Investment firm Faropoint acquired another industrial facility in the Chicago area, expanding its portfolio amid growing demand from e-commerce and logistics firms for big-box warehouse space.
Faropoint bought a 43,538 square foot industrial facility on 2.5 acres at 900 Business Center in Mount Prospect, RE Journals reported. Jordan Kovalsky, senior vice president of Midwest markets at Faropoint, confirmed the purchase to The Real Deal, citing access to population, transportation and increased opportunities with supply chain demand.
“We’ve seen a ton of growth, specific growth in demand in the industrial market in Chicago and Illinnois,” said Kovalsky. “We are trying to build out the last-mile ecosystem and in order to do that we will have to continue to expand and grow.”
Faropoint closed on four transactions totalling just under 900,000 square feet in 10 buildings in the past two months. The properties are in Elk Grove, Glendale Heights, Carol Stream, Hanover Park, Bolingbrook and Elgin.
The vacancy rate for large-scale warehouse space fell to 6.29 percent in the second quarter, nearing a record low of 6.15 percent two years ago.
Major retailers such as Amazon have signed new leases, built out supply chains and shortened delivery times as online shopping surged during the pandemic.
[RE Journals] — Connie Kim