The industrial market has never been hotter, and Chicago remains the place to be.
Not only was there a flood of new industrial developments this year, but high demand from e-commerce led to record sales at last-mile facilities and warehouses well-connected to major highways.
On our list of the five most significant industrial sales in Chicagoland in 2019 are multiple FedEx properties, plus a former Wrigley-owned property and a Fresh Express warehouse.
The Real Deal looked at brokerage data, news clippings and public records to compile this list of the most significant industrial sales in the Chicago area this year. This is not a definitive ranking, but an analysis of some of the largest and most expensive sales in the industrial market of the year.
10601 Franklin Avenue, Franklin Park | $116 million
Morgan Stanley’s Prime Property Fund purchased this massive industrial park from Ithaca-based Bridge Development Partners in December. Talk about a healthy sign for the industrial market – this was one of the largest deals in many years for the Chicago market.
The Bridge Point Franklin Park property located at 10601 Franklin Avenue was part of a massive deal between Bridge Development and Prime Property Fund. At the same time of this deal, Prime Property Fund also paid $84 million for a second property in Downers Grove, Illinois as well as a third property in Pompano Beach Florida, bringing the total price tag for the portfolio to over $200 million.
The property in Franklin Park includes three buildings spanning about 740,000 square feet. The property was completed in 2018 and represents a solid-looking deal for Bridge Development, which bought the land in 2017 for $27 million and built on spec.
5959 West Howard Street, Niles | $84 million
The first of three FedEx distribution centers on this list. Global Securitization Services bought this 350,000-square-foot warehouse for for over $84 million in May. Included in this deal was also a $46.5 million acquisition loan from Morgan Stanley.
Indianapolis-based investor Scannell Properties sold the warehouse at 5959 West Howard Street after developing the property into an automated package sorting and distribution center in 2014, which cost Scannell Properties and estimated $30 million at the time.
930 West Evergreen Avenue, Chicago | $73 million
This FedEx distribution center located at 930 West Evergreen Avenue in Goose Island was purchased by Connecticut-based Greenfield Partners from iconic Chicago business the Wrigley Company for $73 million.
The Wrigley Company made quite the profit on the sale. They purchased the 280,000-square-foot warehouse for a mere $31 million compared to the $73 million they sold it for. The warehouse was a manufacturing plant for candy purveyor Mars (the parent company of Wrigley) but has now been transformed into a FedEx distribution center.
1109 East Lake Street, Streamwood | $58 million
Broadstone Real Estate purchased this Fresh Express warehouse located at 1109 East Lake from New York-based Angelo Gordon & Co. in October at a price of $130 a foot.
Angelo Gordon picked up the 444,000-square-foot warehouse for just $11 million in 2012. This warehouse was part of a portfolio Gordon sold to Broadstone, which also included a second warehouse that houses Claire’s global headquarters in Hoffman Estates.
3000 South Damen Avenue, Chicago | $51.8 million
This Loop-area FedEx Distribution Center located at 300 South Damen Avenue was purchased by Cabot Properties for just under $52 million.
The 219,000-square-foot shipping facility was developed by the former owner Scannell Properties. who confirmed the deal in September. Cabot acquired the property through one of its funds that specializes in Class A distribution facilities called Core Industrial Fund II. The warehouse sold for $236-per-square-foot.