JOLIET, IL—Another top industrial developer has decided to take a chance on a major speculative project in the Chicago area, a further sign that some submarkets have recovered from the recent economic downturn. Oak Brook-based CenterPoint Properties has just acquired a 31.88-acre intermodal site from Autobahn Realty LLC in Joliet and started construction of 485,500-square-foot class A facility on a speculative basis. Located only half a mile from the Union Pacific-Joliet Intermodal Terminal at CenterPoint's flagship CenterPoint Intermodal Center, the site also has easy access to I-55 and I-80.
Adam Roth and Dan Leahy of NAI Hiffman represented CenterPoint Properties in the transaction.
“It's the first spec building we've done in Joliet,” at least since the recession, says Brian McKiernan, senior vice president with CenterPoint. “I think there's been a pretty strong demand.” CenterPoint gained confidence in the submarket during the past year as they developed several huge BTS facilities including a 1.6-million-square-foot warehouse and distribution building for Home Depot.
They will most likely market the new speculative project, called the CenterPoint Way Spec Building, to major retailers or major logistics providers searching for a smaller space with excellent transportation options, he says. “I think it could be for two tenants. We feel that tenants looking for 200,000-square-feet to 500,000-square-feet are kind of the sweet spot for the area.”
The facility will boast more than 111 loading docks, 70-foot speed bays, 222 auto and 133 trailer parking spaces and a divisible floor plan. It was designed by Cornerstone Architects and the general contractor is Morgan/Harbour Construction. CenterPoint plans to finish the project by late fall or early winter.
The new spec building exemplifies CenterPoint's focus on investing in and marketing properties that will cut down transportation costs, McKiernan adds. “As the world becomes more globally connected by supply and logistics chains,” companies will concentrate less on rental costs and more on finding facilities with intermodal access. Rent forms only a small portion of the cost “to bring a TV from China to a Walmart in your neighborhood. These days, Walmart is as much of a logistics company as a retail company.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
