September 28, 2018 - Crain’s Chicago Business
The next big developer land grab in Chicago is starting to take shape, but whether it escalates into an investor stampede is up to City Hall.
Now that the developers who set off the transformation of the Fulton Market District are staking claims along Ogden Avenue—the western zoning boundary of the gritty-turned-trendy neighborhood—the city is turning its attention westward to determine the next steps in the fast-changing corridor's development path. And real estate investors are ready to pounce.
City planning officials are expected Oct. 9 to share publicly their vision for the Kinzie Industrial Corridor, which runs west from Ogden between Lake Street and Grand Avenue in a long-standing planned manufacturing district that is catching the eyes of prominent real estate investors as activity in Fulton Market surges west.
The city is mulling whether the neighborhood—known as Fulton Market West by some stakeholders that want to share in the area's spotlight—should follow the lead of the popular district to its east and allow new uses like offices, retail and others that are generally prohibited in a PMD. Repealing the PMD that governed the Fulton Market District led to the neighborhood's rapid transformation and the arrival of corporate giants like Google and McDonald's as well as high-end hotels and restaurants. Mayor Rahm Emanuel's administration has taken a similar approach to modernizing the historically industrial corridor along the North Branch of the Chicago River near Lincoln Park.
Created by Mayor Richard M. Daley to protect industrial jobs on the Near West Side, the Kinzie Corridor PMD will remain in place, says 27th Ward Ald. Walter Burnett, "but some parts are going to be more lenient than other parts." The zoning will generally be relaxed in the eastern portion of the corridor, allowing new uses for office, retail and restaurants to help enliven the neighborhood, according to Burnett, whose ward includes both the Fulton Market District and the area west of Ogden. The more industrial western portion, including near a new CTA Green Line station opening at Damen Avenue in 2020, won't see big changes, he says.
More lenient zoning could induce sweeping changes to the Near West Side between the West Town neighborhood and the United Center campus, and would be a valuable parting gift to developers fretting an unknown future as the pro-development Emanuel administration exits next year.
In many ways, the Kinzie Industrial Corridor is exactly what Fulton Market was nearly a decade ago: low-slung buildings housing old-line, family-owned companies, complete with the clanking of industrial equipment and permeating scents of food processing and delivery truck diesel fuel. A mix of meatpackers, food wholesalers, brewers, floral shops, caterers and manufacturers populate the neighborhood, as well as some small offices in industrial buildings that are allowed under PMD rules. Metra and CTA tracks run through its heart, and the new Damen CTA station could catalyze neighborhood growth when it opens, much like the Morgan stop did in 2012.
And even though many developers doubt the city will allow them to pay for lucrative building density and height like it did in Fulton Market, some have already wagered on properties on the chance the city will help unlock land value there.
One big bettor is Howard Wedren, whose Dayton Street Partners real estate investment group has turned several industrial properties in the area into loft offices. The firm recently snagged four tenants and a Limitless Coffee location at a long-vacant brick-and-timber building it converted to offices at 1500 W. Carroll Ave.
"There's demand from office users here who don't want to pay the freight east of Ogden," he says. "And there are distribution and creative manufacturing (users) who want to attract the strong labor pool in Chicago's high-density neighborhoods and don't want to go to the Southwest Side but want proximity to public transit and bike lanes. That's what this submarket delivers."
Property values west of Ogden have risen as development in Fulton Market has approached, pushing longtime landowners to cash out. In one recent deal, the owners of a Chicago-based T-shirt design firm that paid $1.1 million in 2014 for an industrial warehouse at 1641 W. Carroll sold it in February for $2.3 million. A longtime landlord at 350 N. Ogden recently put its 70,000-square-foot loft office building on the market, hoping to seize the investor demand.
Next to the future Damen CTA station, the family owners of trucking maintenance company Standard Equipment have fielded a few inquiries a week for over a year from brokers and developers asking about the company's nearly 3-acre property at the northwest corner of Damen and Lake, says company President Jerry Donlon. He has put the site on the market and is seeking north of $14.5 million. Donlon says the lack of basic amenities in the area, blocked by the PMD, holds back businesses. Retail in the district is only allowed if a business is also manufacturing a product on-site, which is why a number of breweries have flocked there. "You can get a beer here almost any day of the week, but you can't buy a bottle of water," Donlon says.
But there are opponents to change in the neighborhood. The Kinzie Industrial Corridor is already a thriving mix of "makers" and small businesses that need proximity to the central business district but also reasonably priced industrial real estate to run their operations, says Hannah Jones, director of economic development at the Industrial Council of Nearwest Chicago. The nonprofit group is an incubator that leases almost all of its 416,000 square feet of industrial space along the 2000 block of West Fulton Street to a mix of light manufacturing businesses.
Jones admits the area could use an "after 5 p.m." jolt but fears the gentrification seen in Fulton Market and implores city officials to make sure it remains a primarily industrial zone. "We just want to keep this neighborhood for what it is—it would be a great loss to the city if it (goes) the same way Fulton Market went," Jones says. "Fulton Market doesn't feel like Fulton Market anymore. You're losing a lot of what made it special."
One development roadblock west of Fulton Market is large swaths of low-income housing along the south side of Lake, an obstacle developers didn't encounter east of Ogden. But that comes with a silver lining for developers: The demographic makeup of the area qualified a large portion of the Kinzie Industrial Corridor as an Opportunity Zone created under the recent federal tax reform. The program, which is designed to spur economic development in distressed neighborhoods by allowing investors to defer paying capital gains taxes if they redirect profits into designated low-income areas, could funnel more developers and investors into the neighborhood.
September 11, 2018 - Bisnow
Dayton Street Partners purchased a 42K SF industrial building in West Fulton for $2.8M. This one won't be converted into another use, like so many warehouses in the area have been of late — it will be renovated and offered up as a last-mile logistics location.
The property — a 42K SF building on 1.75 acres — is at 2501 West Fulton. It was built in the 1960s and had been owner-occupied by Keystone but now is fully vacant. It fits the bill of the latest wave of industrial demand — older, smaller warehouses that are closer to population centers and can be used by e-commerce companies. Dayton Street has been carving out a name in that space as well, focusing on small infill industrial and office acquisitions.
“Demand for quality infill industrial space that features abundant parking and immediate access to Chicago’s neighborhoods is not abating,” Dayton Street’s Michael Schack said. “2501 West Fulton is the rare urban property that satisfies that demand.”
Its location just west of Chicago's central business district and the booming Fulton Market makes Dayton Street consider the location ideal for last-mile users — e-commerce logistics companies looking to store goods near customers to shorten delivery time.
Dayton Street will renovate the property, which already has 16-foot clear ceilings, two loading docks, one drive-in door, parking for 50 cars and 8K SF of newly built office space. It will add LED high-bay lighting, white box the warehouse and improve the parking lot.
JLL's Scott Duerkop and Dominic Carbonari represented the seller.
Dayton Street has been active in the Kinzie Industrial Corridor recently, redeveloping 2101 West Carroll, 2137 West Walnut and 1500 West Carroll. The Kinzie Industrial Corridor TIF is nearing the end of its life — the tax increment financing program meant to spur redevelopment began in 1998 and ends in 2021.
July 13, 2018 - GlobeSt
MT. PROSPECT, IL—Chicago-based Dayton Street Partners plans to develop a 132,270-square-foot speculative distribution center at 1731 Wall St. in Mount Prospect, IL, for an investment platform sponsored by Black Creek Group, LLC. The company will break ground on the development later this month and plans to finish by spring 2019. The new state-of-the-art building will feature 32’clear ceiling height, up to 40 dock doors, two drive-in-doors and 176 parking spots. New buildings are tough to find in the O’Hare submarket, but this one will be located near O’Hare International Airport’s north cargo entrance, and Dayton Street expects to draw interest from a variety of users in the freight forwarding and service industries and/or users seeking modern infill properties for last-mile distribution and light assembly. “The proximity to the airport is obviously terrific,” says Michael Schack, Dayton Street principal. “With quick access to I-90, and within minutes of I-294 and I-355, the site provides an ideal central location from which to access the Chicago area.” This is the second project Dayton Street is developing for Black Creek in the O’Hare market. Early this spring, the firm announced plans to build a 116,000-square-foot speculative distribution center in Bensenville, IL.
July 12, 2018 - Rebusiness Online
Chicago-based Dayton Street Partners plans to develop a 132,270-square-foot speculative distribution center at 1731 Wall Street in Mount Prospect, Illinois, for an investment platform sponsored by Black Creek Group, LLC. Dayton Street will break ground on the development later this month with a planned completion of spring 2019.
The new, state-of-the-art building will feature 32-foot clear ceiling height, up to 40 dock doors, two drive-in-doors and 176 parking spots. A premier location near O’Hare International Airport’s north cargo entrance, Dayton Street expects to draw interest from a variety of users in the freight forwarding and service industries and/or users seeking modern infill properties for last-mile distribution and light assembly.
“The proximity to the airport is obviously terrific. With quick access to I-90, and within minutes of I-294 and I-355, the site provides an ideal central location from which to access the Chicago area,” said Dayton Street principal Michael Schack. “Plus the corporate park setting means significantly less truck traffic than other areas close to the airport.”
This is the second project Dayton Street is developing for Black Creek Group in the O’Hare market. Early this spring, the firm announced plans to build a 116,000-square-foot speculative distribution center in Bensenville, Illinois.
May 17, 2018 - Rebusiness Online
BENSENVILLE, ILL. — Dayton Street Partners is developing a 116,000-square-foot distribution center in Bensenville near O’Hare International Airport. Black Creek Group LLC owns the property. Construction will involve the demolition of an outdated facility located at 1055 Sesame St. The new building will feature a clear height of 32 feet, 24 exterior dock doors and 137 parking spots. Construction is scheduled to begin in June with completion slated for spring 2019. READ MORE
May 09, 2018 - Bisnow
Add Dayton Street Partners to the packed industrial development activity around O'Hare. The infill industrial specialist is partnering with Black Creek Group to build a 116K SF spec industrial building in Franklin Park.
Dayton Street founder Howard Wedren told Bisnow the spec building will be built on two parcels totaling 6.5 acres at 1055 Sesame St. and 491 Podlin Drive in Bensenville. Dayton Street will demolish a 90K SF building on the Sesame Street parcel. Construction of the new building will begin in June, with an expected delivery in spring 2019. The new building will feature 32-foot clear heights, 24 exterior dock doors and 137 parking spots. READ MORE
April 5th, 2018 - Connect Chicago
Dayton Street Partners, a niche real estate investment and development firm, has hired Joe Moriarty as an associate responsible for underwriting prospective acquisitions. He was most recently an associate with JLL’s capital markets group.
During his time with JLL, Moriarty led the underwriting and due diligence process for a team that closed 30 transactions valued at $915 million between January 2016 and September 2017. Considered a rising star at JLL, he was the recipient of the “Leadership Award” given annually to a top achiever in his peer group.
Dayton Street founder Howard Wedren called Moriarty “wise beyond his years, and we look forward to his contributions to our efforts as Dayton Street continues to expand.” The firm focuses on acquiring and developing infill industrial, office and retail. READ MORE
April 4th, 2018 - Chicago Tribune
Dayton Street Partners (Dayton Street) today announced that Joe Moriarty has joined the company as an associate responsible for underwriting prospective acquisitions.
Moriarty joins from JLL where he was most recently an associate with the firm's Capital Markets Group. While there, he led the underwriting and due diligence process for a team that closed 30 transactions valued at $915 million between January 2016 and September 2017. READ MORE
March 8, 2018 - Rebusiness Online
CHICAGO — Goodman Manufacturing, a member of Daikin Industries Ltd., has signed a 21,000-square-foot industrial lease at 4150 N. Knox Ave. on Chicago’s North Side. The residential and commercial HVAC company will utilize the space as a showroom, training center and distribution hub. Dayton Street Partners owns the 41,000-square-foot property, which features a clear height of 30 feet, six docks, four drive-in doors and T8 lighting. Mike Senner and Steve Kohn of Colliers International in Chicago represented Dayton Street in the lease transaction. READ MORE
March 5, 2018 - Rebusiness Online
Goodman Manufacturing, a member of Daikin Industries, Ltd. and a worldwide leader in residential and commercial HVAC, has signed a lease for 21,000 square feet at Dayton Street Partners' newest development, 4150 N. Knox Avenue on Chicago’s north side. Goodman, which already has space at 815 W. Pershing Road, will expand its presence in Chicago with the lease, using its new space for a showroom, training center and distribution hub. Access to the dense urban population, as well as transportation such as expressways and trains, drove the company’s site selection process.
“We are elated that Goodman has chosen our property,” said Dayton Street managing principal Howard Wedren. “This facility offers them an ideal location to reach their customer base while providing a convenient location for its employees.” READ MORE
November 21, 2017 - Bisnow
Cushman & Wakefield’s Teddy Walsh, Lenora Adds and Andrea Saewitz repped Dayton Street Partners in three leases totaling 19K SF at 1500 West Carroll Ave. in Fulton Market West. Limitless Coffee leased 9,450 SF, Neato Agency leased 6,350 SF and Breather leased 3,100 SF. The leases account for nearly half of 1500 West Carroll’s leasable footprint. Dayton Street plans to develop another 30K SF building on an adjacent lot. READ MORE
November 3, 2017 - GlobeSt
CHICAGO—Dayton Street Partners has preleased its newest project at 1500 W. Carroll. Neato Agency (6,350 SF), Limitless Coffee (9,450 SF) and Breather (3,100 SF) have signed on for approximately 50% of the property. The company expects the balance to lease-up quickly now that construction is complete. It acquired the 40,000-square-foot building in September 2016 and quickly repositioned the property for today’s creative office user. READ MORE
October 10, 2017 - Rebusiness Online
Cushman & Wakefield announced that Dayton Street Partners' 1500 W. Carroll Ave. has been 50 percent preleased to Neato Agency, Limitless Coffee and Breather.
Dayton Street acquired West Carroll in 2016 and redeveloped the 38,000-square-foot former industrial property for creative office use. Dayton Street retained Cushman & Wakefield's Teddy Walsh, Lenora Adds and Andrea Saewitz to lease West Carroll and the adjacent building. READ MORE
July 17, 2017 - GlobeSt
CHICAGO—Distribution facilities for e-commerce are popping up in close proximity to the population centers of major US cities, creating a foundation for rapid-delivery service that didn’t exist on this scale just a few years ago, according to a new report from CBRE. CBRE analyzed the location of so-called “last-mile” distribution facilities opened within just the past two years in the 15 largest US population centers, finding that they are positioned, on average, between six and nine miles from the center of the largest population areas they serve. READ MORE
July 13, 2017 - Bisnow
Adaptive reuse can be broken down into two camps: high-profile repositionings like Londonhouse, and smaller infill projects that fill immediate tenant demand in a market. Dayton Street Partners has made a science, and profits, of the latter. Dayton Street Executive Vice President Michael Schack said his firm remains disciplined in its strategy of finding infill office and industrial assets in highly desirable submarkets. READ MORE
March 30, 2017 - Crain’s Chicago Business
On any given day, trucks pick up pallets of beer from Goose Island to distribute across Chicago and beyond, small forklifts transport bags of beans harvested around the world to roast at Intelligentsia Coffee & Tea, and occasionally people pop by to get a fresh pint, a pour-over coffee or apple brandy in a cafe or tasting room. READ MORE
March 17, 2017 - Rebusiness Online
Dayton Street Partners sold its 43,000-square-foot distribution facility at 920 W. Pershing Rd. in Chicago to a private investor for $4.1 million.
The property was first acquired in 2015 by Dayton Street and was transformed from an antiquated manufacturing building into a modern warehouse and distribution facility.
Last year, Trane U.S. signed a 25,000-square-foot lease and Stanley Steemer signed an 18,000-square-foot lease at the property.
October 18, 2016 - Bisnow
Dayton Street Partners has found a sweet spot in the blistering hot Chicago industrial real estate market by buying and rehabbing assets in niche submarkets. Dayton Street's latest acquisition is ginormous, by the firm's standards. It just closed on a 206k SF, multi-tenant warehouse at 6012 Monroe Court in Morton Grove. READ MORE
September 20, 2016 - GlobeSt
CHICAGO–Users looking for creative office spaces have focused a lot of their attention on the Fulton Market neighborhood, as Google and the other top tech firms that have moved in are also attracting new retail and restaurants. READ MORE
September 14, 2016 - Rebusiness Online
Dayton Street Partners acquired a 40,000-square-foot building and 15,000 square feet of land, located at 1500 Carroll Ave. on the edge of the booming Fulton Market West, from a private seller. READ MORE
Dayton Street Partners completes industrial renovation project in Bridgeport and announces new tenants
July 5, 2016 - Rebusiness Online
Dayton Street Partners has wrapped up leasing at its most recent development – a 43,860-square-foot industrial property located at 920 West Pershing Rd. in Chicago. READ MORE
November 21, 2015 - Crain’s Chicago Business
Raise a glass, Chicago, to your new title: craft beer capital of the country.
Craft brewers in the Chicago area occupy an estimated 1.6 million square feet of commercial real estate, more than any other metro area in the country, according to a report from Seattle-based brokerage Colliers International. The area also has the second-most craft breweries with 144, behind only Portland, Ore.'s 196. READ MORE
September 8, 2015 - Bisnow
While spec industrial development these days is centered on giant facilities in the suburbs and around O’Hare, one contrarian developer is finding success building smaller warehouses inside Chicago's borders and bringing The City That Works back to the neighborhoods. READ MORE
November 3, 2014 - GlobeSt
July 16, 2014 - Rebusiness Online
An investment entity led by Dayton Street Partners LLC has completed the sale of 815 West Pershing Road, a single story distribution facility located at the gateway to the Stockyards Industrial Park.
An investment entity led by Dayton Street Partners LLC has completed the sale of 815 West Pershing Road, a single story distribution facility located at the gateway to the Stockyards Industrial Park. The building was sold to Alliance Commercial Partners, LLC, headquartered in Denver, Colorado. Terms of the transaction were not disclosed.
Dayton Street Partners developed the speculative 105,000 square foot, 7 acre project facility in 2009 with its investment partner, Legacy Capital Partners. The project boasts 30’ foot clear ceilings and a 10,000 square foot green roof. Read More
January 25, 2012 - Rebusiness Online
April 7, 2010 - Commercial Property Executive
Real estate research firm Reis said on Tuesday that the vacancy rate for U.S. apartments was 8 percent in 1Q10. The good news: that’s no higher than 4Q09. The bad news: that rate is the highest for the industry since 1986. Some of the people inking those relatively few leases in apartments around the country weren’t even born that long ago.
Asking and effective rents eked out small gains for the quarter, according to Reis. Average asking rents were up 0.1 percent, while effective rents gained 0.3 percent. But some places did better than others, if you’re a landlord. In metro New York, for instance, effective rents were up an average 0.9 percent, and greater Miami saw a 1.6 percent increase.
The report also noted that net apartment absorption jumped to more than 20,000 units in the first quarter, the largest net positive jump in 10 years. If that pace continues, and the new product coming on line finally dwindles to very little, that might budge the vacancy numbers in a downward direction.
Sen. Durbin Breakfasts at Spec Industrial Property READ MORE
January/February 2010 - Illinois Real Estate Journal
Chicago has long been known as one of the nation’s most thriving and diverse local economies. One of the main reasons for this is a city government that provides substantial economic incentives designed to start, expand, and attract companies to Chicago. This year, we will see more of these financial assistance programs coming online than ever before and their impact on the city’s economy promises to be significant.
December 3, 2009 - Bisnow
One hundred years ago (when Bisnow was engraved in papyrus), immigrants came to Chicago to work in the South Side Stockyards. That same square mile between Halsted, Ashland, Pershing, and 47th is still providing jobs, only now in distribution and manufacturing. You know it as the Stockyards Industrial Park, home to 80 companies, and an example of urban revitalization. Back of the Yards Business Council's Craig Chico and Martha Jungenberg and Matanky Realty's James Matanky (also commissioner of the area), tell us 70 buildings have gone up since the late '80s, occupied by companies such as Gourmet Kitchens, Gypsum Supply Co, Tyson, GE Zenith Controls, HydroAire and Testa Produce.
January 28, 2009 - Rebusiness Online
April 1, 2008 - Midwest Real Estate News
Today it is almost passé to not push a green agenda, but what frequently gets left out of the conversation is that many companies may do more good by switching the color spectrum entirely – and pursuing “brown” instead.
Let us explain. Reducing one’s carbon footprint has become a hot-bottom issue, and the commercial real estate industry has been labeled the biggest offender in terms of emissions. In response, developers and architects have rallied to the cause and are pursuing greener buildings. But the question that is often never asked is, instead of just reducing their carbon footprint couldn’t real estate pros be striving to make any new footprints, period?
February 26, 2008 - Crain’s Chicago Business
Broker-turned-developer Howard Wedren has begun construction on a small industrial development in the Stockyards Industrial Corridor after raising almost $1.8 million from a suburban Cleveland investment fund.
Mr. Wedren plans to build a 104,000-square-foot industrial and manufacturing facility on a 6.6-acre site at 815 W. Pershing Road. To spark development in the area, the Daley administration sold the site for $1, even though it had an appraised value of nearly $1.6 million. The deal, which was announced in April, closed Dec. 26. Construction began last month. READ MORE
June 27, 2007
Dayton Street Partners LLC is developing the proposed industrial building in the Halsted Pershing Business Center, designed by Cornerstone Architects. The building will be built on a 6.9-acre site at the southwest corner of Halsted Street and Pershing Road. READ MORE
June 21, 2007
Dayton Street Partners LLC has announced plans to develop an 80,000 square foot speculative industrial building at the gateway to the Stockyards industrial park, one of the first of its kind in this historic industrial market. The 6.6-acre site for the development is located at the southwest corner of Halsted Street and Pershing Road in Chicago. READ MORE
April 25, 2007 - Chicago Sun Times