Search
 

Bridge Development Fills Up its Newest Projects

CHICAGO—The developments were either completed just last year, or are still under construction, a sign of robust tenant demand.

By Brian J. Rogal | brianjrogal | | Updated on August 05, 2016

 

chi-BridgePoint94BuildingPhoto (3) Bridge Point 94 in Libertyville, IL, was delivered in July 2015, and is now 100% leased.
CHICAGO— Bridge Development Partners, LLC has just filled two of its new distribution developments in the Chicago area, and almost completely pre-leased a third still under construction. It’s yet another sign that, as reported this week in GlobeSt.com, the industrial market here has been firing on all cylinders for some time, with tenants lining up to fill vacancies in new, well-located buildings. “We are right where we expected to be in terms of finding tenants,” Steve Groetsema , principal at Bridge, tells GlobeSt.com. Two of the buildings were delivered in July 2015, and when the company underwrites such deals it typically estimates it will take about 18 months to fully lease up. The company will finish the third building this month, but has already signed a tenant that will take 75% of that space. “To bring two buildings to full occupancy while achieving substantial preleasing in another makes for a great achievement for Bridge and our partners.” Groetsema adds that it’s possible that the robust activity in the market has set a virtuous cycle in motion. “Class A space is especially hard to come by, so it’s now easier for brokers to go to a company and say, ‘you’ve got to move now,’ which then leads to even more deals.” The new deals signed by Bridge and its joint venture partner Akard Street Partners LP include two leases at Bridge Point 94 Building 1, a 185,670-square-foot building at 851-899 E. Park Ave. in Libertyville, IL. The first was a long term lease signed by NavePoint for 36,137 square feet. NavePoint, a distributor of cables and rack mounted equipment, will expand from its current location in Buffalo Grove and was represented by Sergio Chapa of Newmark Grubb Knight Frank . Also at Bridge Point 94, Alltech Automotive signed a lease for 58,770 square feet. Alltech, a manufacturer of aftermarket auto parts for the US and world markets, is expanding from its current location in nearby Wauconda. Alltech was represented by Rick Delisle of RD Strategic .  These leases bring Bridge Point 94 I, which was delivered in July 2015, to 100% occupancy.  Bridge was represented by John Hauser , Michael Fonda and High Williams of Avison Young in both transactions.  
chi-BridgeMcCookII (3) Bridge Point McCook, which was also delivered in July 2015, is now 100% leased.
In addition, Chicago Fine Motors has signed a long-term lease for 31,547 square feet at Bridge Point McCook II, a 226,196-square-foot building located at 8401 W. 47th St.  in McCook, IL. The company, a large indoor showroom car dealer specializing in luxury and foreign brands, is expanding from its current location in Lyons.  The lease brings Bridge Point McCook, which was also delivered in July 2015, to 100% leased. Chicago Fine Motors was represented by Adam Stokes of Nicholson Porter & List , while Bridge and Akard were represented by Vern Schultz of Colliers International .  Lastly, Pilot Air Freight has signed a long-term lease for 138,086-square feet at Bridge Point Grand, a 182,965-square-foot building located at 11600 Grand Ave. in Northlake, IL. The lease brings Bridge Point Grand, scheduled for delivery in August, to 75% preleased. Pilot Air Freight, a global transportation and logistics company, was represented by Dan McGillicuddy and Sam Durkin of JLL . Bridge and Akard were represented by Brian Colson and Joe Bronson of NAI Hiffman .  Groetsema says that activity has been especially robust since the fourth quarter, but one difference between today and 2006 or 2007, the last time the market was reaching such heights, is that rents keep rising. Ten years ago, cap rates were falling, and “you actually saw rents decrease.” Today, cap rates are also falling, but when it comes to rents, he says “landlords are sticking to their guns.”   

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.