Lee & Associates negotiated three lease transactions totaling 70,814 square feet at 2420 S. Wood Street in Chicago. The newly constructed 156,000-square-foot building is located adjacent to the Chicago International Produce Market in the city’s Heart of Chicago neighborhood. All three tenants have ties to the food industry.
Ryan Kehoe, vice president of Lee & Associates’ Illinois office, represented Christopher Ranch Farms, the largest grower, packer and shipper of California garlic for the fresh market, on their lease of 16,000 square feet. The tenant is relocating from 2455 S. Damen in Chicago. Separately, Tim McCahill and Brian Vanosky, principals of Lee & Associates’ Illinois office, represented Four Star Foods, a local food distributor, on a long-term lease of 24,143 square feet.
Finally, Tom Condon, principal of Lee & Associates’ Illinois office, represented local start-up Chicago CRED (Creating Real Economic Destiny) on their lease of 30,671 square feet. Chicago CRED is an initiative led by Arne Duncan, former U.S. Secretary of Education. Ed Wabick, Marc Hale and Terry Lynch of Paine Wetzel represented the owner in all three leases.
“The Wood Street building is ideally located for food-related users with its proximity to downtown, adjacency to the International Produce Market and immediate expressway access via I-94 and I-55,” Condon said. “All three deals will feature a heavy percentage of temperature-controlled space among their specialized improvements.”
According to Condon, these food-related leases are part of a larger trend in the South Chicago/I-55 corridor submarkets. At 6800 Santa Fe Drive in Hodgkins, located a short drive down I-55, Condon represented Ethos Seafood while McCahill represented Summit Cold Storage and Registry/Cheesewich with their leases and subsequent expansions.
Condon believes tenants are drawn to the area thanks to labor pool logistics, access to intermodal transportation and supplier proximity. He anticipates more tenants and buyers seeking cold storage space or temperature-controlled improvements as part of their negotiations in these markets.