CHICAGO, IL- NelsonHill announced yesterday that they had completed the sale of a 24,300 SF industrial warehouse located in Chicago’s Kinzie Industrial Corridor. A local investor called 1735 W. Carroll LLC purchased the building.
U.S. Adhesives rents the entire space and has a lease that runs through 2017. The city of Chicago has put in several plans over the years to upgrade the area. The building is located within an Enterprise and Empowerment Zone and part of the neighborhood is covered by a Tax Increment Financing District.
“The acquisition represented a 13% cap rate for the buyer and offers excellent re-development potential,” stated Michael Nelson of NelsonHill, who along with Mark Nelson, represented the property seller. The buyer was not represented.
Colliers International has found that a host of similar sales on the city’s North Side has been driving the market for industrial space. “In 2012, the Chicago North market benefited from an increase in building sales between 10,000 square feet and 60,000 square feet, propelling the year-end volume to 841,000 square feet, up 24.1 percent from the 2011 total,” the firm noted in their year-end report. In 2013, they forecast that even more buyer demand “will put upward pressure on sale prices.”