Goldman Sachs Buys 830 KSF Midwest Industrial Portfolio

By Barbra Murray

951 Main St.

Goldman Sachs Asset Management Private Real Estate (GSAM PRE) has added 830,000 square feet of industrial product to its holdings. The asset manager recently acquired a group of 10 industrial properties referred to as the Chicago Urban Industrial Portfolio.

The Chicago Urban Industrial Portfolio is located in Cook and DuPage counties, with the majority of the assets situated in the O’Hare, North Cook and North DuPage submarkets. The properties with the addresses of 5601-5631, 5633-5675, 5677-5707 and 5709-5751 W. Howard St. are located in Niles. An additional two assets, 2287 Mount Prospect Road and 1794 Winthrop Drive, can be found in Des Plaines. Completing the group are 1550 Bryn Mawr Ave. in Itasca, 951 Main St. in Lombard, 385 Kimberly Drive in Carol Stream; and 1005 Westgate Drive in Addison. 

“We are excited to own industrial product in Chicago’s infill submarkets, which are close to population nodes and skilled labor, as we believe this will be attractive to tenants,” Joseph Sumberg, co-head of Goldman Sachs Asset Management Private Real Estate, said in a prepared statement.

GSAM PRE plans to invest funds to maintain the status of the properties. The company will also capitalize on the favorable conditions in the portfolio’s submarkets by pursuing early commitments for occupancies that will soon end. If the numbers are any indication, prospects for lease-up look good. The vacancy rate in O’Hare, North Cook and North DuPage in the second quarter of 2018 was approximately 4.5, 6.1 and 4.5 percent, respectively, according to a report by commercial real estate services firm JLL.

Cross-sector binge buying

GSAM PRE has been actively bolstering its portfolio across the country and across property types this year. Transactions include the joint venture acquisition of The Commons at Valencia Gateway, a two-building office campus totaling approximately 156,600 square feet in Valencia, Calif. The company also picked up Chestnut Hill Village, an 821-unit apartment property in suburban Philadelphia. GSAM PRE made another industrial purchase earlier this year, adding a 525,000-square-foot light industrial and flex office portfolio in metropolitan areas of Boston and Philadelphia.

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