Transwestern brokered a 343,410-square-foot industrial building lease for ODW Logistics, Inc. at 5300 Proviso Drive in Melrose Park, Illinois. Senior vice president John Joyce, CCIM, represented the landlord, TSP Melrose Park LLC in the deal.
“Distribution center tenants are expanding to meet growing business needs, especially in the O’Hare submarket,” said Joyce. “Tenants are looking at new construction alternatives, but they are deterred by the premium placed on rental rates from high construction costs.”
The property is unique because it is has railway access and is cross-docked with 84 truck-level docks, 17 trailer positions, 10 rail doors, 120 car parking spaces, two air freight doors and 30,000 square feet of office space. It provides proximity to Interstates 290, 294 and 88. The property is also a 15-minute drive from the south cargo entrance of Chicago O’Hare International Airport.
“This is one of the largest deals completed in the O’Hare submarket this year in terms of square feet,” said Transwestern’s Sandy McDonald, director of market research – Midwest. “Based on current market conditions, we expect the 1.1 million square feet of speculative space delivered in [third quarter] will soon be absorbed. However, second-generation space still meets user demand because of favorable economics that tenants can enjoy.”
ODW Logistics is a third-party provider of salt and salt-based products headquartered in Columbus, Ohio. They were represented in the transaction by Dan McGillicuddy of JLL.