Midwest Exchange Expands With Building Purchase

GURNEE, IL-Midwest Exchange has nearly doubled the size of its headquarters with the recent purchase of 4012 Morrison Dr. The recycling firm purchased the 76,000-square-foot manufacturing building, which includes about 4,000 square feet of office, for close to $3 million. The company has already relocated to the property from its previous 40,000-square-foot headquarters in Franklin Park, IL.

“Their business in recycling was growing and the new business they were acquiring justified their move and expansion,” says Samuel Badger, SVP with Paine/Wetzel ONCOR International, who along with principal Whit Heitman, represented the seller, The Levy Organization, in the deal. Jason Lev of CB Richard Ellis represented Midwest Exchange in the acquisition.

“One of the principals lives up north, so the location was good for them, the proximity to Route 41 made a difference and the fact that there is some outside storage with trailer spaces available had something to do with it as well,” Badger tells GlobeSt.com. “What worked for them was that the building already had a substantial amount of power for their machinery to operate in and storage outside for raw materials. The property is somewhat unique, and it definitely fit their needs.”

The building had been owned since the mid-1970s by The Levy Organization, which was originally seeking to lease the building, but decided to sell it when the opportunity arose with Midwest Exchange. Built in 1972, the property offers proximity to Interstate 94 and an early suppression fast response sprinkler system.

Midwest Exchange’s new building is located in the Lake County, which Badger says has been hard hit by the economy. “The market actually has more vacancy now than we’ve had in some time,” Badger says. “We absorbed 2.5 million square feet last year, and there’s 7.5 million square feet on the market today, so essentially what we have is a three-year supply of product on the market right now.”