21 South Racine Avenue
South Racine Avenue 21, Chicago, IL, 60607, US
1,730 m²
Jones Lang LaSalle (Illinois), L.P. ("JLL"), as exclusive advisor to ownership, has been retained to market for sale the fee-simple interest in the I-290 Distribution Center, a 150,010 square foot Class A distribution facility located in the North DuPage County industrial submarket of the Chicago MSA (the "Property" or the "Offering"). Constructed in 2022, the Property offers modern features that today's logistics users require, including 32' clear height, 15 dock doors via a rear-load configuration, ESFR life safety systems, motion-sensored LED interior lighting, and ample auto parking. The Property is 100% leased to RTS Packaging, wholly owned by Sonoco (NYSE: SON, S&P: BBB), through June 2033 with 3.0% annual rent escalations, providing a long-term, growing cash flow. Additionally, RTS Packaging's in-place below market rent provides a 26.8% mark-to market opportunity upon tenant expiration in approximately 9 years.
Positioned in the North DuPage County submarket, Elmhurst is likely Chicago's most interconnected suburb as I-290, I-294, US 20, IL 83, and IL 38 all pass within its city limits and is minutes from the south cargo entrance of the O'Hare International Airport. Further, the Property sits in a deep, blue-collar labor pool offering users an advantage for labor recruiting and retention. In a five-mile radius, there are approximately 170,000 workers, 25% of which are considered blue-collar. This access and labor depth has translated into strong user demand and leasing fundamentals, namely a sub-4% vacancy rate and a 8.1% compounded annual rent growth rate since 2018. Lastly, the I-290 Distribution Center offers an infill Chicago location within DuPage County, ensuring a lower tax liability compared to neighboring Cook County.