Acquisitions

Case Study

2801 S Western Ave

2801 S Western Avenue, Chicago, IL

Property Details

Transactions Type

Off-Market Speculative Redevelopment

Transaction Date

August 2013

Property Size

277,523 Square Feet

In August 2013, Venture One Acquired 2801 S Western Avenue in an off-market transaction from a local food distribution company in a partnership with an institutional investor, DRA Advisors. The oppourtunity was submitted to Venture One based on their longstanding relationship with the broker. At the time of acquisition the property, which was built in 1979, was vacant and had significant deferred maintenance and a number of functional deficiencies including a 90' interior truck court, antiquated sprinkler system, and insufficient lighting.

Located in the high demand, infill Chicago food corridor at Western and I-55, with 28-32' clear ceilings, 50' X 60' bay spacing, and 5 acres of extra land, and a 25,000 SF high-bay cooler, Venture One saw an opportunity to redevelop the property and create a unique, modern distribution facility in an irreplaceable infill location.

Working with the City of Chicago and Cook County, Venture One was able to secure a Class 6B tax incentive for the property, which reduces the property taxes by approximately 60% over a 12 year period. The property then underwent a significant speculative redevelopment which included the demolition of a 40,000 SF interior truck court and conversation to 28 exterior docks, new energy efficient HVAC and lighting, facade enhancements, and office demolition and rehab.

Subsequently, Venture One was able to secure two high quality tenants within 12 months of the completion the improvements. The Chef's Warehouse, a national food distributor leased 127,000 SF and expanded the freezer/cooler component of the building, added 10 new exterior docks and completely renovated the office including a test kitchen. Amazon.com leased the remaining 150,000 SF for their South Chicago last-mile distribution center.