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| Chicago Stockyards Industrial Park, a collection of approximately 100 businesses – warehouses, manufacturing plants and offices –built on the city's former Stockyards property. |
OAKBROOK TERRACE, IL — NAI Hiffman, the largest independent real estate services firm in the Midwest, has brokered the off-market sale of 1556 W. 43rd St., a 225,000-square-foot refrigerated warehouse in Chicago’s Back of the Yards neighborhood, as well as the business occupying the facility, Ashland Cold Storage, on behalf of both the seller and buyer Karis Cold.
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| John Basile |
John Basile, executive vice president with NAI Hiffman's Industrial Brokerage Group, represented the seller and Karis Cold along with Jay Maher, senior vice president at Nelson Hill.
Karis
Cold is a private-equity-backed real estate company focused exclusively on
serving the real estate needs of the cold storage industry, acquiring,
developing, managing and investing in cold storage facilities nationwide.
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| Jay Maher |
"The owners of 1556 W. 43rd St. asked us to bring in a confidential offer for their refrigerated warehouse. What made the sale highly unconventional is they also wanted us to bring in someone to take over the existing business,” said Basile, who also brokered Karis Cold’s first cold storage acquisition, 5115 S. Millard Ave. in Chicago.
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| Ashland Cold Storage, 1556 West 43rd Street, a 225,000-SF refrigerated warehouse in Chicago’s Back of the Yards district |
“We knew that this would be a very complicated transaction and would be too unusual for most institutional investors.
"However, having completed previous
transactions with Karis Cold in this sector, it was our first call. As a
result, Karis Cold was able to get its arms around the issues and provide a
solution that made sense for everyone."
“The asset's location right outside of downtown
is ideal for both food processors in the stockyards and food distributors
needing immediate access to the largest concentration of restaurants in the
Midwest,” added Maher.
The property is situated in the heart of the Chicago
Stockyards Industrial Park, Chicago's long-time epicenter for the region's
food processors and distributors.
The park is a collection of approximately 100
businesses – warehouses, manufacturing plants and offices – built on the city's
former Stockyards property. The Stockyards are bounded by Pershing Road,
Halsted Avenue, West 47th Street, and Ashland Avenue.
"The current demand for refrigerated
warehouses in premier locations is insatiable," said Basile. "As a result, what used to
be a niche sector is now being sought by all the major players.
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| Karis Cold Storage, 5115 South Millard Avenue,Chicago IL |
"In such a crowded landscape, companies like Karis Cold are able to find extra value by pursuing complicated, off-market opportunities that take a little more time to understand."
In all, 1556 W. 43rd St. has 6 million cubic
feet of space, 22 truck docks and access to rail service.
Services include blast freezing, government
certification, import/export services and more. It is located less than 10
miles from downtown Chicago and is minutes to I-55, 1-57 and other major
interstates.
CONTACTS:
Patty Cronin, pcronin@taylorjohnson.com
(312)
440-3001
Heidi Kushner, hkushner@hiffman.com
(630) 317-0713
