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ROCHELLE, IL-Bay Valley Foods LLC, based in Westchester, IL, has signed a build-to-suit agreement for a distribution center that will front Steward Road at ProLogis Park Rochelle. The 600,000-sf facility, which is expandable to 900,000 sf, will be constructed on a 31-acre site, says Doug Kiersey, SVP and Midwest regional director for ProLogis. The tenant will be leasing the building for an undisclosed term, Kiersey says.

Bay Valley, a wholly owned subsidiary of TreeHouse Foods Inc., will use the facility primarily as a warehouse and distribution center. The company will also package and label canned soup products in the facility. Bay Valley chose the site, in part, because “the infrastructure of the intersection of I-88 and I-39 is very strategic for them…(for) access for their customers and access for incoming products,” Kiersey says. Additionally, “there is the opportunity that the building could be rail-served.”

The building will use sustainable design and construction techniques, such as recycled and locally sourced materials and an energy-efficient florescent lighting system, he says. Construction on the facility has already begun and is expected to be completed by the end of the fourth quarter, Kiersey tells GlobeSt.com. The facility is reportedly expected to initially house between 80 and 100 employees. Bay Valley reportedly received a three-year tax abatement for the site.

The park is on 300 acres at the intersection of interstates 88 and 39, in the growing I-39 submarket, and is about 75 miles west of Chicago. When completely built out, the park is expected to have 10 distribution facilities with a total of four million sf. ProLogis is “aggressively seeking other build-to-suit customers” and is not planning on building a speculative building at this time, Kiersey says.

Bay Valley’s building will be the second facility in the park. Del Monte and Cincinnati-based Clark Steel Framing Systems lease space in the building at 501 Steward Rd., in the park. Del Monte Corp. has a three-year lease through 2009 for 364,755 sf in the building. Clark Steel has a 10-year lease through 2015 for 214,820 sf, as previously reported by GlobeSt.com. The 579,575-sf building at 501 Stewart Rd. was constructed on a speculative basis on a 26.8-acre site in the northwest corner of the park and can be expanded to 1.2 million sf. The building, which was completed in 2005, was constructed by Reno, NV-based DP Partners, who had been developing the park as LogistiCenter in Rochelle. ProLogis acquired the park as part of a larger acquisition from DP Partners last summer, Kiersey says.

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