This Week's Chicago Deal Sheet
The strong market for multifamily properties in Chicago has trickled down into Class-B assets.
33 Realty’s Sean Connelly repped a JV of Origin Capital Partners and Randolph Street Realty Capital in the acquisition of The Iroquois Club, an underperforming multifamily apartment complex in Naperville, for $38M. Originally developed in 1989, the Class-B complex consists of two phases and 264 apartments. The Iroquois Club was 81% leased at the time of the sale. The average market occupancy rate for similar properties in Naperville is 96%. The new owners will renovate up to 45% of the complex, installing unit improvements such as new stainless steel appliances, new kitchen and bathroom countertops, and updated flooring and carpet. Additionally, new washers and dryers will be added where under previous ownership only hook-ups existed in most units. The work will be sequenced over time.
Lee & Associates brokered the following sales:
- Jay Farnam repped R&R Realty in the sale of a 19k SF warehouse at 255 Cortland Ave in Lombard to Capital Threshold. US Asia Group repped the buyer.
- Jay Farnam repped buyer R&R Realty in the acquisition of a 41k SF warehouse and distribution center at 1101 N Lombard Rd in Lombard. Transwestern repped seller Native Wholesale.
- Nick Eboli repped the seller of a 78k SF industrial building at 951 Douglas Rd in Batavia.
Essex Realty’s Brian Kochendorfer repped both parties in the sale of 3000 W Marquette Rd (shown), an 85-unit multifamily property in Chicago, for $3M. The property includes 74 one-bedroom units, 10 two-bedroom units and one three-bedroom apartment.
CBRE’s Derrick Almassy and Richard Frolik repped Greywolf Partners in the sale of Shops at Randall Road, a 78k retail development at 346-352 Randall Rd in South Elgin. Earlier this year, CBRE’s Joe Parrott completed a lease with Lumber Liquidators to bring the property to 100% occupancy.
Colliers’ Jason Simon repped The Missner Group in the sales of 1 E Commerce Dr, a 52k SF office property in Schaumburg, to Quantum Group for $5M; and 55 E Commerce Dr, a 27k office property in Schaumburg, to Carepoint RX for $1.65M. Stonegate Group’s Tom Turk repped Quantum, while Jason repped Captive Resources, on behalf of Carepoint RX.
Colliers’ Jason Yale repped a private buyer in the closing of a 9,100 SF Dollar General store at 1645 South Galena Ave in Freeport, IL, for $1.3M.
Kiser Group brokered the following sales:
- Brian Mond repped the seller of 1544 E Palmer, a six-unit building within Palatine's Winchester Hill condominium complex, for $550k.
- Lee Kiser repped both parties in the sale of 5501-13 S Everett and 5527-37 S Everett, for $9.25M.
- John Meyer repped both parties in the sale of Garden Terrace Apartments, a 156-unit complex in Milwaukee, for $9M.
- Michael D'Agostino and Mike Anguiano repped the seller of 3950 N Elston, a 10-unit mixed-use building, for $1M.
- Bill Baumann repped both sides in the sale of 906-08 E 53rd, a 27-unit apartment building, for $3.4M.
- Brian Semel repped both parties in the sale of 1429 W Lunt and 1433 W Lunt, for $6.3M.
- Bill Baumann repped both parties in the sale of 7320 N Ridge, a 38-unit condo building, for $3.5M.
Paine Wetzel’s Phil Reiff Sr. and Phil Reiff repped Oakley Industrial Machine in the lease of 36k SF at 1601 Lunt Ave (pictured) in Elk Grove Village. Oakley is moving from 930 Lee St. Lee & Associates Chris Nelson repped landlord Colony Capital.
Lee & Associates brokered the following leases:
- Joe Herron repped Naperville Family Chiropractic in the lease of 2,405 SF at 3027 English Rows Ave in Naperville. Caton Commercial Real Estate repped the landlord.
- Michael Plumb repped the landlord in the renewal of a 22k SF industrial space at 2300 Ridge Dr in Glenview. Cushman & Wakefield repped the tenant, Andersen Corp.
- John Sharpe and Steve Bass repped landlord Stockbridge Capital in the lease of 50k SF of industrial space at Northwest Corporate Park XIV, 2300-2380 Galvin Dr in Elgin. Colliers’ John D’Orazio repped the tenant, Creative Concepts.
- John Sharpe and Steve Bass repped landlord Stockbridge Capital in the lease of 50k SF of industrial space at Northwest Corporate Park VI, 2790 Spectrum Dr in Elgin, to PepsiCo Global Real Estate. CBRE’s Ryan Bain repped the tenant.
Savills Studley’s Joe Learner and Robert Sevim repped Vedder Price in a long-term lease extension at 222 N LaSalle (shown). Vedder Price will occupy 163k SF on the 22nd and 26th floors. Tishman Speyer’s Joe Gordon and Greg Tait repped the landlord.
MB Real Estate’s David Bukards repped Coyote Logistics in the lease of 30k SF of office space at 401 1st Ave in Minneapolis. Coyote Logistics will move into its new space in Q1 2016, after it is built out.
CBRE’s Zach Graham, Ryan Bain and Sean Kropke repped Parker Plastics in a 50k SF lease expansion at 8201 109th St in Prairie Path, WI, from CenterPoint Properties. The expansion brings Parker Plastics’ total space to 125k SF. NAI Hiffman’s Whit Heitman, Sam Badger and Brad Weiner repped CenterPoint.
Peppercorn Capital completed the following medical office leases at 1229 W Washington Blvd in the West Loop:
- A 3k SF lease for Washington Dental.
- A 2k SF lease for Smiles Pediatric Dentistry.
- A 1,700 SF lease for West Loop Orthodontics.
HFF’s Trey Morsbach and Timothy Joyce repped Cypress Equities in securing $86M in financing for Eden Prairie Center, a 1.14M SF shopping center in Eden Prairie, MN. Cypress secured a five-year, floating-rate loan from MetLife. Proceeds will be used to pay off existing debt and for capital improvement at the property.
CBRE promoted Chris Connelly to president of the firm’s Midwest region. Chris was previously managing director of CBRE’s Chicago division. He’ll oversee CBRE service lines in Illinois, Indiana, Michigan, Minnesota, Ohio, Missouri, Kentucky and Wisconsin.
Dermody Properties hired Lou Berchicchi as SVP of development for its Midwest region. Lou previously held senior development roles at KTR, First Industrial Trust and Prologis. In his 25-year career, he has completed 7M SF of industrial build-to-suit projects and 6.8M SF of speculative buildings.
Congratulations to @properties, which was named to Inc. magazine’s 5000 list of the nation’s fastest-growing private companies for the ninth time in 10 years. For 2015, @properties posted three-year revenue growth of 163% and had the highest revenue of Illinois-based residential real estate brokerage firms on the list with $156.3M.
Chain Store Age magazine named NKGF’s Gregory Kirsch one of its top 10 power brokers for 2015. Last year, Gregory completed two of the largest transactions on Michigan Avenue, Walgreens at the Wrigley Building and Under Armour at 600 N Michigan.