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ROMEOVILLE, IL-Pizzuti Cos., based in Columbus, OH, is switching partners for the last 220 acres of its 800-acre Pinnacle Business Center. Capmark Investments LP, based in Philadelphia, and Pizzuti plan to develop more than 3.5 million sf of space with a value of more than $250 million. Nationwide Realty Investors had been the development partner with Pizzuti for the development of nearly six million sf of industrial space on 580 acres, says Joel Pizzuti, president and chief operations officer with Pizzuti.

The joint venture has already started construction on a 648,000-sf speculative distribution facility with construction expected to be completed in the fourth quarter of this year, Pizzuti says. The building could have multiple tenants but “ideally, we would like to see one user,” he says. The cost for the speculative building is approximately $30 million, he says. The asking lease rate for the building will be $3.75 per sf net.

Pizzuti and Capmark plan on constructing seven additional buildings. It has not been decided yet if the buildings will be speculative or build-to-suit facilities, he says. The joint venture will also be completing about $5 million in infrastructure improvements, such as work on roads and detention ponds. Pizzuti estimates it will take between three and four years to complete the business park. The park, when completed, will have a value of about $550 million, he tells GlobeSt.com.

Pizzuti bought out Nationwide’s interest because “Nationwide decided to monetize their investment in the ground” while Pizzuti wanted to continue to develop the industrial park, he says. “At the end of the day, the decision we wanted to take and the direction they wanted to take were different,” Pizzuti says. Capmark had “the appetite to get into industrial, specifically in the Chicago markets, and they focus on long-term partnerships,” he says.

The completed portion of the park is currently about 90% occupied. Tenants in the park include baking and cake decorating products manufacturer Wilton Industries, Nashville-based Ozburn-Hessey Logistics LLC, Pactiv Corp., AmerisourceBergen and Florstar Sales.

Once Pinnacle Business Center is completed, Pizzuti has already identified the location for its next project. The land is already under contract and is in a different submarket than the I-55 market, he says. The project will be industrial but Pizzuti said he could not release more details at this time.

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