Chicago-based CA Industrial, the industrial investment and development division of CA Ventures, has started construction on CA Elk Grove, a 146,029-square-foot, speculative, Class A warehouse at 550 E. Devon Avenue in Elk Grove Village, Illinois. The building, which offers a flexible layout to accommodate either single- or multi-tenant users, should be completed by the first quarter of 2020.
CA Elk Grove was designed by Palatine, Illinois-based Harris Architects Inc. and Chicago-based Pepper Construction is serving as general contractor. The project marks CA’s first Chicago-area industrial venture since launching CA Industrial, a new division that is pursuing speculative development and acquisition opportunities throughout the U.S.
The 7.1-acre site, located at the intersection of Devon Avenue and Tonne Road, is about 2.5 miles from O’Hare International Airport, a half-mile north of the new I-390 tollway and 2.5 miles east of the I-290/I-390 interchange. Building features include 32-foot clear heights, 18 loading docks, a 125- to 135-foot truck court and parking for at least 135 vehicles.
“We selected a site in one of the best possible locations for an industrial project in the Chicago metro: the O’Hare submarket,” said Jim McGill, executive vice president of industrial for CA Ventures. “The proximity to the I-390, I-290 and O’Hare—and the visibility on Devon Avenue—will be a draw for airfreight companies and also higher-image, employee-intensive companies that benefit from the visibility and excellent access to the major interstates and roadway systems. Additionally, Elk Grove Village has been a great partner for this project, allowing us to bring industrial space that will not only benefit future tenants, but also work for community residents and business partners as well.”
The new warehouse is being built on the majority of an existing shopping center, with a 7,800-square-foot portion remaining as retail. Established businesses Tata’s Pierogi and La Spa Nails are being relocated to renovated space in the existing retail center. They will join Subway, Peking Express and Fatt Mustard Cafe, which will remain in their current locations.
“The retail that is remaining will be completely renovated with a new façade, resurfaced parking lot, signage and a new roof,” McGill said. “We view CA Elk Grove as a great amenity to the retail partners locating to this upgraded building, as they will have 100-plus potential new customers during the workday.”
Citing Colliers International’s second-quarter industrial market report, McGill noted the vacancy rate in the O’Hare submarket was at a historic low of 3.62 percent, and that new leasing volume was significant in the first two quarters of 2019.
“Demand for warehouse space in this area remains healthy, and as a hub of commerce, it offers companies a location where they can expand their e-commerce distribution networks more readily,” said McGill. “As a core infill site in one of the strongest submarkets in Chicago, we’re confident that CA Elk Grove will lease up quickly.”
CA is also developing CA Gateway, a 139,860-square-foot, speculative, Class A warehouse in the Gateway International Business Park, immediately west of the Cincinnati/Northern Kentucky International Airport in Hebron, Kentucky. Also, together with Clarion Partners, the firm is developing a 245,000-square-foot building on a 16-acre site in the AmeriPlex Indianapolis business park, near the Indianapolis International Airport.