NorthPoint Pays $270M for Chicago Industrial Portfolio

NorthPoint Development has paid a combined $270 million for a 2.8 million-square-foot industrial portfolio in Elgin, Ill., public records show. High Street Logistics sold the portfolio, after having had acquired it for $230 million four years ago.

New York Life Insurance Co. issued an acquisition loan of $178 million, according to the same source. The note is set to mature in June 2032.

The collection comprises 11 Class A warehouses located at the southwest corner of North Randall Road and Route 72, about 43 miles northwest of downtown Chicago. Interstate 90 runs roughly 2 miles away, while U.S. Route 20 is approximately 7 miles away. Chicago O’Hare International Airport operates within 30 miles.

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Roughly half of the buildings in the portfolio date back to more than 21 years, while roughly 38 percent came online from 16 to 20 years ago. The warehouses are part of the Northwest Business and Northwest Corporate parks.

The properties that traded are the following:

• 2500-2580 Galvin Drive, 547,668 square feet
• 2550-2580 Northwest Parkway, 501,000 square feet
• 2400-2416 Galvin Drive, 342,780 square feet
• 2500 Northwest Parkway, 250,828 square feet
• 2760-2770 Spectrum Drive, 250,530 square feet
• 2583-2589 Technology Drive, 250,000 square feet
• 2780-2794 Spectrum Drive, 229,356 square feet
• 2300-2380 Galvin Drive, 219,245 square feet
• 2800-2880 Galvin Drive, 117,295 square feet
• 2500 Vantage Drive, 110,244 square feet
• 2400 Vantage Drive, 72,664 square feet

This transaction is just one of the many acquisitions NorthPoint has recently closed. Last week, the company paid $175 million for a 1 million-square-foot industrial collection in North Las Vegas, Nev. Blackstone’s Link Logistics sold the assets.

Greater Chicago’s affordable industrial assets

Metro Chicago’s industrial investment volume clocked in at $790 million during the first four months of the year, according to a recent CommercialEdge report. The Windy City led the Midwestern markets, nearly doubling Twin Cities’ figure of $422 million. However, the average price per square foot was at $96.3 during the same interval, substantially below the national average of $129 per square foot.

NorthPoint’s acquisition equated to approximately $96.1 per square foot, nearly identical to the market’s average. The company closed another Chicago-area deal earlier this year, when it bought the 759,709-square-foot 2100 Internationale Parkway in Woodridge, Ill., for $67.5 million or $88.8 per square foot, CommercialEdge also shows.