CenterPoint Developments Humming Along

Most recently, CenterPoint signed a 15-year lease with the city of Chicago's department of aviation for a 125,000-sf facility at its O'Hare Express North project, says president and chief operating officer Michael Mullen. The city agency will use the space to house building tradesmen, who have a never-ending punch list at the world's busiest airport, where a $6.6-billion expansion is envisioned.

CenterPoint officials downplay efforts by proponents of a third airport in south suburban Peotone, IL, as well as opponents of a new runway configuration at O'Hare. "I wouldn't book any flights out of that (Peotone) airport," Mullen quips.

In addition, though, CenterPoint is in discussions on two potential build-to-suit projects there, Mullen adds. Also at the airport, CenterPoint hopes to close deals for six air freight facilities, totaling 375,000 sf, in the third quarter.

Mullen and chief financial officer Paul Fisher also were close to a deal for the remaining 250,000 sf at CenterPoint's 1.7-million-sf Ford Supplier Park on Chicago's Southeast Side. "The lease is in the process of being finalized," says Mullen, adding he and Fisher met with the prospective tenant Wednesday.

Letters of intent also have been signed for 196 acres of rail-related deals in the redevelopment of the former Joliet Arsenal into the CenterPoint Intermodal Center, where more than 50% of the park is spoken for, Mullen adds.

Another letter of intent has been signed with a foreign automaker for a 250,000-sf institutional quality facility, Mullen notes.

While CenterPoint anxiously awaits a building permit for its 33-acre California Avenue Business Park on the Southwest Side, the REIT is striving for a property tax break. "I think we're making headway," Mullen says.

The last four units at the International Produce Market have been sold, Mullen reports, with build-outs expected to be completed by a September opening.