Stream Realty Partners just made an entrance in Chicago’s industrial market by acquiring a fully-leased distribution center in the Stockyards submarket.
The Dallas-based firm paid an undisclosed amount for the Halsted Pershing Business Center, a 104,000-square-foot building at 815 West Pershing Road, near the Bronzeville neighborhood, the Chicago Business Journal reported.
The seller was Alliance Commercial Partners, which was represented by JLL brokers Ed Halaburt, Sean Devaney, John Huguenard, Kurt Sarbaugh, Will McCormack and Michael Conway.
The building is fully leased to three tenants, including food startup Nature’s Fynd and smart oven manufacturer Tovala. The property’s renewed 6b tax classification boosted its attractiveness to Stream Realty.
The company was also drawn by “the tight supply and demand fundamentals in South Chicago, especially on the small tenant side,” said Stream Realty’s Mustafa Ali, who called the Stockyards submarket “one of the most concentrated areas of new tenant demand for cold storage and food users in Chicago.”
Stream Realty plans to invest in upgrades to the property to maintain its Class A quality, said Patrick Russo, the firm’s executive managing director.
Stream Realty’s industrial third-party services portfolio spans 13 million square feet in Chicago and 17.6 million square feet nationwide.
Chicago’s industrial market took off after the pandemic accelerated an increase of e-commerce. However, industrial demand started to cool last year, leading to some oversupply as deliveries hit a historic high in the third quarter of 2023. Industrial vacancies rose to 7.6 percent during that stretch, marking a 4 percent increase year-over-year.
Since last year, most notable industrial sales in the Chicago metro have occurred in the suburbs. Blackstone, for instance, in October bought four properties near O’Hare International Airport for nearly $137 million.
In April, New York-based Stonepeak paid $125 million for 1.7 million square feet of logistics space in the southwest suburb of Elwood.
Read more
Commercial
Chicago
Brookfield pays $98M for industrial assets in Chicago suburbs
Commercial
Chicago
Blackstone pumps $137M into Chicago industrial
Commercial
Chicago
Stonepeak drops $125M on largest industrial purchase this year