CHICAGO–Developers looking to satisfy the escalating demand for industrial space in our region are filling in the last spaces in some submarkets. Ridgeline Property Group, for example, has decided to build a 438,150 square foot, class A distribution center on a speculative basis in suburban Crest Hill less than two miles from I-55 and about nine miles from I-80. RPG and its capital partner Cabot Properties acquired the Crest Hill Industrial Park site in September.
Pre-cast concrete and steel work will begin in January and company officials expect to finish next August. David Bercu and Jim Estus, both principals at Colliers International, will market the property for lease.
"Demand in the market remains strong but there is a limited supply of space in the submarket," says Pete Harmon, partner at RPG. "Strategically located on one of the last remaining sites along I-55, this project will provide a solution for today's users in a proven submarket, appealing to demand from both the I-55 and I-80 submarkets."
Located on a 29-acre site at 16824 Enterprise Blvd., the site offers proximity to the BNSF intermodal facility in Elwood. Existing tenants at Crest Hill Industrial Park include Rich Products Corp., Old Dominion Freight Line, Dayton Freight Lines and Aaron Thomas Co.
New construction has become common in the area, which as of the third quarter had a vacancy rate of just 6.93%, according to Colliers, although it places Crest Hill in what it calls the I-80/Joliet Corridor. The company expects developers to finish two speculative and two build-to-suit projects in the fourth quarter 2015 and add 970,500 square feet to the submarket's inventory base.
"This project marks our third partnership with RPG in the country this year and the initial one in the Chicagoland area," says Patrick Ryan, executive vice president of the Boston-based Cabot. "We look forward to offering the Crest Hill distribution center to meet ongoing strong demand for high-quality space in this market."
The cross-dock facility will feature 32' clear heights, four drive-in overhead doors, 36 exterior docks, 319 car parking spaces, 163 trailer parking spaces, and ESFR sprinklers.
As reported in GlobeSt.com, RPG and Cabot have also partnered on Susquehanna Logistics Center, a 423,300 square foot distribution facility in York, PA, and Hanover Business Center, a 100,000 square foot distribution facility in metro Baltimore.
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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.
