A long, mostly vacant former Kankakee manufacturing site has been recently purchased by a Milwaukee development group.

The Phoenix Investors group recently purchased the 75-acre, 611,879-square-foot property on Kankakee’s north side.

The $5.75-million sale closed on Jan. 23, per Kankakee County Recorder of Deeds records.

The property, 1551 E. Willow St., immediately east of Hobbie Avenue at the Norfolk-Southern Railroad spur, has been largely unused since Heinz closed its production operation there in 1997.

The site has had some tenants there, including at one point the City of Kankakee’s code enforcement and planning offices.

Some 270,000 square feet of warehouse space had also been leased by former Momence filter manufacturer, Flanders Corporation.

Phoenix Investors holds some 85 million square feet of industrial, warehouse and manufacturing space across 27 states, including Illinois locations in Dwight, DeKalb, Decatur, Normal and Mattoon.

The site is now being marketed by Phoenix Investors and a company official said the company’s mission is to purchase, renovate, market and lease space.

“We want our properties to look and function like modern industrial space,” said Luke Herder, Phoenix Investors’ vice president of leasing and acquisition.

This is a long-term investment, he said. It is not about buying, renovating, and selling.

“We are excited. We are highly confident we can attract tenants,” he said. Having only closed a couple weeks ago on the property, Herder said there have already been conversations regarding the location.

“There is a lot of good space ready for companies to move into. Some of the space will need more attention, but some of it simply needs fresh paint and some updates.”

When asked about length of time the property has been largely unused, Herder said that doesn’t provide them with concern.

“We’ve have had many properties which have sat empty much longer,” he said.

Warehouse space needed

Kankakee Mayor Chris Curtis was obviously pleased with the sale. He said the site has great potential.

“This is good news. This company deal in downstate Illinois and they are putting resources into these properties,” he said. Curtis noted while some may not recognize it, there is a shortage of good, maintained warehouse space.

“This kind of space is needed,” he said.

Angela Morrey, president and CEO of the Economic Alliance of Kankakee County, there is no question the former Heinz site has much to offer.

“There is a lot of potential there,” she said.

Originally known as General Foods, the site opened in 1938 as a massive corn mill. Through a number of expansions, the location produced a number of corn products, such as hominy, corn meal, table grits and brewers’ grits.

In 1947, the location transitioned to dog food manufacturing and became the world’s largest dog food manufacturing site under the Gaines division. The company later added a product distribution center.

In the early 1980s, Quaker Oats Company purchased the site and continued the production operation. Quaker Oaks operated the site until its 1995 sale to Heinz Pet Food, which closed the site only two years later.

Focus on ‘revitalizing’

The rail-served facility is considered to be strategically positioned near Interstate 57, offering efficient access to the Chicago metropolitan area and the broader Midwest distribution network.

Phoenix plans to undertake a series of capital improvements to reposition the property and enhance its functionality for modern industrial users.

According to the company, planned improvements include white-boxing (white-painted walls, concrete floors, basic lighting and HVAC) select areas, general site and exterior upgrades, the installation of high-efficiency LED lighting, and the addition of new dock doors to further improve loading capacity and operational flow.

“Phoenix continues to focus on acquiring, revitalizing, and repositioning industrial assets that meet the needs of modern tenants,” said Anthony Crivello, Phoenix president, in a news release. “The property in Kankakee reflects our commitment to delivering flexible, well-located facilities that support long-term tenant growth and operational success.”