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CBRE Sells Portfolio; The Deal Sheet

CBRE Sells Portfolio; The Deal Sheet
CBRE represented an undisclosed seller in the sale of a seven-building, 472k SF industrial portfolio in the Greater O'Hare submarket.High Street Equity Advisors purchased the portfolio for an undisclosed amount.
CBRE Sells Portfolio; The Deal Sheet
The transaction is the first large industrial portfolio to trade this year in Chicago. CBRE's Michael CaprileTed StaszakPat McCourt, and Stephanie Park repped the seller. Michael says demand has increased for stabilized A and B assets in the industrial submarkets. The portfolio was 100% occupied at the time of sale. This is the team's eighth sale in the Midwest totaling over $160M of sales during the first half of the year.


Real estate developer Derrel McDavid has opened the last 11k SF of space available for lease at the Winston Tate Building, a 19k SF commercial/residential loft building at 110 W. Kinzie St. in River North. The Winston Tate Building is currently home to Mercadito, a contemporary Mexican restaurant, and Snaidero, an upscale Italian cabinet and kitchen design firm. The space is divided into five floors that can be used for commercial or live/work space.


Bradford Allen Realty Services has recently completed a 7k SF showroom lease to Chicago Brass-Chicago Bath on behalf of the Kinzie Design Center in River North. Bradford Allen's Craig Nadborne and Steve Fitzgerald represented owner Kinzie Street Partners in the lease negotiations.


Morgan Realty Partners completed two industrial lease renewals within the Karlyn Building  at 231-251 S. Frontage Road in Burr Ridge. The property is owned by Karlyn Building Joint Venture. First, Morgan's Bill Waliewsk i completed a 2k SF industrial lease renewal to Hoveround. The second lease renewal was signed by Sentry Therapy Systems, the firm renewed its 2k SF lease.


DIV Oak Brook, a JV of The Davis Cos. and Arthur Goldner & Associates, have acquired The Crossings at 1420 and 1520 Kensington Rd. in Oak Brook. The 17-acre property features two three-story office buildings consisting of 304k SF. DIV initially acquired the discounted first mortgage loan on the property from CW Capital in January 2010, the new ownership has recapitalized the asset since taking title in May, making available ample funds for TI, leasing commissions, and significant base building improvements.DIV Oak Brook  has selected NAI Hiffman to provide landlord leasing services.


Marcus & Millichap has retained the exclusive listing for Longacre Ponds, a 252-unit 258k SF multifamily property in Fairview. The listing price of $23.75M represents $94,246/unit and $92/SF. M&M's Scott Harris and Kyle Shoemaker are representing the seller. The property is located at 21 Northbrook Cir.  in Fairview Heights. It was constructed in 2006 and reached more than 95% occupancy in '09.


Paine/Wetzel � ONCOR International completed four sales in metropolitan Chicago and Wisconsin totaling 106k SF:

  • Rolf's Patisserie has purchased a 57k SF facility located at 10100 88th Ave. in Pleasant Prairie, Wis. Paine/Wetzel's Theresa Gleason repped the buyer while CBRE's Ryan Bain,Jack GrahamBrett Krouer, Keith Puritz  represented the seller, Wrightwood Capital.
  • Daily Meats has purchased a 26k SF property at 2323 W. Fulton. Paine/Wetzel's Michael NelsonMark Nelson, and Kim Aigner represented the selling entity, Image 23, while Millennium Real Estate's Greg Block  repped the buyer.
  • Dunkin' Donuts purchased a property at 2120 W. Lake St. Paine/Wetzel's Michael Nelson  and Mark Nelson represented the buyer while Steve Kohn and Mike Senner represented the seller, National Graining Co.
  • Cleveland Marble Mosaic Co. purchased an 8k SF property at 1425 Brummel Ave. in Elk Grove Village. Paine/Wetzel's Theresa Gleason repped the seller, Self-Made Enterprises, while Colliers Bennett & Kahnweiler's Anne Dempsey.


CBRE | Hotels, acted as the buyer's broker/advisor on the sale and transfer by Oak Bank of the 69-room Country Inn & Suites in Fitchburg/Madison, WI to Fitchburg Lodging. The three-story hotel opened in 2005. Swift Hospitality Group of Freeport, an investor in Fitchburg Lodging, will be managing the hotel and completing a renovation of the property. Swift Hospitality manages 14 hotel properties in Wisconsin, Illinois, and Iowa.


Marcus & Millichap has the exclusive listing for a 41k SF Whole Foods and an accompanying 167-space parking garage. The listing price of $11.7M  represents $286/SF. M&M's Sean Sharko and Austin Weisenbeck  are representing the seller. The property is located at 6020 N. Cicero Ave. Whole Foods occupies the ground floor of a multistory 136-unit condo complex.


Grubb & Ellis' Peter Block and Anne Arnold  repped the seller,15690 S. Harlem LLC, in the sale of the ground lease interest of 15630 S. Harlem Ave. in Orland Park to Acorn LLC at a 6.5% cap rate. Chase Bank occupies the site's 4k SF retail building on a 30-year primary term with escalations every five years and three 10-year options.


CBRE has been ranked the No. 1 commercial property management firm in the world, according to National Real Estate Investor. CBRE has retained the top position in the publication's annual ranking for seven consecutive years. CBRE manages more than 2.5B SF of commercial property globally.


MB Real Estate received the Leadership in Property Management Excellence Award  for The Richard J. Daley Center  as part of Chicago's first Green Office Challenge, an initiative to reduce energy consumption by businesses and greenhouse gas emissions from commercial buildings. MB Real Estate was rewarded for its innovative work in creating a Guaranteed Energy Performance Contract, which consisted of implementing eight energy conservation measures that will save $9.1M over 15 years without the use of capital funding.


Magellan Development Group's James Loewenberg has been elevated as a Fellow of the American Institute of Architects, the highest recognition by the leading professional membership association for architects. The honor comes on the heels of Loewenberg's recent selection for the prestigious Urban Land Institute's Chicago District Council 2009 Lifetime Achievement Award and his induction into the Chicago Association of Realtors Hall of Fame.


Chicago's Old Town School of Folk Music announced plans to expand its Lincoln Square "campus" with the construction of a new 27k SF building, its first new construction in a 53-year history, directly across the street from its current home at 4544 N. Lincoln Ave. The site, where a former bakery stood vacant for over a decade, was purchased by the Old Town School in 2005. Ground will be broken on the $18M project, designed to meet LEED-Silver standards, in early August. The new facility is designed by VOA. The general contractor is Bulley & Andrews.


Development Solutions completed a 26k SF medical office build-out for Northwestern Memorial Hospital at 676 N. St. Clair St. The building, called the Kovler Organ Transplantation Center, included exam rooms, mixed-use office space, procedure rooms, and conference rooms.


Reed Construction has been selected to complete demolition and renovations for a new 10k SF same-day surgery center and cafeteria within Rush Oak Park Hospital at 520 S. Maple in Oak Park. Reed's Scott Pickands is the project executive and manager. Proteus Group  is providing the architectural services for the same day surgery center, and MBA Architects  provided the architectural services for the new cafeteria.



One East Wacker Corp. has enlisted CBRE as the management agent for One East Wacker. CBRE will assume management of the property Aug. 1 with Lori Olson serving as the general manager. The group's portfolio in the Chicago area is now more than 45M SF including office, industrial, and retail properties.

Executive Moves

Verus Partners is launching a new acquisitions division that will focus on purchasing industrial and select office properties throughout the US and Canada, with values ranging between $4M and $60M.Greg Skirving  is joining the firm as EVP to lead the acquisition efforts.


Jeremy Rairdon has joined Reed Construction as a project manager in their corporate interiors group. He will be directly responsible for overseeing projects; preparing estimates and proposals; purchasing trades; and drafting and negotiating trade contracts. Jeremy was previously employed with Leopardo Construction as a project manager. He graduated from the University of Nebraska.


BOMA/Suburban Chicago announced the following appointments and elections which took place during the recent BOMA International Annual Conference:

  • CBRE's Steven Hrbek was named chairman of BOMAPAC, BOMA International's political action committee. He is also VP of BOMA/Suburban Chicago.
  • Triton College's John Lambrecht, was elected VP of the BOMA North Central Region Board of Directors.
  • Patricia Schwarze was elected chairman of the BOMA Association Executive Council. Patricia is executive director of BOMA/Suburban Chicago.

Finance News

Circle Realty Advisors and Aries Capital recently partnered to secure and close a $31.1M CMBS loan on a six-property, 1.4 M SF industrial portfolio located throughout Wisconsin and Illinois. Circle Realty Advisors acted as the investment advisor to the sponsor, while Aries Capital served as the mortgage banker. The  73.2% LTV, non-recourse loan was used to retire existing debt and fund upcoming tenant improvement obligations. The loan also provided cash out proceeds to the sponsor and was recently securitized and sold as part of a $700M CMBS pool that came to market on June 18.