CRE Midwest

4K Diversey Partners completes acquisition of former Marshall Field’s warehouse campus

A-4000-W-Diversy-Building-8-13

Chicago-based 4K Diversey Partners LLC has closed its $10 million acquisition of the 1.5 million-square-foot, 21-acre former Marshall Field’s warehouse campus at 4000 W. Diversey Ave., located at the northwest corner of Diversey and Pulaski Road on the northwest side of Chicago. The seller was Macy’s Inc.

Chicago-based 4K Diversey Partners LLC has closed its $10 million acquisition of the 1.5 million-square-foot, 21-acre former Marshall Field’s warehouse campus at 4000 W. Diversey Ave., located at the northwest corner of Diversey and Pulaski Road on the northwest side of Chicago.  The seller was Macy’s Inc.

“We are redeveloping the campus as a multi-use destination for manufacturing, warehouse, distribution and back-office operations,” said Aaron Paris, one of the 4K partners.  “These institutional-quality buildings are in magnificent move-in condition and offer unparalleled value for tenants requiring 20,000 square feet to 1.5 million square feet,” he said.

The campus has more than 400,000 square feet of first-floor space including a 100-foot deep truck terminal with 24-foot clear height and a large private truck court with 58 docks.

“The space is well suited to tenants needing freezer-coolers and those requiring significant power up to 8 mega watts,” Paris said.

According to Paris, space is available for immediate occupancy.  Leasing and property-management services are provided by Chicago-based Merit Partners LLC.  Financing of the acquisition was provided by Chicago-based PrivateBank Inc.

“We are currently negotiating with prospective tenants, who are impressed with the campus’ aggressive rental value and location.  Its close proximity to the Loop and to businesses in the heart of Chicago is a big bonus,” said Paul Fishbein, also a 4K partner.  “The Diversey campus is only 1.5 miles from I-94/I-90, making the distribution of products and services to metro-area customers quick and easy,” he said.

Since 1928, the campus has been owner-occupied by only three companies. The original owner, the Olson Rug Company, which at its peak usage supported 1,400 jobs, sold it to the Marshall Field & Company in 1965.  Macy’s Inc. took ownership in 2005 as part of its acquisition of the Marshall Field & Company.

4K Diversey Partners is comprised of three key individuals: Lou Silver, Aaron Paris and Paul Fishbein.  Silver is the owner of Studio 41 and ClimateGuard Windows, both of which are headquartered just south of the Diversey campus.  Fishbein was a partner and actively involved in the acquisition, design and redevelopment of the former 2.5 million-square-foot Montgomery Ward campus at 600 W. Chicago Ave.  He was directly responsible for the leasing and marketing of the project and helped fill the 1.6 million-square-foot technology center.  That building was sold in 2007 for $300 million, then again in 2011 for $390 million.

As the former COO of national industrial developer, Reno, Nevada-based DP Partners, Paris was responsible for nearly 15 million square feet of new development.  In 2007 DP Partners sold a majority of its portfolio for $1.85 billion to Prologis.

“I have been fortunate in my career to have been part of many spectacular real estate developments.  While companies come and go, real estate lasts more than one lifetime.  So, it is with great enthusiasm that my partners and I embark on this new opportunity to redevelop the former Marshall Field Warehouse site, one of Chicago’s most historic and significant projects,” he said.