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orthPoint Development has made a significant investment in the Chicago industrial market, purchasing a portfolio of 12 warehouses in Elgin for $270 million. The properties span 2.8 million square feet and were acquired by High Street Logistics Properties for approximately $230 million in 2021. This purchase is one of the largest industrial real estate deals in the Chicago area this year, with NorthPoint paying around $96 per square foot.

    High Street Logistics Properties has cashed in on the upswing in the region's industrial market, which has been driven by the pandemic and the area's access to freshwater and railroads. The company, founded by Robert Chagares 23 years ago, acquired the portfolio during a period of speculative development that peaked in the third quarter of last year.

    As deliveries slow down, investors are snapping up available inventory. Los Angeles-based Ares Management has made two significant industrial purchases in the Chicago area in recent months, including a $58 million deal for a logistics center in Aurora. The average asking lease rate for industrial properties in the Chicago area has increased to $8.59 per square foot, up from $5.50 per square foot in early 2022.

    The Elgin properties sold by High Street Logistics Properties include several large warehouses along Northwest Parkway and Galvin Drive, with prices ranging from $10 million to $53 million for each property.