This Week's Chicago Deal Sheet
Tis the season for eight-figure suburban hotel deals. Yesterday, Olshan Properties announced it acquired the Hilton Orrington in Evanston for $60M, from a JV of the Carlyle Group and Dow Hotel.
The 269-key hotel at 1710 Orrington Ave opened in 1928 and is Evanston's only full-service hotel. The Carlyle-Dow JV recently completed a $5.1M renovation to upgrade guest rooms, lobby and select meeting areas. JLL repped the seller.
Greenstone Partners repped the seller of 166 W Washington (shown), which was purchased by an Argentinian private investor for $3.9M. The seven-story building sold for 99.4% of its asking price.
CBRE’s Mike Nardini repped Berman Automotive Group in the purchase of six acres at 3440 N Kedzie in Chicago. It will break ground on a new 130k SF Berman Automotive Group dealership in spring 2016. CBRE’s Mitch Adams repped seller Federal Mogul.
Marcus & Millichap closed the following deals:
- Austin Weisenbeck, Sean Sharko and Adrian Mendoza repped both parties in the $1.7M sale of a single-tenant, net-leased Mattress Firm at 6353 W Fullerton in Chicago.
- Ryan Engle, Jordan Gilbert and Andrean Angelov repped both parties in the closing of 2247 Gunderson Ave, a 15-unit apartment building in Berwyn, for $645k.
Transwestern's Denise Stein Chaimovitz repped seller Edler & Co in the disposition of a two-building, 388k SF industrial portfolio in Chicago’s north suburbs to an undisclosed buyer. The portfolio includes a 209k SF property at 6123–6227 Monroe Ct in Morton Grove and a 179k SF building at 3500 Oakton St in Skokie.
33’s Sean Connelly repped both parties in the sale of a 31-unit building at 3002 W Ainslie in Albany Park (pictured). The seller was Cedar Street. The buyer, Maven Real Estate Partners, plans to improve the building to maximize operating efficiencies and achieve higher rents.
Interra Realty closed the following deals:
- Joe Smazal and James Clough arranged the sale of 5355 W Irving Park Rd, a 12-unit mixed-use property in Portage Park, for $1.5M. The building contains 10 two-bedroom apartments and two retail storefronts.
- Joe, James and Patrick Kennelly sold 2854 N Lowell in Kelvyn Park, a 12-unit apartment building, for $975k.
CBRE’s Cal Wessman and Mark Cassata repped Harrison Street Capital in leasing 46k SF at the under-construction River Point, 444 W Lake St. Hines’ Greg van Schaack and Laura Hines repped landlords Ivanhoé Cambridge and Hines. Harrison Street leases 23k SF at 71 S Wacker. The River Point lease marks a 57% footprint expansion that CEO Christopher Merrill says “recognizes the growth of our firm and signifies Harrison Street’s commitment to Chicago.” Harrison Street manages nearly $8B in assets and will move to River Point in Q1 2017. The 52-story tower will be delivered in 2016 and already has tenants such as McDermott Will & Emery, DLA Piper, Mead Johnson Nutrition and Morton Salt.
CBRE's Yolanda Vale repped the University of Illinois Board of Trustees in a 12k SF lease of retail space at University Village at Halsted and Maxwell streets. Randy Guse and Jessica Janes of Emerging Concepts represented tenant Windy City Restaurant Management, owner of Bar Louie, in the lease of 4,928 SF. In the second lease, OHM leased 7,439 SF for two separate concepts, Brackett Room and Good Stuff Eatery.
Riverside Investment and Development executed a lease with Navigant Consulting for four floors in the under-construction 150 N Riverside Plaza, totaling approximately 110k SF. The building will be delivered in late 2016.
First Western Properties’ Paul Tsakiris, Marion Abramiuk and Laryssa Moros repped both parties in leasing a storefront inside 8100 S Stony Island to Virgin Remy hair salon. The deal brings the shopping center to 100% occupancy.
Savills Studley’s Bruce McConnell and Mike Mangan repped Generation Brands in a new six-year sublease for 61k SF of expansion space at 7320 N Linder in Skokie. JLL’s Kurt Sarbaugh and Robin Stolberg repped the sub-landlord, Woodward.
Brown Commercial Group completed the following leases:
- Trinity Scurto repped Newstone Design Group in the lease of 9,980 SF at 906 Lunt Ave in Schaumburg. The company also has the option to buy the facility from Blue Pacific Investments.
- Mike Antonelli repped both the tenant, Davey Tree Expert Co, and the landlord in a 7,200 SF lease on two acres at 31W236 91st St in Naperville. Davey Tree, a national residential and commercial tree and landscaping company, is expanding its presence in the western suburbs and secured a rare, outdoor area for equipment storage.
- Mason Hezner repped the ownership, Gerald Milos, in a 4k SF lease at 121 Garlisch Ave in Elk Grove Village (shown). The tenant, Mikkerphone Brewing, was repped by NGKF’s Tom Gath.
- Trinity Scurto repped Applied Mechanical Sales in a 2,889 SF lease at 650 Grand Ave in Elmhurst. Koman/Lederer Management Co’s Pat Lederer repped building ownership.
- Brian Lindgren repped Airflow Systems in its lease of 1,500 SF at 905 Atlantic Dr in West Chicago. Marken & Associates’ Steve Marken repped the landlord, Paramount Building Partners.
JLL's Kurt Sarbaugh and Robin Stolberg repped Banner Plumbing and Supply in its lease renewal for 102k SF at 1020 E Lake Cook Rd in Buffalo Grove. The single-tenant building serves as both Banner’s warehouse and showroom facility. Landlord Hamilton Partners was repped by that firm's Tom Maher.
Lending Cap Commercial’s Rushi Shah arranged the following non-recourse loans, totaling $41.7M:
- A $4.5M loan for Lotus Management for the refinance of its 49-key Quality Inn & Suites at 2390 Harris Way in San Jose, CA.
- A $4.55M loan for KMD Hospitality Management for the acquisition of the 82-key Country Inn & Suites at 915 S Falkenburg in Brandon, FL.
- A $9M loan for Duke Hospitality to refinance the 112-key Fairfield Inn & Suites Atlanta Gwinnett Place at 3570 Breckinridge Blvd in Duluth, GA.
- A $3.75M loan for borrower Desai Investments to refinance its 75-key Quality Suites at 9840 Pineville Matthews Rd in Pineville, NC.
- A $5M loan and $3.6M loan for repeat borrower Laxmi Hotel Group for its 116-key Quality Inn & Suites and 98-key Sleep Inn outside Charlotte, NC.
- A $6.1M loan for Simraj Hospitality for the refinance of the Comfort Inn at 2250 N George St in York, PA.
- A $5.2M loan for Brimhall LQ to refinance the 76-key La Quinta Inn & Suites at 11155 W Loop 1604 N in San Antonio, TX.
Congrats to NGKF’s Jack Cozzie and Ladson Montgomery, who were awarded the 2015 Industrial Broker Transaction of the Year by the Chicago chapter of NAIOP. The award was in recognition of their representation of longtime client Saddle Creek Logistics in its relocation to a 1.1M SF build-to-suit distribution facility at CenterPoint Intermodal Center in Joliet. This was the largest build-to-suit year-to-date in the Midwest.
Congrats to Podolsky|Circle CORFAC International’s Alissa Adler, who was unanimously elected managing principal of the firm by its board of directors. Alissa's elevation to principal is effective Jan. 1 and comes three years after Circle Realty Advisors merged with Podolsky to create Podolsky Circle. Alissa, a 20-year real estate veteran, will also serve as the firm’s managing broker.
Riverview Realty Partners, a Chicago-based real estate operating and development company, announced today that 411 E Wisconsin Ave, its 30-story multi-tenant office building in downtown Milwaukee, received the US Green Building Council’s LEED Gold certification for Existing Buildings (EB) Operations and Management (O&M). The building is the first and only multi-tenant office building in the Milwaukee CBD to achieve LEED Gold, as well as the largest building in Milwaukee to receive the designation.