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Heating supply manufacturer scores $250M refi for O’Hare-area warehouses

Niles-based GHP Group secured a $250M loan on a pair of buildings in Niles and Elk Grove Village

From top: GHP warehouse in Elk Grove Village and GHP headquarters in Niles (Credit: Google Maps, iStock)
From top: GHP warehouse in Elk Grove Village and GHP headquarters in Niles (Credit: Google Maps, iStock)

A Niles-based manufacturing company refinanced its office headquarters and an O’Hare-area warehouse property it acquired last year.

GHP Group, which manufactures gas grills and other heating-related home accessories, took out a $250 million loan last month from the National Bank of Canada, according to Cook County property records. The loan was secured against a 161,000-square-foot mixed-used building in Niles and a 225,000-square-foot warehouse in Elk Grove Village.

The loan may have applied to additional properties outside of Cook County that did not register in local records. GHP also operates a distribution facility in Guelph, Ontario.

The manufacturing firm acquired the warehouse at 1401 Nicholas Boulevard in Elk Grove Village in an $8 million deal last year, records show. The seller was California-based industrial developer Prologis, which padded its nationwide portfolio with a $4 billion acquisition this week.

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GHP has owned the office and warehouse complex at 6440 Howard Street in Niles since 2013, when it bought the property from an anonymous trust for $5.2 million in 2013, records show. At the same time, the buyer took out a $12.2 million loan on the property from Cole Taylor Bank.

Online retailers’ insatiable demand for warehouse space has juiced the value of industrial real estate across the Chicago area, pushing developers to open some 4.7 million square feet of new industrial facilities in the second quarter this year alone.

Warehouse properties are especially hot in the area surrounding O’Hare Airport, as companies wrestle for footholds near one of the country’s busiest transportation and logistics hubs.

Representatives of GHP Group did not immediately respond to a request for comment on Tuesday.

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