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ROMEOVILLE, IL-Duke Realty Corp. has begun work on a 500,000-square-foot speculative warehouse in its Crossroads Business Park. The $20 million warehouse, Crossroads Five, will be built on the last remaining site in the business park, which is near Route 53 and Interstate 55. The facility will deliver in March and will house up to two tenants.

“We’ve had very good activity but don’t have any leases signed yet,” says Steve Schnur, senior vice president with Duke. “I think our history in this park has been very good, so we’re confident that project will be a success. Our projections are that we’ll have it leased within a year of completion.”

Development of the business park was begun in 1988 by UPS. In 1998, Duke purchased the park, which now houses 25 buildings, five of which Duke owns today. This building will be the final project in the park, which will be fully developed at its completion. The project is being financed as a 50-50 joint venture with JP Morgan Chase.

Asking lease rates for the space will be around $3.45 per square foot, net. Larry Johnson and Mike Mangan with CB Richard Ellis are marketing the building. “Obviously building a spec building now is riskier than it was 12 months ago,” Schnur says. “We feel very good, more than ever, about both the location and price point with this building.”

Schnur says the I-55 submarket, which the park is located in, has historically seen good amounts of activity. “It’s a relatively mature market in terms of being built out,” Schnur says. “It’s the largest submarket and historically always seen the most activity. There’s always activity with the existing tenant base, as well as people looking to relocate from different parts of Chicago.”

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