SL Industrial Partners Buys Chicagoland Light Industrial Portfolio
These assets previously changed hands in 2019 for more than $73 million.
SL Industrial Partners has acquired a 925,391-square-foot, 17-building portfolio of industrial flex space across three business parks in Chicago’s suburbs. Cushman & Wakefield’s Vice Chairs Mike Tenteris, Adam Tyler and Jim Carpenter represented the seller.
Stockbridge previously owned the Class A assets, according to CommercialEdge information. The firm had acquired them in 2019 for a combined $73.4 million.
Located in Buffalo Grove, Ill., Vernon Hills, Ill., and Elgin, Ill., in the Lake County and Northern Fox Valley submarkets, the properties were 92 percent leased overall at the time of sale. The parks will be rebranded under the SL Business Center name.
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SL Industrial Partners is a member of The Silverman Group. The acquisition more than doubles the firm’s presence in the Chicago area, expanding its local portfolio to just under 2 million square feet.
Blake Silverman, president of The Silverman Group, told Commercial Property Executive his company is assessing opportunities to enhance these newly purchased properties. “A key part of our approach involves rebranding the parks and strategically repurposing availabilities to offer light industrial and flex configurations. This allows us to better cater to the specific requirements of small business tenants, while ensuring the properties remain versatile and aligned with market needs.”
The industrial parks, up close
SL Business Center at Buffalo Grove, at 1601 Barclay Blvd., is an eight-building park totaling 406,406 square feet of industrial flex space. Developed between 1989 and 1994, the single-story buildings range from 42,000 to 69,000 square feet and are suitable for office, industrial and manufacturing uses. Features include multiple dock and drive-in doors, and 15-foot clear heights. Its location has direct access to U.S. Route 45 and is close to Interstate 94.
SL Business Center at Vernon Hills, carrying the address 100 N. Fairway Drive, has five buildings totaling 281,340 square feet. Ranging from 43,000 to 69,000 square feet, the facilities feature office and flex suites, multiple dock and drive-in doors, and 14-foot, 6-inch clear heights. The park, located near U.S. Route 60 and Interstate 94, was completed in the late 1990s.
SL Business Center at Elgin is a four-building complex at 2511 Technology Drive comprising 237,645 square feet. Delivered between 2001 and 2003, the single-story structures range from 59,000 to 60,000 square feet and offer 18-foot clear heights.
Deep strength
The Chicago industrial market witnessed a total investment volume of nearly $2.5 billion last year from January to November, according to a CommercialEdge report. The metro led the Midwest and ranked fourth nationally after Dallas ($4.2 billion), the Bay Area ($3 billion) and Houston ($2.8 billion). Assets changed hands for $94 per square foot, way below the national average of $128 per square foot.
In one of the more recent transactions, Standard Real Estate Investments and Trammell Crow Co. sold a 217,000-square-foot industrial property in Woodridge, Ill. IDI Logistics purchased the asset for $33.6 million.
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