CenterPoint, with a market cap of $3 billion as of Sept. 20, 2005, finds itself at the center point of industrial momentum in the Greater Chicago metro, with recent large announcements including a bulk distribution center for Wal-Mart at CenterPoint's Intermodal Center in Elwood, adjacent to the BNSF Logistics Park Chicago. That project facilitated by NAI Hiffman and BNSF, will include two buildings, at 1.8 million sq. ft. (167,220 sq. m.) and 1.6 million sq. ft. (148,640 sq. m.), which are projected to be complete in summer 2006. The transaction is structured as a 15-year lease with a purchase option. The facility will bring more than 600 jobs to the area.
   "This facility represents a major new development in transportation and distribution," said Vann Cunningham, BNSF's assistant vice president, economic development, in a February release pointing to the Wal-Mart projects as a 2005 highlight. "Today's logistics needs require the

In August 2005, groundbreaking ceremonies were conducted for a new 127,028-sq.-ft. corporate headquarters and manufacturing facility for Klein Tools, a leading manufacturer of professional hand tools and occupational protective equipment. Located in the Enterprise Point of Lincolnshire business park, the complex will welcome 250 of the company's 1,000 employees when it opens this spring. McShane Construction and project architect, Archideas, Inc., were the design/build partners on the project. Colliers, Bennett & Kahnweiler, represented Klein Tools in the build-to-suit to own transaction.

availability of a full suite of transportation options centrally located near the point of distribution."
   That fall 2005 announcement was followed in December by the news that Georgia-Pacific would consolidate operations from Bolingbrook, St. Charles and Green Bay, Wis., in Elwood, occupying 1 million sq. ft. (92,900 sq. m.) at the largest spec building ever constructed in the Midwest.
   "We looked at nearly three dozen existing properties and various build-to-suit options in Illinois and Northwest Indiana, but CenterPoint was the only facility that satisfied all requirements," said Randall Koch, senior vice president and industrial manager for Grubb & Ellis's Rosemont office (and no relation to the ownership of Kansas-based Koch Industries, which has purchased Georgia-Pacific). "One of the things we really liked was that this building was only 90 days from completion, and it had everything Georgia-Pacific was looking for," said Koch. "I-80 access, ESFR sprinklers, proper ceiling heights and ample dock space." The facility also has the space to expand by another 30 percent if necessary.
   The two projects were preceded by an important bit of state legislation: Summer 2005 saw the arrival of a new law incentivizing development of rail intermodal facilities by allowing local municipalities to designate areas for them and offer tax increment financing. In addition, the new law offers full Enterprise Zone incentives (such as a sales tax exemption on building materials) and makes those available as well for redevelopment of obsolete rail facilities into other uses. CenterPoint, developer of both the BNSF facility in Elwood and the Union Pacific intermodal facility in Rochelle, had pushed vigorously for the law's passage.
   "The new law will help ensure the region's rail dominance, continuing the trend of new business locating in the state," said Michael Mullen, CenterPoint CEO. "Manufacturers and distribution firms are increasingly looking to "hub" locations with superior rail and truck access to lower logistics costs."

Business Leaders for Transportation DuPage National Technology Park Metropolitan Planning Council Illinois Dept. of Commerce and Economic Opportunity

   As of September 30, 2005, CenterPoint owned approximately 38 million sq. ft. (3.5 million sq. m.) and with its affiliates owned or controlled an additional 3,053 acres (1,236 hectares) of land upon which approximately 44.1 million sq. ft. (4.1 million sq. m.) could be developed. At press time the company's shareholders were considering a proposed $3.4-billion acquisition by CalEast Industrial Investors LLC, an investor in logistics warehouse and related real estate whose members include he California Public Employees' Retirement System ("CalPERS") and LaSalle Investment Management, the investment management business of Chicago-based Jones Lang LaSalle. Since 1999, CenterPoint and CalEast have partnered in a joint venture known as CenterPoint Venture LLC, which acquires, develops, manages and sells industrial property.
   In the meantime, the company is influencing development in other ways: John S. Gates, Jr., co-chairman of CenterPoint Properties Trust, also serves as chair of the Business Leaders for Transportation Public-Private Partnerships Committee.