1300 Morse Ave., Elk Grove Village, IL
BEDFORD PARK, WOOD DALE, ELKS GROVE VILLAGE, IL—A three building industrial portfolio in suburban Chicago sold at auction for $11.5 million.
Jordan Goodman, an associate in Marcus & Millichap's Chicago Downtown office, along with Matt Fitzgerald and Jeff R. Rowlett, both senior vice presidents, investments, in Marcus & Millichap's Milwaukee office, represented the seller, a special servicer. All three properties sold at auction to buyers that were a mix of local and out-of-state institutions.
“Despite years of robust construction—much of it completed on a speculative basis—Chicago-area industrial vacancy continued to fall in 2018, reaching a decade low of 5.9 percent,” says David G. Bradley, regional manager of Marcus & Millichap's Chicago Downtown office. “All of the properties in this portfolio attracted strong interest and multiple offers, attesting to the continued strength of the market as rents keep rising.”
The three buildings, each of which had a different purchaser, include:
- 5555 W. 73rd, a 159,857-square-foot net-leased property in Bedford Park, IL, that sold for $5 million. The single tenant, Packaging Corporation of America, occupies the entire property, which is near Midway International Airport and Interstates 55 and 294.
- 901-929 AEC Drive, a 60,275-square-foot property in Wood Dale, IL, that sold for $3.85 million. The property was 51 percent occupied at the time of sale, with four vacant units comprising 29,568 square feet presenting upside to the buyer. The property is located on the western edge of O'Hare International Airport, within 10 minutes of four interstate highways: I-190, I-294, I-290 and I-355.
- 1300 Morse Ave., a 49,360-square-foot net-leased property located in Elk Grove Village, IL, that sold for $2.65 million. The property serves as the headquarters for Wurth Baer Supply, its only tenant. It is located just northwest of O'Hare, with quick access to Interstates 90, 190 and 294.
“O'Hare and Midway are key anchors in Chicago's one-billion-plus-square-foot industrial market, with manufacturers and distributors seeking space nearby not only because of the convenient airport access, but also their proximity to major thoroughfares,” says Goodman. “An influx of institutional capital has concentrated on assets larger than 100,000 square feet, while private investors see opportunity in smaller, older warehouses that can be redeveloped to better meet the needs of today's industrial users.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
