CHICAGO—Venture One Real Estate and its joint venture with USAA Real Estate Co. have broken ground on Crossroads 55, a 1,000,110 square-foot distribution facility located at 24101 S. Frontage Rd. in suburban Channahon.

The speculative project, which the partners plan to deliver in the second quarter of 2018, is yet another sign that developers still have a great deal of confidence in the Chicago region in general, and the submarket around Joliet and the I-80 expressway in particular.

“From a location standpoint, we think this is best-in-class,” Ryan Stoller, principal at Venture One, tells GlobeSt.com. The new facility will offer immediate access to two newly improved I-55 interchanges at Rte. 6 and Bluff Rd., and is just one exit south of the I-55/I-80 interchange. “We're also one exit away from the Arsenal Interchange, which gives access to UP and BNSF intermodals,” and any such facility will have both a regional and national reach.

And considering the level of demand in today's industrial market, deciding to go with a one million square foot project made a lot of sense.

“Right now, the vacancy rate in the I-80 Joliet Corridor is only 4.2%, the lowest it has ever been,” Stoller adds, citing data from Colliers International. Furthermore, “the user velocity is there to justify it.” In just 24 months, users in the submarket have absorbed around 14 million square feet.

Besides its size, what will set Crossroads 55 apart is its 40' clear-height. “Three years ago, 32' clear was the norm, but it very quickly went to 36' clear,” he says. These days, 40' clear is still rare, even among the newest class A buildings. “What you get with 40' is more flexibility,” including the option for users to have a mezzanine space.

An adjacent 73 acres is available to accommodate build-to-suits up to 1.5 million square feet with CSX rail availability. Brian Kling and Jim Estus, of Colliers have been retained to market Crossroads 55. Clayco will serve as the design-builder and Forum Studio will serve as the project architect.

Stoller remains optimistic that the present market conditions will continue, at least in the near-term. “Right now, we have reached an equilibrium between supply and demand. Space is being absorbed as its delivered.” The chief worries are the shrinking number of great locations and the increasing cost of construction. “It's not getting any cheaper to build.”

And considering the level of demand in today's industrial market, deciding to go with a one million square foot project made a lot of sense.

Instant Insights /

I-80 Getting More Big Spec Projects

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