Joint venture to develop pair of 35,000-square-foot warehouses for small-bay users
Chicago-based developers Range Group and HSA Commercial Real Estate today announced the acquisition of two adjacent parcels totaling 2.25 acres within the Kinzie Planned Manufacturing District on Chicago’s Near West Side. The firms plan to develop a pair of 35,000-square-foot small-bay warehouses on the sites, located at 2519 W. Fulton Ave. and 2520 W. Lake St., capitalizing on the growing demand for Class A infill industrial facilities in established population centers.
Developed on a speculative basis, the warehouses can accommodate multiple tenants or a single user and will offer 28-foot clear heights, individual drive-in doors, drive-in docks capable of accommodating 40-foot trucks and secured automobile parking. Demolition of existing structures on the parcels is expected to begin this spring, with construction of the new buildings being completed by early next year.
“This development will bring the first modern industrial product for small-bay users to Chicago’s thriving Kinzie Industrial Corridor,” said Seth Halpern, principal and co-founder of Range Group. “Given their proximity to Chicago’s densest neighborhoods, they are ideal for a variety of businesses such as last-mile delivery stations, trade and service firms or light manufacturing.”
“Chicago has the fastest-growing downtown among major U.S. cities yet is drastically underserved in terms of new warehouse supply, particularly for smaller users,” said Robert Smietana, president and CEO of HSA Commercial. “The growth of e-commerce and onshoring of manufacturing are among the factors that will drive competition for urban industrial space in the years ahead.”
The warehouses will be less than a mile from the Dwight D. Eisenhower Expressway and approximately 3 miles from the Jane Byrne Interchange, where the Eisenhower, Kennedy and Dan Ryan expressways converge. They are also within walking distance from stops along CTA and Metra rail lines.
Chicago-based ARCO/Murray is the design-build general contractor for the project. The warehouses will be leased by Larry Goldwasser and Matt Cowie of the Chicago office of CBRE.
About Range Group:
Range Group focuses on opportunistic investments across all asset classes. Range Group’s calculated and detailed approach to finding opportunities creates higher value through mastery of process, a deep attention to detail and an extensive relationship network. Range Group provides asset management, property management and development consulting services to property owners throughout the country.
About HSA Commercial:
Founded in 1981, Chicago-based HSA Commercial Real Estate is a diversified, full-service real estate firm specializing in office, industrial, and healthcare real estate leasing, management, marketing, development and financing on a national basis. Along with developing and acquiring more than 100 million square feet of commercial real estate across the United States, with a total consideration in excess of $6 billion, HSA Commercial Real Estate has represented owners and tenants in more than 10,000 transactions in 43 states; manages a property portfolio, including retail, in excess of 14 million square feet in locations across the nation; and owns more than 13 million square feet of commercial property throughout the country.
Chicago-based Range Group and HSA Commercial Real Estate have acquired adjacent parcels at 2519 W. Fulton Ave. and 2520 W. Lake St. in the Kinzie Planned Manufacturing District on Chicago’s Near West Side. They plan to develop two 35,000-square-foot warehouses for small-bay users. (Image credit: ARCO/Murray)