This Week's Chicago Deal Sheet
Interest in Chicago’s South and West sides is on the rise for multifamily investors, including Kiser Group’s Birk | Sklar Team, which recently closed a record-setting $7.5M deal on two South Side portfolios, totaling nine properties and more than 140 units.
The Marquette Park Portfolio, which sold for nearly $2.7M, is the largest multifamily transaction so far in 2022 for the neighborhood and includes 15 units at 7146 South Claremont Ave., eight units at 2164 West Marquette Road, 13 units at 7256 South Artesian Ave. and eight units at 2448 West 68th St.
“Marquette Park is seeing a huge increase in investor interest," Kiser Group partner Noah Birk said in a release. "Prices are increasing and time on market is certainly decreasing. There’s been incredible demand for quality, stable, cash flowing assets in the area.”
The second portfolio, comprising nearly 100 units and sold for $4.85M, is in the city’s Chatham neighborhood. It’s the largest multifamily sale the neighborhood has seen in five years, the company said, with 26 units at 7851 South Indiana Ave., 14 units at 8157 South Martin Luther King Drive, 19 units at 7953 South St. Lawrence Ave., 25 units at 8016 South Evans Ave., and 13 units at 7942 South Champlain Ave.
Stream Realty Partners has promoted its Chicago-based executive managing director, Patrick Russo, to partner. Russo will take an ownership stake in the company while continuing to oversee daily operations. He joined the national firm three years ago and has since grown the office to 40 professionals responsible for over 21M SF of office agency leasing and more than 12M SF of property management. The Chicago office recently relocated to Fulton Market under his leadership.
A 46K SF Community Plaza property in East Peoria, Illinois, sold for $4.95K. Dominic Sulo of Marcus & Millichap’s Chicago Oak Brook office, marketed the property on behalf of the seller. The multitenant retail property was sold to a Chicago-based 1031 exchange buyer, secured and represented by Richard Kozarits and Peter Spear of Marcus & Millichap. Community Plaza is located at 210-250 South Main St. in East Peoria where national tenants occupy over 80% of the gross leasable area.
Mid-America Real Estate Corp.’s Investment Sales Group brokered the sale of an LA Fitness in western suburban Westmont at 63rd Street and Cass Avenue. The 47K SF gym has 15 years remaining on the lease with rent escalations in place every five years. Mid-America Real Estate Corp. principal Joe Girardi and Vice President Matt McParland brokered the deal on behalf of Kensington Development and IM Properties PLC.
Massachusetts-based mixed-use developer WS Development has acquired Plaza del Lago, the 100K SF shopping center in western suburban Wilmette. Built in the 1920s, the open-air plaza, containing boutiques, restaurants and service businesses, is one of the oldest shopping destinations in the U.S. and is part of WS Development’s portfolio of over 100 mixed-use projects, joining Edens Plaza as its second property in the North Shore suburbs.
Colliers’ Tyler Hague and Lauren Stoliar represented Pepper Pike Capital Partners in the sale of Mount Prospect Greens, a 344-unit, multifamily property located in the northwest suburb of Mount Prospect, to Bayshore Properties Inc. Nearly half of the building’s units are newly renovated. Featuring a mix of one-, two- and three-bedroom units, the 331K SF property and building area provides residents convenient access to key transportation, including interstates 90, 290 and 294, with proximity to O’Hare International Airport.
Brown Commercial Group President Dan Brown and partner Mike Antonelli represented Bulldog Cartage in a 37.8K SF industrial lease in Chicago's west suburban Elk Grove Village. The storage, staging and shipping company added space in part of a 103K SF property at 133 South Rohlwing Road in Addison. Antonelli also represented Rhondarosa Properties and the buyer in the sale of an 18.2K SF industrial building with outdoor storage at 1306-1330 Pierson Drive in the neighboring suburb, Batavia.
The privately held Houston-based firm Boxer Property is renewing its Q3 2021 lease with ExteNet for 40K SF at Lisle Executive Center. Located at 3030 Warrenville Road in northeast suburban Lisle near Interstate 88 and Naperville Road, the six-story office building sits within the East/West Tollway submarket. Boxer Property leasing agent Claire Ziecina negotiated the lease with ExteNet Systems President and CEO Richard Coyle.
CONSTRUCTION AND DEVELOPMENT
The Wheeling Town Center, a $110M mixed-use development off the Metra North Central Line is gaining the Cinergy Dine-In Theater this July. The 40K SF, seven-screen movie theater, at 401 West Dundee Road in northwest suburban Wheeling, will open in the previous CMX CinéBistro location. Operated by Dallas-based company, Cinergy Entertainment Group Inc., the addition brings the development to 100% commercial occupancy.
The Joliet City Council and Illinois and Cullinan Properties approved construction of a new public roadway network and utility infrastructure to be completed in conjunction with the new interchange under construction at Interstate 55 and Route 59. The new infrastructure will help support the upcoming Rock Run Crossings Development, a 310-acre mixed-use project in the works for Joliet and Will counties, 30 miles southwest of Chicago.
Principle Construction Corp. is completing a 179K SF industrial building at 3700 South Morgan St. for IDI Logistics. Located near Guaranteed Rate Field, with access to the Dan Ryan, Kennedy, Eisenhower and Stevenson expressways, the development will feature 36-foot clear heights with 32 dock positions and two drive-in doors within the warehouse. Principle’s Darrin Dehmlow worked as project manager for the speculative building, and Matt Frane worked as the on-site superintendent. Macgregor Architects is the architect.
Venture One will break ground on Venture Park 47, a 730K SF industrial build located 30 minutes from O’Hare International Airport at the intersection of Illinois 47 and Jim Dhamer Drive. The development will feature 40-foot clear height, 72 docks and four drive-ins. Brian Kling and Reed Adler of Colliers have been retained to market the property for lease on behalf of Venture One.
McHugh Construction is building a new five-story, 91K SF healthcare facility and medical office at 3501 North Halsted St. for Howard Brown Health, the Midwest’s largest LGBTQ+ healthcare organization, in the city’s Lakeview neighborhood. The building will include first-floor retail and a mix of clinical and administrative space, and it will replace a Howard Brown clinic at 3245 North Halsted St. The project is being developed by Howard Brown Health in partnership with Inland National Development Co. It’s expected to be completed in 2023.
The Illinois Energy Conservation Authority closed its first Commercial Property Assessed Clean Energy refinancing deal in Champaign County for a 35-unit multifamily property in downtown Urbana. As part of the C-PACE financing arrangement, which promotes energy-efficiency and sustainability, the $147K deal will be refinanced by Inland Green Capital LLC with energy-efficient amenities including a rooftop solar PV system and shade pergola.
THIS AND THAT
Chicago-based PW Commercial Real Estate/TCN Worldwide is merging with Darwin Realty/CORFAC International and will change its name to DarwinPW Realty. PW Commercial Real Estate’s eight brokers and two staff members will move to the Elmhurst headquarters, and the DarwinPW Realty team will expand to over 20 brokers. The two firms, which each started as offshoots of Pain & Sutherlin in 1975, are reconnecting to expand market reach and provide shared expertise.
Chicago led PropertyShark's list of the top 20 highest-taxed office properties outside of New York City with 15 entries. The Willis Tower ranked No. 12 among PropertyShark's top 100 most-taxed office properties nationally and first in the city at a whopping $43M. Behind it, at No. 19, was the Field Building, the oldest property on the list outside New York City, which owed $13.7M in taxes last year; and 300 North LaSalle, which ranked No. 33 of 100 with a $26M tax bill in 2021.