R
ange Group and HSA Commercial are making a move into the Near West Side industrial market, capitalizing on recent developments in the area. The duo purchased two parcels at 2519 West Fulton Street and 2520 West Lake Street for nearly $3 million, expanding their development site to 2.3 acres. Plans are underway to demolish existing structures and build two buildings spanning a combined 70,000 square feet.

    This move aims to address the lack of modern, midsize industrial spaces in Chicago. "It takes more effort to develop here than in rural areas," said Robert Smietana of HSA Commercial. The pandemic-driven boom in demand has subsided, but there's still a shortage of smaller spaces near city cores that can accommodate contemporary technologies and delivery trends.

    Range Group and HSA may face competition from Prologis, the world's largest industrial landlord, which purchased a nearby parcel for $12 million in 2020. However, Chicago officials are pushing for renewed investment in the area, including extending the Kinzie Industrial Corridor tax increment financing district through 2034. The duo expects tenants from various sectors to be drawn to the area due to its proximity to affluent neighborhoods and upcoming developments.

    "We see the Kinzie Industrial Corridor as being just 15 minutes from some of Chicago's most affluent neighborhoods," said Seth Halpern of Range Group. "With thousands of housing units and millions of square feet of office space nearby, the type of user for this product is really endless."