Westmount Realty, Stockbridge Buy Chicago-Area Industrial Portfolio
- Nov 06, 2019
Westmount Realty Capital and Stockbridge have acquired a 1.7 million-square-foot industrial portfolio in the Chicago area comprising 38 buildings. Stockbridge purchased the assets on behalf of its Value Fund III, closing the deal several months after it acquired a 6.3 million-square-foot portfolio across nine markets in the U.S. The buyers plan to enhance operations through a light renovation program.
The assets are located in several sought-after industrial submarkets in the Chicago-area, which include O’Hare, Lake County and Elgin. Approximately half of the space is located in the O’Hare submarket on 47 acres of contiguous land alongside the O’Hare Western Access Project, a multi-billion infrastructure project that will provide 17 miles of new roads.
The remainder of the portfolio is located in three separate business parks in the northern suburbs of Buffalo Grove and Vernon Hills in the Lake County submarket as well as the western suburb of Elgin. The Lake County submarket is home to many corporate headquarters, with businesses benefiting from a highly skilled labor force living in the northern part of the neighborhood.
The buildings were completed between the 1970s and 2000s and are 95 percent leased to more than 280 tenants. With this acquisition, Westmount expanded its Chicago-area industrial portfolio to more than 6.3 million square feet.