An Atlanta industrial investor group paid $83 million for a portfolio consisting of six warehouse buildings and one secured trailer lot in Bedford Park, 15 miles southwest of Chicago — the company’s first expansion into Illinois, amid insatiable demand for large-scale warehouse space.
Cook County property records show the firm bought six buildings ranging in price from $8.1 million at 6131 West 74th Street to $26.6 million at 6220 West 73rd Street. The sellers are entities named GIJV IL7 LLC, Western A Midwest IL II LLC, BRE Alpha Ind Prop Owner LLC, GIJV IL 6 LLC and GUV IL 7 LLC. MDH Partners announced the deal in a press release last month, but the price wasn’t disclosed.
The buildings range in size from 120,000 square feet to 380,000 square feet and are situated on a combined 64.42 acres. The facilities are between 22 to 28 feet in height and have a secured trailer lot with over 150 stalls.
MDH Partners said Bedford Park is an “unparallelled location” close to the urban core that offers a strong local labor pool and has convenient access to highway, rail and air infrastructure.
Bedford Park is about three miles south of Midway International Airport with direct access to the Belt Railway, the largest intermediate switching terminal railroad in the country. The properties are also within 10 miles east of Interstate 294 and Interstate 55, connecting to both the local Chicago and regional markets.
The pandemic has given a boost to the industrial market in Chicago as warehouses are used as last-mile distribution centers to store and distribute products people purchased online. Vacancy rates fell to an all time low of 4.4 percent and 16.4 million square feet of new buildings were built in the third quarter, according to JLL.
The portfolio is 96 percent leased to seven tenants including Heligear Acquisition Co., an aerospace component manufacturer and Trimark Marlinn, a foodservice equipment supplier. FedEx Ground Package Systems, Inc. occupies the 150-stall secured trailer lot.
The investment firm, founded by Jeffrey Small and Michael Pelt in 2005, acquired more than 14 million square feet of space in eight states, including California, Arizona and Florida. Starting in 2013, MDH Partners focused on buying last-mile facilities and Class A logistics centers, according to its website.