This Week's Chicago Deal Sheet
Hamburg, Germany-based Union Investment Real Estate bought 59-65 East Oak St., a one-block, 32K SF stretch of high-end retail in Chicago’s Gold Coast neighborhood, from Jenel Real Estate. The transaction closed on Oct. 26, and Crain’s Chicago Business reported that the price was $120M. It was the most paid for a local retail property since 2016, according to CBRE, which arranged the purchase.
“This sale represents a new benchmark for the Chicago market,” Keely Polczynski of CBRE, who represented both the seller and buyer, said in a statement. “Properties along Oak Street rarely become available, and 59-65 East Oak represents best-in-class tenancy, state-of-the-art construction, ample frontage, visibility and an irreplaceable location.”
CBRE represented Jenel Real Estate in the original acquisition of two separate parcels in 2016. Jenel then demolished the existing structures and built a building that now houses retailers Chanel, Van Cleef & Arpels, Moncler and Le Colonial.
“East Oak Street is the No. 1 destination in Chicago for luxury goods and fashion. High-profile tenants include brands such as Hermès, Prada, Giorgio Armani and Dior. Due to the demand for space, vacancies are historically low, and rents are stable,” Head of Investment Management Global at Union Investment Real Estate Henrike Waldburg said.
The Chicago studio of Perkins&Will, an architecture and design firm, appointed Lindsey Peckinpaugh as its new managing director and Bryan Schabel as the co-design director. Peckinpaugh, who led the studio’s sports, recreation and entertainment practice, succeeds Gina Berndt, who takes on a new global role as chief marketing officer for the firm.
Convene hired hospitality industry veteran Rachel Levy as its senior strategic account executive. Levy will lead enterprise account sales for the company’s portfolio of 23 properties. She has worked with Waldorf Astoria Hotels & Resorts, Hilton Hotels, Destination Hotels and InterContinental Hotels.
A family office bought 4747-57 North Ashland Ave., known as LA Lux, for about $18.5M. The mixed-use property in the Ravenswood neighborhood includes 39 luxury condominium-quality apartments, indoor parking and two ground-floor retail units with 3K SF of retail space. The property was sold by a private developer and is currently 100% leased. Peak Properties and its business affiliate Peak Realty Chicago provided consultation for the deal. Peak Properties served as the property management company through construction and lease-up, which was completed in 2020, and continues in that capacity for current ownership.
Chicago-based 29th Street Capital sold 1050-1110 North Wheeling Road, a three-building, 42-unit rental community in northwest suburban Mount Prospect, for $5.5M, or about $131K per unit. Interra Realty’s Craig Martin represented the seller, as well as the private buyer. The seller had extensively updated units, adding vinyl plank flooring, stone countertops and stainless steel appliances, and the buyer plans to make additional minor cosmetic enhancements. Built in 1965, the complex was 95% occupied at closing.
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 an 11K SF industrial building located at 711 Fullerton Ave. in northwest suburban Addison. The property, constructed in 1983, is fully leased to three tenants. Justin Lerner, Joe Karmin and Ross Lehrman of Transwestern represented the seller.
A California-based private investor sold Valli Produce, a 105K SF net-leased grocery store at 6545 North Alpine Road in Loves Park, a suburb of Rockford, Illinois, for $4.7M. Adrian Mendoza, Sean Sharko and Austin Weisenbeck of Marcus & Millichap’s Chicago Oak Brook office marketed the property on behalf of the seller. Financing was obtained on behalf of the buyer by Dean Giannakopoulos and Frank Montalto of Marcus & Millichap Capital Corp.
Green Electric Solutions bought a 40K SF building at 510 West 172nd St. in south suburban South Holland. The electronics recycler specializes in the processing, recycling and decommissioning of IT assets. Sam Deihs with Entre Commercial Realty represented GES and Chris Wilbur and Jeff Locascio, also with Entre Commercial Realty, represented the seller, Hadady Corp.
The Chicago office of Duke Realty Corp. secured a long-term lease agreement with a snack food manufacturer and began the development of a 299K SF building on 19 acres at 110 North 25th Ave. in west suburban Bellwood. The developer plans to complete the facility in early 2022. The distribution center will have 36 feet of clear height. Kris Bjorson at JLL represented the tenant and Jason Lev and John Suerth at CBRE, along with Duke Realty’s Josh Bauer, represented Duke Realty.
Trammell Crow signed a lease deal with Vanqua Bio, a biopharmaceutical company researching next-generation medicines for neurodegenerative diseases, for space in its Fulton Labs at 1375 West Fulton development. Vanqua Bio, which recently closed on $85M in Series B financing, will move in the first half of 2022 from Sterling Bay’s The Labs at 2430 North Halsted St. in Lincoln Park. It joins Fulton Lab’s existing life sciences tenant roster, which includes Xeris Pharmaceuticals, Portal Innovations and Talis Biomedical.
Fulton Labs at 1375 West Fulton is now part of Trammell Crow’s 725K SF Fulton Labs campus, made up of the fully operational 300K SF building at 1375 West Fulton and a 425K SF building nearby at 400 North Aberdeen St., which will begin welcoming tenants in Q1 2022. CBRE’s life sciences leasing team helped market Fulton Labs for lease. David Burden of Colliers International represented Vanqua Bio.
Taft, a law firm at 111 East Wacker Drive, signed a multi-year lease extension and expansion. It will add an adjoining floor, bringing its total presence in the 32-story East Loop building to 105K SF. Taft has occupied a portion of the 26th floor, and the 27th and 28th floors, for 15 years. Since 2014, it has increased its attorney headcount by 68%.
The firm also plans to repurpose the 26th floor with a conference center, renovate the 27th and 28th floors and construct an additional internal staircase to connect all three floors. Savills’ Robert Sevim represented Taft in lease negotiations. 111 East Wacker was represented by Matt Pistorio and Adam Pines of Madison Rose and Anne Holker of AmTrust Realty Corp.
MoLo Solutions, a third-party logistics company in the transportation industry, signed a lease for 93K SF on the 14th and 15th floors of Shapack Partners’ 167 North Green St. in the Fulton Market neighborhood of Chicago. MBRE’s Kayla Beljan represented MoLo in its search for a new headquarters. MoLo was founded four years ago and now has more than 500 employees. The amenities available to MoLo in its new space include a 400-person town hall meeting area and an NBA-sized basketball court. Paige O'Neil and Annie Aldrich of Shapack Partners represented 167 North Green St.
Lithotype, a commercial printing company, more than doubled its space by signing a lease for 81K SF of new space at 2 Territorial Drive in southwest suburban Bolingbrook. Brown Commercial Group’s Trinity Scurto represented Lithotype. The space is part of a 101K SF building and was previously leased to another industrial business. Lithotype is moving from a nearby location in Bolingbrook. The landlord was represented by Cushman & Wakefield.
Associated Bank completed a $59M loan to Greystar / GS Aberdeen Owner for construction of a 20-story apartment building at 166 North Aberdeen St. in Chicago’s Fulton Market neighborhood. The project, which will be constructed on a 0.6-acre parcel that was the former site of the Fabbri Sausage plant, will also have more than 3K SF of street-level retail. Of the 223 units, 23 will be designated for affordable housing. Associated Bank was the lead arranger and administrative agent, working with ServisFirst Bank and Old Second National Bank. Edward Notz of Associated Bank handled the loan arrangements and closing.
The Illinois Energy Conservation Authority closed a $2.7M C-PACE refinancing deal for energy-efficient improvements for The Drake Oak Brook, Autograph Collection hotel at 2301 York Road in Oak Brook. The C-PACE program helps commercial property owners reduce operating expenses and improve the efficiency and sustainability of their buildings and operations. This transaction marks the first hospitality C-PACE closing in DuPage County, and refinances new windows and building envelope elements, boilers, chillers, HVAC infrastructure improvements, water-conserving plumbing installations and LED lighting that were made from mid-2019 through mid-2021.
CONSTRUCTION AND DEVELOPMENT
Principle Construction Corp. broke ground in Joliet on an $11M service center for Highway Transport, a transporter of liquid chemicals. The 17K SF center will sit on nearly 23 acres and double the size of Highway Transport’s current leased facility in Joliet, where it has operated for two decades. In the new facility, Principle will also construct offices, a conference room and full amenities for Highway Transport professional drivers. Partners in Design Architects is the architect on the project, which the builder plans to complete by spring 2022.