CRE N Illinois

Kinzie Industrial Corridor flex space sells for $3.9 million

Kinzie Industrial Corridor flex space sells for 3.9 million,ph1

Interra Realty announced the $3.9 million sale of 1827 W. Hubbard Street, a 33,000-square-foot flex office building in Chicago’s West Town neighborhood, within the boundaries of the Kinzie Industrial Corridor. Interra director Colin O’Malley and co-founding principal Jon Morgan represented the private seller. The buyer was Chicago-based Dayton Street Partners LLC.

“The city’s proposed rezoning of the Kinzie Industrial Corridor is attracting strong interest from investors and developers as they look to move west of Fulton Market,” said Morgan. “1827 W. Hubbard is indicative of this broader trend. The property attracted multiple offers, and we ultimately closed with a buyer that had the most experience in this area and with this property type.”

Situated on 1.75 acres, the building is currently leased to a single tenant, Tablescapes Chicago Party Rentals. It has 6,320 square feet of fully conditioned showroom space, a soaring bow truss roof, two loading docks, one drive-in door and a paved parking lot with space for 34 vehicles.

“The property’s attractive location in the Kinzie Industrial Corridor, on-premise parking and proximity to public transportation and nearby expressways were all factors in our decision to buy,” said Michael Schack, principal of Dayton Street Partners. “This acquisition is just part of our larger, ongoing efforts to buy high-barrier-to-entry, infill properties in the city.”

1827 W. Hubbard is located less than a mile from Metra’s Western Avenue station and the CTA’s Green/Pink Line station at Ashland and Lake. The planned Green Line stop at Damen and Lake, scheduled for completion in 2020, will further enhance accessibility in the immediate area, which is approximately one mile from both the Kennedy and Eisenhower expressways.

Since 1988, the Kinzie Industrial Corridor—defined as the area roughly between the Kennedy Expressway on the east, Kedzie Avenue on the west, Grand Avenue on the north and Washington Boulevard on the south—has been a planned manufacturing district, with restrictions on non-industrial uses. Through a community-based process led by the city’s Department of Planning and Development, existing land-use policies in this and other industrial corridors are being evaluated and, in some cases, modified to allow for other uses, such as retail, restaurant and office space.