Hines has acquired a two-building, 1.1 million-square-foot industrial campus at 4700/4800 and 5000 Proviso Drive within the Chicago suburb of Melrose Park, Ailing. Picture courtesy of Hines
Hines has acquired the Chicago Prime Portfolio, a two-building, 1.1 million-square-foot industrial campus at 4700/4800 and 5000 Proviso Drive within the Chicago suburb of Melrose Park, Ailing. The vendor was AEW Capital Administration, in keeping with CommercialEdge information.
The Chicago Prime Portfolio consists of two industrial amenities with 32- and 35-foot clear ceilings, one dock per 5,000 sq. toes, 159 trailer parking positions, and twin rail loading.
The portfolio is one hundred pc leased to 3 logistics tenants which have all occupied their areas for about 20 years.
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The campus is near the Union Pacific World 2 intermodal terminal in Northlake, the I-294 / I-290 interchange, the I-294/I-290/I-88 interchange, the longer term I-490/I-294 interchange and Chicago O’Hare Worldwide airport.
Hines will function the portfolio’s property supervisor and intends to implement “a strategic value-add capital enchancment plan” there.
CBRE represented AEW Capital Administration within the transaction.
Tight market
In a ready assertion, Will Renner, senior managing director at Hines, described the portfolio as “a compelling alternative given its strategic infill location within the densely populated O’Hare submarket.”
The assertion added that this submarket has “enticing fundamentals, restricted provide and strong demand. Bulk industrial websites specifically are scarce and difficult to develop on this submarket.”
Industrial leasing in Chicagoland this 12 months has been characterised by slower exercise and a pointy rise in renewals, in keeping with a third-quarter report from Avison Younger, which commented that the leasing slowdown “is especially important because it marks the primary time, we’ve noticed such a notable drop.”
Nonetheless, an almost 21 % year-over-year lower in deliveries has helped to carry general emptiness at 4.5 % and bolster rents, which have risen by 24.7 % since 2019.
The O’Hare submarket is seeing a steady emptiness of simply over 4 %, with about 1.3 million sq. toes of deliveries year-to-date and simply 230,000 sq. toes within the pipeline, on a list of 111.8 million sq. toes, Avison Younger reported.
In September, Trammell Crow Co. secured fairness financing from Customary Actual Property Investments for its 217,000-square-foot, 17-acre Woodridge Industrial Heart in Woodridge, Ailing.
