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The Deal Sheet (and Walmart, Walmart, Walmart!)

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The Deal Sheet (and Walmart, Walmart, Walmart!)
Like Marcia Brady, the country's largest retailer stole the showyesterday by announcing it's purchased the site for a new 155k SFstore within Chatham Market at 83rd and S Holland Rd. The $10Mdeal closed after nearly six years of negotiations with the public and city council.
 
Walmart site plan
Walmart will start construction soon and finish the SuperCenter late2011 or early '12. In the meantime, this summer, a 10k SF Walmart Express in an existing store front in the area is slated to open. JLL'sTom KirschbraunMeredith O'Connor, and Edward Lewis repped the seller, Monroe Investment Partners, which is developing the 400k SF South Side retail center. Tom tells us that Monroe's Don Allen deserves a Nobel Peace Prize for his negotiation prowess. That was apparent last night as Walmart made news again, drawing hundreds to a meeting of the South East Lakeview Neighbors to whom it presented plans for a 32k SF store at the Broadway at Surf. Alderman Tom Tunney has proposed a downzoning ordinance to limit stores at that location to 25k SF. The store would take the place of a former PetSmart and the CostPlus World Market that currently occupies the first floor. Members of the organization came out in opposition and a few in support during the three-hour meeting. They will vote on supporting the development on May 9.
 
Bisnow Stooge JCHI
 
 

Sales News

JLL’s capital markets team has finalized the sale of the six-story,95k SF retail property at 115 E Oak in Chicago to a Tel Aviv-based investor. The property, which houses Barneys New York andCitibank, fetched a record price of more than $1,200 per SF. JLL'sGuy PonticelloBruce Miller, and Dave Hendrickson led the transaction. Anglo Irish Bank, which was seized by the Irish government in 2009, provided the financing for the build-to-suit asset construction of the property for Barneys New York. Anglo Irish foreclosed on its $93M loan made to Chicago developers. The sale was well over $100M.

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The ownership of 311 S Wacker, a JV comprised of Fremont Realty CapitalMark Karasick, and Shorenstein Properties listed the building for sale last week. CBRE's Mike Vesper and Tom McClayton of the Chicago office and Darcy Stacom and Bill Shanahan of the New York Capital Markets Group are the advisors on the building. The 1.3M SF tower is the third tallest office building in Chicago. It's more than 91% leased.

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Newmark Knight Frank Epic has represented the seller in the disposition of a 46k SF building at 18600 Northstar Court in Tinley Park. Steiner Electric purchased the property as part of its plan to expand beyond its eight Chicago and Northwest Indiana locations. Newmark's Jeff Locascio represented the seller, 8300 W 185th Street LLC of Orland Park.

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Foresite Realty Partners was recently awarded the exclusive disposition assignment of 4801 Southwick Dr, a 73k SF office building in Matteson. The lender-owned property is 46% occupied, with several near-term lease expirations occurring before year-end 2011. Asking price is $2.5M

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Hotel Source's Seth Glickman and Steve Marx sold the 90-roomBest Western Grand Seasons in Waupaca, Wisc. The hotel was purchased by Batra Hospitality Group and was previously owned by Grand Seasons. It sold at a 4.1% cap rate and was 55% occupied at the time of sale.

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Euro, USA has purchased 4430 South Tripp from Protein Solutions for an undisclosed amount. CB Richard Ellis’ Steve Livaditis represented both parties in the transaction. The 36k SFClass-A food processing building was rebuilt in 2004.

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Millennium Properties' Daniel Hyman and Susan Silver sold 950 Lee St in Des Plaines for $725k. The 34k SF building was bought by Imperial Realty's Al Klairmont. Northwest Boulevard Inc was the seller. Millennium repped both sides in the transaction. Daniel has been the receiver of the 75% leased building since 2009.

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Mid-America Real Estate's Tom FritzMark Goldberg, and Ben Wineman sold a .43 acre ground lease to PNC Bank at the corner of Ashland and Addison in Wrigleyville. Shiner Capital Partners is the seller. The purchase price was undisclosed. The bank building was completed earlier this year.

Awards

BOMA Chicago announced four of its buildings will proceed to North Central regional competition in “The Outstanding Building of the Year” contest. Earning regional honors were: 303 W Madison in the 250k to 499k SF category (managed by CBRE and owned by 303 Madison Chicago LLC); The United Building in the 500k to 1M SF building category (managed by JLL and owned by 77 West Wacker Drive LLC); The Metcalfe Federal Building in the Government Building category (owned and managed by the GSA); and the FBI Regional Office in the Earth Award Category (owned by FBI Partners Chicago and managed by USAA Real Estate). 

Leasing News

Newmark Knight Frank Epic has completed four leases, ranging from 7,500 SF to 58k SF, in the western suburbs:

  • In the largest one, Newmark's Justin Lerner and Joe Karminrepresented Jaco Environmental in leasing 58k at 133 Rohlwing Rd in Addison. Grubb & Ellis's Chris Lydon repped landlord ML Realty Partners.
  • Newmark's Joel Friedland and Steve Stone repped Craven Closeouts in a 14k SF office/warehouse lease at 1930 George St in Melrose Park.
  • Joel worked with Joe in repping the owner, Chicago Graphics Realty, in leasing 18k SF to Midwest Wines & Spirits at 706 Industrial Dr in Elmhurst. Grubb & Ellis' Brian Carroll repped the tenant. 
  • Top Freight Express leased 7,500 SF at 1145 E Green St in Franklin Park. Newmark's Ed Brandt and David Pernicerepped both the landlord, Astroblast, and the tenant in the transaction.

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Bank of America renewed its lease of 93k SF at Younan Properties' 1600 Corporate Center in Rolling Meadows. The bank's been a tenant of 1600 Corporate Center since its acquisition of Countrywide Home Loans in 2008. JLL's David OlsenMark Kolar, and Greg Raus repped the tenant. Transwestern's Joe Stevens,Fred Ishler, and Zach Fox repped Younan.

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Newmark Knight Frank Epic has completed two lease transactions totaling 77k SF in Buffalo Grove and Elk Grove Village. In the first, International Services renewed its lease for 63k SF of office/warehouse at 1275 Barclay Blvd in Buffalo Grove. Newmark'sJoel Friedland repped the landlord while Cushman & Wakefield'sAlex Smith represented the tenant. In the second, The Expediting Co has leased 14k SF at 2300 Estates Ave in Elk Grove Village. Newmark's John Joyce repped the tenant and ProLogis' Jim Neswold represented the owner.

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MB Real Estate’s David Kimball and Jay Beadle represented HDI-Gerling America Insurance Co. in an 18k SF lease at 161 North Clark St. Tishman Speyer's Jonathan Cordell repped building ownership.

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Laughlin Constable has leased 17k SF at 200 S Michigan fromBPG Properties. The advertising agency was repped by Grubb & Ellis' Ari Klein and David Mahoney. BPG's Ben Azulay andAndrew Moss repped the landlord.

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Gordon Food Service has signed a 17k SF lease at Sports Authority Plaza at 1015 E Golf Rd in Schaumburg. Gordon Food Service plans to open a GFS Marketplace food store in the space midyear. The owner Next Realty, was self-represented by Tracey Fitzgerald.

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Next Realty has brokered two leases totaling almost 4,000 SF of the ground floor retail space at the northwest corner of Randolph and Wells streets. The space was formerly leased by Washington Mutual. The first is to Roti, which serves Mediterranean foods and leased 2,500 SF. The second is to Freshii, an environmentally conscious restaurant chain, which took 1,300 SF. Both are scheduled to open this month. Next Realty's Tracey Fitzgeraldrepped the building owner and Sierra Realty Advisors' Brett Zimmerman represented the tenants.

Architecture News

The Dobbins Group will serve as architect for RSA Medical’s new interior office build-out at CityGate Centre in Naperville. The 50k SFoffice build-out will include an oval reception area with custom millwork and finishes and more than 400 call center stations.

Executive Moves

Edward McKim has joined Transwestern as a VP on the firm's agency leasing team. Edward joins from MB Real Estate, where he served as VP in leasing services. Edward has been directly involved in more than 6M SF of commercial agency office assignments.