CHICAGO—Top industrial properties in the Chicago region bring national attention when they hit the market, but then so do class B buildings. Avison Young just negotiated the sale of a 637,746-square-foot, three-building, class B industrial portfolio in the suburban Chicago market. The three buildings are an average of 98% leased. All assets include long-term tenants and are located in older submarkets where demand for industrial space is strong.
Erik Foster and Mike Wilson, both principals based in Avison Young's Chicago office and members of the company's national industrial capital markets group, represented the seller, a Chicago-based institutional pension fund advisor. The buyer was an institutional fund manager based in New York City. Financial terms were not disclosed.
“There is still a voracious appetite for properties in major markets that provide good yields,” Foster tells GlobeSt.com. “These are in classic Chicago industrial submarkets with deep labor pools and significant transportation links.”
The buildings include:
- 425-455 E. Algonquin Rd., Arlington Heights, IL. This 304,506-square-foot building is 96 percent leased and includes 7,605-square-feet of office space and 12 interior loading docks. It is close to the four-way interchange at I-90 and Arlington Heights Rd.
- 7400 W. 100th Pl., Bridgeview, IL. A 157,593-square-foot distribution and manufacturing facility, this property offers direct access to I-294 from a four-way interchange at 95th St. The building houses a five-ton bridge crane, a one-ton bridge crane, and a pair of two-ton monorail cranes. It has 7,592-square-feet of office space, two interior truck docks, and two drive-in doors. The building is 100% leased.
- 8811 S. 77th Ave., Bridgeview, IL. This 175,647-square-foot industrial facility is built on 6.63 acres near I-55 near LaGrange Rd. and Archer Ave. The building is eligible for a Class 6B tax incentive. It has 8,200-square-feet of office space, 16 interior truck docks and one drive-in door. The building is 100% leased.
“This portfolio provides a tremendous opportunity for the new owner to gain access to the strong Chicago suburban market with assets that are well-positioned for long-term growth,” adds Foster. “With strong tenants in place and the opportunity for rental growth, this portfolio was in strong demand from a variety of investors.”
And he also believes that buyers will continue to compete for product like this throughout the coming year. “This market is not showing any sign of weakness.”
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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.
