JOLIET, Ill., Feb. 8, 2016 - Cushman & Wakefield has brokered the sale of a 575,000-square-foot industrial property at 3451 S. Chicago Street in Joliet. The newly constructed asset traded from Molto Properties to Midwest Warehouse for $27.8 million.
Midwest Warehouse, a third-party warehousing and distribution services provider, will self-occupy approximately 366,000 square feet at the property. The space was vacant at the time of the sale. Otis Elevator occupies the balance of the building, which Molto Properties purchased in 2011. Located on nearly 30 acres, 3451 S. Chicago Street features modern accommodations with 32-foot clear ceiling heights, heavy power, ESFR Sprinklers and T-5 lighting, ample loading and parking capacity and a fully fenced and secure yard.
Cushman & Wakefield industrial specialists Jason West and Sean Henrick, based in the commercial real estate services firm's Rosemont, Ill., office, represented Molto Properties in the sale. Tim Thompson from HSA Commercial Real Estate served as broker for Midwest Warehouse.
The Cushman & Wakefield team initially marketed 3451 S. Chicago Street for lease.
"This is an incredibly well-located, well-constructed building, and the offering drew significant tenant interest," West noted. "However, Midwest Warehouse's preference to own 3451 S. Chicago Street outright proved to be advantageous for Molto Properties. Our client ultimately achieved an attractive return on its investment."
West noted that the building's proximity to Interstates 80 and 55 and the BNSF and UP intermodal facilities were draws for Midwest Warehouse.
"The Joliet market has become a top choice for big-box warehouse," he said. "In addition to the region's excellent transportation infrastructure, space users here enjoy access to a tremendous labor pool and the ability to reach 30 percent of U.S. households within a day's drive."
New industrial leasing activity in the Chicago industrial market totaled 28.8 million square feet and investment sales reached 24.5 million square feet in 2015, according to Cushman & Wakefield research. The overall vacancy rate decreased 0.3 of a percentage point year-over-year to a 15-year low of 6.4 percent. Looking ahead, the firm anticipates that the logistics corridors along I-80 and I-55 will see the majority of tenant and developer activity in the coming year.
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