Midwest Industrial Funds recently purchased a 73,000-square-foot manufacturing building on 4.47 acres located at 2555 Decade Court in Elgin, Illinois. The high image, precast concrete and glass building, which was constructed in 2000, features 24-foot clear ceilings, four interior loading docks, two grade-level doors and 103 car parking spots. The building will serve as the first North American manufacturing plant for Faber‐Castell Cosmetics, headquartered in Stein, Germany.
After a multi‐state evaluation, the cosmetics manufacturer, founded in 1761, settled on Illinois based on several factors including access to skilled labor, proximity to O’Hare International Airport and a tax incentive package offered by the state of Illinois. Faber‐Castell will immediately create 50 jobs with a target of doubling that figure over the next few years. The company will begin manufacturing its products for the first time on American soil by the start of the new year.
“Midwest Industrial Funds and its team provided us with a one‐of‐a‐kind facility solution in a timely and effective manner that bridged many transaction gaps that where unforeseen, from dealing with different time zones, different languages to different cultures,” Antje Simm, director of North American operations for Faber‐Castell said. “Midwest did not deviate from the end goal. They truly tailored a transaction structure and facility to suit our needs.”
The property had recently reverted to an out‐of‐state lender after a foreclosure process with the previous owner. Faber‐Castell initially approached the lender to acquire the property directly, but they determined it was not a viable option because the foreclosure process had not been completed yet, and the company did not need the entire building in the short‐term. Michael Plumb, John Sharpe and Jeff Janda of Lee & Associates, who represented Faber‐Castell on the lease as well as Midwest Industrial on the acquisition, had a vision to put together a solution that turned out to be a win/win for all parties involved.
“The lender was only prepared to allow Faber‐Castell to enter into a short‐term lease with an option to acquire the building, but the timing in which our client had to execute its option to purchase was not ideal,” said Plumb. “Our solution was to introduce our client to the team at Midwest Industrial Funds, who had the experience, creativity and capital to swiftly acquire the building for Faber‐Castell and craft a long‐term lease that included a customized and gradual occupancy phase‐in period to help reduce their initial start‐up costs and give Faber the flexibility to potentially purchase the facility as part of the company’s longer term goals.”
“We are very excited about this Elgin acquisition and the relationship we have formed with our newest tenant. We think the building is in a great location within an expanding submarket and tells a great story,” said Jed Degnan, director of acquisitions with Midwest Industrial Funds. “We are proud to have worked so closely with the Lee & Associates brokerage team, with whom we have had a long‐term relationship, to identify an acquisition opportunity that allowed us to immediately add value and secure such a revered tenant like Faber‐Castell Cosmetics through our ability to quickly structure a complex and customized facility solution.”