CHICAGO—The region’s industrial market has a sterling reputation among investors, both foreign and domestic, and continues to attract major buyers. CBRE Global Investors and German investment company Universal-Investment, recently acquired a newly completed one million square foot build-to-suit distribution facility in suburban University Park that Georgia Pacific Consumer Products occupies under a triple-net lease. The acquisition was made for the account of an investment fund established for Bayerische Versorgungskammer, one of Germany’s largest institutional investors.
Developers have launched dozens of projects in the region over the past few years, and this structure, located in Gateway 57 Corporate Park, is now one of the market’s premier buildings.
“There is nothing not to like about it,” Stuart Sziklas, managing director for CBRE Global Investors-Americas, tells GlobeSt.com Not only is it new, but it is one of the few buildings that has 36’ clear ceiling heights as well as “a top-notch tenant” with a long-term lease.
“Chicago is one of the top four industrial markets in the country,” he adds, but “most of its class A product is 32’ clear, and much of it is even lower.” But a 36’ clear building provides far more flexibility, and that will attract a wider range of potential tenants, especially ones that need large racking systems, such as e-commerce retailers. in the event the owners need to release it when the present long-term lease runs out.
The long-term prospects for the building are strengthened by its location at the center of the US freight transportation network, he says. “University Park benefits from excellent transportation via I-57 and I-80 and access to a good labor force.”
BVK is looking to make investments across the US in several commercial real estate sectors, but new investments in Chicago industrial properties remain a strong possibility. “We would do this again tomorrow if we could find a similar deal.”