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The Deal Sheet

Chicago Deal Sheet

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In an effort to simplify its balance sheet and transition to a wholly owned portfolio, Retail Properties of America plans to acquire six shopping centers around the country through the dissolution of a JV. (To help you relate, it’s like your first apartment your parents didn’t co-sign on.)

The Deal Sheet

RPAI had 20% ownership in the 1.2M SF, 95.5% leased portfolio, and will pay its MS Inland JV partner $292.5M while assuming $142.2M of in-place mortgage financing for the remaining 80%. In addition to centers in Dallas, San Antonio, New York, Atlanta, and Miami, the portfolio includes a local property, Oswego Commons (above). RPAI liked the community center for its location in the fast-growing western suburbs, with average household income that exceeds $80,000 in a three-mile radius, RPAI president and CEO Steve Grimes tells us. Anchor tenants include Target, TJ Maxx, OfficeMax, and Petco. (Now we’re imagining what kind of office supplies our dog might need.) The portfolio sale is expected to close in June.

SALES

IBD sold 187k SF 600 E Brook Dr in Arlington Heights to Bridge Development Partners. The CBRE team that brokered the sale (Keith Puritz, Steve Livaditis, and Jeff Counsell) then leased the space on behalf of Bridge to European Imports, a Sysco subsidiary. Colliers’ David Kahnweiler repped European Imports. Asking price for the building was $13.8M.

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Boyer-Rosene Moving & Storage purchased 14.4 acres on Joliet Road in Bolingbrook. Lee & Associates of Illinois principals Jim Planey and Jeff Janda repped the seller, LaGrou Bolingbrook LP, as well as the buyer.

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The Deal Sheet

Essex Realty Group’s Matt Welke and Jason Fishleder completed the $11.5M sale of 2601-15 W Belmont Ave (above), a new construction, 46-unit elevator building in Avondale. The building includes an underground parking garage with about 49 spaces.

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Venture One Real Estate, through its acquisition fund, VK Industrial II, closed on a 21k SF fully leased industrial building at 3705 Stern Ave/612 Stetson Ave in St. Charles. The property is leased to Unitronex Corp and UV Specialties, who have been in the building since 2006 and 2011, respectively. Lee & Associates of Illinois's Nick Eboli repped the seller.

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NAI Hiffman EVP Larry Much repped ownership of 218 N Elizabeth St in the sale of its 19k SF property to Sterling Bay. The vacant land site is currently used as a parking lot.

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The Deal Sheet

SVN | Chicago Commercial sold 26 of 49 bulk condo units at 1228 Emerson St (above) in Evanston. SVN’s Jim Sears repped the seller, Bluewater Group; SVN’s Reid Bennett repped the buyer. The units totaled 37k SF and sold for $7.3M.

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Lee & Associates of Illinois principal Walter Murphy repped Spring King in its purchase of a 26k SF industrial building at 5700 W 120th St in Alsip. Lee principal Jeff Janda repped the seller, Stampede Tool.

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Sean Sharko and Austin Weisenbeck, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, repped the seller and buyer, both private investors, in the $3.1M sale of a 5,557 SF net-leased Chili’s property in Home Glen. Located at 14205 S Bell Rd, the Chili’s 20-year lease is guaranteed by ERJ Dining.

LEASING

The Deal Sheet

ML Realty Partners completed a new 117k SF industrial lease with Menasha Packaging at 7800 W 71st St (above) in Bridgeview. The building is adjacent to another 167k SF ML facility where Menasha signed a lease last year. NAI Hiffman EVP Steve Connolly and VP Chris Gary repped ML Realty Partners; Avison Young’s Patrick McCaffrey repped Menasha.

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Lee & Associates of Illinois principals John Cassidy and Ken Franzese repped Hi-Grade Welding & Manufacturing in 76k SF lease of manufacturing space at 140 Commerce Dr in Schaumburg. Cushman & Wakefield’s Britt Casey and Chris Lydon repped the landlord, IndCor.

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Proviso Partners signed a new lease with tenant Diversified Entities for 75k SF of industrial space at 219k SF 5600 Proviso Dr in Berkeley. NAI Hiffman’s Joe Bronson, along with Cushman & Wakefield’s Colin Green and Larry Goldwasser, repped Proviso; NAI Hiffman’s John Cash, David Haigh, and Adam Naparsteck repped Diversified.

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Chicago Stock Exchange, repped by Studley executive managing director Lisa Davidson and EVP/co-branch manager Rick Schuham, signed a long-term renewal of 33k SF at 440 S LaSalle. JF McKinney’s Mark Gunderson and Mark Baby repped the landlord. Chicago Stock Exchange is updating its space to create a more collaborative environment and the building is also undergoing a major renovation.

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Entre Commercial Realty principal Dan Benassi and Mark Deady repped the ownership of 52k SF 300 Millennium Dr in Crystal Lake in a five-year lease (with an option to buy) with National Gift Card, repped by NAI Hiffman’s Bruce Granger. The company chose the building for its high-tech manufacturing capabilities, full air conditioning, heavy power, and 10k SF of office space.

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Tabet DiVito & Rothstein, repped by Studley EVP/co-branch manager Joe Learner, signed a long-term lease extension for its 25k SF office in the Rookery Building, 209 S LaSalle. The firm chose to stay at the building because of its historical significance and unique features, as well as its close proximity to the courts and public transit.

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CBRE’s Jeff Mann assisted in two leases totaling 13k SF at Oak Brook Point, 700 Commerce Dr in Oak Brook. KEMA USA leased 10k SF and was repped by CBRE’s Pete Adamo and David Justh. BlueGrace Logistics, repped by KB Real Estate’s Tony Kahn, leased 2,720 SF in the building.

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Lee & Associates of Illinois SVP Mike Prost repped IP Media in an 8,168 SF lease of industrial space at 55 E Hintz Rd in Wheeling. Lee VP Sergio Chapa repped the landlord, Prologis.

FINANCING

The PrivateBank extended a $27.2M construction loan to Bridge Development Group to finance a 365k SF distribution center in McCook. The PrivateBank served as administrative agent on the deal and Associated Bank was joint lead arranger. Located at 8201 W 47th St, the property is a build-to-suit for Freeman Decorating Services.

CONSTRUCTION & DEVELOPMENT

Sitex Group completed the redevelopment of a 273k SF two-building industrial complex at 2680-90 W Lake St (102k SF) and 2800-2840 W Lake St (171k SF) in Melrose Park. It purchased the properties from the Village of Bellwood in April 2013 and the complex is currently 72% occupied.

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The Deal Sheet

LM Value Investors completed the renovation of The Crossings of Schererville (above), a 115k SF office building in Schererville, Ind. The fund, managed by a division of Lagestee-Mulder, purchased the building in December 2012 and increased occupancy from 59% to nearly 90%. Earles Architects and Associates provided the interior design and construction planning services.

EXECUTIVE MOVES

Christy Wold joined Avison Young’s industrial capital markets team, led by Chicago-based principals Erik Foster and Mike Wilson, as senior associate. Christy was previously an assistant property manager at Tishman Speyer and graduated from the University of Michigan in 2008.

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Bridge Development Partners added John Maduros as COO/CFO. John has 30 years of industry experience in operations, accounting, and finance, and was previously CFO of True North Investments. He holds a BS in accounting from NIU.

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Studley hired Adam Southard as associate director. He was previously in the investment banking division at Bank of America Merrill Lynch covering financial institution clients. Adam will support EVP Greg Gerber’s client team, which advises institutional, corporate, and not-for-profit clients in Chicago and the Midwest.