Manufacturing and logistics firm moves to rail-served industrial facility in I-88 Corridor
NAI Hiffman announced today it represented NORKOL Converting Corporation in its relocation to the CenterPoint 88 Industrial Center in Montgomery, Ill. NORKOL signed a long-term lease agreement for 330,694 square feet within the industrial building, located at 900 Knell Road.
Dan Leahy, executive vice president, industrial services, at NAI Hiffman, represented NORKOL in the transaction. Rick Daly and George Cibula of DarwinPW Realty represented the landlord, CenterPoint Properties.
NORKOL, one of the largest family-owned paper and packaging providers in the nation, sought to expand operations while maintaining rail service and avoiding disruption to its customers. NAI Hiffman’s Leahy provided site selection options, property tours in multiple submarkets, comprehensive market intelligence, proposal responses/submissions and lease negotiation guidance.
“It was an honor to assist the Kolinski family and provide guidance to NORKOL,” said Leahy. “The 30-month selection process was particularly challenging due to the competitive industrial market and the need for a suitable rail-served manufacturing facility, but we worked together to overcome that adversity. CenterPoint 88 was the best choice for NORKOL based on the property’s unique combination of size, rail service and potential for expansion.”
Originally built in 1960 and most recently renovated in 2000, the industrial property is served by the BNSF Railway and located less than 5 miles from I-88. Featuring over 74 million square feet of industrial space, the I-88 Corridor was one of the Chicago area’s better-performing submarkets last year, with a 3.0% vacancy rate as of fourth-quarter 2023, according to NAI Hiffman research.
NORKOL operates as a third-party converter, warehousing and logistics provider, and distributor for six mills in North America, Asia and Europe. The company plans significant upgrades to the facility including improvements to the truck courts, sprinkler system, power capacity and lighting, plus demolition of the existing 30,000-square-foot mezzanine, enclosure of 10 interior docks and reactivation of the rail spur. The company will move from its Northlake, Ill., headquarters of 37 years in spring 2024.
“The decision to move a manufacturing operation is incredibly complex,” said NORKOL Chief Strategy Officer Mallory Kolinski. “Dan was by our side from the beginning stages of market research, right through the execution of office buildout. We simply could not have made this move happen without his endless support, patience, guidance and industry expertise. This new NORKOL headquarters location establishes a platform for our long-term growth and, ultimately, for the fourth generation of family ownership.”
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is headquartered in suburban Chicago, with more than 200 employees strategically located throughout North America. For more information, please visit hiffman.com.
NAI Hiffman represented NORKOL Converting Corporation in its relocation to the CenterPoint 88 Industrial Center at 900 Knell Road in Montgomery, Ill.