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DES PLAINES, IL-AMB Property Corp. has begun work on a two-building, 228,000-sf distribution facility here on Mount Prospect Road, a mile north of O'Hare International Airport, and has pre-leased all of the space to BAX Global. The San Francisco-based industrial REIT, which increases it portfolio in the Chicago market to 14.3 million sf, says the latest project will cost $26.2 million.

BAX Global Inc. has 13 leases with AMB Property Corp. and is the REIT's ninth-largest tenant. AMB Property Corp. officials say a location north of the airport was attractive to the transportation and logistics company because shipments will be able to avoid congestion at the intersection of Irving Park and York roads in nearby Bensenville, where the REIT owns a 13-building, 2.1-million-sf industrial park. Although lease terms were not disclosed, BAX Global Inc. pays an average of $9.48 per sf for space it rents from AMB Property Corp.

Completion of the Mount Prospect Road buildings is expected in the fourth quarter, according to AMB Property Corp.'s first-quarter financial report. Already this year, a two-building, 309,048-sf development in Elk Grove Village has opened 87% leased. AMB Property Corp. owns 20% of that $25-million development, where an 8.8% yield is expected. Next year, AMB Property Corp. plans to add 179,400 sf in its Turnberry industrial park in Roselle and a 125,080-sf logistics center in Des Plaines. Those projects are expected to cost a combined $22.9 million, according to the company.

Instant Insights /

BAX Global Getting 228,000-SF Facility North of O'Hare

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