Chicago IV
Download Case Study- 2019
Acquisition Year
- 5
Years
Held - 1,676,904
Total Square Footage
- 38
Number of Buildings
- 94%
Occupancy at Sale
OPPORTUNITY
Westmount acquired the Chicago Industrial Portfolio in a single, off-market transaction sourced directly from the original developer, a non-institutional owner. The portfolio consisted of 38 flex-industrial and light industrial buildings totaling 1,676,904 square feet across strategically located submarkets in the Chicago metro area, including Lake County, Northern Fox Valley, and the O’Hare submarket.
The Elk Grove Village portion included 21 light industrial buildings totaling 751,557 square feet situated on 47 acres directly adjacent to the northwest boundary of O’Hare International Airport. Located in Chicago’s most mature and supply-constrained industrial submarket, these multi-tenant buildings—constructed between the late 1960s and late 1970s with average office finishes of 20%—were 97% leased to approximately 130 tenants at acquisition. The prime location, diverse tenant mix, and minimal new development in the area positioned this segment for strong near-term value creation.
The remaining 17 buildings, totaling 925,347 square feet, were located in Buffalo Grove, Vernon Hills, and Elgin. These assets were 94% leased to 150 tenants at acquisition and were positioned within established business parks offering access to key transportation corridors, strong labor pools, and high tenant demand—providing long-term upside potential. Although acquired as a single transaction, Westmount executed a two-phase disposition strategy: the Elk Grove Village assets were sold in 2022 after successful stabilization, while the remaining 17-building portfolio was held to realize additional value and was sold at year-end 2024.
SOLUTION
Westmount implemented a proactive, market-specific asset management plan to optimize value across the portfolio. In Buffalo Grove and Vernon Hills, properties benefitted from proximity to Interstate 94, O’Hare International Airport, and executive housing, while the Elgin properties leveraged direct access to Interstate 90 and a strong local workforce. In Elk Grove Village, asset management efforts focused on preserving occupancy and enhancing operations in a high-demand, infill submarket. The portfolio maintained consistently high leasing performance throughout the three-year hold period.
Across all assets, Westmount invested over $6.5 million in capital improvements, including office reconfigurations to better meet modern industrial tenant requirements. Major leasing wins included tenants such as Volkswagen, Subaru of America, Blackjack Lighting, Nexus Pharmaceuticals, and American Molecular. With occupancy held in the mid-90% range, the portfolio delivered strong, consistent performance that supported a successful phased exit.
TAKEAWAY
The successful execution and sale of the Chicago Industrial Portfolio highlights Westmount’s ability to create value through strategic acquisition, hands-on asset management, and deep market insight. By acquiring the portfolio off-market and executing a phased disposition strategy aligned with submarket dynamics, Westmount maximized investor returns. This transaction underscores the strength of Westmount’s industrial platform across the Midwest, where our team continues to identify and optimize assets in key supply-constrained markets such as Chicago, Milwaukee, Minneapolis, Columbus, and Cincinnati. Our local-market presence and regional expertise remain central to sourcing off-market deals, executing tailored strategies, and delivering long-term value.
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