CBRE Realty Trust Picks Up 1.4 MSF Warehouse Outside Chicago
- Apr 12, 2012
While the name of the tenant wasn’t disclosed, CB Richard Ellis Realty Trust has made a significant addition to its Chicago portfolio with the purchase of a 1.4 million-square-foot bulk warehouse / distribution center in the Chicagoland area. The built-to-suit facility is fully leased through August 2021 to a manufacturer of consumer and institutional products.
Philip Kianka, executive vice president & COO of the trust, called the tenant “investment-grade” and noted that the acquisition “represents an excellent core investment opportunity for CB Richard Ellis Realty Trust.”
The asset, located on the I-80 corridor in University Park, Ill., sits on 6.8 acres of land and features a cross-docked configuration with 434 stalls for on-site trailer parking. According to CBRE, Chicago remains the largest industrial market in the nation and the primary distribution center for the Midwest.
According to a fourth-quarter 2011 report by Cushman & Wakefield Inc., Chicago’s industrial vacancy rate had dropped to 9.8 percent by the end of the year, the lowest mark in three years and 1.2 percent lower than at the end of 2010. Demand for investment-grade properties remains high, with total square footage for all 2011 transactions reaching 24.9 million square feet across the area, the highest total since 2008.
“The industrial forecast looks positive heading into 2012,” the Cushman report noted. “Stronger consumer confidence and greater product demand should spur business growth … current market fundamentals point towards solid tenant demand, falling vacancies and increased rents in the months to come.”