Exclusive: Blackstone Unit, Ares Management Close Chicagoland Deal

Ares Management has acquired the 411,840-square-foot industrial facility at 2520 W. Haven Ave. in Joliet, Ill., for $34.9 million, according to Yardi Matrix information. Blackstone subsidiary Link Logistics sold the asset for almost $85 per square foot.

The asset previously changed hands for $18.7 million in September 2019, when Link Logistics acquired Global Logistics Properties’ U.S. industrial portfolio. The deal involved 179 million square feet of urban, infill logistics facilities.

Known as Building 8, the property is part of Cherry Hill Business Park, an underway industrial campus. The distribution center is just off Interstate 80 and close to Interstate 355. Downtown Chicago is within 43 miles from the asset, while Chicago O’Hare International Airport is about 45 miles northeast. Illinois International Port District is within 36 miles.

The warehouse sits on almost 22 acres and has 55 dock-high loading doors and one drive-in door with levelers and bumpers. The property has a 130- to 190-foot truck court and 30-foot clear maximum heights, as well as 350 car parking spaces, 10 trailer stalls and refrigerated storage space.

Earlier this week, Ares announced plans to acquire a 7.3 million-square-foot industrial collection in a $650.2 million deal. The transaction is expected to close by the end of the month and includes a $500 million CMBS loan.

And just before the end of last year, an Ares Real Estate fund purchased a more than 1 million-square-foot industrial portfolio in Houston from Link Logistics. The collection comprised three facilities ranging from 153,000 to 516,000 square feet.

Chicago industrial prices below national figures

In the first two months of this year, Chicago’s industrial sales activity totaled $116 million, ranking in the top 10 metros nationally, according to a Yardi Matrix report. Assets in the market, however, traded for $68 per square foot on average, well below the $166 U.S. index.

One of the largest assets to trade so far this year in the metro also comes from Link Logistics and Ares Management. Ares paid $49.2 million for a 475,104-square-foot facility within Laraway Crossings Business Park, also in Joliet.