JLL Capital Markets announced today that it has arranged in acquisition financing for a 2 million-square-foot super-regional distribution facility fully occupied by Michelin North America along Chicago’s I-55 Industrial corridor.
JLL worked on behalf of the borrower, Phoenix-based Silver Creek Development, to place the seven-year, fixed-rate loan with Pacific Life Insurance Company. Silver Creek Development, which also has offices in Los Angles and New York City, is currently looking to grow its national footprint.
Originally constructed in 2015 as a build-to-suit for Michelin, the facility was expanded in 2016. The state-of-the-art facility is one of two super regional Michelin-leased facilities in the country, and it holds the inventory serving five business lines. Institutional-quality features include a front-loading configuration, concrete tilt-wall construction, a 32-foot clear height, 126 dock-high doors, four drive-in doors, DUCTILECRETE® warehouse floors and truck courts, substantial trailer parking spaces, ESFR fire protection system, LED lighting and low office finish.
Situated on 91.13 acres at 29900 S. Graakamp Blvd. the facility is at the geographic center of the United States, allowing Michelin to serve the entire Midwest and Western markets, including Detroit-based auto manufacturers. It is within the master-planned Ridgeport Logistics Center and I-80 Corridor Industrial submarket at the intersection of Interstates 55 and 80. Additionally, the location is proximate to six Class I railroads.
JLL Research’s 2021 Midwest Industrial Outlook report details how Midwest industrial demand and investment is surging. JLL Research forecasts that more than one billion square feet of additional warehouse product will be needed across the country to accommodate e-commerce demand.
The JLL Capital Markets debt placement team representing the borrower was led by Managing Director Matthew Schoenfeldt and Director Eliott Zeitoune.
“Hats off to the gentlemen at Silver Creek,” Zeitoune said. “Their long-term view and tireless pursuit allowed them to make what will prove to be a great investment in an exceptional asset.”
“Each large financing with a level of intricacy requires a nimble and steadfast lending partner,” Schoenfeldt added. “Pacific Life was absolutely fantastic from application to closing.”