This Week's Chicago Deal Sheet
The Community Development Commission has voted to approve the rehabilitation of the long-vacant Uptown Theatre at 4816 North Broadway. Up to $13M in tax increment financing assistance approved by the commission will help rehabilitate the 93-year-old, Spanish Revival-style building as a 21st-century entertainment venue.
The restoration efforts are being led by Farpoint, a Chicago-based real estate developer, and Jam Productions, one of the region’s largest concert promoters.
With “an acre of seats” served by three separate lobbies, the Uptown was the world’s largest theater building when it opened in 1925. Designed by architects Rapp and Rapp for operator Balaban and Katz Corp., the Uptown was used for stage shows, movies and special events. The theater last hosted a concert on Dec. 19, 1981, by the J. Geils Band. Since then, the building’s interior spaces have been periodically used for film productions.
“Assistance from all levels of government — local, state and federal — is necessary to get this project over the finish line," Jam co-founder Jerry Mickelson said. "Future generations will not forgive those who do not save this magnificent palace, because a venue like the Uptown Theatre will never be built again.”
The TIF assistance will be provided through the Lawrence/Broadway TIF district, established in 2001 in part to help fund the building’s restoration. Additional city financial assistance is anticipated to include $14M in PACE financing and $3M in Adopt-A-Landmark funds.
Other funding sources for the project include $30M in equity, conventional financing or charitable contributions, and $10M in Build Illinois Bond funding.
The rehabilitation work will be undertaken by Lamar Johnson Collaborative (architect), Schuler Shook (theater/lighting designer), MacRostie Historic Advisors (historic consultant), Forefront Structural Engineers, WMA Consulting Engineers, and Wiss, Janney, Elstner Associates (facade restoration).
Interior improvements are expected to include new elevators, concessions, building systems and related work that will increase capacity from about 4,100 to 5,800. Exterior work will repair the building’s masonry and terra cotta and improve marquees and related signage, among other repairs and improvements.
EXECS
JLL has tapped Sanjay Rishi as CEO for its Americas Corporate Solutions business. Rishi joins JLL from IBM, where he led the company's global cloud consulting services organization. He will be based in Chicago.
***
Amy Hall is joining Caton Commercial Real Estate Group as its chief operating officer, and Jennifer Pollack is joining as director of marketing. Both will be based in the company’s Naperville office.
***
Irvine Company Office Properties has named Maggie Brophy senior leasing manager for its Chicago portfolio, which includes One North Wacker, 300 North LaSalle and 71 South Wacker.
SALES
A fund managed by New York-based DRA Advisors has partnered with Northbrook-based Pine Tree LLC to acquire The Shops at Kildeer, a 171K SF shopping center in Kildeer, for $32.5M. Developed in 2001, the property is directly across from Deer Park Town Center. Tenants include Bed Bath & Beyond, Ulta Beauty, Michael’s, Old Navy, Uncle Dan’s (formerly Erehwon Mountain Outfitter) and Cost Plus World Market. The deal was brokered was George Good of CBRE. Financing was provided by Wells Fargo and arranged by William Barry of Draper and Kramer.
***
Mid-America Real Estate Corp. has brokered the sale of 1100-1114 West Randolph St. in Chicago for an undisclosed price. The buildings were purchased by Chicago-based L3Capital. 1100-1114 West Randolph St. consists of existing one- and two-story buildings on almost 10K SF across from the new global McDonald’s HQ. Mid-America Real Estate Corp. principal Joe Girardi and Vice President Carly Gallagher represented the seller, a New York-based private entity.
***
Mid-America Real Estate Corp. has also brokered the sale of River Square in Naperville. The 58K SF center was purchased by New York-based Clarion Partners. Tenants include Rosebud, Chipotle, Starbucks, Five Guys, Penzey’s Spices and Bar Louie. Joe Girardi was the broker in the transaction.
LEASES
Entre Commercial Realty has facilitated a long-term sublease agreement on behalf of Rockford Systems at 5795 Logistics Parkway in Rockford. The 38K SF facility was developed in 2012 as a build-to-suit for an aerospace firm, but was decommissioned after a corporate acquisition of the tenant in 2017. The facility features 19K SF of office space and 19K SF of production/warehouse space with 24-foot ceilings, and land for expansion.
***
Manatt, Phelps & Phillips has expanded its Chicago office with its relocation to the recently opened 151 North Franklin St. in the Loop. The move into 11K SF will allow the company to grow its digital and technology offerings in the region, in addition to augmenting its healthcare and financial services capabilities.
DEVELOPMENT
Work has started on the redesign of the 40K SF HQ of Vital Proteins, a retailer of health supplements, at the four-story 939 West Fulton St. building in Fulton Market neighborhood. As sole tenant, Vital Proteins will enjoy private access to the building’s roof terrace, which also is being renovated. Vital Proteins is relocating 130 employees from its current offices at 1201 West Washington to accommodate its growth. Skender is the contractor on the redesign.
***
Panattoni is planning to develop Orchard Gateway, a 764K SF warehouse distribution facility on Orchard Gateway Boulevard in Aurora, adjacent to Orchard Road and Interstate 88. Colliers International Chicago’s Brian Kling and Reed Adler represented Panattoni Development in its acquisition of a 53.4-acre site on which the facility will be developed. Divisible to 300K SF, the building will be available for occupancy in the third quarter.
***
Trammell Crow and CBRE Global Investors have started work on a 300K SF office tower at 1375 West Fulton Market in the Fulton Market neighborhood. The 14-floor tower will include 15K SF of ground-floor space for retail and restaurants and is expected to deliver in Q1 2020. CBRE Senior Vice President Sara Spicklemire and Vice President Kelsey Scheive are responsible for leasing and marketing the building.
***
The Habitat Co. has completed the $16M acquisition and rehabilitation of a 153-unit single-room-occupancy community in Chicago’s East Garfield Park neighborhood. Habitat developed East Park SRO at 3300 West Maypole Ave. in 1994, and has managed the community since then. East Park has been retrofitted with LED lighting, high-efficiency boilers and new in-unit heating and cooling. Rehabilitation work includes a new roof, masonry repairs, mechanical upgrades, landscaping improvements, and lighting and common area enhancements, as well as unit upgrades.
FINANCING
Square Mile Capital Management has originated a $149M loan secured by The Gallery on Wells, a 40-story, 442-unit multifamily building in the River North submarket. Magellan Development Group, Wanxiang America Real Estate Group, MAC Management and Strand Advisors developed the asset in 2017. The financing will repay existing debt and preferred equity on the asset. Peter Marino and Molly Green of CBRE’s Capital Markets Group in Chicago arranged the debt.
THIS AND THAT
The Mart building in Chicago (formerly the Merchandise Mart) has just achieved Fitwel certification by the Center for Active Design, which recognizes the property’s ability to support the physical, mental and social health of its occupants. The largest building to date to receive Fitwel certification, The Mart also represents the first certification achieved under Fitwel’s Multi-Tenant Whole Building Scorecard for workplaces.
***
The Benjamin Marshall Society honored John Rutledge, founder, president and CEO of the Oxford Capital Group and Oxford Hotels & Resorts, at its annual fundraiser at the newly opened Hotel Julian in Chicago. At 168 North Michigan Ave., the building was designed by Chicago architect Benjamin Marshall in 1912 and restored by Rutledge, who is Hotel Julian’s managing general partner and developer, in collaboration with architect Hirsch MPG.
