JLL Capital Markets experts has completed the sale of a 1.17 million-square-foot, 11-property portfolio of high quality industrial buildings across Chicago on behalf of an institutional client. Boston-based High Street Realty Company, LLC paid $86 million for the 86 percent-leased portfolio on behalf of High Street Real Estate Fund V, L.P.
International director John Huguenard, managing director Sean Devaney and senior vice president Ed Halaburt led the JLL team handling the transaction, along with assistance from JLL’s local market experts which included Steve Trapp and Steve Ostrowski.
“This portfolio offered the buyer the opportunity to acquire scale, over 1 million square feet, of prime industrial product in three highly sought after submarkets in the Chicago area in a single transaction,” said Huguenard. “This portfolio provided the rare opportunity for the buyer to add value over time to an impeccably maintained portfolio of single- and multi-tenant industrial assets.”
The portfolio consists of eleven buildings, seven of which are fully leased and are located in the Lake County submarket. They are: 801, 901 and 1001 Technology Way in Libertyville and 900, 909,1000 Asbury Drive and 911 Commerce Court in Buffalo Grove. Additionally, a 74,024-square-foot building at 1001 Asbury Drive in Buffalo Grove will be available for lease as of July 31, 2018.
The portfolio also includes two assets in the I-55 submarket: 101 Corporate Center in Lemont and 755 Remington Boulevard in Bolingbrook. It is rounded out by 2050 Hammond Drive, a 66,557-square-foot building now available for lease in Schaumburg in the Northwest Cook County market.
All three submarkets have experienced strong leasing activity. Lake County has achieved seven consecutive quarters of positive net absorption and has a vacancy rate lower than Chicago’s overall average. The I-55 submarket has been Chicago’s most active leasing market, accounting for 17 percent of all leasing volume over the past three years, and Northwest Cook County has seen less than 1 million square feet of new industrial development in the last decade.