This Week's Chicago Deal Sheet
Macquarie Real Estate sold its Interchange 55 Logistics Park, a 1.3M SF development in southwest suburban Romeoville, to Prologis for $98M. It was the San Francisco-based investor’s largest acquisition since the coronavirus pandemic began.
“Although there have been significant challenges presented by the global pandemic, the capital markets have quickly concluded that well-located modern industrial product will be a good long-term investment,” Colliers International | Chicago’s Jeff Devine said. “As one of the best operators in the industrial sector, Prologis is confident that they will be able to lease the remaining space in the near future.”
Devine and Colliers’ Steve Disse represented Macquarie in the negotiations.
The two-building spec development at the junction of I-55 and I-355 at the eastern end of the I-55 submarket was completed in late 2019. It was 30% occupied at closing. Building A is 657K SF and has 257K SF still available. Building B is 684K SF and was sold in shell condition. Both feature 36-foot ceiling heights and cross-dock configuration.
Local developers are pushing ahead with a number of significant projects nearby. Ten buildings totaling 2.8M SF are under construction, with about 2M SF, or 74%, being built on spec, along with two other build-to-suits, according to Colliers’ Q2 report.
Dermody Properties promoted Tyler Scheppmann to senior vice president of investor relations. Prior to joining Dermody in 2019, Scheppmann was vice president of GLP, where he handled fund management across the U.S. industrial platform.
Design-build firm Mosaic Construction hired Neil Power as production manager and Jared Maurer as project manager. Power will focus on office build-outs, nonprofit projects, window and roof replacements, residential kitchens, bathrooms, exteriors and whole-home remodels. Maurer will work on Mosaic’s Cannabis Facility Construction brand and work on cannabis-specific retail dispensaries, processing centers and cultivation facilities.
Proper Title hired two industry veterans to serve clients in its new Naperville office: Richard Bales as a senior underwriting consultant and counsel and Kim Behrens as an escrow officer. Both new hires came to Proper Title after long tenures at Chicago Title Insurance Co.
Kluckardo Properties bought 2940 North Racine Ave., according to Cook County property records. The price for the seven-unit apartment building in the Lakeview neighborhood was $1.3M, according to Bill Cassin and Jack Cassin of Apartment Investment Advisers, who were the transaction’s brokers. AIA also recently closed the sale of 1456 West Addison St., a 10-unit apartment building that sold for $2M. Bill Cassin was that transaction’s sole broker.
CONSTRUCTION AND DEVELOPMENT
Draper and Kramer started construction on a seven-story, 120-unit mixed-use development at 949 West Dakin St. in the Lakeview neighborhood. Located across the street from the Sheridan Red Line station, the transit-oriented development designed by Sullivan, Goulette & Wilson Architects will include 13K SF of retail space. Draper and Kramer financed the project through the Chicago regional office of the U.S. Department of Housing and Urban Development. Gershman Mortgage acted as the HUD lender in the transaction. Leopardo Construction, the general contractor, expects to deliver the apartments in August 2021.
J.C. Anderson completed 53K SF in phased office renovations for ReaderLink at The Crossings in Oak Brook. Located at 1420 Kensington Road, work completed by J.C. Anderson for the distributor of hardcover, trade and paperback books included the addition of private offices, open office cubicles, coffee stations, private restrooms, conference rooms and a town hall meeting space. J.C. Anderson’s John Angelovich, Kayla McKinney and Bill Dennison led the contractor’s team, with architectural services provided by Ware Macomb and construction management overseen by JLL.
Skender completed interior construction on the 55K SF Chicago headquarters of the American Library Association. Located on a single floor at 225 North Michigan Ave., the office features private and open-concept workspaces, meeting and focus spaces, a library and multiple podcasting and videoconferencing rooms. Skender collaborated with architect Nelson Worldwide, engineer Environmental Systems Design and owner’s representative Cushman & Wakefield.
THIS AND THAT
NorthPoint Development is set to launch Compass Global Logistics Hub in Joliet, a $1.7B investment that company officials say will deliver much-needed logistics space to the region, as demand for distribution networks and e-commerce surges. CBRE has been retained to list the 1,262-acre park in south Joliet, approximately 55 miles southwest of Chicago. It will include warehouse, distribution and light manufacturing space. NorthPoint recently closed on all of the property it needs for the project.