UNIVERSITY PARK, ILL. — Associated Bank has provided a $13.6 million loan for the acquisition of a 455,870-square-foot distribution center in University Park. The building, developed by Dermody Properties, is located at 425 University Crossing Drive. Edward Notz of Associated Bank managed the loan for the borrower, DPIF IL 3 University Park LLC.
LEMONT, ILL. — CBRE has arranged two industrial lease renewals for Salco Products Inc. totaling 128,339 square feet in Lemont, about 28 miles southwest of Chicago. The manufacturer of railcar parts renewed a lease for 96,360 square feet at 1385 101st St. and a lease for 31,979 square feet at 20W267 101st St. The smaller facility will allow for overflow space for the projected growth of Salco’s tank and hopper car parts business. David Prioletti of CBRE represented Salco in the lease transactions.
WAUKESHA, WIS. — Kirby Built Products has signed a 116,176-square-foot industrial lease in Waukesha. The furniture maker will occupy the space at 901 Northview Road. Waukesha Northview LLC is the landlord of the building. Roger Siegel and TJ Huenerbein of the Dickman Co. Inc. brokered the transaction.
WILMER, TEXAS — Interpoint Distribution Center, a 350,000-square-foot industrial property under construction in the Dallas suburb of Wilmer, is now available for lease. Situated on 24.3 acres near the crossing of Interstate 45 and Fulghum Road roughly 15 miles from downtown Dallas, the center will feature a 420-foot cross-dock configuration, 60-foot staging bays and 170 parking spaces. Colliers International will handle leasing of the building, construction of which is scheduled for completion this July.
KANSAS CITY, MO. — Ready Capital Structured Finance has arranged a $13.3 million loan for the acquisition of an industrial portfolio in Kansas City. The portfolio includes Rivergate Center, a five-building, 238,976-square-foot industrial property located at 1500-1634 N. Topping Road, and Midtown Park, a four-building, 320,400-square-foot property consisting of two office/warehouse buildings and two distribution buildings. The fixed-rate loan features a 60-month term and will also be used for the renovation and stabilization of the portfolio. The borrower was not disclosed.
NORTHLAKE, ILL. — Bridge Development Partners LLC has completed the Phase I expansion of the freezer facility at Bridge Point Northlake, a 55-acre business park on the site of a former distribution facility for Dominick’s grocery chain in Northlake. Phase II of the expansion, a 61,469-square-foot build-to-suit for candy maker Fannie May, is currently underway. Located at 555 Northwest Ave., Phase I is now available for lease and features a 162,000-square-foot cooler facility and a 256,752-square-foot freezer facility. Each property features clear ceiling heights of 32 to 40 feet. Bridge Development Partners acquired the site in partnership with Hunt Realty Investments and Akard Street Partners. John Suerth and Jason Lev of CBRE, who represented the previous owner in the sale, have been retained to market all three properties at Bridge Point Northlake.
NEW BRUNSWICK, N.J. — New Brunswick Development Corp. (Devco) has begun site preparation on the Ferren Mall Parking Deck for The Hub @ New Brunswick Station in New Brunswick. Devco expects site construction of the 1.7 million-square-foot mixed-use redevelopment project to begin in April. JLL is Devco’s marketing agent for The Hub, which will be located on four acres in downtown New Brunswick directly across from the New Brunswick train station. When completed, The Hub @ New Brunswick Station will encompass multiple buildings with a flexible design to meet office or lab requirements including technology, office or research use. The development is slated to include high-rise residential units and retail at street level.
SECAUCUS, N.J. — CBRE’s Global Port Logistics Group has brokered three lease transactions at two separate industrial properties in Secaucus. In the first transaction, CBRE represented VER, a provider of audio, video, lighting, rigging and media services, in a 223,000-square-foot lease at 50 Meadowlands Parkway. The space is part of Harmon Cove Industrial Park. VER will operate in an office and showroom featuring 30-foot ceilings and ESFR sprinklers. The CBRE team that facilitated the transaction included William Waxman, Mike Shellow, Mindy Lissner, Kevin Dudley, Steven Beyda, Robert Pine, David Gheriani and Kyle Saviano. In the second and third transactions, the same CBRE team represented landlord Bhasin Properties in lease transactions with David Donahue and Jay Joshua Inc. David Donahue, a menswear retailer, signed a 27,440-square-foot lease, while Jay Joshua Inc., an import business, signed on for 9,195 square feet at 1 County Road. JLL represented David Donahue, while Jay Joshua Inc. negotiated with CBRE directly.
E-commerce and the growth of the digital age have become important factors in the tightening industrial real estate market. With single-digit vacancy rates becoming the norm in nearly all of the Greater Boston submarkets, existing product cannot supply the space necessary to meet current market demand. Consumers’ shopping attitudes have changed, and retailers are having to adjust their strategies to meet their needs. In 2016, the Greater Boston industrial market recorded vacancies averaging 6.8 percent, the lowest in more than 15 years. The thriving e-commerce industry has been a large factor in the spike in demand. Last year, major e-commerce tenants like Amazon, FedEx and Wayfair expanded their presence in the Boston market with new leases on distribution centers, pushing 2016 absorption to almost 6 million square feet, an all-time record. Retailers are now looking to expand their coverage with multiple warehousing locations, pushing for facilities proximate to their specified consumer base. Instead of having one regional warehouse/distribution center, retail giants have zeroed in on infill submarkets surrounding cities to locate multiple warehouses close to the population center. Just last year, Amazon leased a 96,600-square-foot warehouse in Everett, minutes from Downtown Boston, which would become a base for grocery and …
PORTLAND, ORE. — Staples has leased 263,413 square feet of industrial space at Interstate Crossroads Distribution Center (ICDC) in Portland. The center is situated in the Portland’s Airport Way industrial submarket at 16441 N.E. Cameron Blvd. Interstate Crossroads LLC (a partnership between Specht affiliates and Pacific Coast Capital Partners LLC) developed the warehouse and distribution center in 2015. Specht Properties manages the asset. Staples will use the facility for the warehousing and distribution of consumer goods. Paul Breuer and Jerry Matson of the Portland office of Colliers International represented ICDC.
