This Week's Chicago Deal Sheet
Walton Street Capital execs have reason to smile. The private equity real estate firm announced yesterday it exceeded projections for its first dedicated real estate debt fund, Walton Street Real Estate Debt (WSRED).
Walton Street closed the fund having collected $654M, well beyond its $500M target. The Chicago-based firm launched the fund in early 2014, and the Texas Municipal Retirement System committed $100M soon after.
WSRED's core-plus strategy will center on originating and structuring floating-rate debt investments secured by income-generating assets in major US markets, with equity commitments ranging from $10M to $50M. The fund has a net return target of 9% to 11%.
Redwood Capital Group, led by partners David Carlson and Marc Isaacson, announced transactions on eight multifamily properties in Chicago, Minnesota, Florida, Colorado and North Carolina with a value of $405M. The transactions include three property acquisitions and six dispositions; one property was recapitalized with a new equity partner, resulting in both a disposition and an acquisition transaction for Redwood. Three Chicago-area properties are among the dispositions, including Woodlands of Crest Hill (pictured), a 730-unit multifamily property at 1615 Arbor Lane in Crest Hill.
Essex Realty’s Abe Eilian was the sole broker in the $500k sale of 1955 W Chicago Ave, a three-unit mixed-use building in West Town.
The Boulder Group’s Randy Blankstein and Jimmy Goodman repped the seller in the following transactions:
- A single-tenant Bank of America ground lease at 1400 Waukegan Rd in Glenview, for $6.9M. The lease features 10% rental escalations every five years throughout the primary term and renewal option periods, and expires in December 2029.
- A single-tenant net-leased Walgreens at 2001 N Milwaukee Ave in Chicago, for $11.3M.
HFF’s Jaime Fink and Jeffrey Bramson repped The 601W Cos in the acquisition of the Old Main Post Office at 433 W Van Buren (shown) from International Property Developers North America. The seller was repped by Savills Studley’s Lisa Davidson and Tiffany Winne, and Savills UK’s Richard Sykes.
Marcus & Millichap’s Austin Weisenbeck and Sean Sharko repped the seller in the $1.7M disposition of a single-tenant, net-leased Burger King at 250 W Virginia in Crystal Lake. The buyer was repped by Marcus & Millichap’s Steve Sauter.
Baum Realty Group’s Will Crowden and Pintail Partner’s Joe Berry repped the buyer in the sale of 19k SF of fully leased retail space at Touhy Marketplace in Skokie.
Windy City RE bought 2010 S Wabash for $1.7M. The firm plans to convert the six residential units into 12 units.
NAI Hiffman completed the following leases in the I-55 Corridor:
- Mark Moran and Steve Connolly repped landlord Sun Life Assurance Company of Canada in its 260k SF lease renewal with Westrock Converting Co at 365 Crossing Rd in Bolingbrook (pictured). Colliers' Douglas Biggs repped the tenant.
- Mark Moran and John Whitehead repped ownership, and NAI Hiffman’s Perry Higa repped tenant Elite Facility Professionals, in its new 8,141 SF lease at 245 Rocbaar Dr in Romeoville.
CBRE’s Sharon Kahn repped landlord Madison Realty, and McDevitt Co’s Staci Joyce repped tenant Free People in a 11k SF lease at 1101 W Randolph St. Free People will occupy two floors of the building, which will serve as its flagship store and wholesale showroom.
Transwestern’s Tom Boyle and Jared Paff completed the following leases:
- Tom and Jared repped Horizons Window Fashions in its 128k SF lease at Amhurst Lakes Business Center in Waukegan (shown).
- Tom and Jared repped Trifinity Partners in its 120k SF lease at Delany Commerce Center at 2431 Delany Rd in Waukegan.
Seneca Real Estate’s Joe Padorr repped the landlord in the following leases:
- Metro Commercial Real Estate’s Steven Baer repped JC Licht in its 2,400 SF lease at Hubbard Woods Shopping Center in Glencoe.
- A 3k SF lease with Athletico at Channahon Commons Shopping Center at 25520 Pheasant Dr in Chanhannon. Echo Commercial Realty and Swearingen Real Estate repped the tenant.
JLL’s Mark Kolar and Jim Rose repped MECU in its 28k SF lease at Schaumburg Corporate Center, 1501 Woodfield Rd. MECU will use the space as its HQ and operate a bank branch on the first floor. John Hancock Real Estate’s Brent Jacob repped the landlord.
@properties Commercial hired Michael Richwine as senior commercial broker. Michael came from CBRE, where he held various positions over the past 35 years, most recently as associate director.