The Chicago area industrial market enjoyed continued success in 1997, with sales and lease transactions topping 38 million square feet, according to CB Commercial Real Estate Group. The transaction total was up about 10 percent from 1996’s 35 million feet.
Reflecting the metro area’s standing as a commercial crossroads, more than 60 percent of the activity last year was driven by the warehousing/distribution sector.
Despite the high transaction volume, vacancies rose in the year to 7.9 percent from 7.2 percent, CB Commercial said, reflecting a spate of building that began in 1995 and only began to tail off last year. New construction fell in 1997 to 13.1 million square feet from 17.9 million feet in 1996.
The bulk of new construction in the Chicago area remains the high-cube warehousing and multi-tenant distribution space, which is configured with tall ceilings for advanced materials handling systems and other modern amenities such as expanded truck loading and parking, CB analysts said.
Two deals done by Catellus Development Corp. at its Internationale Centre in Woodridge are typical of the market.
Late last year Catellus announced it would build a 240,000-square-foot distribution center–expandable to 357,000 feet–for GATX Logistics an the 920-acre project. GATX said it would use the new facility to distribute products from Ingersoll-Rand’s North Dakota-based Melroe Co., which produces the “Bobcat” skid-steer loader line.
Shortly after that announcement, Catellus said it would build a 352,000-square-foot distribution center on speculation, citing the large distribution needs of companies it expects will be looking for space in the Interstate Highway 55 corridor. The building is set for completion this summer.
Getting carded
Factory Card Outlet, one of the nation’s largest discount chains for party supplies and greeting cards, has relocated its headquarters to 2727 Diehl Rd. in Naperville from Bensenville.
The company now occupies a newly constructed office building on 39 acres. The project includes 70,000 square feet of office space and 300,000 square feet of warehouse space where an expected 165 employees will work.
Charles Cumello, Factory Card chief executive officer, said the new facility will allow the company to more efficiently handle its anticipated rapid growth. With 175 stores open in 20 states, Factory Card Outlet has plans to add 50 stores this year.
Centerpoint Properties was the developer of the project, with Heitman Architects serving as the designer.
Expensive vintage
The 212-unit Parc Lane apartment building at 2850 N. Sheridan Rd. has been sold to an investment group in an exchange valued at more than $11 million.
The vintage 12-story property, built in the early 1920s, is noted for its location near Lincoln Park Zoo and fine dining establishments, as well as its architectural detailing such as its grand rotunda entrance.
Inland Real Estate Sales brokered the sale. Syndicated Equities Corp. represented the retail property into which the former Parc Lane owners exchanged their equity.
Upscale rentals
Construction is under way on a residential and commercial project at 1714 W. Belmont Ave. in the North Side Lake View community.
Dubin Residential Communities is building six three-bedroom town homes with 1,500 to 2,000 square feet that will rent from $1,700 to $2,100 per month. Each townhouse will contain two baths, a family room and a private roof deck. Ground-floor retail or office space also is being built.
Dubin is allowing renters at the new project a 50 percent credit of first-year payments toward the purchase of any property the company offers for sale that the renter buys directly from Dubin. The developer has projects under way at 2840 N. Lincoln Ave., where 17 townhouses are being built, and at Cornelia and Lawndale Avenues in the Avondale neighborhood, where 54 townhouses are under construction. Both projects are set for completion in 1998.
Mr. Cairo
Schaumburg architect Ronald D. Kostus has been awarded the design contract for “The City Mall” in Cairo, Egypt, which is being developed by an Egyptian-based multinational pharmaceutical company.
Kostus said the 500,000-square-foot shopping center is the first major retail mall to be located in downtown Cairo. He said his firm was able to win the design award based on work it had done on prototype Dominick’s Finer Food stores in the Chicago suburbs of Glendale Heights, Wauconda, Gurnee, Oak Forest and Downers Grove.
Kostus promises to design a “one-of-a-kind” facility that will offer Cairo residents a new kind of shopping experience. The $20 million project eventually will include a service support building and three professional office/service buildings.
Deal of the week
Amli Residential Properties Trust has purchased the former Windsong Apartments in Schaumburg and has rechristened the 196-unit project Amli at Poplar Creek.
The apartment complex was built in 1985 by the home building firm the Zale Group. Its one- and two-bedroom units have an average monthly rental of $922.
The acquisition brings the total apartment portfolio of Chicago-based Amli, a real estate investment trust, to more than 16,000 units in 41 projects across the country. Another 4,200 units are under development at 11 locations.
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Chicago Tribune real estate editor Steve Kerch reviews realty news and answers your questions on housing and other topics on The Real Estate Show every Friday from 9:40 to 10 a.m. on Channel 26-WCIU.
