This Week's Chicago Deal Sheet

As we noted last week, industrial is one of the hottest sectors in Chicago real estate with capital interest from local and out-of town interests. The latest player to enter the market is Dallas-based Westmount Realty Capital, which JV’d with Swiss firm Partners Group to add 1.5M SF of industrial real estate to its Chicago portfolio.

The portfolio consists of 19 multi-tenant, light industrial assets in the highly desirable O’Hare submarket, including the suburbs of Romeoville, Wheeling and Gurnee. The buildings are well-maintained but the occupancy rate is 86%, well below the market’s 96% average. The deal brings the total footprint of the Westmount-led JV to 3M SF.

SALES

Mid-America Real Estate’s Rick Drogosz and Ben Wineman repped both parties in the $20M sale of Oak Brook Court in Oak Brook (shown) to Third Lake Capital. The seller was an institutional adviser.

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Mesirow Financial’s Garry Cohen and Douglas Barker arranged a $197M sale-leaseback of 143 Bob Evans restaurant properties across the Midwest, Mid-Atlantic and Southeast. Mesirow Financial and National Retail Properties will separately own the portfolio.

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Stream Capital Partners’ Jonathan Wolfe and Jordan Shtulman repped Civitas Media in the $11.4M sale and leaseback of a six-property industrial portfolio totaling 234k SF in Ohio, North Carolina, Missouri and Pennsylvania. Civitas will lease the properties from the new owner, a REIT, via a triple net lease.

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CBRE Hotels’ Brian Silberman, Nate Sahn, Stanley Wang and Scott Miller repped Bridge Investments in the sale of a 226-room Holiday Inn at 150 S Nicolet in Appleton, WI (pictured), to Barta Hospitality Group.

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NAI Hiffman’s Larry Much, Ben Cremer and Michael Robbins repped the seller of 6969 W 73rd St, a 99k SF industrial building in Bedford Park, to Lifetronics. Lee & Associates’ Walter Murphy repped the buyer.

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Jameson Commercial’s Ari Topper repped the seller, a condo association, and Jameson Sotheby’s International Realty’s Peter Angelo and Alex Summers repped buyer Golub Real Estate in the $4.3M sale of a vintage condo building at 159-161 W Goethe in Chicago.

LEASES

NAI Hiffman's Dan O’Neill repped ownership of Washington Commons in five new and five lease renewals totaling 27k SF at 450-900 E Diehl Rd in Naperville (pictured):

• Opus Funds signed the largest new lease with 12k SF and was repped by Glenstar Properties’ Dave Trumpy and Tom Savage.
• New tenant Old Republic was repped by Avison Young’s Kevin Moore.
• DDMR Planning was repped by Suburban Real Estate’s Krista Cota. Other new tenants include the law offices of Ronald Hendrix and NVR Title.
• The largest renewal is the Independent Mitigation and Cleaning/Conservation Network (IMACC) with 3,957 SF. It was repped by JLL’s Ben Erskine. Other renewals included Naper Clinic, ANAD, Springleaf Financial and National Restaurant.

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NAI Hiffman's Brian Edgerton and Michael Van Zandt repped Oak Brook Promenade in three office transactions at 3011 Butterfield Rd in Oak Brook:

• Fusion Academy signed a new 14k SF lease and was repped by JLL’s Brian Chernett.
• TricorBraun renewed 9,038 SF and was repped by Cresa’s Steve Schmid.
• KeyLimeTie signed a 1,200 SF office expansion.

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NAI Hiffman's Brian Edgerton completed the following leases:

• Brian repped Comprehensive Urologic Care in its new lease for 4,350 SF with Healthcare Realty at 1600 N Randall Rd in Elgin.
• Brian repped Parkview Orthopedic Group in its new 5,529 SF lease at 2400 W Glenwood Ave in Joliet.

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NAI Hiffman's Adam Johnson closed the following deals:

• He repped Active Health Chiropractic Clinic in a new 1,730 SF lease at 700 E Ogden Ave in Westmont.
• Adam also repped JBMT in its new 5,400 SF lease with Dynamic Center for Vision Therapy at 1891 Bay Scott Circle in Naperville. Waveland Property Group's Scott Fedyski repped the tenant.
• Adam Johnson repped the landlord in its 900 SF lease with Neurotherapy Associates at 412 W 63rd St in Downers Grove. Schultz Properties' Theresa Schultz repped the tenant.

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Imperial Realty's Daniel Knorps repped the landlord and Mendelson & Associates' Robert Mendelson repped Greg Dunn in a lease for Persona Wood-Fired Pizza at 170 W Washington St in the Loop.

FINANCING

ASC’s Alex Rek arranged $1.4M in financing for the purchase of a six-unit multifamily property in Chicago.

HIRES/PROMOTIONS

Urban Real Estate named Chris Vernald partner. Chris joined Urban in January 2012.

KUDOS

SVN Chicago Commercial was named the second-highest revenue-grossing office in the SVN network for 2015, marking the third consecutive year the Chicago office has ranked in the top three among the network’s 200 international franchises. The Chicago office, which posted 6% year-over-year revenue growth, was recognized at the full-service brokerage firm’s national conference in San Diego. Additionally, Chicago managing director Al Stepan was named “Innovator of the Year” by his SVN peers.

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Proper Title was appointed to the Ann & Robert H. Lurie Children’s Hospital of Chicago’s Circle of Corporate Champions in recognition of the monetary contributions of the firm’s charitable arm, Proper Giving. Since its establishment last July, Proper Giving has donated more than $20k and over 30 hours of volunteer time to Lurie’s.