SL Business Center at Vernon Hills, Illinois — Courtesy: SL Industrial Partners
By Joshua Burd
SL Industrial Partners has more than doubled its footprint in the Chicago area after buying more than 925,000 square feet of industrial flex space across three business parks.
In a news release, the Basking Ridge-based firm said the deal includes 17 buildings in the Illinois communities of Buffalo Grove, Vernon Hills and Elgin, all of which are near major corridors such as interstates 94, 294 and 90. The portfolio is 92 percent leased to what ownership touted as a diverse and stable tenant base, while it now plans to optimize the properties and cater to small businesses by repurposing select spaces into light industrial and flex configurations.
The Silverman Group affiliate said it acquired the 925,391-square-foot portfolio, which it is rebranding and managing internally, from an institutional owner. Cushman & Wakefield vice chairs Mike Tenteris, Adam Tyler and Jim Carpenter represented the seller.
The properties include:
- SL Business Center at Buffalo Grove: An eight-building, 406,406-square-foot complex
- SL Business Center at Vernon Hills: A five-building complex with 281,340 square feet
- SL Business Center at Elgin: A four-building, 237,645-square-foot portfolio
The acquisition grows SL Industrial Partners’ presence in the Chicago market from 800,000 square feet to just under 2 million square feet, according to a news release. The company added that it sees strong fundamentals in the region driven by demand for smaller, functional industrial flex space that is increasingly hard to replicate or develop.
“Smaller flex space has proven to be a critical asset for businesses looking for highly functional and well-located industrial facilities,” said Blake Silverman, president of The Silverman Group. “Expanding our presence in Chicago further underscores our confidence in the strength and resilience of both the product and the market.”
