This Week's Chicago Deal Sheet
Sterling Bay secured $174.5M in financing for the construction of 300 North Michigan Ave., a planned 47-story mixed-use tower it will develop in partnership with Magellan Development Group. Located between the city’s Riverwalk and Millennium Park, the tower will feature 289 residential units, 25K SF of retail space and a 280-key hotel that citizenM will purchase upon completion.
“Our ability to originate multiple loans from industry-leading lenders — as well as from a diverse group of individual investors — at a time when capital is at a premium is a testament to our team’s excellent track record for success in commercial property development,” Sterling Bay CEO Andy Gloor said.
Alongside Sterling Bay’s partner, Magellan, Chicago-based general contractor Linn-Mathes will oversee the construction process slated to begin in August, and local design firm bKL Architecture will serve as lead architect.
Sterling Bay’s capital structure includes senior-secured financing from Little Rock, Arkansas-based Bank OZK, as well as mezzanine financing from Pearlmark Real Estate and Monroe Capital, and crowdsourced equity raised through CrowdStreet.
“Securing a construction loan of any dollar amount in today’s business climate is a feat, but to secure financing of this magnitude — especially for a property that includes significant involvement of a hotel operator — is almost unheard of,” Pearlmark CEO Stephen Quazzo said.
NAI Hiffman promoted tenant rep specialist Aubrey Van Reken-Englund to executive vice president and made her a shareholder. Van Reken-Englund joined NAI Hiffman in 2008 as an associate broker, and was a top performer for years, company officials said. She is NAI Hiffman’s first female shareholder and works with numerous commercial and nonprofit clients.
Transwestern Development Co. expanded its national logistics group by adding Ted Staszak. As vice president of development, Staszak will identify and pursue logistics development projects throughout the Midwest. He spent the last 22 years with the capital markets divisions at CBRE and NAI Hiffman, where he completed transactions totaling more than $8B.
Venture One Real Estate, through a partnership with Kovitz Investment Group, acquired 601-605 Kingsland Drive, a 488K SF industrial building in west suburban Batavia. The multi-tenant precast building is 100% leased to two tenants. The building was constructed in 1996 and expanded in 2002 and sits on almost 27 acres. Colliers International’s Jeff Devine and Steve Disse represented the seller.
Clear Height Properties acquired from Aspen Industries a 30K SF multi-tenant industrial building at 464-480 Country Club Drive in Bensenville. The purchase price was not disclosed. At the time of acquisition, the Country Club Drive building was vacant. It was built in 1973 and primarily used for distribution and light manufacturing. Clear Height will renovate both the exterior and interior of the property, including new landscaping and facade work. The purchase is part of a strategy to buy and add value to buildings that aren’t on the radar of many investors because of their size or age, company officials said.
Becovic acquired 2333 West Lunt Ave., a 17-unit multifamily property in the West Ridge neighborhood on Chicago’s North Side. Company officials said this apartment building, located near Indian Boundary Park, Warren Park and the Rogers Park Metra Station, offers them stable cash flow with the ability to add value with light rehab. Chicago Real Estate Resources’ Nate Gautsche represented Becovic in the purchase.
Less than a month after beginning construction, 1400 Monroe had two of the most expensive homes under contract in June in Chicago’s West Loop, according to the MLS. A four-bedroom, four-and-a-half bathroom with den is under contract for $2.6M. In addition, a five-bedroom unit is under contract for $3.1M. Developed by JK Equities, construction began on June 11, and the company expects to deliver the 42-unit, seven-story condominium tower by summer 2021.
Conor Commercial Real Estate signed a full-building lease with an e-commerce retailer for its 316K SF Last Mile Logistics Center I-55 on the corner of 51st Street and St. Louis Avenue in Chicago. The tenant will use the development as a last-mile e-commerce distribution facility, serving residents in Chicago and the surrounding areas. This project will create 600 full-time jobs in the South Side’s 14th Ward, Conor officials said. Cushman & Wakefield’s Larry Goldwasser, Colin Green, Matthew Cowie and Jason West represented Conor.
Chicago-based HSA Commercial Real Estate and New York-based Clarion Partners secured a 381K SF, long-term lease with Kenco Logistics Services at their now fully leased Heartland Corporate Center, a 757K SF warehouse development at 21530 SW Frontage Road in Shorewood, near the I-55 and I-80 interchange. The Kenco lease is the Shorewood property’s second. In November, the owners announced a 375K SF lease with Des Plaines, Illinois-based DSC Logistics. HSA’s Tim Thompson spearheaded the development. David Bercu and Matthew Stauber of Colliers International represented the owners in the Kenco lease, while Cushman & Wakefield’s Sean Henrick represented the tenant.
CONSTRUCTION AND DEVELOPMENT
Chicago general contractor Summit Design + Build, along with City Pads, Catapult Real Estate Solutions and Cagan Management Group, completed Edge on Broadway at 6149 North Broadway St. in Chicago’s Edgewater neighborhood. Summit demolished an existing single-story building to make way for the new six-story, 79K SF apartment building. It has 105 apartments, ranging from studios to two-bedrooms. The building also has nearly 4K SF of first-floor retail and 45 parking spaces. Built Form served as the project architect and Clausen Management Services served as the owner’s representative.
Pathway to Living, the seniors housing arm of Chicago-based investor and operator Waterton, opened Aspired Living of La Grange, a 117-unit, 118K SF senior living community at 35 Shawmut Ave. in La Grange. It is Pathway to Living’s 23rd community in the Chicagoland area. The five-story complex includes 85 assisted living and 32 memory support units. Senior housing interior design firm Thoma Holec provided interior design services; design-architect Behles + Behles provided architectural services. Opus Group was the design-builder, architect and structural engineer of record.