Brennan Investment Group Sells 182 KSF Chicago-Area Industrial Portfolio
- May 24, 2019
Brennan Investment Group has sold an 182,298-square-foot, two-property industrial portfolio in Mount Prospect, Ill., to Glen Una Management Co. The portfolio last traded almost a decade ago in 2010, per Yardi Matrix information.
(Avison Young brokered the sale of a 40,000-square-foot industrial property.)
An Avison Young team comprising Principals Erik Foster, Mike Wilson, Chris Lydon and Chris Tecu represented the seller in the disposition.
Located at 1900 and 2000 Carboy Drive on an 8.2-acre site, the assets were completed in phases in 1976 and 1985, respectively. The concrete, one-story buildings feature dock leveler and bumpers, maximum 20-foot clear height and 434 parking spaces. The properties are adjacent to Algonquin Road, close to Interstate 90 and 8 miles from O’Hare International Airport, with the distance expected to decrease upon the completion of the Elgin-O’Hare Expressway expansion. At the time of sale, the multi-tenant assets were 90 percent leased.
The O’Hare industrial market has experienced substantial investment, leasing and development activity in the last years, according to Foster. Through May of this year, the area saw 417,995 square feet of net absorption, following 1.6 million square feet in 2018 and 1.5 million in 2017. Also, the current vacancy rate is 6.3 percent, a 50-basis point increase from 2018.
In the first quarter of 2019, apart from the current transaction, 91 industrial assets totaling 12.3 million square feet changed hands in Chicago, per Real Capital Analytics data. The market attracted a wide range of investor types, with equity funds accounting for 30.9 percent of purchases with 111 buildings totaling $1.5 billion during Q1 2019. Canadian investors have been very active in the market, spending $77 million on properties. Additionally, Israel and the United Arab Emirates have also made significant investments in the Chicago area industrial properties.
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