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This Week's Chicago Deal Sheet

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This Week's Chicago Deal Sheet

SALES

Venture One Real Estate, in partnership with DRA Advisors, closed on a 719k SF industrial building at 25850 S Ridgeland Ave (above) in Monee. The building is leased to Michelin North America, which will be vacating for a new building in Wilmington. The property is part of a 12-year TIF district that will abate 80% of property taxes over that time period. CBRE’s Michael Caprile, Ted Staszak and Stephanie Park repped the seller. CBRE’s Traci Buckingham and John Suerth have been retained to market the building for Venture One.

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Related Midwest completed the $328.23M sale of OneEleven, a 504-unit luxury apartment tower at 111 W Wacker Dr, to Heitman. At $651k/unit, it’s the highest amount ever paid for an apartment building in Chicago. Related took over the former Shangri-La hotel site in 2011, redeveloped the property and began leasing last spring (the building is currently more than 80% leased). DLA Piper’s Richard Klawiter, Robert Goldman and Aaron O’Donnell repped Related in the sale, as well as the financing and construction agreement for the redevelopment.

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Grand Trunk Western Railroad Co sold a 128k SF industrial building on a 14.5-acre site at 5000 S Homan Ave. Lee & Associates of Illinois principal Walter Murphy repped both the seller, Grand Trunk, and the buyer, Sitex.

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An affiliate of Midwest Industrial Funds sold a 109k SF building at 5300 Katrine in Downers Grove (which underwent a multimillion-dollar reno in ’14) to Grammercy Property Trust for over $10M. The property is leased long-term to Valid USA, which uses it for manufacturing, warehousing and office. CBRE’s Mike Caprile repped Midwest Industrial in the sale. Lee & Associates of Illinois repped the firm on the original acquisition and also repped the landlord on the lease extension in conjunction with JLL, which repped Valid USA.

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This Week's Chicago Deal Sheet

Quantum Real Estate Advisors president Chad Firsel brokered the $4.3M sale of a single-tenant retail building (above) occupied by Fidelity Investments at 1823 Freedom Dr in Naperville. The site is part of the Freedom Commons mixed-use development and tenants include Morton’s Steakhouse, Subway and Athletico. The seller was a Scottsdale-based investor and the buyer was a local private investor.

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Daniel Hyman and Greg Block of Millennium Properties R/E sold a 62k SF industrial facility at 3850 Clearview in Gurnee. Previously FDA approved, the R&D facility was a former generic drug manufacturing facility, fully air conditioned with a number of labs and six loading docks.

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High Street Realty Co purchased a 48k SF industrial building at 1215-1225 Bowes Rd in Elgin. Lee & Associates of Illinois principal John Sharpe and senior associate Ronan Remandaban repped the seller, a private investor.

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Podolsky|Circle CORFAC International principals Randy Podolsky and Adam Taratur repped a regional bank in the user/investor sale of a 13k SF MOB at 129 Roselle Rd in downtown Schaumburg. Podolsky was originally hired by the court as receiver and found a user to buy the building shortly following the foreclosure (and building improvements, along with two tenant renewals completed by Adam). The buyer, a pediatric endocrinologist, plans to open a clinic in the building.

LEASING

This Week's Chicago Deal Sheet

HSA Commercial Real Estate EVP and managing director Timothy Thompson repped Industrial Income Trust in a long-term, 148k SF lease with Casio America at 1203 Bilter Rd (above) in Aurora. Casio will relocate from Glendale Heights and use the facility for its regional distribution operations. HSA developed the 295k SF facility, now fully leased, in ’07 and it was sold to IIT in ’10. The Modal Group’s Andy Corken repped Casio in the lease.

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Arizona-based restaurant operator Evening Entertainment Group leased the 14k SF space at 504-512 N Wells St in River North, former home of SushiSamba Rio, less than two months after Sean Conlon paid $6M for the property. Bottled Blonde, a pizzeria/craft beer concept, will open in the space this summer. CONLON Commercial’s Steve Horvath and Aldo Bottalla repped Evening Entertainment; CONLON’s David Golberg repped Sean Conlon.

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Mid-America Real Estate Corp secured a new 14k SF retail lease at 4718 N Broadway (the second floor of the former Borders) in Uptown with First Ascent Climbing and Fitness. The space will feature 10k SF of bouldering walls, along with yoga, weights and other fitness equipment. Mid-Am principal Paul Bryant and VP Andrew Becker repped the landlord, Saxony Capital’s Josh Mintzer.

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The Opus Group, developer, and USAA Real Estate Co, owner, signed a long-term lease with Midwest Warehouse & Distribution Systems for the entire 605k SF I-88 Gateway Logistics Center, a recently completed (October 2014) spec industrial building in North Aurora. HSA Commercial Real Estate’s Timothy Thompson repped Midwest Warehouse in the lease, and Avison Young’s Brandon Kelly and Todd Heine were the listing brokers.

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Coregistics signed a new lease for 262k SF at 3501 Mount Prospect Rd in Franklin Park. JLL’s Chris Tomasulo, Robin Stolberg and Kurt Sarbaugh repped the tenant. Darwin Realty’s Rick Daly and Adam Haefner repped the landlord, TA Associates.

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Lee & Associates of Illinois principal Chris Nelson repped Law Auto Group in its 52k SF industrial lease at 877 Supreme Dr in Bensenville. CBRE’s Kevin Segerson repped the landlord.

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Podolsky|Circle CORFAC International principal Steven Podolsky repped Lake Cable in the renewal and expansion of its space, for a total of 51k SF, at 131-139 Foster Ave in Bensenville. Over the past 10 years, Steven has advised the firm and its affiliates on 14 deals in six states, with a 15th deal pending. The landlord, a privately held REIT, was repped by Darwin Realty’s Rick Daly.

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Ole Mexican Foods leased a 37k SF industrial space at 6748 S Sayre in Bedford Park. Lee & Associates of Illinois principal Brian Vanosky and associate Tim McCahill repped the landlord, First Industrial.

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The Missner Group VP of property management June McCrory completed two office leases in Missner buildings in Deerfield and Des Plaines. In the first deal, Commodity Forwarders (repped by Colliers’ Jonathan Kohn) leased 7,300 SF within 500 W Touhy in Des Plaines and will relocate from its current office in Bensenville. In the second deal, June leased 3,100 SF to Deerfield Medical (repped by Coldwell Banker’s Lynn Scharaga and relocating from another Deerfield office) at 720 Osterman within the Deerfield Professional Plaza.

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Precision Color Graphics leased a 33k SF industrial warehouse/distribution space at 2750 Alft Ln in Elgin. Lee & Associates of Illinois principals John Cassidy and Kenneth Franzese repped the landlord, Bridge Development Partners. Colliers’ John D’Orazio repped the tenant.

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HSA Commercial Real Estate signed a long-term lease with Wimmer Transportation Services to occupy 17k SF at the newly completed second phase of Park 355 in Woodridge. It’s the first lease at the 180k SF warehouse facility at 2143 Internationale Pkwy. Park 355 Phase 2 was developed by HSA in partnership with Denver-based Industrial Income Trust. HSA EVP and managing director Timothy Thompson repped ownership in the lease; Cawley Chicago VP Josh Hearne repped Wimmer.

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The Association of Legal Administrators will relocate its HQ From 75 Tri State International to nearly 10k SF on the first floor of Presidents Plaza at 8700 W Bryn Mawr. Savills Studley corporate managing director Jon Azulay repped the ALA; GlenStar Properties’ Dave Trumpy repped the landlord, Prudential. ALA’s current landlord, Principal, was going to relocate the company because of an incoming tenant. Savills Studley negotiated a termination agreement and concession package that allows ALA to vacate and build out new space cost effectively.

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American Reprographics renewed its 8,927 SF industrial lease at 1419 Jeffrey Dr in Addison. Lee & Associates of Illinois SVP Mike Plumb and senior associate Jay Farnam repped the landlord, IndCor Properties.

CONSTRUCTION & DEVELOPMENT

This Week's Chicago Deal Sheet

Six-year-old Streeter Place, 355 E Ohio St, has rebranded as Atwater Apartments (above) and is renovating its 480 units and community common areas. Atwater is working on renovating 110 units this year, with each apartment upgrade taking about three weeks and completed as units become available. With a 95% occupancy rate, apartment updates are anticipated to take place over the next four years. Updates to the lobby and 12th floor media and game area will be complete this April.

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Hyatt Hotels Corp announced the April 2015 opening of the 257-room Hyatt Centric The Loop Chicago, one of the first two hotels in the world to open under Hyatt’s new full-service lifestyle brand. The hotel is owned by Integrated Clark Monroe, led by managing principal John T. Murphy, and will be managed by Interstate Hotels & Resorts. The hotel also includes 2,513 SF of meeting space, a fitness center, rooftop bar and French bistro Cochon Volant.

EXECUTIVE MOVES

Inland Real Estate Brokerage & Auctions promoted Paul Montes to AVP. The 15-year industry vet has been with Inland for the past nine years and specializes in both landlord and tenant rep in commercial and industrial, as well as land sales/assemblage for development. Inland also promoted Eric Spiess to AVP. Eric has been with Inland for nine years and specializes in the disposition and leasing of commercial and investment properties.

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NAI Hiffman promoted Gail Vermejan to managing director of operations with its management services team. In her new role, Gail will focus on client compliance, training, talent development, cost containment, contract administration and property accounting. The 27-year industry vet joined NAI Hiffman in 2006.

BUSINESS

The Habitat Co assumed management responsibilities for McClurg Court Center in Chicago and Coventry Glen apartments in Round Lake, bringing its total units under management to 21,000. McClurg Court, 333 E Ontario in Streeterville, includes 45-story twin towers with 1,061 apartments, as well as first-floor commercial space. Coventry Glen, 1399 Coventry Glen Dr, includes 280 apartments. Bentall Kennedy, adviser to the fund that owns both properties, selected Habitat as a result of its current partnership on Hubbard Place in River North. Habitat VP of property management Gary Lundemo will be regional manager for McClurg and regional manager Katrina Edgar O’Neill will be responsible for Coventry Glen.

Related Topics: CBRE, Colliers, JLL, Savills Studley, Avison Young, Mid-America Real Estate Corp, The Missner Group, Deal Sheet, TA Associates, DLA Piper, Darwin Realty & Development Corp, Rick Daly, USAA Real Estate Co, Venture One Real Estate, Bentall Kennedy, Podolsky|Circle CORFAC International, The Opus Group, Prudential Financial, CONLON Commercial, Steve Horvath, GlenStar Properties, Lee & Associates of Illinois, Hyatt Hotels Corp., John Sharpe, Walter Murphy, John Cassidy, Bridge Development Partners, Traci Buckingham, Millennium Properties R/E, Jonathan Kohn, Paul Bryant, Aldo Bottalla, The Habitat Co, Saxony Capital, Brian Vanosky, Tim McCahill, Mike Plumb, Chris Nelson, Coldwell Banker, DRA Advisors, First Industrial Realty Trust, HSA Commercial Real Estate, Quantum Real Estate Advisors, Chad Firsel, Kevin Segerson, Kurt Sarbaugh, Robin Stolberg, Adam Haefner, Steven Podolsky, Related Midwest, IndCor Properties, Inland Real Estate Brokerage & Auctions, Sitex Group, Josh Hearne, Andrew Becker, Michael Caprile, Ted Staszak, Stephanie Park, John Suerth, Richard Klawiter, Robert Goldman, Aaron O’Donnell, Grand Trunk Western Railroad Co, Midwest Industrial Funds, Grammercy Property Trust, Daniel Hyman, Greg Block, High Street Realty Co, Ronan Remandaban, Randy Podolsky, Adam Taratur, Timothy Thompson, Industrial Income Trust, The Modal Group, Andy Corken, Sean Conlon, David Golberg, Josh Mintzer, Brandon Kelly, Todd Heine, Chris Tomasulo, June McCrory, Lynn Scharaga, Kenneth Franzese, John D’Orazio, Jon Azulay, Dave Trumpy, Jay Farnam, Integrated Clark Monroe, John T. Murphy, Interstate Hotels & Resorts, Paul Montes, Eric Spiess, Gail Vermejan, Gary Lundemo, Katrina Edgar O’Neill, NAI Global, Cawley Chicago