Downtown office building sales have totaled $1.7B so far in 2018, and another four buildings are under contract for an additional $478.5M.
One building accounts for the majority of the latter total: 175 West Jackson. Brookfield Asset Management agreed to acquire the 1.4M SF, Daniel Burnham-designed building from a venture of Extell Development and Strategic Property Fund for $305M.
The pending sale marks a rapid reversal of fortune for the seller. The Extell-Strategic venture took out a $280M loan on the property from Deutsche Bank in 2013, but was at risk of defaulting on $275M in debt. The building is 67% occupied, meaning Brookfield has room to add value through lease-ups. The building's amenities were recently renovated and feature a fitness center, rooftop deck and conference center.
JLL's Bruce Miller and Nooshin Felsenthal represented the seller.
SALES
Essex Realty completed the following transactions:
Jim Darrow and Jordan Gottlieb represented the seller, and Doug Imber, Kate Varde and Clay Maxfield represented the buyer, in the $2.5M sale of 4433 West Fullerton/2344 North Kenneth in the Hermosa neighborhood. The property is composed of 20 apartments and four street-level commercial spaces.
Doug Fisher and Brian Kochendorfer represented the seller, and Fisher represented the buyer, in the sales of 431-455 Brandy Drive in Crystal Lake and 223-265 Uteg St. in Crystal Lake. The Brandy Drive property is an 18-unit townhome complex. The Uteg Street asset is a 48-unit garden apartment complex.
Jim Darrow and Jordan Gottlieb represented the seller, and Brian Mond represented the buyer, in the $1.6M sale of a seven-unit apartment building at 2058 North Albany in Logan Square.
Jim Darrow and Jordan Gottlieb represented the seller and Doug Imber, Kate Varde and Clay Maxfield represented the buyer in the $4.9M sale of a 56-unit apartment building at 7301 North Ridge Ave. in Rogers Park.
***
Podolsky Circle CORFAC International completed the following transactions:
Alissa Adler, John Homsher and Paul Tesdal represented Spirit Lake Acquisition in the $2.7M sale of 5439 Durand Ave. in Racine, Wisconsin, to Gateway Investment Partners.
Alissa Adler, John Homsher and Paul Tesdal represented the seller, Clear Height Properties, in the $2.7M sale of a 44K SF office/flex building at 1000 East State Parkway in Schaumburg. Colliers International’s Kelly Joyce represented the buyer.
***
The Boulder Group’s Randy Blankstein and Jimmy Goodman represented the seller in the $12.7M sale of a single-tenant, net-leased Jewel-Osco at 17930 Wolf Road in Orland Park.
***
NAI Hiffman completed the following transactions:
John Whitehead and Adam Johnson represented Midwest Industrial Funds in the sale of a 47K SF flex industrial property at 1600 Shore Road in Naperville to Lagestee-Mulder.
Larry Much and Adam Naparsteck represented CN Development in the sale of a 32K SF property at 525 Anderson Drive in Romeoville to Estes Construction.
***
Avison Young’s Hugh Williams and Michael Fonda represented MK Asset Management in the sale-leaseback of a 70K SF office building at 1001 East Touhy Ave. in Des Plaines. Jonathan Sealey represented the seller, Lutheran Social Services of Chicago.
***
CBRE’s Justin Ross represented Nordic Realty Partners in the $1.4M sale of a mixed-use property at 3824 North Clark in Wrigleyville to Lighthouse Investments.
***
Interra Realty’s Adam Saxon and Brad Feldman represented a limited liability corporation in the $5.8M sale of a 32-unit courtyard apartment building at 5022-30 North Winthrop Ave. in Uptown. Interra’s Joe Smazal represented the seller.
LEASES
CBRE completed the following transactions:
Joe Parrott represented the landlord in a 12K SF lease with Old Navy at Marshfield Plaza, 11730 South Marshfield Ave. in Chicago. The 453K SF power center is anchored by Jewel-Osco, Target, Burlington Coat Factory, Marshall’s, LA Fitness and Petco.
Christy Domin and Drew Nieman represented UBS Asset Management in a 681K SF lease with Publicis at the Leo Burnett Building, 35 West Wacker Drive. Cushman & Wakefield’s Mike Christian and Steve Schneider represented the tenant. The new lease represents a 50K SF expansion for Publicis and brings the building to full occupancy.
***
Simon Property Group signed a lease with H&M at Orland Square Mall, increasing its size by 7K SF. The new location will open in the fall.
***
NKF’s Adam Marshall, Elise Couston and Mark Deady represented Barings Real Estate in a 271K SF long-term lease expansion and renewal at 1331-37 Schiferl Road in Bartlett.
FINANCING
Aries Conlon Capital’s Mac Dobson arranged a $1.9M nonrecourse CMBS loan for Security Storage at 1650 Barlow St. in Traverse City, Michigan.
***
ASC’s Igor Zhizhin arranged a $5.8M loan for a 121-bed skilled nursing facility in Sterling, Illinois.
HIRES/PROMOTIONS
Tucker Development promoted Aaron Tucker to chief investment officer and hired Charles Jerkovich as vice president of asset management and acquisitions. Jerkovich joined Tucker from WHI Real Estate Partners, where he was vice president of asset management and acquisitions.
***
Krusinski Construction hired Michael Tredennick as project engineer.
CONSTRUCTION
The Missner Group completed a build-out for Naf Naf Grill at 1775 East Golf Road in Schaumburg. Heath Yarger was project manager, Mike Sneddon was project superintendent, Wilkus Architects provided architectural services and LS Engineers provided engineering services.
KUDOS
BlitzLake Partners awarded 33 Realty the leasing and management assignment for Duet, BlitzLake’s apartment development at 2448-62 North Lincoln Ave. in Lincoln Park. The 31-unit project is expected to open in late summer. Pre-leasing for Duet will begin this month.
)
)
)
)
)
)
)
)
)
)
)
)