ELGIN—The cluster of industrial buildings around I-90 in Elginhad a slow first quarter, but a big new lease could help turnthings around in the second. The medical device makerMedela, Inc. had more business than it couldhandle from its headquarters in McHenry County, and just signed anew lease for 154,523-square-feet of warehouse and distributionspace at 2768 Spectrum Dr. in this northwest suburbansubmarket.

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The deal is a significant one for the relatively small Elginsubmarket. In the first quarter, the biggest lease was byHubbell Lighting, which signed for48,187-square-feet at 1215 Bowes Rd. in Elgin. Weak demand byoccupiers led to mere 56,900-square-feet of leasing volume, and netabsorption of negative 230,100-square-feet, according toColliers. This followed a healthy fourth quarter,which saw 208,400-square-feet of leasing volume and245,200-square-feet of positive absorption.

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As reported in Globe St.com, recently the submarket had put upsolid numbers, enough to attract investors and developers, including thoseconfident enough to build speculative properties. Earlier thisyear, for example, Conor Commercial Real Estate and Globe Corp. finished NorthwestPointe, a 342,620-square-foot spec building in Elgin.And the real estate investment firm Bridge DevelopmentPartners, LLC, recently sold the 319,043-square-foot industrial building at2700 Alft Lane at Randall Crossings Business Parkto Boston-based TA Associates for $20.2million.

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Dan Benassi, Dan Jones andMichael DeSerto from Schaumburg-basedEntre Commercial Realty LLC represented Medela innegotiations over its new space. The landlord, StockbridgeCapital Partners, was represented by Lee &Associates' Steve Bass and John Sharpe.The terms of this deal were not disclosed.

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Medela officials say they selected this building, located in theNorthwest Business Park, because of its racking,conveyors and warehouse equipment, which provided them with aturnkey set-up. The building includes 30' clear height, ESFRsprinkler systems and is cross-docked for convenientthroughput.

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“We were pleased to find another location in the northwestsuburbs for Medela,” says Benassi. “Maintaining a northwestlocation and easy access to I-90 and Randall Rd., will allow formaximum efficiency.”

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.