Sappi renews with 225k SF direct lease in Bedford Park
REJournals.com, Staff Writer
UGL Services, a division of UGL Limited has announced that Sappi Fine Paper North America, a global paper products manufacturer and supplier, has inked a 225,000-square-foot lease for industrial warehouse space at 6558 W. 73rd Street in Bedford Park, Ill.
William Strey, vice president of the UGL Services industrial group in Chicago, and Dirk Hrobsky, UGL Services executive vice president in New York City, represented Sappi in negotiations for a long-term lease for space inside this 309,479-square-foot rail-served warehouse near the I-55 Industrial Corridor. Adam Roth, vice president of NAI Hiffman, represented the landlord, the Mirvac Industrial Trust. Mirvac has 64 industrial assets in the Chicago region.
This is the first direct lease between Sappi and Mirvac in the Chicago market. Prior to this time, Sappi had a sublease arrangement with another tenant at its current location, a 3PL service provider to the retail industry, the Nexus Distribution Group. As the expiration date approached, Sappi engaged UGL Services to conduct a market survey and analysis of alternative industrial space for possible relocation. The team looked at sites in close-by Bridgeview and in Alsip, but in the end opted to remain in place. The direct lease agreement has helped to minimize Sappi’s business operating risk and it has resulted in a significant decrease in their occupancy costs.
According to Bill Strey, “we looked at several possible alternative locations. However, the current building’s amenities and location, along with aggressive economic terms, worked well for Sappi’s long term business plan.”
Final terms of the lease agreement were not divulged.