E-commerce, logistics deals drive demand for Chicago industrial market

Brookfield Asset Management, Elion Partners to develop $1B of real estate as Timber Hill Group, Champion Realty Advisors plans $150M fund for logistics-related projects

Chicago /
Sep.September 23, 2021 03:21 PM
E-commerce, logistics deals drive demand for Chicago industrial market

Founder of Timber Hill Cary Goldman, CEO of Brookfield Bruce Flatt, and Elion Logistics Park 55 (Timber Hill Group, Brookfield, Elion Partners)

The rise of e-commerce is driving demand for industrial real estate in Chicago as investors seek to build logistics-related properties.

Brookfield Asset Management and logistics investor Elion Partners said today that it teamed up to develop about $1 billion of real estate at Elion Logistics Park 55, a 2,500-acre industrial park located at Interstate 55 and Lorenzo Road in Wilmington, Illinois.

The deal came a day after private equity firm Timber Hill Group and Champion Realty Advisors, a real estate agency, said they will start a $150 million fund to invest in logistics-related supply-chain properties.

“From the largest of users such as Amazons, Wal-Marts and Home Depots of the world down to a local truck operator, the demand has been outpacing supply and that fuel is going to continue.” said Cary Goldman, managing partner at Timber Hill.

Industrial tenants in Chicago signed 173 leases for 15.4 million square feet between April and June, a quarterly record. The vacancy rate dropped to 6.29 percent in that period, close to a low of 6.15 percent two years ago.

Brookfield and Elion’s project includes five fully leased Class A industrial assets and could develop as much as 15 million square feet more. Brookfield Managing Director Chris Reily said he’s excited to strike a deal in “supply-constrained markets with potential upside.”

Brookfield, which manages $625 million of assets, has been putting cash to work in new acquisitions. The asset manager said in July that it would use subsidiary Oaktree Capital Management to launch a private real estate investment trust.

Timber Hill and Champion Realty plan to acquire logistics-related supply-chain properties in major metropolitan markets to store, maintain or dispatch trucks, heavy equipment or bulk materials in the next 12 to 18 months.

Timber Hill buys logistics centric industrial assets across the nation. In Chicago, it focuses on managed parking lots for trucks and industrial outside storage, which large e-commerce companies such as Amazon rent for delivery vans.

[contact author email=”[email protected]” text=”Contact Connie Kim”]


Related Articles

arrow_forward_ios
525-613 Roosevelt Road in Glen Ellyn
Suburban Chicago shopping center sold in potential sign of retail rebound
Suburban Chicago shopping center sold in potential sign of retail rebound
Kimpton Hotel Monaco at 225 North Wabash Avenue and Xenia Hotels & Resorts' Marcel Verbaas (Google Maps, Xenia)
Kimpton Chicago hotel to be sold for $20M less than appraised value eight years ago
Kimpton Chicago hotel to be sold for $20M less than appraised value eight years ago
Photo Illustration of construction materials on an airport runway (Getty)
British Airways files negligence suit against Chicago over O’Hare expansion
British Airways files negligence suit against Chicago over O’Hare expansion
AmTrust Realty to pump in $100M to spruce up Loop portfolio
AmTrust Realty to pump in $100M to spruce up Loop portfolio
AmTrust Realty to pump in $100M to spruce up Loop portfolio
Angelo Gordon sells North Side retail assets for $46.3M
Angelo Gordon sells North Side retail assets for $46.3M
Angelo Gordon sells North Side retail assets for $46.3M
Chicago’s Old Post Office nabs health care firm as new tenant
Chicago’s Old Post Office nabs health care firm as new tenant
Chicago’s Old Post Office nabs health care firm as new tenant
Buckhorn Estates in Des Plaines (Google Maps)
Denver firm buys two suburban Chicago mobile home parks for $43M
Denver firm buys two suburban Chicago mobile home parks for $43M
The WGN-TV building and Hines CEO Jeffrey Hines (WGN-TV, Hines)
Hines pays about $31M for WGN-TV studio
Hines pays about $31M for WGN-TV studio
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...