Hillwood, Clarius Partners Launch 1 MSF Industrial Project
This ranks among the largest speculative developments in Chicagoland this year.
Hillwood Investment Properties and Clarius Partners are teaming up to build a 970,123-square-foot speculative industrial facility in University Park, Ill. The two firms will jointly market the Chicago-area property for lease.
Occupying 75 acres, University Park Logistics Center is expected to be completed by the third quarter of 2026.
The structure will include 485 car stalls and 256 trailer stalls, along with 210 remote trailers. It will feature 40-foot clear heights, 162 docks and four drive-in doors.
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The development will be at 5258 University Parkway, providing close access to Interstate 57. Downtown Chicago is within about 33 miles, and O’Hare International Airport is within 48 miles. The property is situated among several other major industrial tenants, including Amazon, Georgia Pacific, Carvana and Home Depot.
Avison Young arranged the joint venture deal with a team made up of Industrial Capital Markets Principals Erik Foster and Mike Wilson, along with Debt & Equity Finance Principals Scott Singer and Kevin Swartz.
Foster told Commercial Property Executive that the firms saw an opportunity to seize upon the strong fundamentals and limited speculative development in the Chicago area.
“Consequently, Hillwood and Clarius are going to be the benefactors of the current positive market momentum and solid leasing conditions that we believe will continue to benefit owners and developers of industrial assets in Chicago,” Foster said.
Strong market in Chicago, but not at this size
While Chicago currently has 4.6 million square feet of speculative industrial real estate under development, only two of those projects total more than 800,000 square feet, according to a report from Avison Young. This development in University Park, coming in at nearly 1 million square feet, will be one of the few large-scale speculative industrial projects in the area.
Chicagoland currently has a total of 9.8 million square feet of industrial space under construction, according to the latest Yardi Research Data report, representing 0.9 percent of stock.
Earlier this month, a partnership between CRG, Related Midwest and 548 Development broke ground on The Cubes at Roosevelt & Kostner, a 364,102-square-foot industrial campus in the North Lawndale neighborhood of Chicago.
On the build-to-suit side, Mohr Capital recently announced plans to develop a 1 million-square-foot distribution facility in DeKalb, Ill., for an undisclosed tenant who agreed to a 12-year lease.
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