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Canadian Investor Buys 343K SF Suburban Chicago Industrial Portfolio

2200 and 2300 Norman Drive, Waukegan

A large north suburban Chicago campus has changed hands. 

Avison Young and Cushman & Wakefield brokered the sale of a 343K SF property at 2200 and 2300 Norman Drive in Waukegan to a Canadian institutional firm. The sale price and buyer were not disclosed. Both buildings are fully leased to Peer Chain, a provider of ISO- and ANSI-compliant chains and attachments, and Peer Bearing, a ball bearing producer.

The Class-A buildings, built in 1997 and 2001, are near Interstate 95 and feature T-8 and T-12 lighting, 26-foot to 34-foot clear heights and 400 automobile parking spaces. Upgrades include electric-car charging stations and laser-guided self-driving forklift aisles. Each building has approximately 20% of its space designated for office use.

Avison Young principal Erik Foster said the portfolio attracted widespread investor interest because of its stable cash flow and illustrates the increased interest by global investors for quality U.S. industrial product. Foster, Avison Young principal Mike Wilson and Cushman & Wakefield Executive Vice President Keith Puritz represented the seller. Avison Young Asset Manager of North American Investments Andrew Fraser represented the buyer.

“Our client is delighted to have been awarded the portfolio," Fraser said in a release. “Chicago, as North America’s largest industrial market, is very attractive to global investors looking for well-maintained assets secured by long-term tenants. We are confident these investments will outperform our Canadian benchmarks.”

Historically low vacancies and end user demand have made industrial real estate one of the best-performing asset classes in commercial real estate, nationally and in Chicago.