GID pays $31M for Bolingbrook industrial, profiting TA Realty

Investment firm GID picked up a large industrial property in Chicago’s southwest suburbs for $31 million as another bigtime warehouse player cashed out after holding the asset for seven years.

Boston-based TA Realty sold the 321,000-square-foot facility at 3-9 Timber Court in Bolingbrook in a deal finalized July 12, Will County public records show. Neither party responded to requests for comment.

The deal marked a 72 percent increase in property value for the asset under TA, which bought the asset for a little less than $18 million in 2016, records show, as the margin illustrates the industrial craze that picked up amid the pandemic and fueled profits for warehouse landlords in big transportation and shipping hubs such as Chicago, Dallas and California’s Inland Empire.

GID’s three-tenant building is fully leased, according to an online listing. Warehouse and transportation services company Chicagoland Quad Cities Express occupies more than half of the building, having last year added 89,000 square feet to a lease it already had for 90,000 square feet at the property.

The building’s other tenants are CHEP USA, occupying almost 76,000 square feet, and Geneva Warehousing & Distribution, which takes up about 67,000 square feet, according to the property’s marketing materials.

Demand for industrial space in Chicagoland has been strong, though the vacancy rate has begun to creep up as developers have rushed to add supply. The metro area’s vacancy rate hit a record low of 4.5 percent at the end of 2022, which increased to 4.6 percent last quarter, according to a report from Colliers International. 

Builders are on track to complete almost 42 million square feet of warehouse space in the Chicago area by the end of 2023. That would be the largest annual total ever, and most of it still has yet to be leased, per Colliers.

Even with cooling demand, Chicagoland’s suburban industrial centers are still inking large deals. Hose supplier Kuriyama is pre-leasing 60 percent of the 541,000-square-foot Huntley Commercial Center in the northwest suburb, brokerage Newmark announced.

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GID manages almost $30 million in assets, including 27 million square feet of industrial and commercial space and more than 52,000 multifamily units, according to the firm’s website.

TA Realty has been active in investing in Chicago-area industrial real estate in the last year, picking up a 21-building portfolio near O’Hare International Airport from Stockbridge for $70 million last year as well as the former Walgreens campus in Northbrook for $21 million. The firm is redeveloping the latter into an industrial asset in partnership with Panattoni.