CBRE Strategic Partners U.S. Value 8 has acquired a six-building portfolio of Class A warehouse and manufacturing buildings totaling over 1.4 million square feet in master-planned business parks within Chicago’s two largest industrial submarkets. The portfolio is 95 percent leased to six tenants.
The portfolio includes five buildings located along Chicago’s major east-west thoroughfare and one building located adjacent to the major north-south tollway:
2700 Ellis Road, Joliet
2101 W. Haven Road, New Lenox
2201 W. Haven Road, New Lenox
2200 W. Haven Road, New Lenox
2520 Diehl Road, Aurora
494 E. Lies Road, Carol Stream
The buildings in the high-quality, well-leased portfolio range in size from 90,000 to 690,000 square feet and have attributes that are attractive to a wide range of users, such as 24-foot to 32-foot clear heights, ESFR sprinklers, 6-inch to18-inch reinforced concrete slab floors, above-standard trailer and car parking and excess land for possible expansion. Four of the six buildings in the portfolio were constructed as build-to-suits for the existing tenants.
Between a quarter and a third of all freight tonnage nationally goes through Chicago, which is a focus market for the fund. “Chicago is an attractive logistics market due to its central location, abundance of infrastructure and numerous freight transportation modes, and availability is at the lowest rate since 2000,” said Robert Perry, portfolio manager for CBRE Strategic Partners U.S. Value 8. “Additionally, the SW/1-55 Corridor and West Suburban submarkets where these assets are located are expected to outperform the Chicago metro in terms of rent growth. Given both the quality and locations of the buildings, this portfolio perfectly suits the fund’s national industrial strategy, and we welcome more opportunities to make similar investments.”
