The building was 29% pre-leased, with International Food Products Corp. taking 120,000 sf for warehouse space. The land was bought by Balke Brown for about $6 million, and it cost about $14 million to build the facility, says Scott Zola, the project manager with Clayco. "The owner saw the need for distribution space in downtown. There are older centers here, but the new centers built are constructed in the western collar counties," Zola tells GlobeSt.com.
He says the 20-acre site was a former rail yard, and six structures had to be torn down before construction began. The Clayco team had to build the North Broadway facility about 30 feet from its property line, adjacent to the Terminal Railroad Association's main line. "There were several challenges in the construction. We found a lot of rail spurs, remnants from old foundations and a couple of silo foundations," Zola says. The company also had to relocate several public utilities to the site, and remediate some polluted property.
Zola says he doesn't know the lease rate for the building. Rates for distribution centes range from $4.25 to $5.81 per sf, according to a third quarter market report by Grubb & Ellis.
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