CHICAGO—A joint venture between Chicago-basedDistribution Realty Group and East Brunswick,NJ-based F. Greek Development recently acquired11.16 acres located at 990 Veterans Parkway in suburban Bolingbrookand have decided to develop a 182,875 square foot class Adistribution facility on the site.

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Like an increasing number of developers, joint venture officialsfelt the robust absorption in both the region and the submarketaround I-55 justifies launching such a project on a speculativebasis.

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“I-55 is one of the most dynamic industrial markets in Chicago,”James Love, managing partner of DRG, tellsGlobeSt.com. “We have seen over 2.5 million square feet of grossabsorption so far this quarter, and the activity level remainshigh.”

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As reported in GlobeSt.com, for example, Molto Propertiesrecently unveiled plans for an 116,000 square-foot speculativeindustrial property at 1055 Remington Blvd., also in Bolingbrook,and has already gotten a lease signed for half of the space.

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In the first quarter developers did not begin any newdevelopments in the I-55 Corridor, but “there are eight (sixspeculative and two build-to-suit) projects that will add 1.5million square feet to I-55 Corridor's inventory when completed,”according to a recent Colliers' report. Thelargest is a 324,100 square-foot speculative warehouse anddistribution facility being developed by Duke RealtyCorp. at 1341 Enterprise Dr. in Romeoville.

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And according to NAI Hiffman, the overallChicagoland industrial vacancy was 7.8% at the end of the firstquarter. Adam Roth of NAI Hiffman represented thejoint venture in this transaction and Steve Catonof Caton Commercial Real Estate represented theseller.

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“Chicago is one of the country's Tier-1 markets,” saysDavid Greek of F. Greek Development. “With over1.3 billion square feet of industrial inventory, it is a criticallink in the US supply chain. We are excited to be expanding ourpresence here.”

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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.