Exclusive: NorthPoint Lands $83M for Chicago Portfolio
The four properties are near Ford’s oldest operating assembly plant.
NorthPoint Development has secured an $82.6 million loan backed by a four-property industrial portfolio totaling 1.6 million square feet in South Chicago, according to Yardi Matrix. New York Life Insurance Co. originated the note, with a maturity date set for 2031.
NorthPoint Development purchased the assets from Greenfield Partners in 2017. At the time, the then-new owner funded the transaction with help from a $69 million acquisition loan from a private lender. It was assigned to Nationwide Insurance in the same year and included a maturity date set for November 2025, the same source shows.
The four Chicago industrial properties completed in 2002 and 2003 occupy a combined 88.6 acres. These are:
- 2924 E. 126th St., dubbed Commerce Park Building 1, totaling 384,000 square feet
- Chicago Campus Building 2 at 12525 S. Carondolet Ave., encompassing 247,000 square feet
- Chicago Campus Building 3 at 12519 S. Burley Ave., totaling 460,417 square feet
- Chicago Campus Building 4 at 3400 E. 126th St., the largest of the four, encompassing 547,200 square feet
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The buildings feature clear heights between 28 and 30 feet, dock high doors ranging from 15 to 37, grade-level doors, single-load configurations and ESFR sprinkler systems. Clustered together, the four facilities include more than 1,000 small-vehicle parking spots and more than 150 trailer parking positions.
The tenant roster includes Flex-N-Gate, Dakkota Integrated Systems, Troy Designed and Manufacturing, as well as Ford.
The properties provide easy access to interstates 94 and 90, as well as to Gary/Chicago International Airport. Both the city’s downtown and Chicago Midway International airport are within 25 miles of the buildings. Additionally, the warehouses are along the Calumet Corridor, a heavy industrial, manufacturing and intermodal center, while also being very close to Ford Motor Co.’s Chicago assembly factory, the company’s oldest operating plant.
This four-asset deal is not the first time NorthPoint and New York Life Insurance Co. collaborate. Elsewhere in Chicagoland, NorthPoint picked up a 2.8 million-square-foot portfolio, in a $270 million transaction closed in June. At the time, the buyer also secured a $178 million loan from the same originator, set to mature in 2032.
Chicago industrial still competitive despite prices dropping
As oversupply is hitting many markets and the economy has slowed, investors continue to shift in line with new industrial real estate trends. Meanwhile, tenant demand is proving resilient across most metros, despite rising vacancies. Chicagoland’s industrial sales volume surpassed the $2 billion mark year-to-date through October, according to a recent Yardi Matrix industrial report.
The metro’s sales volume ranked seventh among the top 25 U.S. markets, second only to Detroit in the Midwest. Year-to-date through October, Windy City industrial recorded one of the lowest average sale prices—of $90 per square foot—significantly below $136 per square foot U.S. figure. The value placed the metro as the second-lowest nationally, ahead of metro Kansas City, which clocked in at $84 per square foot.
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