The 26-acre parcel was acquired from Murphy Real Estate andDevelopment LLC, based in LaGrange, for approximately $7 million,O'Leary says. Keith Puritz, with CB Richard Ellis, represented Dukein the sales transaction. Kevin Clifton and Chris Cumins, both withColliers Bennett & Kahnweiler Inc., represented Murphy RealEstate in the transaction.

Murphy Real Estate had plans to construct a business park withoffice and industrial space, but its plan was turned down by theGurnee Village Board. Duke's plan does not have any industrialspace, and there are new people on the village board, so thedeveloper does not expect any problems in proceeding with thedevelopment, O'Leary says. Duke is acquiring 13 acres to the southfor an undisclosed price. The seller is a "local private individualwho has had the land for a long time," O'Leary says.

Duke was interested in the site because it is in the northsuburban submarket. "The north market, in general, is fairly tight[and] there are not a lot of large blocks of available land,"O'Leary says. "The market has performed better than most submarketsin Chicago," he says noting that there is low vacancy rates andgood demand. The parcel is also located near Interstate 94. Dukehopes to start construction next summer on an approximate100,000-sf facility. "We are marketing that as a build-to-suit sitebut we may elect to go speculative if market fundamentals continueto move in the direction they have," he says. The first building isexpected to be delivered in the first quarter of 2009. Asking leaserates for the building have not been decided yet but the averageasking rate in the area is between $15.75 per sf and $16.75 per sf,net, O'Leary says.