Bridge Development Bets Big On I-55 Corridor With $73M Industrial Acquisition
With industrial leasing velocity strong and net absorption positive, investor appetite for large-scale industrial product in greater Chicago continues to be unsatisfied. Most recently, Bridge Development Partners bought the 741K SF Fountain Square Commerce Center in Bolingbrook for $73.5K.
Conor Commercial Real Estate and LaSalle Investment Management developed the four-building property and were the sellers. The deal comes on the heels of Conor’s September sale to Cabot Properties of Northwest Pointe II, a 385K SF industrial building the company developed in Elgin.
The sale generated an attractive development return for Conor and LaSalle, while "providing an attractive value-added investment opportunity for Bridge,” Conor President David Friedman said.
At the time of sale, two of the four buildings were 100% leased, with about 439K SF remaining to lease in the park.
Bridge Development Partners plans to develop a 216K SF property on 12 adjoining vacant acres, which was included in the sale.
“Fountain Square represents one of the best environments for midsized tenants,” Colliers International principal Jeff Devine said. Devine and colleague Steve Disse represented the sellers.
The sale comes at a time when metro Chicago's industrial market is hot. According to Colliers International, the region's industrial vacancy rate decreased by four basis points between July and September to 6.4%, the lowest rate since the second quarter of 2001.
Leasing velocity increased for the second quarter in a row in Chicago's industrial market, with new leases and lease expansions totaling 10.1M SF during Q3 2018. Net absorption was positive for the 26th consecutive quarter, totaling 2.4M SF during the third quarter of 2018.