January 20, 2015

This Week's Chicago Deal Sheet

Coming soon: The house that sweat built. (Just make sure to spackle with deodorant.) Construction just kicked off on Chicago's and the Midwest's first SoulCycle studio, on the first floor of 1225 Old Town, set to open early this year.

Designer workout trends have been doing especially well in Chicago during these cruel winter months, so SoulCycle's high-intensity mix of cycling and dance (hugely popular from NYC to LA) makes perfect sense for the frigid New Year's resolution crowd. As does its location, within 250-unit luxury apartment building 1225 Old Town (also home to upscale grocer Plum Market). Developed by Hines, JDL and Northwestern Mutual, the property's $157M sale to Heitman in 2013 was at the time the most expensive (at almost $628k/unit) in downtown Chicago history. Now part of a crowded field of luxury projects, what better to way to differentiate and hook high-end renters than a $30-plus/visit workout whose company profitability is up 85% since 2010?

SALES

CohnReznick (Field) MCHI

Kiser Group managing director Brian Mond repped the buyer and seller in the $17.5M sale of 600-750 N Salem Ridge Dr (above), a brick three-building complex that includes 24 studios, 155 one-bedrooms and 70 two-bedrooms. The property is 95% leased.

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Skokie-based American Landmark Properties acquired 118k SF Two Trans Am Plaza, an office building at 2 Trans Am Plaza Dr in Oakbrook Terrace. JBS Commercial Real Estate partners Brian Silverman and Jason Shibata will serve as exclusive leasing agents for the five-story, Class-A property. New ownership will begin a renovation of the main lobby, atrium and restrooms, and plans to develop multiple spec suites.

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First Industrial sold 60k SF at 2120-2124 Roberts Rd in Broadview to Solo Laboratories. CBRE's David Prioletti repped the owner and Charles Ruthenburg Realty's Carol Roth repped the tenant.

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Interra Realty brokered the $7.1M ($338,095/unit, 6.9% cap rate) sale of a 21-unit elevator apartment building (above) at 2902-10 W Belmont Ave in Avondale. Managing partners Joe Smazal and James Clough repped the seller, a local developer, and managing partner Ted Stratman repped the buyer, a venture of New York-based CLK Properties.

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Clear Height Properties bought 43k SF at 3131 MacArthur Blvd in Northbrook from Northbrook Industrial Centre LP. CBRE's Zach Graham, Keith Puritz, Brett Kroner and Ryan Bain repped the buyer. The seller was self-represented.

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Venture One Real Estate, through its acquisition fund, VK Industrial II, closed on a 32k SF USDA food grade building at 2095 Hammond Dr in Schaumburg. The property is fully leased to Luvo. Marcus & Millichap's Paul Tesdal repped the seller in the deal. Venture One's VK Industrial funds have acquired over 4.6M SF of industrial property in over 50 separate deals since opening in September 2010.

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Mid-America Real Estate Corp's investment sales team brokered the sale of Chippewa Commons, a 169k SF shopping center at the southeast corner of Highway 124 and Woodward Avenue in Chippewa Falls, WI. An Eau Claire, WI-based private investment group purchased the property, home to tenants like Dollar General and GNC. Mid-Am's Ben Wineman and Mark Robinson (Mid-Am Minnesota) repped the seller, a publicly traded REIT.

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Quantum Real Estate Advisors president Chad Firsel and VP Conor Bossy brokered the $5.5M sale of a 57k SF shopping center, Marley Creek Square, at 18000-18092 Wolf Rd in Orland Park. The neighborhood center consists of three buildings: a 28k SF building inline with Jewel-Osco and anchored by Chase Bank; a 24k SF building anchored by a neighborhood restaurant; and a 5,488 SF outlot anchored by Starbucks (above) and Jimmy John's. The seller was an Orland Park-based real estate operator and the buyer was a private investor based in Rolling Meadows.

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Kiser Group senior managing director Bill Baumann and managing director Noah Birk repped both sides in the $4.8M sale of 6900 South Shore Dr, a 69-unit apartment building in South Shore. Amenities include a laundry room, bicycle storage, storage lockers and a private outdoor patio. Bill and Kiser principal Lee Kiser also repped both sides in the $4.3M sale of 5135 S Blackstone and 5111 S University, a 77-unit, two-building apartment portfolio in Hyde Park. Each building has on-site laundry. They're close to the 51st Street Commercial District and are a block from a new Whole Foods.

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STREAM Capital Partners managing principals Jonathan Wolfe and Jordan Shtulman repped the seller in the $5M-plus sale of a Walgreens located in Geneseo, just outside the Quad Cities. There are about 19 years of term remaining on Walgreens' initial lease. Since its formation in 2012, STREAM has been involved in over $250M of Walgreens dispositions.

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Mid-America Real Estate Corp's investment sales team brokered the sale of Oak Pointe Plaza, at the northwest quadrant of I-94 and Highway 53 in Eau Claire, WI. Menards purchased the 134k SF center, whose anchors include TJ Maxx and DSW, for $13.1M. Mid-Am's Rick Drogosz and Mark Robinson (Mid-AM Minnesota) were the exclusive brokers on the deal, repping Minneapolis-based Värde Partners.

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Dan Hyman and Chet Evans of Millennium Properties R/E sold seven office condos totaling 20k SF in the Sky Harbor Business Park in Northbrook. Developed in 2007, 304 Wainwright is a 24k SF building with nine office condos. The seven units sold had varying build-out, ranging from vanilla-box condition to move-in ready, with two units leased at the time of sale. The condos were purchased by a medical user who intends to occupy several units and lease the rest of the space.

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Jameson Commercial SVPs Mark Kishtow and Mark Jones repped the seller, Tomcat LLC, and the buyer, GW Property LLC, in the $1.2M sale of a 30k SF flex retail building (above) at 1230 N Roselle Rd in Schaumburg. The building can be configured for a single tenant or multiple tenants.

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Kiser Group senior managing director Brian Semel repped both sides in the $2.7M sale of 1145 W Morse, a 34-unit walk-up apartment building in East Rogers Park. Kiser managing director Michael D'Agostino repped both sides in the $1.4M sale of 1134 W Barry, a six-flat at the corner of Clifton and Barry in Lakeview.

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Ryan Engle and Andrean Angelov, investment specialists in Marcus & Millichap's Chicago Oak Brook office, repped the seller and buyer, both private investors, in the $1.7M sale of 3700-3710 W 199th St, a 30-unit apartment property in Alsip. The property features ample off-street parking.

LEASING

SVN|Chicago Commercial advisers Scott Maesel, Chad Schroedl and Drew Dillon repped The Mill in its 10-year lease of the 22k SF building (above) at 310 N Peoria St in the Fulton Market District. The Adler & Sullivan-designed building was originally constructed as a warehouse for a butcher supply company in 1893. D2 Realty Services' David Crawford acquired the building last summer and is currently converting it into high-end loft office space with a custom rooftop deck.

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Generation Brands renewed and expanded its lease at ML Realty Partners' 7300 N Linder Ave in Skokie to 249k SF. Savills Studley's Bruce McConnell repped Generation Brands in the deal. The firm chose to stay in the Skokie area due to its stable workforce and close proximity to public transportation.

CONSTRUCTION & DEVELOPMENT

The Bainbridge Cos will develop Campus Circle Urbana (above), a 524-bed student housing community across the street from U of I in Urbana. Located at 1008 W University Ave, Campus Circle Urbana is steps from U of I's Engineering School and two computer science centers. Its design will be inspired by the retro “speakeasy” feel of Chicago's popular restaurants and clubs, and the building is set to deliver starting this December.

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A joint real estate fund formed by Innovative Capital Advisors (ICA) and HSA Commercial Real Estate recently purchased the Schwaab Stamp Factory building at the southwest corner of Burleigh and 114th streets across from The Mayfair Collection in Wauwatosa, WI. HSA plans to adaptively repurpose and expand the current light industrial building into a 32k SF multi-tenant retail shopping center to complement Mayfair across the street. It will break ground this fall with delivery scheduled for retail tenants in summer 2016.

EXECUTIVE MOVES

Aries Capital promoted Jeff Bucaro from SVP to EVP. He'll continue to lead the firm's debt placement business for permanent, bridge and mezz debt transactions. He has more than 25 years of financial services expertise and has evaluated over $4B in financing opportunities across all property types. Jeff completed his MBA and MS degrees at DePaul.

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Newmark Grubb Knight Frank tapped Michael Prost and Sergio Chapa as senior managing directors, specializing in industrial real estate in Lake County and Southern Wisconsin. With 45 years of collective experience, Michael and Sergio were previously SVP and VP, respectively, at Lee & Associates of Illinois. Michael graduated from U of I with a degree in business administration and marketing. Sergio graduated from the College of Automation with a degree in computer science.

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NelsonHill tapped Zach Pruitt as SVP and Stevan Arandjelovic as associate. Zach was previously AVP at DTZ and he'll focus on urban redevelopment and adaptive reuse in Chicago and the surrounding areas. He holds a BA in law and sociology from Purdue. Stevan is a recent grad of DePaul's Driehaus College of Business. His expertise includes real estate analysis, finance and investment.

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Andrew Maletich has been promoted to VP at Cawley Chicago Commercial Real Estate. He joined the firm in July 2011 and finished 2014 as the second top producer in the firm. Andrew reps owners and tenants in and around the O'Hare, North DuPage and West Cook markets in the acquisition and leasing of industrial real estate assets.

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Advocate Commercial Real Estate Advisors promoted David Knight to principal from VP. He will continue to focus on repping office tenants in the Chicago area.

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Andrey Drozd joined ML Realty Partners as a financial analyst, responsible for reporting compliance and assisting forecasting efforts. He was most recently at Southern Land Co in Franklin, TN, and previously served as an analyst at Cassidy Turley. Andrey graduated from Vanderbilt with a degree in financial economics and English.

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Kathie Tratebas joined Coldwell Banker Commercial NRT as a commercial associate, based in the Porter County office in Valparaiso, IN. The 11-year industry vet started her career in residential development, then transitioned into assisting big-box retailers, national companies, and local and state economic departments in leasing and asset management.

KUDOS

215k SF 20 N Michigan Ave achieved LEED-EB O&M Platinum status, the highest sustainability recognition awarded by the USGBC. Managed by CBRE|US Equities, it's the oldest building in the Midwest to attain this recognition and was one of the first five buildings in Chicago to earn LEED Gold in September 2009. The building's sustainable improvements, from high-efficiency chillers and boilers to a new building supply fan, reduced its energy usage by 40%.

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LM Commercial Real Estate broker Lori Saulters was named Commercial Broker of the Year for 2014 by the Main Street Organization of Realtors in Downers Grove. Lori has 32 years of brokerage and lending experience and focuses on office, retail, industrial and land leasing and sales throughout the suburbs. Her key 2014 transactions included the sale of a 61k SF warehouse in South Chicago Heights and the expansion of two Napleton car dealerships in Westmont and Aurora.

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Tell Us

How did you spend the long weekend? We explored NYC's best comedy, art and ramen. marissa.oberlander@bisnow.com