You Won't Believe the Shocking Price a Chicago Investor Paid for This Arlington Heights Complex!

In a significant move within the Chicago real estate market, Matterhorn Venture Partners (MVP), a private real estate investment firm specializing in industrial assets, has acquired the Kennicott Industrial Complex located at 3160–3196 N. Kennicott Avenue in Arlington Heights, Illinois. This acquisition adds to MVP's growing portfolio and underscores the firm’s strategic focus on value-add industrial properties in the Midwest.

The Kennicott Industrial Complex spans an impressive 75,310 square feet across two buildings, set on 3.9 acres. Currently, the property boasts an occupancy rate of 87 percent, with five tenants leasing seven suites. The acquisition was completed off-market from a local owner, allowing MVP to secure the asset at a favorable price point—below replacement costs and market averages for the area.

Originally constructed in 1981, the complex features 18-foot clear heights, eight drive-in doors, and eight interior dock positions, along with ample parking facilities. Each suite is equipped with a dedicated dock door and drive-in door, a configuration that enhances the appeal of the property to a diverse range of industrial tenants. This setup is particularly valuable, as it is relatively uncommon for buildings of this size.

Financially, the property currently generates cash flow on a triple-net basis, with existing rents falling below prevailing market rates. With several leases nearing expiration, MVP anticipates an increase in rental income through effective lease management and targeted capital improvements. This proactive strategy is part of MVP's broader aim to enhance value within their real estate holdings.

This acquisition represents MVP's 14th overall investment and the sixth within the Chicago metropolitan statistical area. The firm continues to expand its footprint in core infill logistics corridors, a segment that has seen increased demand as e-commerce growth reshapes industrial space requirements.

Founded in May 2024, Matterhorn Venture Partners has made significant strides in the industrial real estate sector, achieving approximately $140 million in total deal capitalization across eight states, which encompasses over 765,000 square feet of industrial real estate. This latest acquisition aligns with their mission to acquire and manage properties that offer substantial opportunity for growth and improvement.

“The Kennicott Industrial Complex is exactly the type of asset we target – a well-located, multi-tenant industrial property with in-place cash flow and a clear path to value creation through rental upside. This is a great addition to our Chicago industrial aggregation strategy,” said Scott McKibben, Chief Executive Officer of Matterhorn Venture Partners.

“Sourcing this deal off-market allowed us to acquire a cash-flowing asset at a compelling basis, well below replacement cost and comparable sale prices in the submarket,” added Matt Kay, Principal and Co-Founder of Matterhorn Venture Partners.

The acquisition of the Kennicott Industrial Complex not only signifies a milestone for MVP but also reflects the ongoing trends in industrial real estate driven by e-commerce and logistical efficiencies. As companies increasingly seek accessible industrial spaces to support their operations, MVP’s strategy to focus on well-located assets with value-add potential positions them favorably in a competitive market.

As the industrial real estate sector continues to evolve, Matterhorn Venture Partners is poised to leverage their expertise and strategic vision, contributing to the economic landscape of the Chicago metropolitan area and beyond.