The Turnaround State: How Illinois Became Corporate Central in 2001 (cover) A Pampered Deal Lands in the Suburbs Clusters: From Logistics to Biotech Request Information
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A Pampered Deal
Lands in the Suburbs
Perhaps no one deal better illustrates Illinois' ability to sway the minds of corporate real estate decision-makers than the one involving the relocation of The Pampered Chef and some 1,500 jobs to the town of Addison in suburban Chicago. "This project was a major team effort," notes John P. McGuinnis, vice president of NAI Hiffman, which brokered the deal. "We worked very closely with The Pampered Chef management, IDI (the Atlanta-based land buyer), the technical development team, the Village of Addison, the state of Illinois and individual landowners to meet The Pampered Chef's requirements." When the dust settled, The Pampered Chef had secured a 780,000-sq.-ft. (72,540-sq.-m.) build-to-suit headquarters and distribution facility that the company will own once IDI completes development of the 43-acre (17.2-hectare) project. The building is set for completion this June at the southwest corner of Army Trail and Swift Roads in Addison. The state contributed an incentives package involving a number of programs administered by McDonough's agency, including tax credits and employee training dollars. The Village of Addison is assisting with infrastructure improvements through state and federal grant programs. Upon completion, the complex will feature a 180,000-sq.-ft. (16,740-sq.-m.) office building, 600,000-sq.-ft. (55,800-sq.-m.) distribution center, 1,500 parking spaces and 40 loading docks. Itasca-based Heitman Architects Inc. is the project architect, while Palatine-based Kajima Construction Services Inc. is the general contractor. The deal is similar in size and scope to another logistics facility transaction brokered by NAI Hiffman -- a $30 million, 747,152-sq.-ft. (69,485-sq.-m.) lease of speculative and build-to-suit space for The Home Depot on a 44-acre (17.6-hectare) site in Bolingbrook. That deal -- awarded the Suburban Industrial Transaction of the Year by the local chapter of the National Ass ociation of Industrial and Office Properties -- is but the latest confirmation that Corporate America has picked the south side of Chicago for the next wave of growth for logistics development in Illinois. "This area, from Bolingbrook to Joliet, is a growing suburban market with an industrial base," says Pete Harmon, vice president of office and industrial development for the Ryan Companies. "This is the premium industrial center in Chicago, because we are at the crossroads of America. From a logistics perspective, it satiates the needs of the market." Harmon's firm recently announced the completion of two new buildings within the Territorial Business Center in Bolingbrook, about 25 miles (40 kilometers) southwest of Chicago on Interstate 55. The business park is a 30-acre (12-hectare) complex of distribution/warehouse space, flex space and office facilities. The park's first building, 2 Territorial Court, became the North American headquarters for Globe Union America Corp., a plumbing a fixture manufacturer and supplier, in May 2001. Other corporate names to call Bolingbrook home include Tenneco, Sharp Electronics, Sanyo and The Home Depot. The next target for industrial growth, says Harmon, is Joliet, at the intersection of Interstates 80 and 55. "At this one intersection are 310 acres (124 hectares) approved for 6.5 million sq. ft. (604,500 sq. m.) of industrial product," he says. "The Larraway Crossings Business Park is a full-way interchange site." Tom O'Donohoe, senior vice president of The Alter Group, says that metro Chicago is so attractive to Corporate America because "from an industrial standpoint, you can reach 55 percent of all the Zip codes in the United States within one to two days by road. Manufacturers and distribution companies are very cost conscious, particularly when it comes to occupancy costs. And from a real estate perspective right now, there are some very good deals to be had out there."
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