3M | Distribution Facility

Property Description

The single-story, 978,120-square-foot, Class A distribution warehouse is situated on a 49.71-acre site within the Park 88 Business Park in DeKalb, Illinois (the “Property”). The Property was completed in August 2016 by Park 88 Group LLC, and is leased in its entirety to 3M Company (“3M” or the “Tenant”) for an initial term of approximately 10 years commencing August 2016. 3M maintains investment-grade credit ratings of AA- from Standard and Poor’s and A1 from Moody’s.

3M is a worldwide diversified technology company with products sold through a number of distribution channels, including wholesalers, retailers, jobbers, distributors, dealers, and directly to users, in a variety of industries. 3M is responsible for over 60,000 products used in homes, businesses, schools, hospitals, and other applications, with approximately one-third of the company’s sales coming from products invented within the past five years. Founded in 1902, 3M is headquartered in St. Paul, Minnesota with operations in approximately 70 countries, $30.2 billion in global sales (as of year-end 2015), and over 89,800 employees worldwide. Currently Ranked #93 on the 2016 Fortune 500 list, 3M has been a component of the Dow Jones Industrial Average since 1976.

Business Essential Attributes

The Property was a build-to-suit for the Tenant, which expanded and consolidated its distribution footprint in DeKalb. The state-of-the-art, Class A facility features precast concrete panels, a 36-foot clear height, 137 dock doors, T-5 and LED lighting, 387 car parking spaces, 348 trailer parking spaces, and specialized cool storage, cold storage, Red Label, and Aerosol rooms which contain additional sprinklers and fire protection, special containment floors, and explosion-resistant walls. 3M has over 60,000 SKUs sold in markets worldwide, and it is estimated that approximately two-thirds of these products will be stored and distributed from the Property.

The Property is 3M’s largest regional distribution facility in DeKalb and among its largest distribution facilities nationally. 3M currently has three contiguous distribution centers within Park 88 in DeKalb – a 410,400-square-foot distribution center built in 2007, a 650,760-square-foot regional distribution center built in 2011, and the 978,120-square-foot subject property. These three facilities provide a critical mass of over two million square feet of distribution space, and offer synergies not readily available in alternative locations.

Additional Property Information

The Property is located in Park 88, a 565-acre master-planned business park located at the four-way interchange of I-88 and Peace Road, just 50 minutes west of Chicago within the I-39 Logistics Corridor. Park 88 is located 20 miles west of Aurora and 14 miles east of I-39, which provides access to virtually all major interstate highways in Illinois (I-88, I-55, I-74, I-57, I-90, I-80 and I-94) and to all major Midwest distribution hubs including Chicago, Indianapolis, Milwaukee, Minneapolis, St. Louis, Detroit and the Ohio Valley. Park 88 is located in a Foreign Trade Zone and build-to-suits qualify for local tax abatements. Locational benefits of Park 88 include excellent transportation linkages to I-88, I-39, and I-80, proximity to the Union Pacific Global III Intermodal Rail Facility (19 miles west), and greatly reduced interstate traffic congestion compared to alternative business park locations closer to Chicago.

3M | Distribution Facility

DeKalb, Illinois

PROPERTY AT A GLANCE

Property Type: Single-story distribution facility
Square Footage: 978,120

Leased: 100%
Lease Expiration: October 31, 2026
Renewal Option(s):
Two, 5-year fixed rate renewal options
Rent Increase(s):
2.00% average annual rent escalations
Tenant: 3M Company 
Website: www.3M.com
NYSE: MMM

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THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING. NO OFFERING IS MADE TO NEW YORK RESIDENTS EXCEPT BY A PROSPECTUS FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. NEITHER THE SECURITIES AND EXCHANGE COMMISSION, THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THE PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN GRIFFIN CAPITAL ESSENTIAL ASSET REIT II, INC. INVOLVES A HIGH DEGREE OF RISK AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES OF THIS PROGRAM WILL BE ATTAINED. 

Risk Factors: An investment in Griffin Capital Essential Asset REIT II, Inc. involves a high degree of risk and there can be no assurance that the investment objectives of this program will be attained. Some of the risks associated with this offering include the following: this is a “best efforts” offering and some or all of our shares may not be sold; no public market currently exists for our shares; it may be difficult to sell your shares, and if you do, it will likely be at a substantial discount; the purchase and redemption price for shares of our common stock will be based on the NAV of each class of common stock; we must depend on our advisor to conduct our operations; we will pay substantial fees and expenses to our advisor; there are substantial conflicts of interest among us and our sponsor, advisor, dealer manager and property manager; we may use substantial debt to acquire our properties; we may fail to continue to qualify as a REIT; our share redemption program is subject to available liquidity and other significant restrictions and we may amend, suspend or terminate the share redemption program at any time; a portion of the offering proceeds may be used to redeem or repurchase our shares; and future distribution declarations are at the sole discretion of the board of directors and are not guaranteed. We may fund a portion of our distributions from offering proceeds or from borrowings in anticipation of future cash flows, some or all of which may be a return of capital. 

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Please Accept

The Griffin Capital Essential Asset REIT II, Inc. website is available for use subject to its Terms and Conditions and our Privacy Policy. Please click on the highlighted terms to review these. To review a summary of the risk factors related to an investment in the Griffin Capital Essential Asset REIT II, Inc. program  click here.

This material must be read in conjunction with the applicable prospectus in order to understand all the implications and risks of any offering of securities to which the material relates. If you have not previously reviewed a prospectus, click here. Otherwise, to proceed, agree to the Terms and Conditions and Privacy Policy of this website.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING. NO OFFERING IS MADE TO NEW YORK RESIDENTS EXCEPT BY A PROSPECTUS FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. NEITHER THE SECURITIES AND EXCHANGE COMMISSION, THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THE PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN GRIFFIN CAPITAL ESSENTIAL ASSET REIT II, INC. INVOLVES A HIGH DEGREE OF RISK AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES OF THIS PROGRAM WILL BE ATTAINED. 

Risk Factors: An investment in Griffin Capital Essential Asset REIT II, Inc. involves a high degree of risk and there can be no assurance that the investment objectives of this program will be attained. Some of the risks associated with this offering include the following: this is a “best efforts” offering and some or all of our shares may not be sold; no public market currently exists for our shares; it may be difficult to sell your shares, and if you do, it will likely be at a substantial discount; the purchase and redemption price for shares of our common stock will be based on the NAV of each class of common stock; we must depend on our advisor to conduct our operations; we will pay substantial fees and expenses to our advisor; there are substantial conflicts of interest among us and our sponsor, advisor, dealer manager and property manager; we may use substantial debt to acquire our properties; we may fail to continue to qualify as a REIT; our share redemption program is subject to available liquidity and other significant restrictions and we may amend, suspend or terminate the share redemption program at any time; a portion of the offering proceeds may be used to redeem or repurchase our shares; and future distribution declarations are at the sole discretion of the board of directors and are not guaranteed. We may fund a portion of our distributions from offering proceeds or from borrowings in anticipation of future cash flows, some or all of which may be a return of capital.