X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the industrial market.)

FRANKLIN PARK, IL-TA Associates Realty, headquartered in Boston, has acquired a 325,000-sf industrial building at 3708 N. River Rd. The seller was CenterPoint Properties, based in Oak Brook, says Brian Colson, executive vice president with NAI Hiffman’s industrial services group.

Colson and Lawrence Goldwasser, also with NAI Hiffman, represented both CenterPoint and TA Associates in the transaction. Colson would not disclose a sales price but said that it was “far below” the more than $100 per sf to construct a similar building in the area. Sources peg the amount at around $22 million. A cap rate was not disclosed.

The building is currently 65% leased. Tenants in the building include J.S. Pauluch and Dealer Tire LLC, Colson says. The asking lease rate is $5.50 per sf, net. NAI Hiffman will lease and manage the property. TA Associates plans to add about 100 parking spaces to the site and may retrofit the building for freight-forward tenants, Colson says. The firm typically has a minimum hold of four to six years, he says.

The building was constructed in 2002 on a 14.7-acre parcel. The building has 30 foot clear ceiling height and has 3,000 sf of office space. CenterPoint had owned the property since January 2005 when it paid $17.3 million for the building, Colson says. CenterPoint had acquired the property as part of a $96-million portfolio from HSA Commercial Real Estate, which had stayed on as manager of the properties, as previously reported by GlobeSt.com. CenterPoint decided to sell the property because “They saw a good opportunity with the change of market value in the O’Hare submarket,” he says. “Land value has gone through the roof.”

The property, which is located near Interstates 294 and 90 and is also near O’Hare International Airport, was “one of the only class A assets that were available for sale,” Colson says. “Granted, there are a lot of teardowns” occurring in the submarket but the new construction is only about 5% of the 130 million sf in the O’Hare submarket, Colson 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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

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

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.