6012 Monroe Court in Morton Grove, IL. Dayton Street, the new owner, plans to ditch its original “castle” look in favor of a modern aesthetic.
CHICAGO—A lot of industrial users looking for new space in the Chicago region can't find suitable buildings, and developers have decided to take over and revive older buildings once considered obsolete. Dayton Street Partners has made that play into its specialty, and just closed on 6012 Monroe Court in north suburban Morton Grove.
The 206,150 square foot industrial building was finished in the 1960s, and needs a major overhaul. It was originally designed to look like a castle, and the Chicago developer aims to start by ditching this unusual appearance.
“It doesn't look like a modern building,” principal Howard Wedren tells GlobeSt.com. “We will de-castle it, put in a new roof, and demolish the out buildings to make room for more parking,” among other changes. Dayton plans to spend about two million dollars on its interior and exterior renovation campaign.
The purchase fits in with Dayton's overall strategy to amass a diverse portfolio in the Chicagoland area, with a focus the acquisition and development of high barrier to entry infill industrial and office properties. In September, for example, the firm picked up a 40,000-square-foot loft office building in Fulton Market West submarket.
A three-month construction job will make the Morton Grove space appealing to tenants that right now have very few good options in the north suburbs, Wedren adds. “You've got a lot of older product, most with very low ceilings, that also don't have modern docks or power levels.” And owners of the new speculative buildings underway in the area will need rents that put them out of reach for many prospective users.
However, 6012 Monroe Court does have a distinct advantage over much of its competition. Its 28' clear warehouse space makes it one of the highest buildings from its era, he says. Therefore, it will soon be a truly modern space, but one with rents about 40% less than those new class A speculative buildings in the submarket.
Tenants currently occupy 100% of the property, but one plans to consolidate operations and leave about 90,000 square feet in six months. Wedren is confident that Dayton will soon fill the space. The high-density neighborhood is already home to Amazon, which occupies the building next door, and many food distributors and 3PLs want opportunities to gain access to the city and many of its most affluent suburbs.
“There is almost no land available,” he adds, “which is why we love this deal.”
Zach Graham, Ryan Bain and Tom Harmon of the Chicago office of CBRE represented Dayton in the transaction.
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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.
