The white-hot industrial sector in Illinois got another strong vote of confidence when a Phoenix development firm forked over $130 million for the super-regional Michelin North distribution center.
Silver Creek Development, which is looking to expand its national footprint, purchased the package of 41 properties earlier this month for roughly $64 a square foot, according to CoStar data. The property address is 29900 S. Graaskamp Blvd., a nod to James Graaskamp, a longtime professor and department chair of real estate at the University of Wisconsin-Madison who is credited with establishing a multidisciplinary approach to the industry that is still widely used in most real estate curriculums.
The 2 million-square-foot facility sits across 91 acres in what’s considered the Interstate 80 corridor in Wilmington. That’s about 60 miles southwest of Chicago in a corner of the Joliet-area market deemed a magnet for retail, manufacturing and third-party logistics providers.
The sites sit near two major interstates and have access to two massive intermodal terminals, the BNSF Logistics Park Chicago and UP Joliet Intermodal, according to CoStar research.
Both of these terminals are considered critical links to Asian import/export supply chains in the Midwest because of their direct rail access to all major West Coast port markets, plus they can easily handle and process large quantities of goods.
For Michelin, the maker of tires for everything from space shuttles to cars to bicycles, the location gives it easy access to both the Midwest and West Coast markets, including Detroit-based auto manufacturers.
JLL arranged the financing for Silver Creek’s seven-year, fixed-rate loan with Pacific Life Insurance, JLL said. “Hats off to the gentlemen at Silver Creek,” Eliott Zeitoune, a director at JLL, said in a statement. “Their long-term view and tireless pursuit allowed them to make what will prove to be a great investment in an exceptional asset.”