PCCP JV Breaks Ground on Chicago Spec Project

Rendering of 350 W. Wolf Road. Image courtesy of PCCP

PCCP and joint venture partner Stotan Industrial have started construction on a 100,400-square-foot speculative industrial development in Mount Prospect, Ill.

Located within Chicago’s O’Hare submarket, this is the first project the companies have teamed up on. Signature Bank originated a $13.1 million financing for the property, Cook County public records show.

Principle Construction is the general contractor for the project, while Avison Young is marketing the property for lease. The facility is expected to be completed and ready for occupancy in the third quarter of 2023.

The development site was purchased from Comcast in October 2022 for $4.4 million, according to Cook County public records. The site previously hosted a vacant office building, which was demolished last year. The project is being constructed in a submarket with low vacancy rates and a low supply of Class A industrial product and trailer space, where less than 10 percent of the available supply was built in the last decade, according to Alexandra Schultz, senior vice president at PCCP.

Located at 350 N Wolf Road, the Class A project will include 32-foot clear heights, an office component, two drive-in doors, up to 20 exterior docks, 96 vehicle parking spots and 24 trailer parking spots. Situated on an eight acre lot, the development is close to Interstate 294 and I-94, and is eight miles from O’Hare International Airport and its Northeast Cargo facility. Chicago is 23 miles away, with the Illinois International Port District 54 miles away.

A strong pipeline

A recent CommercialEdge report shows that some 668 million square feet of industrial space is under construction as of February and, as developers continue to expand national stock, the U.S.’ industrial footprint is expected to increase by 8.9 percent during the next five years. In the Midwest, Chicago leads other markets in industrial space under construction, with 27.3 million square feet being built. Columbus ranks second at 12.8 million square feet, with Indianapolis third with 12.2 million square feet.

October 2022, LBA Logistics completed Industry Center at Melrose Park, a 651,617-square-foot industrial development in Melrose Park, Ill. The development team included McShane Construction Co. and Harris Architects. The three-building park used JLL as their leasing agent. Also in October, Dermody Properties purchased a former Allstate Corp. campus encompassing 232 aces in Glenview, Ill. The company plans to demolish the five existing office buildings at the site and build a $500 million, Class A logistics park. Totaling 3.2 million square feet of space, The Logistics Campus’ first phase of construction consists of five new buildings totaling 1.2 million square feet. That project is expected to be completed in the second and third quarters of 2023.