Brown Commercial Group negotiated a 74,146-square-foot industrial building sale at 5200-5220 Thatcher Rd. in Downers Grove, IL, in Chicago’s suburban market. Mike Antonelli and Trinity Scurto, both Partners with Brown Commercial Group, represented the seller, Premium Investment Properties, Inc. in the transaction.
“The seller purchased the property a few years ago with the intent of completing a strategic improvement program to enhance its value in the market,” said Antonelli. “With the work completed, we tested the market to determine the level of interest for the asset. Given the robust demand for industrial assets we were able to secure a buyer at a purchase price that reflected that enhanced value.”
Antonelli also represented the buyer, Beco Management, Inc., which is expanding its industrial portfolio in Illinois with this purchase. The building is partially leased and the new owner plans to secure new tenants to bring it to full occupancy.
Industrial sales volume in the Chicago market moved above pre-pandemic levels in the second quarter of 2021, reaching more than $1.4 billion, according to CoStar research. Over the past 12 months there have been 1,444 industrial sales totaling $6 billion, with an average sales price of $80 per square foot. That sales level is consistent with volumes recorded over the three years preceding the pandemic.
There has been 28.1 million square feet of net absorption in the Chicago market over the past 12 months, with rents growing at a rate of 6.3%, according to CoStar.
Industrial property values have continued to rise over the course of the pandemic with the surge in e-commerce. The Chicago industrial market is expected to see continued strong growth over the next five years, given Chicago’s role as both a domestic and international logistics hub.