Avison Young announced that it has negotiated a 100,000-square-foot three-building industrial sale in Chicago. The contiguous buildings are on the city’s Northside, at 4006 W. Belden Ave., 2311 N. Keystone Ave. and 2321 N. Keystone Ave., on the northeast corner of W. Belden and Keystone avenues.
Avison Young Principal Steven Kohn, SIOR, and Associate Patrick Richwine represented the seller, Eazypower Corporation, which is relocating to a new corporate headquarters in Chicago’s northern suburbs. The buyer was a Chicago multi-tenant industrial investor that plans to complete an extensive renovation to modernize the property. The buyer has retained Kohn and Richwine as marketing agents for the redevelopment project.
“There is an incredible demand for industrial space in Chicago’s infill neighborhoods,” says Kohn. “This is a unique property in an excellent location that will allow the new owner to customize the space for its own uses and also turn a portion of it into income-producing space.”
The property is a few blocks south of the Pulaski/Fullerton intersection on the Northside of Chicago. “Demand for infill space throughout the city continues to be strong, with many sections of the city recording record low vacancy rates,” says Kohn. “Developers and investors are paying a premium for locations that tie into the city’s strong population base, making it challenging for tenants to find space.”
According to Avison Young research, the Chicago industrial market is continuing its hot streak, with strong tenant demand from large corporate healthcare, retail and e-commerce businesses supporting an ongoing wave of activity.
As national, regional and local logistics and e-commerce businesses continue to expand throughout the Chicago market, developers are working to meet demand. Demand for infill space throughout the city continues to be strong, with highly active city submarkets, such as West Cook, along the western section of Cook County, seeing vacancy decline to 2.3% at Q1 2021, from 3.5% at Q4 2020. Net absorption in that submarket was 693,373 for the first quarter. There are three buildings, totaling 651,617 sf, under construction, following four quarters with no new product in the pipeline.
Amazon, which continues to push into urban neighborhoods to expand its last mile delivery locations, is pursuing the purchase of the 70-acre Central Steel & Wire facility in Gage Park. While the e-commerce giant has multiple locations in outlying submarkets, this location would allow for closer touch points to serve the city’s large urban population with next day and same day delivery.