Stockbridge selloff of Chicagoland industrial exceeds $100M

Stockbridge has moved west with a Chicagoland industrial real estate deal that pushes its recent sell-off streak over $100 million.

The $33 million sale to Boston-based Cabot Properties came on a 347,000-square-foot warehouse in the western DuPage County suburb of Carol Stream from Stockbridge, CoStar News reported.

The deal with Cabot came just weeks after San Francisco-based Stockbridge sold the portfolio totaling 21 buildings and 760,000 square feet near O’Hare for $70 million to another Boston-based buyer, TA Realty.

Stockbridge paid $43 million for the O’Hare-area property in 2019. It’s unclear from public records what Stockbridge spent on the Carol Stream asset, which is fully leased to suburban Deerfield-based office supplies wholesaler Essendant, a company bought four years ago by the parent of Staples for $996 million.

Stockbridge’s recent sales coincided with a year-end move by Rothbart Construction Realty to take some chips off the table in the western Chicago suburbs in an environment of near-record demand among tenants for industrial space as well as the second largest dollar volume of industrial sales ever. Dominic Sergi’s Oak Brook-based firm Clear Height Properties spent more than $100M to buy 33 properties from Rothbart this month, with the portfolio concentrated in DuPage County, as well.

The big trades close out a year in which U.S. industrial sales volume will fall just shy of 2021’s record $125 billion, as a slowdown in the pace of deals amid interest rate hikes took hold of the market and required downward price negotiations to complete deals, the outlet reported, citing a CoStar analyst. Vacancy in Chicago-area industrial properties sits at just 2.8 percent, JLL’s third quarter report said.

Cushman & Wakefield’s Michael Tenteris, Adam Tyler and Elizabeth Given represented Stockbridge in its deal with Cabot.

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Boston’s TA Realty drops $70M on O’Hare industrial portfolio

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Clear Height beefs up Chicagoland industrial holdings for $100M

— Sam Lounsberry