January 12, 2015

This Week's Chicago Deal Sheet

If you think Chicago's multifamily pipeline is monstrous, just drive an hour and a half north to Wauwatosa, WI. A JV between HSA Commercial Real Estate and Fiduciary Real Estate Development just announced a plan to develop up to 1,050 units over the next decade.

The site is next to HSA's Mayfair Collection shopping center, formerly industrial warehouses. (The first phase, including Nordstrom Rack, Dick's and DSW, was completed in April. The second will be anchored by Whole Foods and include a hotel.) The plan: Fiduciary will build and manage the residential portion, breaking ground this spring on the first 250 units and 50k SF of retail (with 250 more units to follow in 2016). The high-density project has interesting potential in translating urban mixed-use development into smaller markets, extending young professionals' options for live/work/play environments. (Where could you find 22 acres to play in the city?) The JV's keeping its options open with the second half of the housing units, which could materialize as condos, row houses or even senior housing depending on market demand, Fiduciary's Craig Raddatz says.

SALES

CohnReznick (Field) MCHI

The Davis Cos completed the acquisition of Washington Pointe (above), a 164k SF Class-A office building at 535 E Diehl Rd in Naperville and the firm's sixth investment in the Chicago area since entering the market in 2010. Davis tapped NAI Hiffman to provide leasing and property management services and the leasing team will include Jim Adler, Dan O'Neill and Pat Kiefer. Planned renovations include upgrades to building systems, parking, communal areas and the current amenity base.

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Kiser Group senior managing director John Meyer completed the $33M sale of Mount Prospect Greens, a 344-unit, 14-building apartment complex at 1958-2036 W Algonquin Rd in Mount Prospect, to Cleveland-based APM Management. The seller, Windy City RE, assembled the 97% leased property from five different owners, renovating 30% of units and increasing rents significantly. On the acquisition front, Windy City RE just paid $748k for an eight-unit apartment building at 2823-2827 N Central Park in Logan Square.

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Berkadia SVP Ralph DePasquale completed the $26.3M sale (nearly $90k/unit) of the 300-unit Forest Cove Apartments, 1706 Forest Cove Dr in Mount Prospect. Berkadia's Matt Ewig and Jeff Robbins refinanced the 97% occupied asset in 2013 for seller Forest Cove Venture, allowing the new buyer to assume the existing debt. The buyer, TLC Ventures, headed by Stuart Handler, was attracted to the property for its renovation potential and has upgrades planned.

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Millennium Properties R/E sold a 1.8-acre riverfront development site in the South Loop at auction for $7.8M. The firm auctioned the property at 800 S Wells on behalf of the bankruptcy court. The stalking horse bidder, CMK Development, purchased the property, a 77k SF site currently used as a parking lot for the adjacent River City Condominiums. Previously approved development plans include a condo tower with 276 units and six townhomes.

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NAI Hiffman's Adam Johnson, Shawn Frick, Dan O'Neill and Jason Wurtz repped ownership in the REO sale of a 63k SF office building, Colonial Plaza, at 444 N Northwest Hwy in Park Ridge, to Sterling Properties. Adam and Dan also repped the owner in the REO sale of Fox Valley Office Commons II, a 26k SF office building at 4255 Westbrook Dr in Aurora, to R5 Properties.

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Cawley Chicago Commercial Real Estate's Timothy Gallagher and Andrew Maletich sold 143k SF 900 N Church in Elmhurst on behalf of a private seller to Semblex Corp.

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Millennium Properties R/E sold a 58k SF value-add MOB in the East/West Corridor. Built in 1978, 246 E Janata in Lombard is three stories with additional parking across Highland Lake Drive and currently 48% leased, with many of the units move-in ready. The property is across the street from Yorktown Center.

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@properties Commercial's Kevin Rocio and Mike Levin repped the seller, a local bank, in  the $5.6M sale (4.82% cap rate) of 30 S Grove Ave in Elgin, an off-market REO deal. Fountain Square's Phase 1 was built and includes an eight-story building consisting of 93 condos and 5,314 SF of commercial space. The second phase is vacant land that has been sold to the Town of Elgin. The buyer, a Canadian investment group repped by @properties' Thomas Walsh, purchased 58 condos, 72 parking spaces and four commercial units within Phase 1.

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SVN|Chicago Commercial SVP Wayne Caplan repped the seller and associate adviser Kyle Gardner repped the buyer in the $5.2M sale of the 14k SF retail property at 1255 S State St (above), on the ground floor of a 255-unit condo development in the South Loop. Anchored by Kids & Co daycare, the 100% leased property is also home to Premier Physical Therapy, a local salon and a sushi restaurant.

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Austin Weisenbeck and Sean Sharko, investment specialists in Marcus & Millichap's Chicago Oak Brook office, repped the seller, an LLC, in the $3.4M sale of Six Corners Mixed Use, a 13k SF retail property at 4805 W Irving Park Rd. The property is 100% leased and underwent a full gut rehab in 2004.

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Triad Real Estate Partners completed the $3.3M sale (7.2% cap rate) of The Arbors of Hudson, a 45-unit Low Income Housing Tax Credit (LIHTC) multifamily property in Hudson, WI. The seller is a Minnesota-based tax credit and affordable housing developer with a portfolio of more than 20,000 units in 19 states. The buyer, who plans to hold long-term, is a well-established Wisconsin nonprofit that owns and operates affordable housing throughout the state.

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Quantum Real Estate Advisors completed the $3.2M sale of 16k SF Grand Pointe Plaza, 6532-6546 US Hwy 6 in Portage, IN. The shopping center was 100% occupied at closing with tenants including Dunkin' Donuts, Firehouse Subs and Boost Mobile. The seller, repped by Quantum Real Estate Advisors president Chad Firsel and VP Conor Bossy, was the Portage-based original developer. The buyer was a Chicago-based private investor.

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Sean Sharko and Austin Weisenbeck, investment specialists in Marcus & Millichap's Chicago Oak Brook office, repped the seller, an LLC, in the $2.7M sale of Beverly III, a 20k SF retail property at 2307-2321 W 95th St. GameStop, Chase and Chipotle sit across the street.

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@properties Commercial brokered the sale of two local properties: a four-unit mixed-use condo building at 2636 N Lincoln Ave in Lincoln Park for $1.9M and a 19-unit apartment building at 1934 E 74th St in South Shore for $669k. Senior investment real estate adviser Kevin Rocio was the sole broker in the Lincoln Park transaction and repped the seller in the South Shore sale. The bank-owned Lincoln Avenue buyer was an international development company. The South Shore buyer was a Canada-based private investor, repped by Anton Agency's James Samuelson, making its first US acquisition.

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Essex Realty Group completed the $2M sale of 411 W Belden Ave, a five-unit, mixed-use property at the southwest corner of Clark and Belden in Lincoln Park. Essex's Doug Imber and Kate Varde repped the seller, and Jim Darrow and Jordan Gottlieb repped the buyer.

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First Western Properties completed the following sales: Mark Zeglen and Paul Tsakiris sold a six-unit bank-owned building at 7933-35 S Essex Ave; Paul and Kellen Duggan sold distressed (two large tenants vacated in the last month), bank-owned assets at 13401 S Ridgeland Ave in Palos Heights for over appraised value in a cash deal that closed in two weeks; and Paul sold a 16k SF commercial building at 1234 S Michigan Ave, near the corner of Michigan and Roosevelt.

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Mid-America Real Estate Corp's investment sales team brokered the $1.7M sale of a 4,991 SF multi-tenant retail building within the Underwood Crossings development, a 175k SF retail center in Brookfield, WI, to a private investor. Tenants include Starbucks, Great Clips and T-Mobile. Mid-Am's Carly Gallagher and Dan Cohen (Wisconsin office) repped the seller, Ryan Cos US.

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Bradford Allen senior managing director Ben Azulay and director Justin Kessler completed the $1.3M sale of 26k SF 2515 S Wabash. Ben and Justin repped both the buyer, Blue Star Properties, and the lessee, Baderbrau Brewing. The brewery (above), projected to open with a 4k SF taproom in late summer, leased the entire property.

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SVN|Chicago Commercial SVP Wayne Caplan completed the $1.2M sale of a 22k SF land site at 5970 N Ridge Ave in Edgewater. The property was home for decades to Carson's Ribs before being vacated for sale in '06. The buyer, Crossroads Development Partners, closed within a couple of weeks.

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Austin Weisenbeck and Sean Sharko, investment specialists in Marcus & Millichap's Chicago Oak Brook office, repped the seller, an LLC, in the $1M sale of Menards Outlot – Two Tenant Retail Center, a 4,800 SF retail property at 6905 W 159th St in Tinley Park.

LEASING

Creative Werks leased 400k SF at 1350 Munger in Bartlett from Exeter Property Group. CBRE's Matt Mulvihill, Kevin Segerson and Cal Payne repped Creative Werks in the deal, and Colliers' Charles Canale, Brian Kling and Dominic DeRose repped the landlord.

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Colliers principal Ronald Behm repped Power Solutions International (PSI) and EA Logistics in three different leases with Hamilton Partners, repped by Tom Maher. PSI leased 197k SF at Hamilton Lakes Business Park, 1465-1499 W Hamilton Pkwy in Itasca, for R&D and production. EA leased 112k SF at 2825 Carl St in Elk Grove Village and also completed a renewal of its 40k SF space at Mark Street Business Park, 1121 N Wood Dale Rd in Wood Dale.

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Wise Plastics Technologies leased 102k SF at 1601 Hawthorne Ln in West Chicago from DCT Industrial Trust. The property had been previously used for a paper converting operation and provides 5,000 amps of power. CBRE's Kirk Armour and David Prell repped DCT in the deal, and Regional Realty Advisors' Jeff Holmes repped the tenant.

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Cawley Chicago Commercial Real Estate's Andrew Maletich and Terry Herlihy completed the following industrial leases: They repped GR Freight Lines in an 11k SF lease at 644 Supreme in Bensenville, owned by Prologis; repped AVC Tech in a 19k SF lease at 1723 Marshall in Des Plaines, owned by TA Realty; repped Westmount Capital Partners in a 14k SF lease at 1400 Norwood in Itasca; repped Westmount in a 7,496 SF renewal at 3749 N 25th Ave in Schiller Park; repped Eagle Rider in its 9,324 SF lease at 9747 Foster in Schiller Park, owned by Prologis; and repped KDA Joint in its 20k SF lease at 1100 Arthur in Elk Grove Village, owned by KTR Capital Partners.

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GlenStar Properties signed two leases totaling 60k SF at the Chicago Board of Trade Building. ADM Investor Services, repped by Savills Studley's Robert Sevim and Lisa Davidson, signed a new, long-term lease for 30k SF on the 21st floor, relocating from 27k SF on the 16th floor. Wedbush Securities, repped by JLL's David Miller, signed a long-term renewal and expansion, increasing its current 18k SF footprint by another 11k SF. GlenStar's Christian Domin and Sandy Macaluso are the exclusive leasing agents at the CBOT Building, which completed a two-year comprehensive redevelopment last May.

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NAI Hiffman's Dan O'Neill and Matt Novak repped a JV between EverWest Real Estate Partners and Dividend Capital Diversified Property Fund in 14 new lease and renewal transactions totaling 53k SF of office space at 202k SF Washington Commons, 450-900 E Diehl Rd in Naperville. Strong leasing momentum raised the property's occupancy rate by 15% in the past year. Bright Horizons Family Solutions signed the largest lease to occupy 17k SF. Other large leases include NVR for 8,302 SF and Nestle USA with a 6,121 SF renewal.

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Brown Commercial Group senior associate Mike Antonelli completed five leases totaling 24k SF: Suburban Cash and Carry leased 12k SF at 470 Mission St in Carol Stream (Mike repped the landlord, and Lee & Associates of Illinois's Michael Androwich Jr repped the tenant), and Intermodal Container Carrier leased 2,534 SF at 255 E Lake St in Bloomingdale (Mike repped both sides). He completed two 3,265 SF leases at 205 Kehoe Blvd, for PuroClean Property Restoration (doubling its size, Mike repped both sides) and VSI Radon Reduction (repped by RE/MAX Suburban's Cheryl Schurtz, Mike repped the landlord). He also completed a 3,265 SF lease at 25k SF 195 Kehoe Blvd (above), an adjacent 25k SF complex owned by the same investor. It was the third lease Mike completed for the landlord within a 60-day period, bringing both complexes to 100% occupancy.

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First Western Properties' Fahim Lakhani and Paul Tsakiris completed a ground lease to Bank of America at 1024 E Sibley Rd in Dolton.

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Don't Miss Our Creative Office Summit Jan. 28!

Companies (led by tech firms) are pining for open space and a “Google culture,” but they're realizing you can't just knock down all the walls and hope that will happen. That's why we're exploring the process, step by step, at Bisnow's Chicago Creative Office Summit, Jan. 28 at Willis Tower, beginning at 7am. Our all-star lineup includes 1871 CEO Howard Tullman, South Street Capital co-founder Matt Garrison and CBRE EVP Brad Serot. Pictured: The special photo wall at CBRE's new digs, 321 N Clark, where employees can showcase their personality. Don't wait, get your event tickets today so you can prepare for your office makeover tomorrow!

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Is there anyone more fabulous than Amal Clooney? marissa.oberlander@bisnow.com