BEDFORD PARK, WOOD DALE, ELKS GROVE VILLAGE, IL—A three building industrial portfolio in suburban Chicago sold at auction for $11.5 million.
Jordan Goodman, an associate in Marcus & Millichap’s Chicago Downtown office, along with Matt Fitzgerald and Jeff R. Rowlett, both senior vice presidents, investments, in Marcus & Millichap’s Milwaukee office, represented the seller, a special servicer. All three properties sold at auction to buyers that were a mix of local and out-of-state institutions.
“Despite years of robust construction—much of it completed on a speculative basis—Chicago-area industrial vacancy continued to fall in 2018, reaching a decade low of 5.9 percent,” says David G. Bradley, regional manager of Marcus & Millichap’s Chicago Downtown office. “All of the properties in this portfolio attracted strong interest and multiple offers, attesting to the continued strength of the market as rents keep rising.”
The three buildings, each of which had a different purchaser, include:
- 5555 W. 73rd, a 159,857-square-foot net-leased property in Bedford Park, IL, that sold for $5 million. The single tenant, Packaging Corporation of America, occupies the entire property, which is near Midway International Airport and Interstates 55 and 294.
- 901-929 AEC Drive, a 60,275-square-foot property in Wood Dale, IL, that sold for $3.85 million. The property was 51 percent occupied at the time of sale, with four vacant units comprising 29,568 square feet presenting upside to the buyer. The property is located on the western edge of O’Hare International Airport, within 10 minutes of four interstate highways: I-190, I-294, I-290 and I-355.
- 1300 Morse Ave., a 49,360-square-foot net-leased property located in Elk Grove Village, IL, that sold for $2.65 million. The property serves as the headquarters for Wurth Baer Supply, its only tenant. It is located just northwest of O’Hare, with quick access to Interstates 90, 190 and 294.
“O’Hare and Midway are key anchors in Chicago’s one-billion-plus-square-foot industrial market, with manufacturers and distributors seeking space nearby not only because of the convenient airport access, but also their proximity to major thoroughfares,” says Goodman. “An influx of institutional capital has concentrated on assets larger than 100,000 square feet, while private investors see opportunity in smaller, older warehouses that can be redeveloped to better meet the needs of today’s industrial users.”