. If you do heavy rail, you may be looking at an intermodal. Minooka and the surrounding area has done quite well because it has good truck access and you’re not that far from Joliet.”
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