Structured Completes Project on 14-Acre Campus

"There's quite of bit of interest, because it's difficult for firms to find industrial space in proximity to the central business district in the city," Mike Drew, co-founder of Structured, tells GlobeSt.com. "Having been set up for a single user, it has the advantage of a campus setting with 24-hour on-site security, and it's a 15-minute drive down the Dan Ryan to downtown, so the access is good. The campus is located on the Bishop Ford, so the visibility to the expressway and the 100,000 cars that drive by is good for someone that has a brand."

The 126,000-square-foot plant at 825 E. 99th St. was bought by Structured in a 2005 sales-leaseback from Jays for around $10 million as part of a seven-building portfolio spanning four states. The Chicago-based development company has since leased up 52,000 square feet in the plant - 32,000 square feet to Internet, phone and cable TV service provider Wide Open West LLC and 20,000 square feet to heating and cooling equipment supplier G. W. Berkheimer Co. Structured also bought for $5 million in a separate transaction the 110,000-square-foot warehouse at 1001 E. 99th St., which remains completely vacant.

Asking lease rates for the remaining space in the development range from $3 to $4 per square foot net. The property offers about 300 parking spaces, as well as another three acres available for future development. Additionally, Drew says, Structured has been in talks to purchase another 10 acres of neighboring city-owned property that is vacant, to possibly develop for a company with larger needs.

"We've spoken to the alderman, the city has no plans for it right now, and she would support our acquisition of it for the right user," Drew says. "It's a unique property that could be added onto to accommodate pretty much any use, and it's possible that it might be required if it's a company that needs larger expansion."

The property is located on the southside of Chicago, where average asking lease rates range between $4 and $8 per square foot net and occupancy rates are around 95%, according to a recent Cushman & Wakefield industrial market report.

"If it's a specialized user, the location and access to the highways and rail is attractive to them and they're looking in this market," Drew says. "It's holding it's own against industrial markets elsewhere."