Morgan Stanley fund buys industrial spec development for $22M

A Morgan Stanley fund just bought a spec industrial building in the southwest suburbs from a local developer.

Prime Property Fund, a company affiliated with the New York-based financial services firm, paid more than $21.5 million for the nearly 220,000-square-foot distribution center at 6855 West 65th Street in Bedford Park, public documents show.

Bridge Development Partners purchased the 12-acre site for $3.9 million in December 2018. The firm demolished an old perfume factory on the property to make way for the new development, which was financed with a $12.3 million construction loan from Simmons Bank.

Morgan Stanley funds have picked up numerous other industrial properties from Bridge in the Chicago area, as well as in South Florida and California.

A few months ago, Bridge sold two big warehouses in Franklin Park, not far from the Bedford Park property, and Downers Grove to Prime for $116 million and $84 million, respectively. The Franklin Park deal was the highest-grossing industrial sale in the Chicago area last year.

At the same time, Prime picked up a third industrial property from Bridge, in Florida’s Pompano Beach, bringing the total for the portfolio to more than $200 million.

More recently, a pair of nearly 175,000-square-foot warehouses in Fort Lauderdale, Florida, traded hands between Bridge and Morgan Stanley Private Wealth Advisors for $28 million.

About two years ago, Prime paid about $103 million for a 512,000-square-foot industrial property near Torrance, California.

Bridge is one of the biggest industrial developers in all three markets.

In Chicago, Bridge has mostly concentrated on the southwest and west suburbs. It recently completed two buildings totaling more than 575,000 square feet in Cicero.

Bridge’s Illinois portfolio is valued at $1.73 billion, according to its website.

Morgan Stanley and Bridge didn’t immediately respond to requests for comment.