Marcus & Millichap brokered the $11.5 million sale of a three-building industrial portfolio in suburban Chicago. Jordan Goodman, an associate in the firm’s Chicago downtown office, along with Matt Fitzgerald and Jeff R. Rowlett, both senior vice presidents, investments, in the Milwaukee office, represented the seller, a special servicer. All three properties sold at auction to separate buyers that were a mix of local and out-of-state institutions.
“Despite years of robust construction—much of it completed on a speculative basis—Chicago-area industrial vacancy continued to fall in 2018, reaching a decade low of 5.9 percent,” said David G. Bradley, regional manager of Marcus & Millichap’s Chicago downtown office. “All of the properties in this portfolio attracted strong interest and multiple offers, attesting to the continued strength of the market as rents keep rising.”
The portfolio included a 159,857-square-foot net-leased property located at 5555 W. 73rd Street in Bedford Park, Illinois, that sold for $5 million. The single tenant, Packaging Corporation of America, occupies the entire property, which offers proximity to Midway International Airport and Interstates 55 and 294.
In Wood Dale, Illinois, 901-929 A.E.C. Drive, a 60,275-square-foot property, sold for $3.85 million. The property was 51 percent occupied at the time of sale, with four vacant units comprising 29,568 square feet presenting upside to the buyer. The property is located on the western edge of O’Hare International Airport, within 10 minutes of four interstate highways: I-190, I-294, I-290 and I-355.
Finally, 1300 Morse Avenue, a 49,360-square-foot net-leased property located in Elk Grove Village, Illinois, sold for $2.65 million. The property serves as the headquarters for Wurth Baer Supply, its only tenant. It is located just northwest of O’Hare, with quick access to Interstates 90, 190 and 294.
“O’Hare and Midway are key anchors in Chicago’s 1-billion-plus-square-foot industrial market, with manufacturers and distributors seeking space nearby not only because of the convenient airport access, but also their proximity to major thoroughfares,” said Goodman. “An influx of institutional capital has concentrated on assets larger than 100,000 square feet, while private investors see opportunity in smaller, older warehouses that can be redeveloped to better meet the needs of today’s industrial users.”
