JLL IPT buys Elgin Distribution Center in northwestern Chicago suburb

City’s industrial market stays hot

Chicago /
Jan.January 14, 2022 10:03 AM
The Elgin Distribution Center and JLL Income Property Trust's Allan Swaringen (JLL)The Elgin Distribution Center and JLL Income Property Trust's Allan Swaringen (JLL)

The Elgin Distribution Center and JLL Income Property Trust’s Allan Swaringen (JLL)

JLL Income Property Trust bought the Elgin Distribution Center, a Class A, two-building industrial property in Chicago’s northwestern suburb, for $47 million.

Constructed in 2020, the property totals 407,000 square feet and each building features state-of-the-art specifications: the larger building is cross-docked with 33-foot clear heights and the smaller one includes a front office and clear heights of 29 feet.

“The Elgin warehouse submarket stands out for its access to a robust labor pool and close proximity to Chicago, along with O’Hare International Airport, which we believe will drive long-term value for these properties,” Allan Swaringen, JLL Income Property Trust president and CEO, said in a statement.

The properties are 100 percent leased with a weighted average lease term of approximately 10 years. Industrial rents in Chicago have surged to an all-time high, closing the year out up 17.3 percent over the final quarter of 2020.

The sale underscores the importance of Chicago’s industrial market, which is the country’s second-largest, with 1.2 billion square feet of space, according to LaSalle Research & Strategy. It’s supported by the city’s central location, proximity to transportation infrastructure and access to a large population. Chicago also has the highest going-in yields of any gateway industrial market in the country.

The acquisition brings JLL’s industrial allocation to more than $1.7 billion, or 30 percent of the company’s total portfolio.

UPDATE: This story has been updated to clarify in headline that purchaser was JLL IPT.





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