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ilverman Group has significantly expanded its Chicagoland commercial property portfolio, doubling in size through a major acquisition. The New Jersey-based real estate investment firm spent approximately $102 million on a 925,000-square-foot collection of low-slung buildings aimed at light industrial and office tenants in the northern and northwest suburbs of Chicago.
The properties, valued at around $110 per square foot, were purchased from San Francisco-based Stockbridge Capital Group. Stockbridge had acquired the buildings for $63.4 million in 2019, with an average price of $69 per square foot. The portfolio includes 17 buildings that were 92% leased at the time of sale and is located in Buffalo Grove, Vernon Hills, and Elgin.
The acquisition brings Silverman's Chicago-area portfolio to nearly 2 million square feet. According to Blake Silverman, the firm's president, "Smaller flex space has proven to be a critical asset for businesses looking for highly functional and well-located industrial facilities." The deal underscores Silverman's confidence in the strength and resilience of both the product and the market.
The acquired properties include:
* Buffalo Grove: An eight-building complex spanning 406,400 square feet with versatile single-story structures.
* Vernon Hills: A five-building complex totaling 281,300 square feet, completed in the late 1990s.
* Elgin: A four-building complex totaling 237,600 square feet, suitable for manufacturing and distribution.
The Chicago industrial sector has seen significant trading activity lately, including a nearly 1.4 million-square-foot portfolio sale by CBRE's investment arm for around $114 million. Silverman plans to optimize its new acquisitions through renovations and repurposing select spaces into light industrial and flex configurations to better meet the needs of small business tenants.
