February 17, 2021 9:00 AM
Huntley Investment Partners, LLC (“HIP”) announces the development of approximately 717,400 square feet of industrial buildings on a 60.8-acre site along I-90 located one mile east of the four-way interchange at I-90 and Route 47 in Huntley, Illinois. Founded in April of 2016, HIP is a joint venture among affiliates of Craig Realty Group, Inc., The Prime Group, Inc., and The Capital Companies.
HIP acquired the site in April 2016
from the Simon Property Group. At acquisition, the site contained a
320,000-square-foot retail outlet mall previously developed by The Prime
Group, Inc. in 1995. Initially, HIP attempted to release the outlet
mall, whose occupancy had fallen to 40%, but was unsuccessful due to
competition from newer outlet malls developed in Aurora and Rosemont,
closer to the population of Chicago’s MSA.
HIP determined that the highest and best use of the property was industrial/distribution, as evidenced by the adjacent 800,000-square-foot global distribution center developed for Weber Grills in 2015, as well as many other industrial properties developed along the I-90 corridor in the last decade.
“With close adjacency to the four-way interchange at I-90 and Route 47, along with 2,000 feet of frontage along I-90, the property is one of the premier locations for industrial/distribution facilities in the northwest I-90 corridor,” stated Michael W. Reschke, Chairman and CEO of The Prime Group, Inc.
The site will feature state-of-the-art buildings that can accommodate any type of distribution or industrial use in a business park setting. Construction of the first phase will begin in summer of 2021. For an overview of HIP’s redevelopment project, click to view the brochure and video.
Newmark Senior Managing Directors Adam Marshall, SIOR, CCIM and James Schutter, CCIM, and Director Mark Deady, CCIM are representing HIP in development leasing. “This will be the first business park in the Route 47 Corridor that can accommodate an industrial/distribution tenant over 500,000 square feet that is zoned, improved and ready for immediate development,” said Marshall.
The development exemplifies the demand for industrial space across the Chicago metro region. According to Newmark Research, over 21 million square feet of new industrial/distribution construction was delivered in Chicago in 2020, with 32 other projects totaling over 14.5 million square feet currently under construction.
“Our company’s history with this site–having developed the original retail outlet mall–gave us a deep understanding of and insight into its highest and best use,” said Michael Reschke, Jr., Vice President of The Prime Group. “With the drive towards e-commerce and the need for quick distribution to consumers, it made sense that this site would be redeveloped as an industrial use and we are excited to get started on construction.”
About The Prime Group, Inc.
The Prime Group, Inc. and its affiliates (Prime) is one of the preeminent real estate development and investment companies in the country. Prime’s vast real estate development investment experience includes all types of institutional-quality real estate, ranging from award-winning office towers to luxury hotels to state-of-the-art distribution facilities. Founded in 1982 by its Chairman & CEO, Michael W. Reschke, Prime and its affiliates have developed, redeveloped and acquired over $10 billion of institutional-quality commercial and residential real estate. Prime’s experience in Huntley, IL includes the original annexation of +2,000 acres which included the subject property (the former outlet mall) as well as Del Webb’s Sun City senior living community, the original Weber Grill industrial facility, and the Huntley Auto Mall. For more information, visit www.primegroupinc.com.
About Craig Realty Group, Inc.
Craig Realty Group is a shopping center development and management firm founded by Steven L. Craig and is based in Newport Beach, Calif. A leader in the development and management of high income-producing, upscale factory outlet centers, Craig Realty Group owns, operates and manages nearly five million square feet of existing retail development in eight states. For more information, visit www.craigrealtygroup.com.
About Capital Companies
One of Chicago’s leading, privately held, real estate advisor and operating platform that has focused on development, acquisition, ownership, and asset management of investment properties located primarily throughout the Chicago metropolitan area for the last 18 years. Led by its founder and CEO, Richard Turasky, the company has extensive experience in land development, construction, value-added redevelopments and repositioning opportunities as well as the acquisition of stabilized cash flowing properties. For more information, visit www.capitalcompaniesllc.com.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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