Revolution Brewing buys its North Side taproom and distribution plant

Cold beer and industrial real estate are two things Chicago has insatiable appetites for, and the city’s largest independent brewery now has plenty of both.

Revolution Brewing just bought the 128,422-square-foot industrial building at 3330-3360 North Kedzie Avenue, where it has run a taproom and a beer distribution operation started in 2012, according to Colliers, which represented the seller.

Revolution’s purchase comes as industrial real estate is booming across the nation and particularly in the Chicago area. It experienced record absorption of new spec space in the first quarter this year and skyrocketing rents, which could give users more reason to own their real estate rather than lease.

“Due to a combination of variables including the limited supply of inventory, and the building’s infrastructure, the transaction made sense for both parties,” Colliers’ Mike Senner, who arranged the sale, said. “Revolution has a lot of infrastructure in place and they want to continue to invest in the building. For them, controlling their own destiny long term is important.”

The lack of available industrial space has forced brokers and clients in need of a lease to act briskly to score a spot. Average industrial asking rents in the fourth quarter were up 3 percent from the previous quarter to $5.77 per square foot and 5 percent year-over-year, according to CBRE.

“It’s very hard when representing tenants” in the supply-constrained market, CBRE’s Jack Brennan told The Real Deal last week. “There is very little product. Tenants definitely need to move quickly.”

Revolution’s property sits on 3.24 acres and offers easy access, with a full interchange onto the Kennedy Expressway at Belmont Avenue as well as a Blue Line L stop. It’s a 15-minute drive from O’Hare International Airport and 10 minutes from downtown Chicago and features 18-foot to 24-foot clear ceiling heights, 14 docks and one drive-in door, Colliers said. It was fully leased at the time of the sale.

The seller was a private investment group who has not yet been identified in public records. The sale price has also not yet been recorded.