Midwest Industrial Buys Batavia Industrial Property
The firm purchased the 117,472-square-foot property from a national manufacturing company, according to brokerage firm Avison Young.
BATAVIA, IL—Oak Brook, IL-based investment firm Midwest Industrial Funds has increased its portfolio in the Fox Mall submarket of Chicago with the purchase of 1020 Olympic Drive here.
The firm purchased the 117,472-square-foot property from a national manufacturing company, according to brokerage firm Avison Young. No financial details of the transaction were disclosed.
Tom Curtis, an associate in Avison Young’s Chicago office, and Avison Young Principal John Moysey, also based in Chicago, represented the seller in the deal.
The purchase by Midwest Industrial Funds increases its holdings in the Fox Valley submarket. The firm now owns more than 40 properties throughout the Chicago market.
Avison Young has been retained by Midwest Industrial Funds to market the repositioned asset, which will undergo major renovations including a new roof, installation of modern HVAC systems, office renovation, and several other updates.
The class B building was built in 1977 and expanded in 1983.The facility was used by the manufacturing company as a single-tenant building for many years and was vacant at the time of sale. The
“Given the building’s age, as well as the presence of a highly specialized interior layout, we determined that certain capital improvements were necessary to make the building marketable to a wider buyer pool,” says Moysey. “By thoroughly evaluating the building and recommending detailed changes ahead of the listing, we shortened the market time and generated multiple offers.”
The seller demolished approximately 10,000 sf of mezzanine space to create a more open entranceway and completed other interior upgrades before listing the building for sale. The building was under agreement within three weeks of being placed on the market.
The 24-foot to-28-foot clear-height building is positioned on an oversized 7.1-acre site, which includes outdoor storage and room for potential expansion. There are three rail doors that allow connection to the nearby Burlington Northern Santa Fe rail spur. The rail service has the potential to shorten a tenant’s logistics cycle and reduce operational costs significantly.
“This type of functional, class B building is an ideal option for many entrepreneurial investors that have a more hands-on approach and are looking to add value,” Moysey says. “There are many opportunities in the Chicago market that are not on the radar of larger investors but can still provide strong cash flow and the potential for higher yields.”