Spurred by the prospect of continued and sustained rent growth, investors are snapping up industrial properties here in Chicago at a record pace .
In the latest such example — a deal brokered by JLL’s John Huguenard and Trevor Ragsdale — Dallas-based Hillwood Development Co. paid nearly $91 million for a 1.4 million-square-foot portfolio of six properties in Joliet, Elgin, Hanover Park, Bolingbrook and Carol Stream.
Hillwood paid roughly $66 per square foot for the properties, representing a significant return for developer Northern Builders.
In a story about the deal published this week by Crain’s Chicago Business, Ridge Property Trust CEO Jim Martell (who was not involved in the deal) said cap rates for industrial deals here will only continue to shrink as market fundamentals improve over time:
“From a logistics perspective, Chicago is still very important. I think from a long-term perspective, there’s rent-growth coming and continuing and [investors will] stretch for Chicago in hopes of seeing that rent growth.”