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.