Industrial property

EKJ Wheeling and Thor Equities landed a 500,000 square foot industrial property last month

2750 W. 35th St, Chicago, IL; 2940 W. 36th St, Chicago, Illinois (LoopNet, NAI Hiffman)

Two companies acquired a total of 500,000 square feet of industrial space in the Chicago area last month, which is already on track to surpass last year’s industrial sales volume.

EKJ Wheeling LLC purchased a 310,000 square foot industrial property at 43-47 West Hintz Road in Wheeling for $ 17 million, according to Cook County real estate records. San Francisco-based Prologis sold the warehouse near the Chicago Executive Airport, about 18 miles northwest of Chicago.

The Class B industrial building is approximately five miles from the I-294 interchange at Willow Road and IL-53, making it a favorable location for wholesale and e-commerce businesses to transport products to across the country. Prologis sold the warehouse after landing a $ 100 million industrial and office facility on Goose Island in March, among the region’s largest business deals this year.

Chicago’s industrial market is booming, powered by e-commerce and big box retailers, often leading tenants to engage in bidding wars to lock down warehouse leases.

“You’re at the epicenter of the county interstate network, it’s in the middle of the country, so it’s really a network hub for distribution across the country,” said Craig Hurvitz, vice president of studies. market at Colliers International. “We have the largest inland port in the county, the CenterPoint Intermodal Center in Joliet and Elwood. “

Thor Equities also acquired a pair of industrial properties totaling nearly 160,000 square feet in South Chicago. The company bought a 126,000-square-foot outdoor storage yard at 2750 West 35th Street for $ 7.2 million and a 33,870-square-foot truck terminal at 2940 West 36th Street for $ 4.1 million, according to property records. Both properties are located along Chicago’s Interstate 55.

The project is the 19th acquisition of industrial real estate by Thor Equities this year. The seller is Rally Intermodal LLC with Michael LaFemina as a signatory.

The city’s industrial real estate sales totaled $ 1.52 billion in the first half of this year, on track to surpass last year’s $ 2.13 billion in sales. The volume of investment sales is also expected to grow 150% this year compared to the volume of investment sales last year, according to Colliers International.

Hurvitz added that net absorption, a measure used to measure demand, was 7.5 million square feet in the second quarter of this year, a huge jump from the 4.7 million square feet in the second quarter of 2019. Demand has lowered the vacancy rate for large-scale warehouses. the gap at 6.29 percent in the last quarter for the industry, approaching the lowest rate recorded of 6.15 percent two years ago.

“We’ve seen a number of new users come into the market this year, last year I don’t see this trend going away anytime soon,” Hurvitz said.