This Week's Chicago Deal Sheet
Industrial landlords around Chicago got off to a great start in 2019, and Bridge Development Partners, one of the region’s most active developers, signed a total of 880K SF of leases by midyear. Bridge secured tenants in five industrial facilities across the Chicago area, namely in its Wood Dale, Franklin Park, Downers Grove, Bridge Point North and Fountain Square developments, and hopes to lease up the remaining square footage by the end of 2019.
"The work we've done to rehabilitate these previously infill sites is attracting a superior roster of tenants — many in the logistics and shipping industry — to each development,” Bridge Development Partners Chief Operating Officer Steve Groetsema said in a statement.
- Forward Space entered into a long-term lease for 100K SF at Bridge Point Wood Dale, 700 North Wood Dale Road in Wood Dale. The woman-owned, commercial furniture dealership provides office furniture and workplace planning. The development is 30% leased across its two buildings.
- Mainfreight Logistics committed to a long-term lease for 93K SF at Bridge Point Franklin Park Building III, 10701 Franklin Ave. in Franklin Park. The development’s three buildings are 43% leased.
- Coopers Hawk Winery & Restaurants signed a long-term lease for 24K SF at Bridge Point Downers Grove Building I, 3600 Lacey Road in Downers Grove.
- ThyssenKrupp Engineering signed a long-term lease for 26K SF at Bridge Point Downers Grove Building I.
- Remedi SeniorCare entered into a long-term lease for 56K SF at Bridge Point Downers Grove Building I. These three buildings are 16% leased.
- Thermoflex signed a long-term lease at Bridge Point North Building V for the entire 228K SF facility, located at 1350 Bridge Drive in Waukegan. Bridge Point North is 68% leased.
- Bulletproof Logistics & Distribution signed a long-term lease for 98K SF, as well as a 67K SF expansion space at Fountain Square Commerce Center Building II, 600 Remington Blvd. in Bolingbrook.
- Logistics and transportation management company eShipping signed a long-term, 98K SF lease at Fountain Square Commerce Building II. LEGS Transport has signed a long-term lease for 39K SF at Fountain Square Commerce Center Building III, 640 Remington Blvd.
- L3DFX signed a long-term lease for 47K SF at Fountain Square Commerce Center Building III.
Tenants now lease 92.5% of the existing four buildings at Fountain Square Commerce Center. Bridge plans to break ground next month on Building V, which will be 219K SF.
Bridge has eight projects underway in the Chicagoland area totaling 4.7M SF.
Heitman LLC appointed Chasity Boyce as the firm’s head of inclusion and diversity. In the newly created role, she will set the firm’s global inclusion and diversity strategies and initiatives. Prior to joining Heitman, Boyce was a diversity and inclusion manager for law firm Skadden, Arps, Slate, Meagher & Flom LLP. Prior to her work at Skadden, she served as associate general counsel to Illinois Gov. Bruce Rauner.
Justrite Manufacturing signed an 11K SF long-term lease at ArborLake Centre, located at 1751 Lake Cook Road in Deerfield, Illinois. Colliers International | Chicago’s Jonathon Connor and Steve Kling represented landlord Stanton Road Capital. With this lease, the 220K SF is now 77% leased. Other tenants in the building include Miller Cooper, Personnel Staffing Inc. and AXA Equitable. SRC will soon launch a $2M capital improvement plan for the six-story, Class-A office building, that includes a complete overhaul of the building’s lobby and common areas, as well as implementation of The Outpost, SRC’s tenant amenity package.
CubeWork, an office and warehousing coworking company, leased 202K SF of a 234K SF industrial building at 7080 North McCormick Blvd., in the near north suburb of Lincolnwood. Cushman & Wakefield’s Steve Stone represented landlord New Lincoln LLC. The transaction is one of the largest leasing deals in the Edens Corridor over the past 10 years. Service King, a national vehicle collision repair company, leases the balance of the building. Bill Mass of Mass Realty represented CubeWork.
CONSTRUCTION AND DEVELOPMENT
Mortenson recently completed the first phase of the partial demolition, expansion and renovation of Halas Hall, the iconic suburban Lake Forest headquarters of the Chicago Bears. The builders plan to wrap up in August in time for the Bears’ return from summer camp. The first phase, turned over on April 1, included demolishing part of the original facility, and building a 165K SF addition while allowing the team to continue training at the headquarters. The second phase entails renovating the remaining original building, including converting the old locker room and equipment area into a larger cafeteria and player recovery area.
Marcus & Millichap’s Adrian Mendoza, Austin Weisenbeck and Sean Sharko completed the $5.8M sale of Willow Commons, a 58K SF retail property at 305-371 75th St. in suburban Willowbrook.
Huntley Shops, a 9K SF retail investment property at 12030-12090 Princeton Drive in Huntley, Illinois, sold for $3M in an off-market sale. SVN Chicago Commercial’s Jennifer Hopkins and Olivia Czyzynski represented the seller and Chicago Metro Realty’s Carolyn Michaels represented the buyer.
The Boulder Group completed the $3.6M sale to a private investor of a single-tenant net-leased Miller’s Ale House ground lease property, located at 1300 North Meacham Road in Schaumburg, Illinois, just across from Woodfield Mall. Randy Blankstein and Jimmy Goodman of Boulder represented the seller, a Chicago based real estate company.
Newmark Knight Frank orchestrated two industrial investment sales totaling approximately 75K SF in the Chicagoland area. In the first transaction, NKF’s Adam Marshall and Boris Shraybman arranged the sale of 1275 Karl Court in north suburban Wauconda, a 56K SF distribution facility. NKF represented the seller, a private investor. The 100% net-leased facility sold to One Liberty Properties for an undisclosed amount. Before marketing 1275 Karl Court for sale, NKF represented the owner in arranging the full-building lease to ECHO Inc. a power equipment manufacturer. Nick Walby of Entre Commercial Realty represented ECHO in the negotiations.
Marshall and Shraybman also arranged the sale of 561-575 South Arthur Ave. in Arlington Heights, on behalf of a private owner. The 18K SF industrial facility was acquired by a private investor for an undisclosed amount.
THIS AND THAT
Chicago-based development partners Fifield Cos. and F&F Realty celebrated the grand opening earlier this month of 727 West Madison, their 45-story, 492-unit luxury apartment building in the West Loop. It is now the neighborhood’s tallest building. Apartment leasing began in late October, and the building is now 70% leased. Designed by Chicago-based FitzGerald Associates Architects, the project began construction in early 2017, with Evanston, Illinois-based Morgante Wilson Architects as interior designer for the residences and most common spaces. Bozzuto leases and manages the building.
The Marshall Bennett Institute of Real Estate at Roosevelt University created a new Graduate Certificate in Real Estate Development. The 12-credit-hour program, which students can complete in two semesters, begins in fall 2019.