Elgin Distribution Center sold for $47 million
ELGIN -- Chicago-based JLL Income Property Trust said it has purchased the Elgin Distribution Center, a two-building industrial property at 2451 Bath Road and 1755 Britannia Drive, for approximately $47 million.
Recently constructed in 2020, the properties are built to state-of-the-art design specifications. The larger building, which totals over 326,000 square feet, is cross-docked with 33-foot clear ceiling heights. The smaller building, which totals more than 80,000 square feet. is rear docked and has 29-foot ceiling heights and includes a front office. The properties are 100% leased with a weighted average lease term of approximately 10 years.
"The Elgin Distribution Center fits squarely within our industrial investment thesis as a well located, newly constructed property with strong tenant profiles," said Allan Swaringen, JLL Income Property Trust president and CEO. "The Elgin warehouse submarket stands out for its access to a robust labor pool and close proximity to Chicago, along with O'Hare International Airport, which we believe will drive long-term value for these properties."
JLL Income Property Trust is an institutionally managed real estate investment trust with $5.9 billion in portfolio assets. The trust's aggregate industrial allocation is now over $1.7 billion, or approximately 30% of its portfolio, and includes 54 properties across 13 key markets, Swaringen said.
According to LaSalle Research & Strategy, the Chicago metro is the country's second largest industrial market, with 1.2 billion square feet of industrial space. Over the 12 months prior to the end of the first quarter of 2021, Chicago's industrial market experienced 18.5 million square feet of net absorption and a steady decline in vacancy rates, JLL said.