Brown Commercial Group has completed lease negotiations that will bring two manufacturing businesses into one 131,605-square-foot building in Chicago’s I-55 Corridor. Partner Mike Antonelli represented Pioneer Service, Inc. and M&M Quality Grinding, Inc. in a comprehensive site selection, market analysis and lease negotiations that will allow both companies to move into 61,355 square feet and 70,250 square feet, respectively, at 7335 Santa Fe Dr. in Hodgkins, Illinois.
As part of the transaction, the former distribution building will be renovated and converted into a fully operational manufacturing facility with individual spaces for the two businesses. Pioneer Service is headquartered in Addison, IL and M&M Quality Grinding in Chicago. Both companies will move to the new site when it is ready for occupancy in mid-2023. Pioneer Service manufacturers precision machining parts for the aerospace, hydraulics, and medical industries, among others. M&M Quality Grinding manufactures ground metal bar stock and provides bar processing services for aerospace, medical, military and industrial businesses.
The Hodgkins facility is located in the I-55 submarket, which currently has a low vacancy rate of 2%. This submarket is leading Chicago industrial submarkets in leasing and absorption for 2022, with 5.6 million square feet of new leasing activity and 7.9 million square feet of absorption during the first three quarters, according to Cushman & Wakefield research. The I-55 Corridor, Southeast Wisconsin, Interstate 80 Corridor and Southern Fox Valley submarkets continue to see the highest amount of new leasing in the Chicago region, accounting for over half (52.5%) of new leasing in 3Q22. The average lease size rose 5.7% YOY from 72,777 square feet to 76,946 square feet.
Adam Stokes of NAI Hiffman represented the building owner, UBS Realty Investors, in the transaction.
Arco Murray will provide construction services for the building renovations, which will include reconfiguring the building to support two tenants, renovating the existing office space, constructing 5,000 square feet of new office space and upgrading the power and distribution capacity to accommodate the tenants’ requirements. The project is slated for completion in mid 2023.
