Crain's Chicago Business

Industrial complex near O'Hare sells for $60 million

A Chicago warehouse developer paid nearly $60 million for an eight­-building industrial complex near O'Hare International Airport.

A Chicago­-based venture of Distribution Realty Group and private ­equity real estate investment firm Pearlmark Real Estate Partners bought the 955,460­ square­ foot Regent O'Hare Center in Elk Grove Village, which includes warehouse and office space, said DRG Managing Partner James Love.

The price was $59.75 million, according to a statement from the seller, Chicago­based Draper & Kramer. The deal closed Sept. 10.

"The O'Hare market is one of the largest and most core industrial submarkets in the country, and Regent is amongst its top tier of assets," Love said in a statement.

The buildings are near the intersection of Busse and Landmeier roads, just south of the Interstate 90 tollway.

Draper & Kramer developed the buildings in a venture with Slough Estates from 1976 to 1993. A Draper & Kramer affiliate bought out Slough's interest in the buildings in 2001, according to the company.

SALES SURGING

Sales of industrial properties in the Chicago area are surging, aided by the lowest vacancy rate since 2001. Local industrial property sales totaled $1.93 billion in the first seven months of the year, up 40 percent from a year earlier.

Love, 30, started his firm in 2013 and is in talks with tenants to fill a 220,000­square­foot warehouse he recently completed on speculation— without leases signed in advance—in Bolingbrook. DRG is also developing a second spec warehouse along Interstate 55 in Bolingbrook that will total 183,000 square feet.

Pearlmark, whose CEO is Stephen Quazzo, has invested more than $12 billion in office, industrial, retail and apartment properties and mezzanine loans since it was formed in 1996.

"Pearlmark is focused on acquiring high­quality properties in major markets in the U.S.," Pearlmark Managing Principal Matt Haley said. "We consider Regent O'Hare among the best properties in the O'Hare market and look forward to completing our business plan."