WP Carey has a 1.6 MSF tenant near Chicago

WP Carey inked a 1.6 million-square-foot industrial lease at 701 Central Ave. of University Park, Ill., a submarket of Chicago. A global technology and logistics company will occupy the entire building, marking the largest deal in the market to date. This deal closed despite a slowdown in larger industrial leasing in the US

Two Cushman & Wakefield teams brokered the deal on behalf of the parties. The property executed several tenant build-out requirements before closing the deal. The property was previously leased to Dart Container Corp., a Mason subsidiary.

WP Carey purchased the asset in February 2014 for $80.7 million — or $51.96 per square foot — from Fulcrum Asset Advisors, according to CommercialEdge. Since then, the company has made several improvements to the 90-acre property while reducing the building’s overall carbon footprint.

READ ALSO: Chicago’s industrial market dwarfs the rest of the Midwest

The tenant will consolidate its entire real estate footprint in this facility. The distribution center, completed in two phases between 2003 and 2005, has 32-foot clearances, 120 dock-height loading doors and three entry doors with levelers and bumpers. In addition, the cross-dock warehouse is air-conditioned and has approximately 155 parking spaces.

The building offers easy access to Interstate 57 and Highway 50, while downtown Chicago is approximately 55 miles away. The Port of Chicago is 45 miles away and Chicago O’Hare International Airport is less than 80 miles northwest.

Cushman & Wakefield Vice President Sean Henrick and Managing Director Ryan Klink represented the landlord, while Executive Vice President Jason West, Vice President Lou D’Avanzo and International Partner Adam Cooke worked for the tenant.

Greater industrial leasing is still happening in Chicago

Chicago’s March vacancy rate hit 6.1 percent, 90 basis points higher than the national average, according to the latest CommercialEdge industry report. The average subway rent in the same month was $6.06, up 4.7 percent year over year.

Crow Holdings recently leased its more than 1 million square foot facility in Merrillville, Ind. A major e-commerce company will fully occupy the building. Another notable deal in the area was the lease from Norkol Converting Corp. at CenterPoint Properties’ Industrial Center 88 in Montgomery, Illinois. The firm committed to 330,694 square feet, a third of the building’s capacity.