Venture One Sells 410,000-SF Center

(Read more on the industrial market.)

DEKALB, IL-Venture One Real Estate LLC, based in Chicago, has sold a recently completed, built-to-suit distribution center at 1211 Fairview Dr. in the Park 88 industrial park. The buyer was Charlotte, NC-based Fairview DeKalb IL LLC, a private partnership. The sales price was $22 million. A cap rate was not disclosed. The seller was represented by Roy Splansky, a principal with Venture One.

The 410,400-sf distribution center was constructed on a 21.1-acre site for St. Paul-based 3M Corp. 3M has a 10-year lease for the facility that started Aug. 1, says Mark Goode, principal of Venture One. The location is known as 3M’s Midwest Distribution Center and is used for distribution and logistic services. The market asking lease rate for industrial space in the area is between $3.25 per sf and $4 per sf net, depending on the size of the building and the amenities of the building, Goode tells GlobeSt.com. He says the company decided to sell the building, in part, because there was a long-term lease signed for the building. Additionally, “The reason we were selling the building is because of the strong capital market right now that exists for net leased industrial buildings in the Chicago region and also in the DeKalb area,” Goode says.

Construction on the building began in March and was completed in August. The facility has 32-foot clear-height ceilings, cross docks with 35 dock doors, 14,000 sf of office space, an Early Suppression Fast Response (ESFR) fire protection system and parking for 154 trailers and 150 cars. The building was co-developed with St. Louis-based Clayco Realty Group. Clayco was also the general contractor for the building with Itasca-based Heitman Architects Inc. as the architect and Oakbrook Terrace-based Jacob and Hefner Associates PC as the civil engineer. LaSalle Bank NA provided construction financing.

The industrial park includes about 565 acres and already houses a distribution center with 1.5 million sf constructed for Target. The industrial park is one mile from the four-way interchange for I-88 at Peace Road, Goode says. The park is also near I-39, is served by the Union Pacific Railroad and is two miles from the DeKalb Taylor Municipal Airport. Park 88 will have up to seven million sf of distribution, manufacturing, office and retail space when completed.

The building is 3M’s fourth facility in DeKalb, with two being constructed and one being expanded by Venture. The company had previously redeveloped a 300,000-sf building, at 12101 Barber Greene Rd. and constructed a 202,000-sf building at 2600 Wirsing Parkway.