Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

BOLINGBROOK, IL-Pension fund TIAA-CREF has purchased a 750,000-sf warehouse from Boston-based TA Associates. The buyer has spent nearly $45 million or $60 per sf for the asset, which is net leased to Home Depot Inc.

The seller of the 901 Carlow Dr. property was represented by executive director Kenneth Szady, senior director James Carpenter and senior associate Joseph Voet, all with Cushman & Wakefield of Illinois Inc. Szady tells GlobeSt.com that the internal rate of return is about 6% to 6.5% over a 10-year period.

Szady says TA Associates, a private equity investment firm, sold the property because it had owned it for awhile. “The fund is ending and they have determined that the assets in the fund need to be sold,” he says.

TIAA-CREF is buying the warehouse building because they are “looking to expand their portfolio here in Chicago and this is probably one of the top three buildings in Bolingbrook,” Szady adds.

Home Depot has leased the entire building since it was constructed in 2000 by Northern Builders as part of Carlow Corporate Center. Home Depot currently has less than three years left on the lease. Szady would not disclose the lease rate but said that the asking rate for similar warehouses in the area is $3.25 per sf to $3.50 per sf, net.

The warehouse, which has 210 docks and storage for more than 500 trailers, is at a prime location at the northwest corner of the intersection of Interstate 55 and Weber Road. “It is easiest one of the top locations in all of Chicago for big box industrial,” he says.

TIAA-CREF does not have any major renovations planned for the building. “This is a state of the art facility. It is less than seven years old and it needs no work whatsoever,” he says. The future plans for the building will be “to hold the asset for a long term,” he adds.

The building’s sale is representative of a trend of compressing cap rates in the industrial sector in the Chicagoland area. “We are finding pricing similar to assets like this in southern California, which has always been the nation leader in terms of cap rates,” Szady says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt Net Lease Spring 2022Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.