NAI Hiffman represented CPG.IO in a 144,614-square-foot lease at 1150 N. Swift Road in Addison, Illinois. Cushman & Wakefield represented Lincoln Property Company, which leases and manages the property on behalf of a domestic pension fund. NAI Hiffman’s Kelly Disser, executive vice president, and Michael Freitag, senior associate, represented CPG.IO in the transaction, which fills approximately 75 percent of the 188,588-square-foot building.
“CPG.IO is an emerging leader in e-commerce, and we’re proud to have continued our partnership with their team as they scale operations to serve this fast-growing sector,” said Disser. “Such rapid expansion is exciting, but it can also present challenges operationally. The creative lease structure we arranged and the operating expense caps we negotiated allow CPG.IO to continue its growth while managing overall costs of occupancy.”
CPG.IO, which helps brands grow their e-commerce operations through omnichannel marketing and fulfillment strategies, previously subleased 100,000 square feet in the facility before entering into the direct lease agreement. In 2014, the firm occupied 10,000 square feet in Bensenville, then expanded to 20,000 square feet the following year. In 2017, NAI Hiffman secured a 50,000-square-foot sublease for the company at 1150 N. Swift Road, which was doubled to 100,000 square feet in 2018.
“With explosive growth and onboarding major CPGs like Kraft, Nestle, Tyson and SCJ, CPG.IO has taken a leading position in CGP e-commerce,” said John Holby, founder and chief executive officer of CPG.IO. “We appreciate that Hiffman gave us the ability to scale to make this all possible.”
Under the terms of the new seven-year lease, which will commence at the beginning of May 2020, Lincoln Property will upgrade the warehouse with new LED lighting and heating units, and make cosmetic improvements to the office space. The lease structure also allows for a staggered payment and start date on the 44,000-square-foot expansion.
“This is the second consecutive transaction where we have negotiated a tenant-friendly structure that provides for delayed financial responsibility for significant amounts of square footage the tenant will need in the near future,” said Disser.
Located near transportation arteries, including Interstates 355 and 290, as well as the Illinois Route 390 Tollway, and approximately six miles from O’Hare International Airport, the property is ideal for last-mile, e-commerce logistics. From the property, CPG.IO can quickly get product to customers while benefitting from access to a highly skilled labor force in the western suburbs.
Built in 1998 on 15 acres, 1150 N. Swift Road features 30-foot clear heights, 40-by-40-foot bays, more than 40 loading docks, four drive-in doors and 200 parking spaces.