The Deal Sheet
Want to get a jump-start on upcoming deals? Meet the major Chicago players at one of our upcoming events!
IBT Group celebrated 15 years in business with a big groundbreaking at Pulaski Promenade. (It's traditionally the crystal anniversary, so we bet those were nice-looking shovels.)
The deal, located at 42nd and Pulaski, was six-plus years in the making, IBT president Gary Pachuki (above) tells us. When it delivers in May 2015, tenants will include Marshalls, Michaels, Ross Dress for Less, Shoe Carnival, and Petsmart, with additional space available. The tenant mix is indicative of today’s new world of deal structures (and financing), Gary says. Before the recession, you used to be able to follow stores like Target and Walmart on their rapid expansion. With a deal like Pulaski, multiple midsize boxes become the anchor for one another, he says.
After a 10-year career with Opus heading up Midwest retail development, Gary struck off on his own with IBT and started doing retail projects. Advisory work for the major banks got the firm through the recession, and with two big projects out of the ground, Gary’s branching into mixed-use projects around Chicago. (The second big project is a nearly finished Mariano’s and Petsmart at 95th and Western in Evergreen Park.) Outside of the office, Gary enjoys off-shore fishing in the Florida Keys and he’s also an avid wine and guitar aficionado.
Kiser Group senior managing director Bill Baumann completed the $7.9M sale of the Germania Club Building (above), a historic 41k SF mixed-use building at 108 W Germania Pl in the Gold Coast. Designed in 1888 by Addison & Fielder, the 100% leased building has only come to market three times. Tenants include Starbucks, T-Mobile, and Lincoln Park Prepatory.
Kyle Stengle, investment specialist in Marcus & Millichap’s Chicago Downtown office, repped the seller and buyer, both LLCs, in the $4.5M sale of a 10-unit apartment building with one commercial space at 1429 N Sedgwick St.
Fort Collins, Col.-based Woodward purchased 73k SF at 6250 W Howard St in Niles from Specialty Printing Corp. CBRE’s Keith Puritz, Brett Kroner, Ryan Bain, and Zach Graham repped Woodward: Colliers’ Chris Volkert repped Specialty Printing. The asking price was $4.4M.
Europa International, repped by Entre Commercial Realty’s Brian Bocci, acquired 225 Corporate Woods, a 48k SF facility in Vernon Hills. The seller was repped by CBRE’s Keith Puritz, Brett Kroner, Ryan Bain, and Zach Graham. The firm is expanding (adding nearly 32k SF) from its current location in Buffalo Grove and another manufacturing facility in California that it's moving to the Vernon Hills site.
Quantum Real Estate Advisors president Chad Firsel repped both sides in the $3.8M sale of a 100% occupied, 15k SF shopping center at the NE corner of 24th and Pulaski in Little Village. The seller was a local development group and the buyer was an individual from NYC in a 1031 exchange.
Baum Realty Group’s investment sales team, Greg Dietz and Danny Spitz, along with principal Adam Secher, repped the buyer, Repak Real Estate Acquisition LLC, in the off-market sale of a mixed-use property in Bucktown/Wicker Park. The 8,368 SF building is located at 1747-49 N Damen Ave and sold for $3.5M.
SVN|Chicago Commercial SVPs Jeff Baasch and Wayne Caplan brokered the $2.2M sale of a 12k SF development parcel at 2941 N Clark St. Bluepoint Development Corp, a venture led by developer John Livaditis, purchased the property, vacant since Buca Di Beppo closed in 2006. Bluepoint plans a mixed-use property anchored by a first floor restaurant, plus 20 apartments above.
Interra Realty managing partner Brad Feldman completed the $3.5M sale of a 54-unit multifamily property at 4303 N Keystone in Irving Park. Interra’s other recent multifamily deals: the $3.2M sale of a 25-unit property at 7722 N Ashland in Rogers Park (Ed Logvinsky repped the buyer and David Goss and Jon Morgan repped the seller); the $1.7M sale of a 15-unit property at 5713-15 N Kenmore in Edgewater (Brad repped both sides); the sale of a bank-owned failed condo-conversion at 7109-19 S Calumet in Park Manor (Brad repped both sides); the $2.2M sale of a 24-unit building at 7526 N Seeley in Rogers Park (Ted Stratman repped the buyer); the $1.8M sale of a 10-unit building at 1414 N Noble in Wicker Park (Justin Ross and Ray Tiernan repped both sides); the $1.5M sale of a 26-unit property in Hermosa (Justin and Ray repped both sides); the $1M sale of a 10-unit property at 385-89 N Wood Dale Ave in Wood Dale (James Clough and Joe Smazal repped both sides); and the sale of a 19-unit building at 1151 S Oak Park Ave in Oak Park (James and Joe repped both sides).
Entre Commercial Realty’s Mark Deady and Tom Boucher repped the seller, 9201 King LLC, in the sale of 9201 King St, a 48k SF facility in Franklin Park, to Anilroshi, repped by Tapia Real Estate’s Veronica Tapia. Currently located in Maywood, Anilroshi will expand to the Franklin Park facility.
SVN|Chicago Commercial’s Cody Doran and Reid Bennett just completed the $1.2M sale of a 24-unit multifamily building at 6701-05 Stanley Ave in Berwyn.
Collaborative workspace operator WeWork leased 25k SF in The Alter Group's One11 W Illinois St (above), a 227k SF Class-A office building in River North. The lease brings the building to 97% occupied. One11 was repped by NGKF senior managing director Matthew Ward. Its tenants also include Salesforce.com and the Erikson Institute.
Liberty Property Trust signed a 456k SF lease with Advertising Resources at 456 International Pkwy in Minooka. The building is located in Liberty Business Center Minooka, a 212-acre park where Liberty owns additional sites earmarked for future development. Liberty, along with Cushman & Wakefield’s Britt Casey, Christopher Lydon, and Al Caruana, handled the leasing of the building.
Con-Tech Lighting signed a long-term lease for 189k SF at 725 Landwehr Rd in Northbrook, owned by Prologis. The facility, an expansion for the company, will serve as its new North American HQ. CBRE’s Keith Puritz, Ryan Bain, Brett Kroner, and Zach Graham repped Con-Tech; Colliers’ David Bercu and Brendan Green repped Prologis.
Modal Group’s Andy Corken repped Casio America in a 150k SF distribution center lease at 1203 Bilter Rd in Aurora, owned by Industrial Income Trust (repped by HSA Commercial’s Tim Thompson). Casio chose to relocate due to reduced transportation costs and closer proximity to its labor base.
Marcus & Millichap Capital Corp’s Dean Giannakopoulos arranged a $4.3M bridge loan for a downtown Barrington Class-A office building (above) with a long-term credit tenant lease in place. The non-recourse, three-year, IO loan, the takeout of an existing CMBS loan, features 73% LTV and a fixed-interest rate. It will fund future TI/LC facility needs.
CONSTRUCTION & DEVELOPMENT
Shops and Lofts at 47, a mixed-use complex with 55k SF of ground-floor retail, anchored by a Walmart Neighborhood Market and 72 rental apartments above, just opened (pictured) in Bronzeville at the corner of 47th and Cottage Grove. The first commercial/residential complex to be developed in the area in more than 50 years, the project was led by Mahogany Ventures, a JV of the Skilken Co and TROY Development. Mahogany also partnered with The Community Builders to develop and manage the 72 apartments and another 24 in three low-rise, adjacent buildings.
Golub & Co and Wood Partners broke ground on Lake + Forest, a 270-unit community on the former site of a city-owned parking structure on Forest Avenue in Oak Park. The Gensler-designed project will include a new public garage for the Village of Oak Park and it will also feature about 25k SF of double-high retail/office space. Construction is expected to be complete by spring 2016.
Joe Taylor joined The Opus Group as director of real estate development at Opus Development Co’s Chicago office, overseeing new residential and student housing developments around the Midwest. He was previously with Village Green, overseeing all activity for new ground-up developments. A US Air Force vet, Joe graduated from NYU with a BS in real estate and earned an MS in real estate development from Columbia University.
MB Real Estate tapped Joe Magliochetti and Kerry Kammerer as VP of acquisitions and assistant GM, respectively, on the firm’s healthcare team. A 15-year industry vet, Joe was most recently principal and managing director for Helios Cos, received his BA from UMich, and earned his MBA from Kellogg at Northwestern. Kerry was previously an assistant property manager with Hines and graduated from Indiana’s Kelley School of Business.
The Laramar Group tapped David Egeland as VP of marketing and Michael Burnaz as VP of construction. David was previously with GGP and holds a BS in communications from U of I at Urbana-Champaign and an MBA from Kellogg at Northwestern. Michael was previously with Roy Jorgensen Associates and the former US Marine and Army Reservist has a BS in business from the University of Phoenix.
The Gibbons and Steger buildings, now CA Ventures’ Infinite Apartments at 28 E Jackson Blvd, will receive the 2014 Real Estate and Building Industries Council Award from Landmarks Illinois. CA Ventures transformed both former office buildings, built in 1910 and 1912, into a total of 135 student living units, in part using federal historic rehabilitation tax credits.