Ryan Companies Sells Warehouse in Chicago’s Pullman Park

Radian Investment Management has expanded its industrial portfolio with a $31.8 million warehouse in Chicago’s Far South Side neighborhood.

The New York-based investment management company, headed by CEO Nicolas Barraza, acquired the Whole Foods distribution center in Pullman from Minneapolis-based Ryan Companies, Crain’s reported. The price pencils out to $227 per square foot.

Colliers brokers Jeff Devine and Steve Disse facilitated the sale on behalf of Ryan Companies, while Seattle-based Metzler Real Estate represented Radian Investment Management.

The 140,000-square-foot warehouse, at 716 East 111th Street, is a pivotal part of Pullman Crossings, an industrial zone within the 180-acre Pullman Park redevelopment.

Developed by the Minneapolis-based developer in 2018, the warehouse serves as a critical distribution hub for Whole Foods Market, leveraging its proximity to major transportation routes such as the Bishop Ford Freeway.

The sale marks a shift in focus, as Ryan doubles down on further industrial development at Pullman Crossings. Under CEO Brian Murray, the company has started construction on two speculative projects over the past six months. Upon their completion, these projects will deliver 330,000 square feet of warehouse space to the area.

One of those projects is a 160,000-square-foot speculative warehouse at 10800 South Doty Avenue. Developed in partnership with New York firm Namdar Realty Group and Mason Asset Management, the warehouse marks the fourth and final phase of the 50-acre development, which is part of the larger 180-acre Pullman Park revitalization project.

The success of Pullman Park’s transformation is tied to the city’s investment in the area through tax-increment financing. The Whole Foods warehouse project received $8.4 million in TIF funds as part of Ryan Companies’ $32.4 million investment in the project.

“Over time, these investments pay off,” said Chicago Neighborhood Initiatives CEO David Doig, referencing the more than 2,000 jobs now supported by industrial facilities at Pullman Park.

While the industrial real estate market has cooled since the height of the pandemic, demand for well-located properties remains steady. The warehouse vacancy rate in the Chicago metro stood at 4.88 percent at the end of the third quarter, according to Colliers.

— Andrew Terrell