Westmount Realty Capital Buys Chicago Industrial Portfolio

Westmount Realty Capital added 391,000 square feet of industrial space to its Chicago-area holdings last month.

The Dallas-based investor purchased a nine-building industrial portfolio in the Interstate 55 corridor in North DuPage County, the Chicago Business Journal reported Financial terms of the deal were not disclosed.

The company acquired the portfolio from Unilev Capital and Mandalay Industrial as part of its continued push into key Midwest industrial markets. JLL’s Kurt Sarbaugh and Sean Devaney facilitated the sale on behalf of Unilev Capital and Mandalay Industrial.

The acquisition, called the Chicago Shallow-Bay portfolio, was 91 percent leased at the time of the transaction. Westmount’s industrial footprint in the region grew to 4.8 million square feet with this acquisition.

The demand for industrial properties, particularly for logistics and data centers, has surged due to increased online shopping and advancements in technology.

Brian Scruggs, managing director of industrial acquisitions for Westmount, described the purchase as a well-planned addition in a top-tier industrial market with established locations.

Chicago has been a focus for Westmount as the firm expands its industrial real estate presence. In 2022, it sold a 21-building industrial portfolio near O’Hare International Airport. That transaction was part of a broader strategy to optimize its holdings, and it is planning more acquisitions in the area this year.

The vacancy rate for Chicago’s industrial properties sat at 4.88 percent in September, according to Colliers. While deliveries have slowed, Chicago saw massive industrial deliveries in 2023, reaching 12.8 million square feet in the third quarter alone, the highest since 1999, according to JLL.

— Andrew Terrell