Elk Grove buildings now fully leased
ELK GROVE VILLAGE - Bridge Development Partners and Akard Street Partners have fully leased 2475 Touhy Avenue and 1701 Nicholas Boulevard in Elk Grove Village.
The properties, 2475 Touhy at 124,028 square feet and 1701 Nicholas at 150,520 square feet, were two of the first five buildings to break ground on a speculative basis in the Chicago industrial market after the downturn. Construction began on both buildings in mid-2013 and both buildings were delivered in early 2014. Both facilities are located in the heart of the O'Hare submarket, representing a premier location within the overall Chicago industrial market.
"These buildings were delivered at such a time that we were able to take advantage of a wonderful market upswing, and stabilize ahead of schedule at higher-than-expected lease rates," said Steve Groetsema, director of leasing and development, Bridge Development Partners. "We expect these prime infill locations to be the first to lease and the last to go vacant, and these tenants have all signed long-term leases and are making significant investments in their spaces as well. We believe these two buildings are truly irreplaceable real estate."
This February, the Bridge/Akard Street joint venture acquired the facilities from the original developers - a joint venture of Bridge Development Partners, Hillwood Investment Properties and Wanxiang America Real Estate Group. At that time, the facilities were a combined 20 percent occupied, with Pepperidge Farm, Inc. and Basic Enterprise, Inc. occupying suites at 2475 Touhy while 1701 Nicholas was vacant.
In March 2015, Basic Enterprise moved from a 32,477-square-foot unit to a 69,967-square-foot unit at 2475 Touhy in a long-term renewal and expansion, and Labelmaster Packing Services/DGM Inc. immediately leased the unit vacated by Basic Enterprise. Labelmaster was expanding operations from their previous location at 1100 Chase Avenue in Elk Grove Village. These two transactions brought 2475 Touhy to 100 percent leased.
Additionally, Bridge signed NNR Global Logistics USA, Inc. to a long-term lease for 119,752 square feet at 1701 Nicholas Boulevard, representing about 80 percent of that facility. This was a significant expansion and relocation of NNR's Chicago operations from their former home at 765 Dillon Drive in Wood Dale.
Last month, NNR Global Logistics USA agreed to lease the remaining 30,768 square feet unit at 1701 Nicholas fully leasing the property. The unit will be home to NNR Global Logistics USA's head office, which is moving from 450 East Devon Avenue in Itasca.
Both Basic Enterprise and Labelmaster were represented by Jonathan Kohn of Colliers International and the Landlord was represented by Brian Carroll and Tom Gath of Newmark Grubb Knight Frank.
NNR was represented by John Cash and David Haigh of NAI Hiffman and Tak O'Haru of White Cube, LLC and Landlord was represented by David Bercu, Tom Rodeno and Patrick Turner of Colliers International.
Bridge is now working to refinance the existing loans on both properties with a single long term facility provided by J.P. Morgan.
The O'Hare submarket is completely developed, characterized by functionally obsolete buildings built as early as the 1960s that are still occupied, despite their conditions, because of the ground zero location. Both buildings offer state of the art features such as 32-foot clear ceilings, ESFR sprinklers, exterior loading docks and 126-foot truck-court depths that are rare in the submarket.