CHICAGO—Brennan Investment Group, LLC and DLJ Real Estate Capital Partners, LLC have just acquired about 8 acres of land at 1780 Birchwood Ave. in Des Plaines, near Chicago's O'Hare International Airport and the intersection of I-90 and I-294. The partners plan to construct the Northeast O'Hare Industrial Center - a warehouse and distribution building which will have about 140,000-square-feet, and feature 32' clear height, ample loading, trailer parking, and auto parking. Furthermore, the partners said they will build it to a LEED standard.
It is a good time to get an O'Hare project out of the ground. The submarket that surrounds the airport has recently had a strong run of leasing activity. According to data published by Colliers International, its vacancy rate remained steady at 8.44% during the second quarter even though large amounts of vacant space returned to the market.
“The O'Hare market's available industrial supply remained at 11.7-million-square-feet in the second quarter,” Colliers found, “the highest amount of vacant space of any Chicago-area submarket. However, available supply in this market is down a remarkable 2.3-million-square-feet from one year ago.”
"The Chicago industrial market – one of the most diverse in the nation - has seen resurgent tenant demand evidenced by three consecutive years of positive net absorption," said Scott McKibben, Brennan's co-founder and managing principal. "For this development, we were particularly attracted to the market fundamentals of the O'Hare area, where vacancy has declined five full percentage points in the past two years and now stands at 8.10%," he added. "We are confident that with year-to-date net absorption of 1.3-million-square-feet, the O'Hare market is ready for development projects."
A Colliers team of Jonathan D. Kohn and Thomas C. Rodeno has been retained to market the property.
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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.
