In an unrelated deal, Roll-O-Matic is taking 254,000 sf at CenterPoint's property in west suburban Northlake. Meanwhile, Vee-Pak, Inc. is taking 152,000 sf at the REIT's business center in southwest suburban McCook.
Signing on at the 155-acre former brownfield site at 126th Street and Torrence Avenue are Plastech Engineered Products, Visteon Corporation, Sanderson Automotive LLC, Tower Automotive Products Company, Inc., ZF Lemforder Corporation, S-Y Systems Technologies America LLC, Camau Pico and Summit Polymers, Inc.
The supplier park deals include signed leases as well as letters of intent. Completion of five buildings is scheduled for the summer of 2003. A package including $11 million in tax increment financing and a $4.8-million grant from the state Department of Commerce and Community Affairs is helping fund the project, in addition to the state and city paying for new roads.
The deals fill 1.1 million sf of vacant space in CenterPoint's holdings, the largest industrial portfolio in the Chicago market.
"With many companies increasing production, there is growing demand for industrial space especially from manufacturers and third party logistics providers," notes CenterPoint chief investment officer Paul Ahern. "This is absorbing much of the sublease space that entered the market as a result of the recent economic downturn. In most Chicago submarkets, rents are starting to firm and vacancy is starting to decline. We anticipate that this trend will continue throughout the remainder of the year."
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