Transwestern Investment Group Acquires 408,000 SF Industrial Facility in Chicago's I-88 Corridor
Transwestern Investment Group has acquired 320 Overland Drive, a 408,176-square-foot industrial facility situated in Chicago's I-88 Corridor, the firm announced Sept. 23. The transaction was completed on behalf of a separate account, and Transwestern Services has been retained to provide property management.
Property Details and Configuration
Built in 2023, the fully leased facility sits on 26.79 acres and is designed for regional distribution and high-throughput logistics operations. The building features a cross-dock configuration, 36-foot clear heights, 55 dock doors with the capacity to expand to 86, four drive-in doors, and dedicated automobile and trailer parking.
The property is located 1.7 miles from Interstate 88 and provides connectivity to I-355, I-294, O'Hare International Airport, downtown Chicago and the broader Midwest transportation network.
What Transwestern Said
"320 Overland Drive represents an opportunity to acquire a modern, highly functional industrial asset in one of Chicago's established distribution corridors," said Andy Norman, Director of Acquisitions at Transwestern Investments. "The building's functionality, access to a deep labor pool and proximity to critical transportation infrastructure are consistent with the fundamentals we look for when investing in high-quality industrial assets across key Midwest markets."
I-88 Corridor Market Conditions
According to Transwestern Research, the I-88 Corridor is currently 94% occupied and has maintained an average occupancy of approximately 95% over the past 15 years. That figure is directionally consistent with broader market data showing the submarket remains substantially leased, though geographic definitions and measurement methodologies vary across sources.
The I-88 West Corridor carried 78.9 million square feet of inventory and 4.6% direct vacancy in the first quarter of 2026, with 2.29 million square feet under construction and 858,136 square feet of quarterly leasing activity. Average asking rents in the corridor stood at $8.46 per square foot during that period.
At the metro level, Chicagoland industrial vacancy was 5.51% in the first quarter of 2026, with positive net absorption exceeding 3.79 million square feet and average asking rents of $9.33 per square foot. A separate measure placed Chicago industrial vacancy at 5.3% with average asking rents of $6.80 per square foot — up 5.4% year over year — reflecting differences in market coverage between metro-wide reports and those focused on large-format distribution buildings.
Chicago industrial investment volume reached approximately $1.1 billion in the first quarter of 2026, with average pricing of $100 per square foot and an average market cap rate of 8.1%. Applying that per-square-foot benchmark to 320 Overland Drive's 408,176 square feet would imply an indicative reference value of roughly $40.8 million, though that figure is a broad market average and not an estimate of the transaction price.
Strategic Context
The acquisition gives Transwestern Investment Group exposure to a newly built, fully leased logistics asset without the lease-up risk associated with speculative development. The cross-dock layout, 36-foot clear height and expandable dock-door count are consistent with contemporary regional distribution requirements, and a 2023 construction date may offer an advantage relative to the cost and execution risk of developing a comparable facility in the current environment.
The principal operating consideration is lease and supply exposure. The I-88 West Corridor had more than 2.28 million square feet under construction in first-quarter 2026 data, which could create additional competition for tenants upon delivery. At the same time, positive metro absorption and broadly stable vacancy indicate continued demand for well-located industrial space in the Chicago market.
Transwestern describes itself as a vertically integrated commercial real estate firm with expertise spanning investment, development, brokerage and property management. The firm owns, leases and operates $64 billion in assets across 35 offices nationwide, with a portfolio that includes logistics, multifamily, retail, mixed-use, healthcare, office, data centers, hotel, sports and entertainment, and life sciences properties.