From residential to industrial: Logistics Property nears deal with homeowners to make way for warehouse project

Nearly 24 homeowners agreed to sell their homes to the developer for the 188K industrial complex

Aug.August 08, 2019 03:30 PM

Logistics Property Company Executive Vice President Aaron Martell and a rendering of the project

UPDATED, Aug. 12, 6:27 p.m.: Logistics Property Company is in the buying mood.

The firm is set to build a warehouse near Elk Grove Township after two-dozen homeowners agreed to offers from developers. Earlier this week, the firm also acquired 15 acres in the northwest suburban Addison with plans to develop 275,000 square feet of warehouse space, and paid $3.6 million for a 6.4-acre lot on the city’s Near South Side where it plans to build a 137,000 square-foot industrial site.

For the Elk Grove purchase, Logistics Property wants to build a 188,400-square-foot light industrial building, and hopes to buy out more homeowners to build more property.

The village’s plan commission unanimously recommended industrial rezoning and a variation for the area, according to the Daily Herald. If approved, Logistics Property’s construction could begin north of Landmeier Road in spring 2020, and the firm plans to lease the space to two or three tenants.

It is also seeking to annex the 10-acre property in the Roppolo residential subdivision into Elk Grove Village. In Chicago, investors have taken to buying condo buildings to turn them into rentals, known as deconversion. But it is not as common for developers to get approved for plans to convert residential areas into industrial.

In the case of Logistics Property, 23 homeowners agreed to sell their homes to make way for the new project. For the properties that are under contract, the offers ranged from $239,500 to $750,000, according to the Herald.

But 30 other homeowners next to the future warehouse are holding out. [Daily Herald]Gregory Cornfield

Correction: A previous version of this article stated incorrectly that Logistics Property Company had bought out the homeowners.

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