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Jewel Extends; The Deal Sheet

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Jewel Extends; The Deal Sheet
Lengthening its tenancy in a building it's leased since 1967, Jewel Food Stores completed a long-term lease extension for 109k SF at 3030 Cullerton Ave. in Franklin Park.
 
3030 Cullerton
Podolsky Northstar CORFAC International repped the tenant, Supervalu, and landlord, KTR Capital Partners. Jewel Food Stores has been the building's only tenant since it was built by Podolsky & Associates, the predecessor of Podolsky Northstar, for a private partnership in 1967. This new lease term ensures that Jewel will be a tenant for more than 50 years. Podolsky's Steven Podolsky represented Jewel. He has been representing Jewel and Osco Drug since 1972. Podolsky's  Randy Podolsky  and Adam Tarantur represented KTR Capital.
Management News

General Growth Properties and  Jones Lang LaSalle have established a long-term strategic alliance through which JLL acquired the management and leasing responsibilities for the properties in GGP's third-party management division. The portfolio of 18 regional shopping malls and community centers in 11 states adds more than 11M SF to JLL's retail portfolio. The change in management and leasing responsibilities is effective immediately. Approx. 200 employees who comprise the management teams at the 18 properties plus 30 corporate employees who provide services to the properties will become JLL employees. Mark Hunter, former SVP of third-party management at GGP, Donn Fuller, former VP of asset management and development at GGP, and  John Taylor, who was VP accounting and finance at GGP, will become SVPs at JLL.

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GGP also filed its Plan of Reorganization in bankruptcy court yesterday, indicating it would emerge from Chapter 11 protection in October. The company will split into two publicly traded companies:New GGP and Spinco. It will recapitalize the companies with $7B to $8.5B in new capital from investment agreements with Brookfield Asset Management, Fairholme Capital Management, and Pershing Square Capital Management. Shareholders will receive common stock in both companies. Teacher Retirement System of Texas has agreed to buy $500M of New GGP common stock at $10.25/share. New GGP will still own 180 stabilized shoping malls in 43 states, while Spinco will hold a diversified portfolio of retail and mixed use products. The plan will go before a judge Aug. 19.

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Tishman Speyer announced that the 1.1M SF  Chicago Title and Trust Tower at  161 North Clark has been awarded LEED Silver. The building was also awarded the Energy Star label and reduced energy consumption by 700,000 kWh per year with controlled lighting and cooling tower fans. Management also reduced annual water consumption by 1.5M gallons by replacing original restroom fixtures with low-flow aerators and automatic faucets. 

Leasing

Acuity Brands restructured and extended its lease at 1200 Central Ave. in Hanover Park. The company has occupied  262k SF in the building since '97. CBRE's William Frain repped Acuity Brands.

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Grubb & Ellis has secured a 44k SF lease with the US General Services Administration for space at Congress Center, 525 W. Van Buren. Grubb & Ellis Realty Investors manages the property on behalf of multiple investment programs and individual investors. The lease will increase the property's occupancy to 93 % from 84%. The new space leased by the GSA is expected to be occupied during the first quarter of 2011, bringing the total space leased by the GSA to 185k SF. Grubb's Mark Parrish negotiated on behalf of the landlord. The GSA was self-represented.

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The American College of Healthcare Executives completed a lease renegotiation with Tishman Speyer of its existing 34k SF office lease at One N. Franklin in downtown Chicago. The renegotiation resulted in a $2.7M savings for the international professional society over the remaining tenure of its lease. ACHE was represented by CB Richard Ellis' Peggy McTigue and Gregg WittEllen May repped Tishman Speyer in the transaction.

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Transwestern's Transaction Advisory Services group recently represented the law firm of Schiller DuCanto & Fleck  in a 24k SF lease renegotiation and extension at 200 N. LaSalle St. The law firm currently occupies the entire 30th floor.

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Transwestern's Fred IshlerJoe StevensDan Svachula, and Zach Fox  completed several leases totaling 23k SF at Naperville Corporate Center. Transactions were as follows:

  • Atwell  signed a 9k SF direct lease.
  • Tata Consulting  signed a 5k SF lease, repped by CBRE's Jon Springer.
  • Keough & Moody signed a 5k SF lease. Charles Rutenberg Realty's Chuck Keough repped the tenant.
  • Medical Consultants Network  signed a 2k SF lease. Grubb & Ellis' John Kinsella  represented the tenant.
  • iGate Global signed a 2k SF direct lease.

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Inland Real Estate Corp. signed a lease with Eileen Fisher Company Store  to occupy 8k SF at Schaumburg Promenade in Schaumburg. The center is now 100% occupied. The 92k SF retail center's tenant lineup also includes DSW Shoe Warehouse, Ashley Furniture, Destination XL, and Blicks Art Materials. The Schaumburg Promenade store will be only the sixth Eileen Fisher outlet in the nation, and the second in Illinois.


Executive Moves

Gary Nussbaum has rejoined Transwestern as a  Managing Director with the Investment Services Group. Gary will originate, structure and execute office and industrial investment sales transactions for institutional, corporate and private investors. He returns to Transwestern after serving 10 months as a managing director at Eastdil Secured. A 20-year industry veteran, he began his career as a leasing and tenant rep specialist. Gary is a graduate of UC Santa Barbara and he earned his MBA from Northwestern University's Kellogg Graduate School of Management.

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Bruce Bailey has joined The Ross Group as a senior project manager  in the roofing venture group. He has more than 25 years of experience in the roofing industry. He is active in the Joint Apprenticeship Training Committee, Northern Indiana Apartment Council, and Northwest Indiana Contractors Association. In his new role, he will be involved in estimating and managing major roofing projects and developing a roofing service department.

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Mark Porter has joined DLR Group's Chicago office as K-12 education business development leader. A former superintendent for 10 years, Mark knows about the planning, design, and construction of K-12 education facilities. He was previously a member of DLR Group's Overland Park, Kan., and Orlando offices where he developed and led national business development strategy for
DLR Group.

Construction

Victor Construction Co. has started the multiple phased project at CCH in Chicago, with  Larry Quinlan  and Zak Schuttler as project managers. CCH consists of approx. 131k SF of office and 90k SF of industrial space. The TIF project has been designed by TKA + Partners  for a Gold LEED. The project is expected to be completed in the spring of 2011.

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Ryan Cos. has completed construction on a 98k SF school in Winfield that will allow Wheaton Christian Grammar School  to expand its enrollment and bring technology, music, worship, and classroom space to its students. The $17.5M building is on a 34-acre campus and features 30 dedicated classrooms and separate wings for students in grades K-4, 5, and 6-8. The brick and precast concrete facility at 1N350 Taylor Dr. was built with many green features including a geothermal system that powers the heating and cooling.

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ARCO/Murray National Construction Co. was contracted to construct a new 21k SF campus for ITT Educational Services located at 800 Jorie Plaza in Oak Brook. Construction was completed June 15. The build-out consisted of state of the art student classrooms and labs, modern executive offices, and a VVT system. ARCO/Murray's Brad Dannegger was the project executive and Chris Niedhammer was the lead Project Manager.

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ARCO/Murray  also completed on June 18 the construction of the new office and production build-out on behalf of ING Clarion for Suzo Happ at 1743 Linneman Road in Mt. Prospect. The build-out included 16k SF of office space. ARCO/Murray's Christian Evangelista is the project executive and lead project manager.Heitman Architects provided the architectural services.

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Reed Construction completed the installation of new MRI and CT Scan equipment at the Northshore University HealthSystem Medical Group at 225 N. Milwaukee Ave. in Vernon Hills. 
Reed's Scott Pickands oversaw the project and OKW Architects provided the architectural services. Integrated Facilities Solutions served as the owner's representative.

Finance

Aries Capita l's Phoenix office has successfully closed a $1M loan for an apartment complex on the North Side. Aries Capital's Eric Jones originated the loan. The investor for the transaction was a Fannie Mae DUS Lender. The walk-up complex features 19 one-bedroom units. The 10-year fixed-rate loan arranged by Aries Capital has a 30-year amortization.