Elion Partners Proposes $2B Logistics Park; Hires CBRE as Agent

WILMINGTON, IL—Elion Partners reports that it plans to spend approximately $2 billion to expand the former RidgePort Logistics Center here. The Miami-based real estate investment firm plans an additional 30 million square feet of distribution space at what is now being called the Elion Logistics Park 55.

As part of its new plan for the property that it acquired in 2016, Elion has retained commercial brokerage firm CBRE as the exclusive leasing agent for the 140-acre complex that Elion says will serve an underserved trucker and warehouse workforce.

Upon completion, the park will be the largest rail-served industrial mixed-use logistics park in the Midwest, and one of the largest in the country.

“ELP 55’s goal is to develop a mixed-use logistics park that aligns with the values of the local community, as the logistics industry continues to change. We recognize the ever-increasing demands of consumers and are proud to continue development of one of the most expedient ‘first-mile’ logistics centers in the country,” says Shlomo Khoudari, co-founder and managing partner at Elion Partners.

In 2016, Elion acquired more than 1,000 acres of land in the Greater Chicago area with the potential to house 11,397,057 square feet of industrial distribution space, known as RidgePort Logistics Center. At the time, a 2-million-square foot facility owned by Michelin and a 50,000 square foot trans-load cooler building owned by Puris were the only tenants on-site.

Since that acquisition, Elion has purchased additional land, made significant infrastructure advancements and collaborated with local partners and government entities to expand the future park to more than 30 million square feet. To date, 6.3 million square feet of multi-tenant and build-to-suit space exists and is occupied by companies such as Post, Lineage, Batory Foods, and another Fortune 500 company.

The master plan includes up to 2,500 acres and currently houses a full-service TA Petro Travel Plaza, 40 acres of natural ponds, and up to 140 acres planned for commercial development. Current projects underway include an on-site first responders’ station, slated for completion in the fourth quarter of this year, interconnectivity via planned pedestrian walking paths, and an on-site helipad. ELP 55 features two miles of frontage along the BNSF’s Transcontinental Mainline with up to 12 million square feet of potential rail service, and three miles of I-55 frontage with a complete interchange.

In addition to an approximately $2.5 billion in projected economic growth to the region and a potential 12,655 additional local jobs to residents, the park also offers closer proximity to these companies’ consumers due to e-commerce-driven demand for quicker delivery. ELP 55 is located in a regional distribution hub that reaches 27% of the US population within a one-day drive.

Among the planned facilities include showers, laundry, vehicle service, business services, restaurants and entertainment. In addition, Elion Logistics Park 55 will feature 40 acres of natural ponds.

CBRE senior vice presidents Jeff Kapcheck and Jason will represent Elion in leasing the park.

“This is one of the premier industrial opportunities in the region, with access to both rail and a major interstate,” CBRE’s Kapcheck says. “We are confident it will be attractive to national and international distribution firms that need to improve their logistics supply chain.”

The Chicago industrial market has been on a historic run, as 2018 closed with the 34th consecutive quarter of positive absorption and total annual absorption at 19.9 million square feet. The majority of users have been distribution and logistics providers. With active users looking for 22.1 million square feet, supply is not meeting current demand, CBRE states.

“We have seen an unprecedented amount of activity in Chicago’s distribution and logistics market in recent years and users continue to look to expand,” Kapcheck notes. “We expect this activity to continue for the foreseeable future and few locations will provide opportunity similar to ELP 55.”