Stream Realty picks up logistics portfolio despite softening market

• The 158,000-square-foot Asbury Drive building at 850 Asbury Drive in Buffalo Grove.
• The 174,000-square-foot Rockwell Logistics Center at 2545 W. 24th St. in Chicago.
• The 268,000-square-foot encompassed by the Mokena Logistics I and II buildings at 8965 and 8905 W. 187th St. in Mokena in Joliet.

The industrial market has cooled from the white-hot, build-it-and-they-will-come levels that led to a wave of spec development in key markets throughout the nation during the pandemic, when lock-downs and work-from-home trends had e-commerce outfits scrambling for everything from major hubs to last-mile space.

The ease from peak demand doesn’t mean the Chicago industrial market isn’t staying busy, though, with Stream Realty Partners’ recent buy of a four-property portfolio the latest illustration, the Chicago Business Journal reported. 

The Dallas-based investor’s portfolio ranges from office buildings in Chicago’s Loop to medical services centers in Southern California.

The properties Stream Realty bought on undisclosed terms in the Chicago area were each fully occupied, a roster that includes:

• The 158,000-square-foot Asbury Drive building at 850 Asbury Drive in Buffalo Grove.
• The 174,000-square-foot Rockwell Logistics Center at 2545 West 24th Street in Chicago.
• The 268,000-square-foot encompassed by the Mokena Logistics I and II buildings at 8965 and 8905 West 187th Street in Mokena in Joliet.

“This acquisition offers substantial opportunities for value creation through strategic leasing and rent growth,” said Mustafa Ali, a portfolio manager with Stream Realty, in a statement. “We are excited to continue expanding our footprint in the Chicago market and to deliver exceptional value to our investors.”

Its deal to buy the four-building industrial property from a buyer who has not yet been named comes off the heels of Stream’s acquisition of the Halsted Pershing Business Center, near the Bronzeville neighborhood on Chicago’s South Side. 

It also follows a recent addition by local developer and investor Ryan Companies to its industrial portfolio in the Pullman Park neighborhood, also on the South Side. 

Industrial vacancy hit 6.9 percent in the second quarter in Chicago, according to Savills. More than 9.3 million square feet of sublease space was available, the most in a decade. Development activity has decreased, and asking rents averaged $7.40 per square foot in the second quarter.