Stream Realty Buys Industrial Portfolio for $84M

July 22, 2024

Investment Chicago Industrial MidwestMoreNews

A four-building collection has expanded the company’s footprint in the Chicago area.

Stream Realty Partners has acquired a four-building industrial portfolio totaling 599,988 square feet of Class A industrial space in metro Chicago. Westcore Properties sold the assets for a combined $83.5 million, according to CommercialEdge data.

Stream Realty Partners has acquired a four-building portfolio in metro Chicago, including 8965 W. 187th St. in Mokena, Ill., in the Joliet submarket — Stream Realty Partners has acquired a four-building portfolio in the Chicago area, including 8965 W. 187th St. in Mokena, Ill., in the Joliet submarket. *Image courtesy of Stream Realty Partners*

The properties are strategically located in key submarkets, ensuring robust market presence and high tenant demand. The portfolio is fully leased to seven tenants.

The assets include Asbury Drive, a 157,500-square-foot building located at 850 Asbury Drive in Buffalo Grove in the Lake County submarket, which sold for $20 million; Rockwell Logistics Center, a 174,262-square-foot building located at 2545 W. 24th Street in Chicago in the City South submarket, which sold for $33.5 million; and Mokena Logistics I and II, 268,226 square feet across two buildings located at 8965 and 8905 W. 187th Street in Mokena in the Joliet submarket, which sold for a combined $30 million.

Chicago’s strong industrial market

Alex Olshansky, principal & head of Investments, Zenith IOS, told Commercial Property Executive that institutional industrial investors continue to be drawn by the unique factors driving demand in the Chicagoland market, such as its strategic central location, a strong and diversified manufacturing and population base, and most importantly its irreplaceable position as the most rail and freight-advantaged logistics market in the country.

“Given its position as one of the largest and most dynamic industrial markets in the country, Chicago is well-positioned to continue to attract interest from both corporate users and value-oriented investors,” Olshansky said.

Stream Executive Managing Director and Partner Patrick Russo, Portfolio Manager Mustafa Ali and Associate Ben Harrison facilitated the acquisition.

CBRE’s Capital Markets Advisors, which include Ryan Bain, Michael Caprile, Zach Graham, Judd Welliver, Bentley Smith, Joe Horrigan, and Victoria Gomez, along with local brokers Whit Heitman, Sam Badger, Larry Goldwasser and Terry Grapenthin, also assisted in the transaction.

Stream currently manages a portfolio of 41 investments totaling 23.2 million square feet and approximately $2 billion of equity across five commingled funds, several joint venture vehicles and wholly owned assets.