This Week's Chicago Deal Sheet
Murphy Real Estate Services will restart construction of 8000 North Lincoln Ave., a residential, retail and parking facility at Lincoln Avenue and Oakton Street in downtown north suburban Skokie, according to a report in Crain’s Chicago Business. The company took control of the stalled project last spring and just secured a $38M construction loan from Wintrust Bank.
The $68M mixed-use development, designed by architect Lucien Lagrange, will become a 12-story tower with 153 luxury rental residences. The former developers partnered with the village of Skokie on the project but only completed the foundation and parking garage.
“When considering the quality of design, finish detail and exceptional location, this is clearly a very unique development opportunity for both our firm and the Village of Skokie,” Murphy Real Estate Services CEO John Murphy said in a press release. “The advance of this project was only slowed by the need to secure efficient financing. With the support of Wintrust, our lender, and the Village of Skokie, we were able to assemble the right team and financing necessary to move this great project forward.”
Murphy added that luxury suburban rentals such as this seem to be doing well in the coronavirus era, as renters flee dense urban cores in favor of outlying towns such as Skokie. He estimates a completion date of late 2021 or early 2022.
MB Real Estate promoted Suzanne Hendrick and Ashley Harrison. Effective immediately, Hendrick is now executive vice president and director of asset management, and Harrison is vice president of leasing services.
Lee & Associates of Illinois added two brokers to its team. Tony Russo, senior vice president, and Ryan Freed, vice president, will launch the firm’s office practice. The pair worked together for more than eight years. Each began his career with a focus on the I-88/East-West Corridor, but they continue to expand their platform to the northwest suburbs.
Howard Brown Health, a nonprofit healthcare organization serving the LGBTQ community, acquired an 18K SF development site in Chicago’s Northalsted neighborhood. Construction will soon begin on a 71K SF medical office building at 3501 North Halsted St. It will accommodate primary care and dental clinics, a pharmacy, behavioral health, administrative offices and ground-floor retail. The organization was represented by VCRE, and the seller was represented by Elizabeth Pyle of Compass. The purchase price was not disclosed.
A local real estate investment group sold 5001 South Drexel Blvd., a 33-unit renovated apartment building in Chicago’s Kenwood neighborhood, to Los Angeles-based family office ShainRealty for $4.55M in an off-market transaction. Interra Realty’s Ted Stratman and Jeremy Morton represented both seller and buyer. The seller purchased the building, most recently renovated in 2019, as a distressed property.
A limited liability company sold FedEx Ship Center, a 36K SF net-leased property at 1200 Devon Ave. in northwest suburban Elk Grove Village, for a little more than $4M. Dominic Sulo of Marcus & Millichap’s Chicago Oak Brook office had the exclusive listing to market the property.
Structured Development launched sales for the first phase of Harrison Row Townhomes, which will eventually include up to 50 affordable homes at 2849-59 West Congress Parkway, an approximately 2-acre site just south of the Eisenhower Expressway in Chicago’s East Garfield Park neighborhood.
The Chicago-based developer will complete the first seven residences — all three-bedroom — this month. It plans to develop the remainder in 2021 and 2022. The 50 townhomes will fulfill Structured Development’s obligation under the city of Chicago’s Affordable Requirements Ordinance to create affordable housing after securing approval to develop the Shops at Big Deahl, a mixed-use complex in affluent Lincoln Park, according to company officials.
Somerset Development secured the first office lease for Bell Works Chicagoland, its redevelopment of the 1.65M SF former AT&T headquarters in northwest suburban Hoffman Estates. CPA Advisors Group, an accounting firm, will occupy one of the property’s “ready-to-wear” spaces, prebuilt designer office suites that offer immediate occupancy. Somerset also signed a deal with Fairgrounds Craft Coffee and Tea, which will operate a kiosk at Bell Works Chicagoland beginning in December and open a permanent location in early 2022. Colliers International and The Garibaldi Group are marketing the project’s office space for lease.
Investcorp International Realty and Brennan Investment Group secured $55.8M in acquisition financing from CIBC for the Regent O’Hare Industrial Portfolio in Elk Grove Village. Cushman & Wakefield’s Jeff Altenau, Gideon Gil and Zach Yarnoff represented Investcorp and Brennan Investment Group. The portfolio’s eight urban-infill industrial buildings total 955K SF.
CONSTRUCTION AND DEVELOPMENT
McShane Construction Co. completed a new build-to-suit facility in northwest suburban Itasca for Option Care Health on behalf of developers Quadrangle Development Co. and Janko Group. The 50K SF, single-story building houses office space and a licensed compounding pharmacy, ambulatory infusion suites and support spaces for Option Care Health, an independent provider of home and alternate site infusion services. The architect of record is Wright Heerema Architects. The architect for the interior build-out is Whitney Architects. JLL represented the tenant.
General contractor Summit Design + Build completed the build-out of DeVry University’s Chicago campus at 1900 West Lawrence Ave., a former 1920’s-era Sears department store in the Ravenswood neighborhood. The store closed permanently in 2016. DeVry University occupies 17K SF of the first floor. In addition to a new façade, the build-out features common areas for students, as well as 11 classrooms. ArchIteriors served as the project architect and Newmark Knight Frank as the owner’s representative.
Belgravia Group officials say nine residences are available for immediate move-in at Renelle on the River, its 18-story, 50-unit luxury condominium building at 403 North Wabash Ave., immediately west of the iconic Wrigley Building. The nine homes are priced from $1.4M to $2.5M. The building was designed by bKL Architects, and McHugh Construction served as the general contractor.
THIS AND THAT
Mayor Lori Lightfoot revealed which community-based organizations will help coordinate ongoing public and private investments along targeted neighborhood commercial corridors for her INVEST South/West initiative. The organizations all responded to a request for proposals issued in the summer and will work alongside city agencies and local partners. The organizations and their corresponding corridors are:
- Austin African American Business Network, Chicago Avenue (Austin to Cicero).
- Back of the Yards Neighborhood Council, 47th Street and Ashland Avenue.
- Chatham Business Association, 79th Street (Ashland Avenue to Lowe/Stony Island to Exchange).
- Claretian Associates/South Chicago Parents & Friends, Commercial Avenue (87th to 92nd).
- Greater Roseland Chamber of Commerce/Calumet Area Industrial Commission/Chicago Neighborhoods Initiative, 111th Street (Ellis to King).
- Greater Roseland Chamber of Commerce, Calumet Area Industrial Commission and Chicago Neighborhoods Initiative, Michigan Avenue (111th to 119th).
- New Covenant Community Development Corp., Ogden Avenue (Kedzie to Pulaski).
- Puerto Rican Cultural Center, North Avenue (Lowell to Kedzie/Central Park to Cicero).
- Quad Communities Development Corp., Cottage Grove Avenue (42nd to 47th).
- West Humboldt Park Family & Community Development Council, Chicago Avenue (Kedzie to Pulaski).
San Francisco-based Spear Street Capital tapped property technology company Equiem to roll out its tenant engagement platform at 225 West Wacker Drive. Spear Street purchased the 31-story, 650K SF office tower in downtown Chicago in March. It has already deployed Equiem at its properties in Philadelphia, Houston, London and Dublin. This agreement marks Equiem’s entry into the Chicago market.
Officials from Inland Venture Partners, the private equity real estate arm of Oak Brook, Illinois-based Inland Real Estate Investment Corp., said its MH Ventures 2019- 1, a Delaware limited liability company, is fully subscribed and no longer accepting new investors. The company has already acquired a portfolio of 13 manufactured home and recreation vehicle communities in Florida. Inland Venture Partners plans to invest more than $500M in manufactured housing communities over the next few years.