ELGIN—The cluster of industrial buildings around I-90 in Elgin had a slow first quarter, but a big new lease could help turn things around in the second. The medical device maker Medela, Inc. had more business than it could handle from its headquarters in McHenry County, and just signed a new lease for 154,523-square-feet of warehouse and distribution space at 2768 Spectrum Dr. in this northwest suburban submarket.
The deal is a significant one for the relatively small Elgin submarket. In the first quarter, the biggest lease was by Hubbell Lighting, which signed for 48,187-square-feet at 1215 Bowes Rd. in Elgin. Weak demand by occupiers led to mere 56,900-square-feet of leasing volume, and net absorption of negative 230,100-square-feet, according to Colliers. This followed a healthy fourth quarter, which saw 208,400-square-feet of leasing volume and 245,200-square-feet of positive absorption.
As reported in Globe St.com, recently the submarket had put up solid numbers, enough to attract investors and developers, including those confident enough to build speculative properties. Earlier this year, for example, Conor Commercial Real Estate and Globe Corp. finished Northwest Pointe, a 342,620-square-foot spec building in Elgin. And the real estate investment firm Bridge Development Partners, LLC, recently sold the 319,043-square-foot industrial building at 2700 Alft Lane at Randall Crossings Business Park to Boston-based TA Associates for $20.2 million.
Dan Benassi, Dan Jones and Michael DeSerto from Schaumburg-based Entre Commercial Realty LLC represented Medela in negotiations over its new space. The landlord, Stockbridge Capital Partners, was represented by Lee & Associates' Steve Bass and John Sharpe. The terms of this deal were not disclosed.
Medela officials say they selected this building, located in the Northwest Business Park, because of its racking, conveyors and warehouse equipment, which provided them with a turnkey set-up. The building includes 30' clear height, ESFR sprinkler systems and is cross-docked for convenient throughput.
“We were pleased to find another location in the northwest suburbs for Medela,” says Benassi. “Maintaining a northwest location and easy access to I-90 and Randall Rd., will allow for maximum efficiency.”
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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.
