MAG Capital Buys Chicago Facility

MAG Capital Partners has acquired 1001 State St., a 240,000-square-foot industrial property in Chicago Heights, Ill., REJournals reported first. The facility serves as the primary headquarters for Applied Acoustics International, a subsidiary of Angeles Equity Partners.

Surmount brokered the deal on behalf of the seller, a local family office, while Resolute Structured Capital arranged the acquisition financing.

The tenant also uses the building as its manufacturing facility. The 16-acre property is about 2 miles from Chicago Heights’ center city and close to Interstate 57. Downtown Chicago is 31 miles away, while Chicago O’Hare International Airport is 46 miles northwest. Illinois International Port District is within 20 miles.

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Resolute Structured Capital Principal Vishal Vinjani and Vice President Ben Markiles, while Surmount Managing Director Mark Masino represented the seller.

The news comes less than two weeks after MAG Capital partners sold a 1.4 million-square-foot midwestern portfolio. Fundamental Income Properties paid about $89 million for the six-property manufacturing collection. And last month, MAG-subsidiary Sword Industrial Partners acquired a 24-building, 1.1 million-square-foot portfolio in the Southwest. DRA Advisors sold the Tulsa, Okla., assets.

Chicago industrial sales rank high

Chicago’s industrial sales volume year-to-date as of May clocked in at $1.5 billion, ranking second nationally, according to Yardi Matrix information. Dallas ($2.3 billion) was the only metro to surpass it. However, assets in the market traded for just $91 per square foot, well below the $139 national average and most of its peers. Regionally, Kansas City ($79 per square foot) and the Twin Cities ($71 per square foot) were the only large metros to register lower prices.

In one of the most notable deals so far this year, Ares Management acquired a 411,840-square-foot facility in Joliet, Ill., for $34.9 million. Blackstone subsidiary Link Logistics sold the asset, after acquiring it in 2019 for almost half its latest price.