Heitman Launches Self-Storage Strategy, Acquires 79-Asset Portfolio: The Chicago Deal Sheet

Chicago-based Heitman launched a core-plus strategy on Tuesday, centered on self-storage assets across the U.S.

The company has received $275M in commitments to date as well as an additional $200M in co-investment. In connection with the launch, Heitman acquired a seed portfolio of 79 self-storage assets in 16 states, totaling about 4.9M SF. 

The strategy will seek to generate cash flow and long-term growth through a diversified portfolio of stabilized, lease‑up and development assets, the company stated in a release.

“We believe today represents an attractive entry point," said Jen Boss, head of portfolio management at Heitman and portfolio manager for the strategy, in a statement. "Assets can be acquired well below replacement cost, new supply is declining, and market rents remain well below levels required to incentivize new construction."

PEOPLE

McHugh Construction hired Alec Miller as its general counsel. Miller, who has over 20 years of experience in the field, will lead the firm’s legal, risk management and compliance functions. In the role, he will oversee financings and transactions, regulatory compliance, labor negotiations, and litigation and dispute resolution.

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Citadel Property Advisors hired Olivia Wirth to join the firm as senior vice president, where she will focus on leasing and sales for third-party office and healthcare properties. Wirth brings more than a decade of experience across the office and medical office sectors, with a background that includes work on Class-A office and medical office towers throughout Chicago.

SALES

Greenstone Partners closed two suburban investment sales in Oak Park and Gurnee. An undisclosed buyer scooped up 316-324 Lake St. in Oak Park, a 16K SF property with 10 apartment units and four ground-floor retail spaces. Another buyer acquired 34498 Old Walnut Circle, a three-tenant retail center that was 75% occupied at the time of sale. Greenstone Partners’ Chris Malay represented buyers in both transactions, and the company's Brewster Hague and Tom Galvin also advised on the Oak Park acquisition.

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An undisclosed buyer paid about $1.9M for the office property at 100 E. Pierce Road in Itasca. The 16K SF building was sold with two tenants in place. SVN Chicago Commercial's Jennifer Hopkins, Olivia Czyzynski and Lina Adamis represented the seller in the deal. 

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A confidential buyer paid $1M for the six-unit multifamily building at 2337 John Rolfe Drive in Schaumburg. Another undisclosed buyer paid $1.9M for the 12-unit building at 8755 W. Foster Ave. Interra Realty's Patrick Kennelly, Paul Waterloo and Nathan Zito represented the buyers and sellers of both buildings.

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An undisclosed buyer purchased the 11 Salt Creek Medical Building, a 40K SF medical outpatient facility at 11 Salt Creek Lane in Hinsdale. The building was recently renovated and is 100% leased to UChicago Medicine AdventHealth. CBRE's Chris Bodnar, Brannan Knott, Zack Holderman, Anthony Sardo, Cole Reethof, Jesse Greshin and Michael Kaider advised seller MedProperties Group.  

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Realterm acquired 9655 Industrial Drive, an industrial outdoor storage maintenance facility in Bridgeview. The 29K SF facility is on a 3.9-acre site and features 10 oversized drive-in doors and a 6K SF office. The building is leased to Carrier Corp., a subsidiary of the global HVAC and refrigeration solution provider.

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An East Coast buyer completing a 1031 exchange paid $3.4M for a 10K SF medical office property at 7505 W. Grand Ave. in Gurnee. The property is leased to Aurora Health Care. Marcus and Millichap's Frank Roti and Brett Rogers marketed the property on behalf of the seller, and the firm's Brian Munn procured the buyer.  

LEASES

Illinois Tool Works moved into a 60K SF industrial space at Blue Heron Business Park at 2305-2325 Kenyon Road in Bartlett. Brown Commercial Group's Dan Brown and Mike Antonelli represented the developer and owner, Cratos Industrial, in the deal. 

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NAI Hiffman brokered 11K SF of new leasing activity at the medical outpatient building at 1025 Red Oak Lane in Lindenhurst. NAI Hiffman's Jason Wurtz and Sarah Walker represented Davis, the property’s owner and landlord, in securing new commitments from Action Behavior Centers Therapy and Smile Partners.

CONSTRUCTION AND DEVELOPMENT

The Missner Group and Base 3 began construction on Oxxford Lofts, a West Loop redevelopment that will convert a former industrial building into a 112-unit multifamily community. The roughly $42M project will reposition the property, with a full gut renovation, new building systems, upgraded sustainability features and contemporary unit layouts.

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Joseph Nicholas Construction, in partnership with Murgado Automotive Group, broke ground on a new Porsche dealership showroom and service center at 24 E. Dundee Road in Barrington. The two-story, 134K SF facility will be the largest Porsche dealership in Illinois and one of the largest in the country. The new facility is slated to open in late spring 2027.