Contact Us

This Week's Chicago Deal Sheet

After a relatively strong Q4 2020, the suburban office market in Q1 fell back into the doldrums, according to a new market report by Savills. There was about 800K SF of leasing activity in the region, down roughly 50% from last year’s Q1, which predated the coronavirus pandemic. In addition, overall availability rose 120 basis points over the past quarter to 30.4%. Class-A properties fared even worse. Availability in that sector rose to 31.7%, an increase of 230 basis points over Q4.

At the same time, rents have not declined over the past year, and even increased slightly. Overall gross asking rents increased 0.2% since Q4 2020 and 1.1% since Q1 2020.   

Oak Brook

“Many building owners have yet to reprice face rents, instead seeking to offer value via concessions packages, rent abatement, and flexibility,” according to the report.

Sublease listings are still surging, Savills added, increasing 54% from pre-pandemic levels to 4.3M SF.

Among the largest new sublease opportunities to hit the market in Q1 were from Amita Health, which is seeking to sublease its 223K SF headquarters in Lisle, and from Follett Corp., which listed for sublease its 150K SF at Westbrook Corporate Center in Westchester.

Although demand was muted in Q1, there were a few significant deals. Kellogg Co. took 42K SF at 263 Shuman Blvd. in Naperville, and Johnson Controls signed a renewal for more than 40K SF at 2010 Swift Drive in Oak Brook. Eight of the 10 largest transactions in Q1 were in the O’Hare and East-West Corridor submarkets, Savills stated.


Equity, a national commercial real estate firm, opened a Chicago office in April, the firm’s ninth location and second new market of 2021. Bob Palffy, who has more than 35 years of commercial real estate experience in Chicago, will lead the office.


Renovo Financial, a real estate investment firm, promoted Brandon Moulton from senior vice president of lending to managing director of the Chicago-based lending team. Moulton has worked in financial services for more than 13 years and joined Renovo Financial six years ago.


Zeller CEO Bob Six was named a 2021 Building Owners and Managers Association fellow. Six is a former BOMA/Chicago president and board member. As a fellow, he will teach and mentor new members and young professionals, as well as author articles on industry trends.

Shoppes on Route 31


A San Diego-based private investor bought for $4M Shoppes on Route 31, a 100%-occupied, 11K SF multi-tenant retail property at 27 South Western Ave. in northwestern suburban Carpentersville. Hanley Investment Group Real Estate Advisors’ Brad Dessy, in conjunction with ParaSell, represented the seller, an Arizona-based private investor. Chuck Wasker of Colliers International represented the buyer. Built in 2007, the six-tenant property includes a Panda Express, ATI Physical Therapy and a Game Stop.


ShainRealty Capital, a Los Angeles-based real estate investment firm, bought a 44-unit apartment building at 4611 South Drexel Blvd. in the Kenwood neighborhood on Chicago’s south side for $4.9M. Jeff Baasch of SVN Chicago Commercial brokered the transaction. 


A private investor bought North Edge, a new, fully leased seven-unit apartment property at 6605 West North Ave. in west suburban Oak Park for $3.3M. Eric Bell of Marcus & Millichap’s Chicago Oak Brook office marketed the property on behalf of the seller, a private investor. Bell also represented the buyer.


Freightbull bought from Marvin Hill a 13K SF maintenance facility on 2 acres at 7455 Duvan Drive in suburban Tinley Park. Cawley Chicago’s Matt Garland represented Freightbull, and Hill was represented by Steve Harris of Re/Max Synergy. 


A private investor purchased Tiffany Square, a 34K SF retail property at 7202 West College Drive in suburban Palos Heights, for $3.7M. Mitchell Kiven of Marcus & Millichap’s Chicago Downtown office marketed the property on behalf of the seller, a private investor, and secured and represented the buyer.


Starbucks, Woodridge

A Midwest-based real estate investor bought a Starbucks-occupied property at 75th Street and Lemont Road in suburban Woodridge for about $2.2M. The more than 2K SF building is a relocation site within Woodgrove Festival Shopping Mall. Jimmy Goodman and John Feeney of The Boulder Group represented both sides in the transaction. The seller was a Midwest-based real estate firm.


JLL Income Property Trust secured a $650M credit facility with a syndicate of eight real estate lenders. The facility contains a $415M revolving line of credit and a $235M term loan with an accordion feature that can increase the facility up to a total of $800M. It has a three-year term, bearing an interest based on Libor plus a spread ranging from 1.35% to 2.1%. The eight lenders in the credit facility syndicate include JPMorgan Chase Bank, Bank of America, PNC Capital Markets and Wells Fargo Securities.

Prairie Shores


Golub & Co. will break ground on June 9 on the more than 17K SF resident clubhouse at the Prairie Shores apartment complex in Chicago’s Bronzeville neighborhood. The two-story structure will provide an array of entertainment, recreation, fitness and workspace options for residents.