Stream Realty Partners Invests $84M Across 600K SF of Metro Chicago's Class A Industrial Space

Stream Realty Partners has completed the acquisition of a substantial four-building industrial portfolio encompassing nearly 600,000 square feet of top-tier Class A industrial space in the Chicago metropolitan area. The transaction, valued at $83.5 million, involved the purchase of these properties from Westcore Properties, as reported by CommercialEdge. These buildings are strategically positioned in prominent submarkets, which enhances their market presence and ensures high tenant occupancy. The entire portfolio is currently leased to seven different tenants.

Details of the Acquired Properties

The portfolio features several key assets. Asbury Drive, a 157,500-square-foot facility located at 850 Asbury Drive in Buffalo Grove, sold for $20 million. Rockwell Logistics Center, a 174,262-square-foot building situated at 2545 W. 24th Street in the City South submarket of Chicago, was purchased for $33.5 million. Additionally, Mokena Logistics I and II, comprising a total of 268,226 square feet across two buildings at 8965 and 8905 W. 187th Street in Mokena, were acquired for $30 million.

Chicago’s Industrial Market Appeal

Chicago’s industrial market continues to attract institutional investors due to its advantageous factors. According to Alex Olshansky, Principal & Head of Investments at Zenith IOS, the area's central location, diverse manufacturing base, and significant rail and freight advantages make it a highly sought-after market. Olshansky emphasizes that Chicago’s prominence as a major industrial hub enhances its appeal to both corporate users and value-focused investors.

Transaction Facilitation and Management

The acquisition was overseen by Stream Realty’s Executive Managing Director Patrick Russo, Portfolio Manager Mustafa Ali, and Associate Ben Harrison. CBRE’s Capital Markets Advisors, including Ryan Bain, Michael Caprile, Zach Graham, Judd Welliver, Bentley Smith, Joe Horrigan, and Victoria Gomez, also played a crucial role in the deal. Local brokers Whit Heitman, Sam Badger, Larry Goldwasser, and Terry Grapenthin were instrumental in facilitating the transaction.

Currently, Stream Realty manages a diverse portfolio consisting of 41 investments, totaling 23.2 million square feet and approximately $2 billion in equity. This portfolio spans across five commingled funds, several joint venture vehicles, and wholly owned assets.