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The Deal Sheet

Chicago Deal Sheet

Gambling has been around since the dawn of time (fossils as poker chips, anyone?), but these days suburbanites are doing it in style. Gaming cafes seem to be going for Starbucks-style market saturation, and Blackhawk Restaurant Group is shooting for 100 Illinois locations by 2016.

The Deal Sheet

Repped by NAI Hiffman SVP Mike Meksto (above left) and VP Jim Tsevis, Blackhawk has completed 73 leases (35 have opened) in the Chicago area for its latest gaming café concepts, Betty’s Bistro and Penny’s Place. They’ve focused on 1,500 SF sites within food-anchored shopping centers, Mike tells us, in communities that permit gaming (unlike the City). While some municipal leaders will never bend and “go green” (allowing gaming, five machines per facility max), many have taken a “wait and see” approach and agreed after visiting other Blackhawk sites to observe build-outs and operations, Mike says. These are not your father’s casinos, nor are they trying to be. (So it's not a bunch of drunk old men arguing over undercard boxing and putting their children's toys up for collateral?)

The Deal Sheet

The vibe: a convenient, homey place where people can enjoy light eats, a drink, and some fun on the gaming machines while running other errands at the shopping center. Mike and Jim began searching for sites with Blackhawk in early 2013. Its locations now span the suburban alphabet (Addison, Bartlett, Cicero, etc.) and the reception from landlords has been overwhelmingly positive, Mike says. They’re happy with high-end build-outs (above) improving the quality of the property, and the locations blend in well with retailers nearby. The gaming landscape has become increasingly competitive, with a host of local bars, taverns, and restaurants offering gaming to guests, but he doesn’t think it’s reached a tipping point. Schulz Properties president and managing broker Theresa Schulz repped Blackhawk in 15 of the deals.

SALES

The Deal Sheet

Transwestern capital markets directors Janice Sellis and Paul Barile repped Inland Real Estate Corp in the sale of Lake Park Plaza, 4301 S Franklin St (above) in Michigan City, Ind., to RCG Ventures. The 115k SF center, developed in 1992, is anchored by Hobby Lobby and Jo-Ann Fabrics.

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Adrian Mendoza, Austin Weisenbeck, and Sean Sharko, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, repped the seller, a private investor, in the $5M sale of 17k SF Advocate Good Shepherd Outpatient Center, 2284 County Line Rd in Algonquin. The property is net-leased to Advocate Health and Hospitals Corp, with less than two years of lease term remaining. The buyer, a private investor in a 1031 exchange, was repped by Glen Kunofsky and Judson Kauffman, investment specialists in Marcus & Millichap’s Manhattan office.

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Sean Delaney and Matthew Duda, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, repped the seller, a developer, and the buyer, a private investor, in the $4.9M sale of Hoerth Storage, a 133k SF self-storage facility at 501 W Rolling Meadows Dr in Fond Du Lac, Wis. Broker Matthew Fitzgerald assisted in the closing.

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MedProperties Group acquired Salt Creek Surgery Center, 530 N Cass Ave in Westmont. The 12k SF ambulatory surgery center is majority owned by Edward Health Ventures, a subsidiary of Edward-Elmhurst Healthcare, and physicians affiliated with DuPage Medical Group and Hinsdale Orthopaedics.

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Triad Real Estate Partners completed the $2.7M sale (8.22% cap rate) of Oakwood Estates, an 80-unit Low Income Housing Tax Credit (LIHTC) multifamily property in Decatur. The seller is a Minnesota-based tax credit and affordable housing developer and the buyer is a well-established Champaign-based investment company. Financing was provided by Morton Community Bank.

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Building Equity RE completed the $2.3M bank-approved short sale of 223 W Lake, a 30k SF loft building in the Loop. Dan Rosenberg repped the buyer and Peter Lynn repped the seller.

LEASING

The Deal Sheet

Punchkick Interactive, repped by MB Real Estate’s Boris Yelyashov and Christine Torres, inked a 23k SF lease at 55 E Monroe (above) in the East Loop and will move from 22 W Ontario later this year. 55 E Monroe is owned by GlenStar Properties and partner Walton Street Capital, who began redeveloping (including converting the top nine floors into luxury condos) the 1.6M SF property in 2005.

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The Chefs’ Warehouse, repped by Colliers’ John Basile, leased a 108k SF warehouse at a 277k SF industrial building, 2801 S Western Ave. The building will serve as the warehouse and distribution space for The Chefs’ Warehouse Chicago in combination with recently acquired Allen Brothers Steaks. Cushman & Wakefield’s Sally Macoicz, Larry Goldwasser, and Colin Green repped ownership, a JV of Venture One Real Estate and DRA Advisors.

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Arthur J. Rogers & Co senior associate Chris Zannis completed four new leases on behalf of ownership within 232k SF Rogers Business Parke-Elgin, bringing occupancy to 100%. Precision Dormer (repped by Premier Commercial Realty’s Joe Billitteri) inked a 9,890 SF new flex lease at 2521 Technology Dr; Intellisource signed a new 4,500 SF lease at 2531 Technology Dr; Winegard Co leased 3,900 SF at 2541 Technology Dr; and ONSITE Woodwork signed a 1,690 SF lease at 2521 Technology Dr. Chris has also completed 33k SF of lease renewals within Rogers Business Parke-Elgin since January.

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HSA Commercial Real Estate signed an 18k SF lease with DSW Designer Show Warehouse at The Mayfair Collection (an adaptive reuse of warehouses along Highway 45 in Wauwatosa, Wis.), opening this fall. Other tenants include Nordstrom Rack, Dick’s Sporting Goods, and Saks Fifth Avenue OFF 5TH, and the property’s Phase 1 opened on April 3.

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Thybony Wallcoverings leased 18k SF of warehouse space at 1001 Lively Blvd in Elk Grove Village. Transwestern’s Adam Schneiderman repped Thybony in the three-year lease. The owner of the 45k SF warehouse, Gullo International, was repped in-house by Mariann Gullo. Locatd about 10 miles from O’Hare, the property is eligible for low 6b tax rates.

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NAI Hiffman EVP Michael Flynn and VP Jason Wurtz repped Sun Life Assurance Co of Canada, ownership of 72k SF 1300-1320 N Plum Grove Rd, in a lease renewal with Mitsubishi Materials for 14k SF of office space in Schaumburg. WHITE CUBE’s Tak O’Haru repped the tenant, which has been at the property for over five years.

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Signature Bank opened its new HQ, and fourth Chicago-area location, in the 380k SF Northwest Plaza office complex in Rosemont, where the bank signed a new lease for 11k SF. JLL SVP Rick Benoy repped ownership, a partnership including Fulcrum Asset Advisors; JLL’s Jim Rose and Bill Rogers repped the bank.

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Trelleborg Sealing Solutions leased 11k SF in Woodfield Preserve Office Center, 20 N Martingale Rd in Schaumburg. The firm is relocating its Midwest sales office from a site in Hanover Park. CBRE’s Bill Saviski repped Trelleborg and Rob Graham repped the landlord.

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The Deal Sheet

M&R Development and Dodge Capital leased 3,500 SF of retail space at 80-unit Central Station (above), 1720 Central St in Evanston, to MDCC for a 120-seat restaurant called The Wood Shed (a JV of Robert Lapata, Joe Krouse, and Frederic Gale). SVN | Chicago Commercial’s Ben Andrews repped the tenant, and agents with Mid-America Real Estate Group repped M&R and Dodge.

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Kudan Group’s Scott Reinish facilitated the lease at 4609 N Sheridan Rd in Uptown. The Horizon Realty Group-owned space is located on the ground floor of the 140-unit Sheridan Plaza Apartment building. Dr. Amer Rustum, an internist, will open his fifth location there this fall.

EXECUTIVE MOVES

MB Real Estate tapped Craig Walczyk as SVP/chief accounting officer and managing director, responsible for all financial aspects of the company. Craig was previously EVP and chief accounting officer for Waterton Associates. He is a graduate of University of Wisconsin, Madison, where he received his BBA in accounting.

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Avison Young hired Jon Copeland as an SVP in its Chicago office, focused on agency leasing and working closely with principals Michael Curran, Brad Despot, and Eric Myers. The 10-year industry vet was most recently a VP at CBRE and head of leasing at 71 S Wacker Dr and 190 S LaSalle. Jon is a graduate of U of I at Urbana-Champaign.