X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ELGIN, IL-RGH Enterprises has signed a long-term lease for 58,000 square feet at 1360 Madeline Dr. The Twinsburg, OH-based medical supplies and equipment distributor will use its space in the recently completed 218,000-square-foot pre-cast warehouse as its entry point into the Chicago market and first distribution center in the region.

Michael Sedjo and John Gledhill of CB Richard Ellis represented building owner Pancor Development, while RGH was represented by Ronald Behm, principal; and Kelly Joyce, VP, both with Colliers Bennett & Kahnweiler Inc.’s Industrial Services Group.

“This is a new entry for them into the Chicago market,” Behm tells GlobeSt.com. “For their distribution center here, they wanted a modern building with modern amenities in a location that would be easily accessible for quick deliveries from FedEx and UPS. Both of those operators service this location with ease multiple times a day.”

Behm says RGH’s decision was also driven by the building’s heavy loading capabilities, 13 truck docks and drive-in door, as well as its proximity to Interstate 90. RGH will move into the facility, which also offers 30-foot clear ceilings, at the end of the year. The building is also occupied by Time Definite Services in 58,000 square feet and Continental Packaging Inc. in 61,000 square feet, while one 41,000-square-foot unit remains available for lease for asking lease rates around $4.50 per square foot net, Behm says.

Behm would not specify RGH’s exact lease rate, but says it was below the $4.50 per square foot net asking lease rate for space in the building. “Pancor was able to provide significant concessions and rent abatements to attract the tenant,” Behm says. “Another advantage was that the developer was able to give us delayed possession.”

The property is located in the Fox Valley, where asking lease rates range between $5 and $9 per square foot net and occupancy rates are around 92%, according to a recent Cushman & Wakefield office market report.

“The Elgin market is faring better than most others,” Behm says. “Most of the spec product developed there has been leased up, at significantly lower prices than spec development located closer to O’Hare.”

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
  • 1 free article* every 30 days across the ALM subscription network
  • 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 © 2021 ALM Media Properties, LLC. All Rights Reserved.