Dayton Street Partners and Black Creek Group are teaming up for a second speculative industrial building in the hot O’Hare submarket.
Chicago-based Dayton Street will develop the $14 million, 132,000-square-foot distribution center at 1731 Wall Street in Mount Prospect, The Real Deal has learned.
Denver-based Black Creek bought the property near O’Hare’s north cargo entrance in May from a trust for $4.5 million, according to Cook County records.
Work is expected to start later this month and be completed in the spring.
About the same time, Dayton Street and Black Creek are expected to deliver another large spec industrial building near O’Hare: A 116,000-square-foot warehouse at 1055 Sesame Street in Bensenville.
A May report from Avison Young said surging demand has led to low vacancy rates and high rents in the O’Hare industrial submarket.
The industrial vacancy rate in that area was 4.5 percent in the first quarter, well below the 5.9 percent rate in the overall Chicago suburban market. Rents averaged around $20 per square foot, almost four times as much as the overall average for the suburbs.