High Street Logistics Expands Chicago-Area Portfolio
- May 06, 2020
High Street Logistics Properties has just enhanced its holdings with the addition of a group of Chicago-area industrial assets totaling approximately 539,100 square feet. The real estate investment management company completed the acquisition of the portfolio of five fully leased properties in Tinley Park, Ill., in a transaction orchestrated by JLL Capital Markets on behalf of the seller.
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Financial terms of the transaction have not been disclosed; however, according to JLL’s offering memo, the collection of assets was made available at a substantial discount to replacement cost. High Street’s new acquisitions are part of the Tinley Park Portfolio, which consists of six facilities within the I-80 industrial corridor; the sixth asset, a 23,600-square-foot facility, is on schedule to close later in May. The five recently traded properties include 7950 W. 185th St., 7979 W. 183rd St., 18501 Graphics Court, 7650 W. 185th St. and 18504 W. Creek Drive. Built between 1993 and 2002, the light industrial buildings range in size from roughly 23,400 to 237,200 square feet. Twelve tenants call the properties home, including the likes of American Graphics, the Chicago Tribune and HP Products.
With the purchase of the Tinley Park Portfolio, High Street has bought itself substantial income stability due to, as JLL notes in the offering memo, “the increasing demand for small bay product in this highly sought-after industrial market.” The portfolio also serves as a value-add opportunity, with in-place rents at as much as 20 percent below current market rates and a varying lease roll ranging from just months to nine years.
Prepped for purchasing
High Street made the Tinley Park Portfolio acquisition through its High Street Real Estate Fund VI, which closed in March 2020 with $500 million of total equity commitments and a goal of leveraged acquisitions totaling $1 billion. High Street’s list of acquisitions so far this year include the 352,700-square-foot Beltway North Commerce Center in Houston.