TUESDAY, FEBRUARY 02, 2010

O'Hare industrial building snags three tenants

by Paula Widholm
Chicago -> O'Hare


Three new tenants recently took a total of 218,000 square feet in KTR Capital's 683,000-square-foot Tollway Business Center at 10800-10900 Belmont Ave., Franklin Park. O'Hare Record Retention Center Inc. signed for 121,000 square feet in January and is relocating from 5000 W. Roosevelt Road in Chicago. The Soccer Place took 55,000 square feet for a semi-pro soccer practice facility in December, and
K2 Logistics leased 42,000 square feet there in November.

"There's a lot more activity for buildings that are priced right and have landlords that are motivated to work with tenants to get deals done," said Larry Goldwasser of NAI Hiffman, one of the listing agents for the KTR building. Larry Much and Jay Maher also represent New York-based KTR in leasing the building.

Ryan Stoller, Chicago region asset manager for KTR Capital, noted that the building's robust leasing activity comes during a time when the O'Hare market experienced negative absorption for the last eight quarters. "It's hard work and hustle on behalf of our brokers working the building and our own ability to respond to the market quickly," he said.

Signing on The Soccer Place was one example of creativity. "There was space in our building that didn't have any loading docks so it was a great fit," Stoller said. "They had been turned away by some of our competitors because the use is non-standard."

These three new tenants join National Lift Truck, Multigroup Logistics and Everflora at the multitenant building and bring its occupancy level to 60 percent.

KTR bought the building in September 2007 from Werner Co. for $19.5 million. "They bought the building when everyone else was tearing down buildings and building new," Goldwasser said. "KTR decided to keep their basis down and make it a multitenant building instead of tearing it down."

The building's former owner manufactured ladders there and added on to the 1970s building through the years. KTR's capital improvements included exterior paint, roof repairs, a new parking lot, a new dryvit façade on the north side of the building, and the remodeling of offices, Goldwasser said.

Joe Bronson of Darwin Realty represented O'Hare Record Retention Inc. in the 121,000-square-foot lease. Goldwasser, Much and Maher represented The Soccer Place in its 55,000-square-foot lease, and Brian Carroll of Grubb & Ellis represented K2 Logistics in its 42,000-square-foot lease.

Richard Antczak joins Grubb & Ellis Manufacturer buys Chicago building AIRE honors sponsors, volunteers AIRE welcomes new members Cushman & Wakefield promotes Britt Casey Manufacturer brings jobs back to the U.S. Transportation, logistics to head AIRE program Epstein designs Testa Produce's headquarters/DC Venture One buys Kenosha industrial building Three Midwest firms buck the odds, negotiate huge deal in Northwest Indiana