Exclusive: Ares, Crow Holdings Trade Chicago O’Hare Property

Ares Management has acquired the 113,747-square-foot industrial facility at 3311 Charles St. in Franklin Park, Ill., a Chicago suburb, according to Yardi Matrix information. Crow Holdings sold the asset for $24.8 million, about $217.6 per square foot.

The shallow-bay warehouse came online in 2020 on a speculative basis. That same year, Pivot Bio fully leased the distribution center after raising $100 million to scale production of its sustainable nitrogen fertilizer.

Located within the O’Hare submarket, the Class B facility has direct access to Interstate 294 and is close to the Chicago O’Hare International Airport. Downtown Chicago is within 22 miles, while Illinois International Port District is about 35 miles southeast.

The facility has 16 dock-high loading doors and two drive-in doors and sits on more than 5 acres. The building has 32-foot clear heights and replaced a 1977-completed structure that was demolished.

Ares Management has continued to expand its industrial footprint this year. In addition to a recently announced venture with Canada’s Public Sector Pension Investment Board that plans to invest up to $2.4 billion in U.S. logistics assets, the firm has completed several sizable transactions. This includes its acquisition of a 7.3 million-square-foot industrial portfolio in a $650.2 million deal.

Chicago’s industrial sales remain strong

Chicago’s industrial investment volume year-to-date as of August clocked in at $3.2 billion, ranking second nationally, a recent Yardi Matrix industrial report shows. Only Dallas surpassed the metro, with $4.1 billion.

The Windy City led the Midwest in sales. Columbus and Indianapolis followed, with all three markets surpassing the $1 billion mark. Pricing told a different story, however, as Chicago industrial assets traded for an average of $100 per square foot, below the levels recorded in both Columbus and Indianapolis.

In the O’Hare submarket, 11 industrial assets changed hands during the first three quarters of this year. The average price per square foot clocked in at roughly $145, a considerable premium to the $100 per square foot metro average. One of these properties is 2170 Mannheim Road, a 115,101-square-foot building that Hertz sold for $20.6 million, about $179 per square foot.