Atlanta-based firm expands its Chicago presence with second deal in seven months
MDH Partners today announces its second Chicago deal in seven months with the acquisition of 5315 Dansher Road, a 78,490-square-foot food production and distribution facility in Countryside, Illinois. The distribution facility was acquired in a sale-leaseback transaction with Sokol & Company, a food manufacturing company. Doug Pilcher from Cushman & Wakefield represented the tenant. Houston Hawley served as the acquisition lead for MDH Partners.
“Perfectly complementing our first Illinois acquisition in Bedford Park, 5315 Dansher presents a unique opportunity to acquire a fully stabilized industrial asset in a highly competitive market,” said Hawley, Vice President of Acquisitions at MDH Partners. “The Chicago industrial market is seeing record-low vacancy rates amid high leasing demand which fosters very appealing market conditions. Chicago will continue to be a strategic market for us as we expand our presence across the Midwest.“
Sokol and Company is a 5th generation family-owned food manufacturing business specializing in liquid food products, both sweet and savory. Sokol manufacturers everything from barbeque sauces to ice cream ingredients to icings and frostings. Sokol’s current President, Tim Novak, said on the sale-leaseback transaction: “From the beginning of the process, we were impressed with the diligence and professionalism of the MDH team. This transaction will allow us to continue our focus on our manufacturing operation while knowing we have a good partner in MDH.”
The facility is situated in the highly sought-after North I-55 Industrial Submarket of Chicago. According to Cushman & Wakefield, the Chicago industrial market had its sixth straight quarter of double-digit leasing with an all-time low vacancy rate of 4.1% in the first quarter of 2022. Three submarkets, including I-55, dominated the leasing landscape, accounting for more than half of new leasing activity despite representing just 21.4% of inventory.
The purchase of 5315 Dansher Road increases MDH Partners’ Illinois footprint to approximately 1.38 million square feet. The firm previously acquired a 1.3 million-square-foot industrial portfolio in Bedford Park, Illinois in October 2021. MDH Partners has remained very active, acquiring nearly five million square feet of industrial assets throughout the U.S. since last January. The firm recently expanded into new markets, including California, Indiana, Maryland, Illinois and Pennsylvania, and currently owns over 80 assets across 18 states.
About MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $4 billion (75 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit www.mdhpartners.com.