What’s the deal with airline food warehouses selling for $38M?

New Pacific Realty Corporation bought the 131,000-square-foot, single-tenant warehouse build for LSG Sky Chefs from Perlmutter Investment Company

Dec.December 03, 2019 01:00 PM
Beverly Hills-based New Pacific Realty Corporation paid $37 million for a 131,000-square-foot warehouse leased by LGS Sky Chefs near O’Hare in Des Plaines (Credit: Google Maps, iStock)

Beverly Hills-based New Pacific Realty Corporation paid $37 million for a 131,000-square-foot warehouse leased by LGS Sky Chefs near O’Hare in Des Plaines (Credit: Google Maps, iStock)

This airline food warehouse sold for more than peanuts. A California-based real estate investment shop dropped $37.5 million to acquire a large warehouse in Des Plaines near O’Hare International Airport, according to property records.

New Pacific Realty Corporation, headquartered in Beverly Hills, bought the 131,000-square-foot warehouse at 200 East Touhy Avenue from Perlmutter Investment Company in October, according to public records.

In 2005, the original property owner, International Airport Centers Chicago, purchased a 17-acre lot, which sat vacant for a decade until construction began on the warehouse, the Daily Herald reported. The warehouse was a build-to-suit development for a single tenant, airline catering company LSG Sky Chefs, which continues to hold a long-term lease there.

The warehouse at 200 East Touhy Avenue (Credit: Getty Images)

The warehouse at 200 East Touhy Avenue (Credit: Getty Images)

LSG Sky Chefs uses the 101,000-square-foot main floor to produce airport/airline food. The 30,000-square-foot second floor serves as offices, cafeteria, customer center and changing room.

Before it was completed, International Airport Centers sold the warehouse to Perlmutter for $30 million in 2015, records show. International Airport Centers and Permutter appear to be affiliated companies, both headed by Larry Krasner.

Perlmutter is based in Highland Park, but also has an office in Beverly Hills.

Perlmutter didn’t respond to requests for comment. New Pacific, which focuses in value-add opportunistic investments in office, residential, retail, hotel and industrial sectors, declined to comment.

The Chicago area’s industrial market has remained strong as of late. In the third quarter, demand reached a new high for 2019, with a net absorption totaling 9.2 million square feet and vacancy rates reaching their lowest levels since 2001 amid the delivery of 8.8 million square feet from the completion of 27 construction projects, according to a recent Colliers International report.

A 750,000-square-foot warehouse built on spec in Shorewood was completed in May and recently secured its first tenant for about half of the space. A 317,000-square-foot warehouse on Chicago’s Southwest Side sold for $38.5 million in October, while a recently developed 219,000-square-foot shipping facility that’s home to FedEx Ground’s Chicago shipping operation traded earlier this year for $52 million.

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