This Week's Chicago Deal Sheet
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Premier Design + Build Group broke ground last week on a 153K SF speculative warehouse for Chicago-based developer Sterling Bay. The builder will use precast concrete and steel for the facility, which will feature 30-foot clear height ceilings, 161 parking stalls, 31 exterior truck doors and two drive-in doors and includes an early suppression fast response sprinkler system.
The 9-acre site, located at 1035 South Frontage Road, south of Interstate 55 near Cass Avenue, will include extensive frontage on the interstate. Premier expects to complete the building by November.
Premier's Carl Graves serves as project manager, working with Gary Schlinger as superintendent. Other key members of Premier's project team include Ron Nelsen, Joseph Ahrens and Michael Long.
"Infill sites of this size and quality, with great visibility on I-55, are very rare," Sterling Bay Director, Industrial Division Mark Barbato said.
Premier and Sterling Bay were joined at the event by Darien Mayor Joseph Marchese.
"This is a beautiful facility that will bring a lot in terms of advancing the city of Darien," he said.
Premier and Sterling Bay teamed up with Cornerstone Architects Ltd. for architectural design services and Spaceco for civil engineering.
Shannon Pope and Patrick Owens joined JLL as senior vice presidents of its Chicago-based Retail Advisory Services. They have more than four decades of combined experience, and managed expansion strategies for notable tenants including Raising Cane’s Chicken Fingers, PNC Bank, Chase Bank, AMC Theatres and Tuesday Morning.
Edward-Elmhurst Health decided to relocate and expand its headquarters to 188K SF at 4201 Winfield Road in west suburban Warrenville. The healthcare provider, which has three hospitals — Edward Hospital, Elmhurst Hospital and Linden Oaks Behavioral Health — will relocate from two facilities, a 98K SF office at 855 Church St. in Elmhurst and a 74K SF office at 2755 Diehl Road in Warrenville.
The firm will occupy the new space, formerly the headquarters for Navistar, in November. Created by the merger of Edward Hospital and Elmhurst Memorial Healthcare in 2013, EEH serves residents in the west and southwest suburbs of Chicago. David Justh of CBRE represented EEH. JLL’s Jeff Shay and Lyle Patterson represented ownership.
Proper Title LLC expanded its Chicago Loop office and opened a new location in west suburban St. Charles.
Located at 180 North LaSalle St., the Loop office now has almost 10K SF. Despite a slower local housing market compared to this time last year, Proper Title’s closings increased 15% in the first quarter compared to the same period in 2018, company officials said. A surge in requests for a closing location in Chicago’s far west suburbs also led to the opening of a new, temporary 1,200 SF office at 440 South Third St. in St. Charles.
Chicago’s First Lady Cruises and Mercury, Chicago’s Skyline Cruiseline, established new headquarters in downtown Chicago on the 15th floor of 303 East Wacker Drive, a short distance from the cruise lines’ docking area on the city’s Riverwalk and Chicago’s First Lady Cruises’ partner, the Chicago Architecture Center.
The companies moved from northwest suburban Palatine to demonstrate their commitment to the city of Chicago, the companies’ officials said. The nearly 10K SF office, designed by Collective Office, features both private and open concept office spaces, a test kitchen and graphics of the Chicago River on the interior walls.
Palatine, Illinois-based Chicagoland Commercial Real Estate Inc. completed three new suburban retail leases totaling almost 8K SF. In the first, the company’s Randy Olczyk and Tom Callahan represented landlord MPC Co. in a nearly 4K SF lease to Trilokah Indian Restaurant within Mount Prospect Commons, located at 1748 West Golf Road in Mount Prospect. Jay Chandran of Jay C. Realty Inc. represented the tenant. Olczyk and Callahan also represented landlord Palatine Retail Center and tenant Synergy Builders in an almost 2K SF lease at 7 East Northwest Highway in Palatine. Steven Hirsch represented Partnership Financial Credit Union in a 10-year lease for roughly 2K SF at 2522 Green Bay Road in Evanston.
Marcus & Millichap completed the $4M sale of Creekside Commons, a 23K SF, multi-tenant retail property at 1101 Weiland Road in Buffalo Grove, Illinois. Mitchell Kiven marketed the property on behalf of the seller, a partnership of Libertyville, Illinois-based investors. The buyer, Wilmette, Illinois-based Shiner Buffalo Creek LLC, is a developer and investor sourced by Kiven.
CONSTRUCTION AND DEVELOPMENT
Chicago-based design firm Wight & Co. completed the Prairie Activity and Recreation Center for Plainfield Park District. Designed as a net-zero facility, the 37K SF building in southwest suburban Plainfield will reportedly be the first building of its kind to achieve the Passive House Institute US PHIUS+ Source Zero certification, which requires an air-tight structure that keeps a consistent indoor temperature, regardless of weather. Adding Source Zero certification to PHIUS+ requires that a building generate energy equal to or greater than the amount consumed. The park district had secured a $1M grant through the Illinois Clean Energy Community Foundation’s Net Zero Energy Building Program.
THIS AND THAT
Developers across the nation have about 274M SF of industrial space underway, according to Avison Young’s latest Global Industrial Market Report. Almost 20M SF is underway in the Chicago region, the fifth-most of any U.S. market. Dallas leads the nation with 30.9M SF, and the Inland Empire, Philadelphia and Atlanta metro areas each have between 20M SF and 30M SF. Tenants have pre-leased 26.9% of the projected Chicago-area space, far below the 98% pre-leased in the Inland Empire, but close to the rest of the other most-active markets, where the amount of pre-leased space ranges from 17.6% to 44.7%.