W.P. Carey Lands 1.6 MSF Tenant Near Chicago
W. P. Carey has inked a 1.6 million-square-foot industrial lease at 701 Central Ave. in University Park, Ill., a Chicago submarket. A global tech and logistics company will occupy the entire building, marking the largest deal year-to-date in the market. This transaction closed in spite of a slowdown in larger industrial leases across the U.S.
Two Cushman & Wakefield teams brokered the agreement on behalf of the parties. The ownership executed several tenant buildout requirements before closing the deal. The property was previously leased to Dart Container Corp., a Mason subsidiary.
W. P. Carey acquired the asset in February 2014 for $80.7 million—or $51.96 per square foot—from Fulcrum Asset Advisors, according to CommercialEdge information. Since then, the company made multiple improvements at the 90-acre property, while also reducing the overall carbon footprint of the building.
READ ALSO: Chicago Industrial Market Outshines the Rest of the Midwest
The tenant will consolidate all its real estate footprint into this facility. The distribution center, completed in two phases between 2003 and 2005, features 32-foot clear heights, 120 dock-high loading doors and three drive-in doors with dock levelers and bumpers. Additionally, the cross-dock warehouse is climate controlled and has about 155 parking spaces.
The building provides easy access to Interstate 57 and Highway 50, while downtown Chicago is some 35 miles away. Port of Chicago is within 28 miles and Chicago O’Hare International Airport is less than 50 miles northwest.
Cushman & Wakefield Vice Chair Sean Henrick and Managing Director Ryan Klink represented the landlord, while Executive Vice Chair Jason West, Vice Chair Lou D’Avanzo and International Partner Adam Cooke worked for the tenant.
Larger industrial leases are still happening in Chicago
Chicago’s industrial vacancy rate as of March clocked in at 6.1 percent, 90 basis points higher than the national average, according to the latest CommercialEdge industrial report. The metro’s average rent during the same month stood at $6.06, representing a 4.7 percent year-over-year increase.
Crow Holdings recently leased its more than 1 million-square-foot facility in Merrillville, Ind. A major e-commerce company will fully occupy the building. Another notable deal in the area was Norkol Converting Corp.’s leasing agreement at CenterPoint Properties’ 88 Industrial Center in Montgomery, Ill. The firm committed to 330,694 square feet, a third of the building’s capacity.
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