Avison Young has represented a national manufacturing company in the sale of a 117,472-square-foot industrial building at 1020 Olympic Drive in west suburban Batavia, Illinois. Oak Brook-based investor Midwest Industrial Funds acquired the asset for an undisclosed amount.
Tom Curtis, an associate in Avison Young’s Chicago office, and Avison Young principal John Moysey, also based in Chicago, represented the seller, a national manufacturing company. Midwest Industrial Funds, which has multiple properties in the Fox Valley submarket and more than 40 throughout the Chicago market, has retained Avison Young to market the repositioned asset, which will undergo major renovations including a new roof, installation of modern HVAC systems, office renovation and several other updates.
The class B building was built in 1977 and expanded in 1983.The facility was used by the manufacturing company as a single-tenant building for many years and was vacant at the time of sale. The Avison Young team provided an in-depth asset evaluation determining how best to position the building for users and investors.
“Given the building’s age, as well as the presence of a highly specialized interior layout, we determined that certain capital improvements were necessary to make the building marketable to a wider buyer pool,” said Moysey. “By thoroughly evaluating the building and recommending detailed changes ahead of the listing, we shortened the market time and generated multiple offers.”
The seller demolished approximately 10,000 square feet of mezzanine space to create a more open entranceway and completed other interior upgrades before listing the building for sale. The building was under agreement within three weeks of being placed on the market.
The 24-to-28-foot clear height building is positioned on an oversized 7.1-acre site, which includes outdoor storage and room for potential expansion. There are three rail doors that allow connection to the nearby Burlington Northern Santa Fe rail spur. This rail service has the potential to shorten a tenant’s logistics cycle and reduce operational costs significantly.
“This type of functional, class B building is an ideal option for many entrepreneurial investors that have a more hands-on approach and are looking to add value,” says Moysey. “There are many opportunities in the Chicago market that are not on the radar of larger investors but can still provide strong cash flow and the potential for higher yields.”