This Week's Chicago Deal Sheet
Oak Brook, Illinois-based Inland Private Capital Corp. and Devon Self Storage formed a partnership to redevelop and operate self-storage properties in qualified opportunity zones across the nation. IPC has already built up its self-storage portfolio to more than $740M in assets under management, with 59,000 units in 124 properties across 15 states. Devon manages a significant portion of this portfolio.
Devon has owned, developed and managed more than 180 facilities in 24 states and three European countries. It has been involved in more than $2.5B in self-storage transactions, partnering with several institutional investment firms. Devon typically acquires pre-existing properties and converts them to self-storage facilities.
IPC officials say the self-storage sector has proven its resiliency, even as many other sectors cratered due to government-mandated shutdown orders.
“We believe the self-storage sector’s adaptability and lower correlated economic demand drivers position it well to achieve risk-adjusted returns,” IPC President Keith Lampi said.
Zeller promoted Chief Operating Officer Bob Six to CEO of Zeller and vice president of Zeller Development Corp. The company also promoted Sam Zeller to chief operating officer. Former CEO Paul Zeller will remain chairman and retain control of the firm’s capital allocation. Six joined Zeller in 2001 and has served as chief operating officer since 2007. He became president of the BOMA North Central Region in 2020 and is a past president of BOMA/Chicago.
An undisclosed buyer purchased Surrey Condominiums at 106-224 Surrey Drive in Glen Ellyn, 24 miles west of downtown Chicago. The $5.4M acquisition included 48 of the property’s 60 units. 33 Realty’s Sean Connelly and Mark Kurgan marketed the asset after being hired by a court-appointed receiver in an SEC violation case to sell the condominiums. The firm went to the market prior to the coronavirus pandemic and received 11 offers, according to Connelly.
TradeLane Properties bought from the owners of Rickard Binding an 80K SF industrial building at 325 North Ashland Ave. on Chicago’s Near West Side. Tom Condon and Sean Austin of Lee & Associates’ Illinois office were the sole brokers in the transaction. The concrete loft building in the West Fulton Market/Kinzie Industrial Corridor area is undergoing renovations, including the installation of a new roof and 45-car parking lot. TradeLane Properties has retained the Lee team to market the building for lease.
Venture One Real Estate through its acquisition fund, VK Industrial V LP, a partnership between Venture One and Kovitz Investment Group, closed on the acquisition of a 16K SF industrial building at 1343 Lakeside Drive in southwest suburban Romeoville. The precast building was constructed in 1999. It is 100% leased to one tenant, Ultimate Rental Services, which Venture One secured prior to closing on the building. Mike Antonelli of Brown Commercial Group represented the seller, and CBRE's Traci Payette and Rowan McDonnell represented the new tenant.
Panattoni selected Cushman & Wakefield to market its new South Lake Industrial Center in north suburban Vernon Hills. Cushman & Wakefield’s Brett Kroner, Keith Puritz, Eric Fischer, Steve Stone and Marc Samuels will lead the effort and offer the properties for sale or lease. Panattoni has begun construction and plans to deliver the 65-acre project by Q2 2021. The four buildings, located within Vernon Hills’ Corporate Woods Business Park, will total 904K SF of distribution space.
CONSTRUCTION AND DEVELOPMENT
Sterling Bay and Magellan Development Group broke ground Thursday on 300 North Michigan Ave., a brand-new 47-story hotel and residential tower located between Millennium Park and the Chicago Riverwalk. The event kicked off with a groundbreaking ceremony attended by Deputy Mayor for Economic and Neighborhood Development Samir Mayekar, 42nd Ward Alderman Brendan Reilly, Sterling Bay CEO Andy Gloor and Magellan Development Group CEO David Carlins.