The Deal Sheet
Hot foodie names are moving back into the Loop and looking to the change the perception that the area struggles with night and weekend business. (Saying "New Loop restaurant" used to get you kicked out of churches and schools.)
Take Cochon Volant, the French brasserie slated to open in the future Hyatt Chicago The Loop (100 W Monroe) in January '15, Kudan Group’s Scott Reinish tells us. He repped WellDone Hospitality, which partnered with James Beard Award winning chef Roland Liccioni for the 3,545 SF concept. While Loop eateries are known mostly for weekday business lunches, Cochon Volant is capitalizing on the trend of chef-driven hotel hot spots, giving it a built-in audience and potential as a foodie destination, Scott says.
100 W Monroe, above. Restaurant leases within a hotel are a completely different animal, he says. It’s not just rent/SF, since you’re also factoring in catering, room service, and banquet facilities within the hotel. That means entry rents might be higher, but there’s also abundant upside given the variety of lucrative business lines, Scott says. He expects the mutually beneficial hotel/hot chef symbiosis to continue, especially around the revitalized Loop as both restaurant and residential development flourish. (Watch out, Restaurant Row, the Loop Lunchroom will soon be 24/7.) When he’s not flawlessly pronouncing French restaurant names, you’ll find Scott playing tennis or running by the lake.
SALES
Toronto-based PowerOne Industrial Properties paid Sitex Group $45M for 920k SF of industrial properties in Chicago (14 buildings centered around O’Hare), including distribution, light industrial, and office/warehouse buildings. PowerOne was founded by The PowerOne Capital Group, SparrowHawk Real Estate Strategists, and Corriente Partners.
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NelsonHill's Mark and Michael Nelson repped the seller, Mufid Saleh, in the $1.2M sale of a 21k SF loft building (12-foot ceilings, 7,000 SF per floor, above) at 1845 W Hubbard St in the Kinzie Corridor. Spectrum's Robert Woods repped the buyer, Busy Bee Promotions, which is relocating from another building in the neighborhood where it was leasing.
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Cushman & Wakefield associate director Jay Maher and senior director Larry Goldwasser repped the seller, Midwest Can & Container Specialties, in the $2.3M sale of 64k SF 1950 Manheim Rd in Melrose Park to Sureway Tool & Engineering Co. Sureway purchased the property to use as a fulfillment center and plans $1.4M in capital improvements.
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Transwestern principal John Joyce, senior associate Ryan Phillips, and associate Chris Rickett repped Bluebird Harwood Heights in the sale of a 60k SF building at 7444 W Wilson Ave in Harwood Heights. Xcel Med, repped by NAI Hiffman’s Eric Tresslar, acquired the property as its new HQ. This was the final sale in a 91k SF three-property portfolio disposition completed by the Transwestern team.
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Jameson Sotheby’s International Realty broker associate Michael Shiff sold seven-unit apartment building, 1121-23 N Campbell Ave (with parking), in an off-market deal. The seller was North Shore Management and the buyer was WPA 4 LLC.
LEASING
Bradford Allen Realty Services senior managing director Joel Berger, director John Millner, and director Ryan Moen completed several suburban office leases: Silgan White Cap (repped by Joel and Ryan) renewed its 42k SF lease at 1140 31st St in Downers Grove (HSA Commercial SVP Doug Jones repped ownership); Dex Media (repped by Joel and Case Commercial’s Bob Acuff) leased 9,800 SF at 300 N Martingale Rd (above) in Schaumburg (Transwestern SVP Joe Stevens repped ownership, LNR Realty Partners); Trinity Holistic Health Center (repped by Joel) renewed at 8501 W Higgins Rd; and Mortgage Services III (repped by Joel and Ryan) renewed at Brittany Towers, 17 W662 Butterfield Rd in Oakbrook Terrace.
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NAI Hiffman EVPs Mark Moran and Steve Connolly repped ownership in its long-term lease renewal with Briggs Healthcare for 148k SF of industrial space at 1931 Norman Dr in Waukegan. Colliers’ Jack Rosenberg and Fred Regnery repped Briggs, which has occupied the building for 10 years.
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Savills Studley repped Metropolitan Chicago Healthcare Council in its nearly 30k SF long-term renewal at 222 S Riverside Plaza, it's home for several decades. Executive managing director Lisa Davidson and senior managing director Tiffany Winne repped MCHC; JLL’s Steve Smith and Nikki Kern repped ownership.
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The Tie Bar leased 6,897 SF at 224 N Des Plaines (above) in the West Loop from South Street Capital. The company is relocating from Naperville and construction will begin this summer. CBRE’s Peter Livaditis and Jarrett Annenberg repped The Tie Bar and CBRE Project Management will manage the build-out process.
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Kudan Group’s Adam Salamon repped both sides in landlord North Shore Holdings new lease with Juniors Sports Bar, a casual tavern concept with outdoor patio seating, opening at 115-117 Grand Ave in Melrose Park (the former Ally Cat Lounge).
CONSTRUCTION & DEVELOPMENT
Centennial Center (above), a 267k SF office building at 1900 E Golf Rd in Schaumburg, is undergoing a $5M renovation (lobby, elevator cabs, signage, etc.). It was purchased by New York-based Sovereign Partners last year and Transwestern SVPs Joe Stevens and Fred Ishler, along with associate Zach Fox, are leasing agents for the building. The team has completed nearly 90k SF of leases during the past year.
EXECUTIVE MOVES
Bill Rogalla joined GlenStar Properties as principal. The 30-year industry vet will focus on GlenStar’s expansion into new markets (i.e. Southeast and Southwest regions), as well as expansion into the metro Chicago industrial market. He was previously president of Origin Capital Partners and has completed more than $6B in deals throughout his career. He graduated from DePaul, where he also earned an MS in taxation.
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Veteran tenant rep brokers Todd Mintz, Jeff Miller, Andy Strand, Kyle Harding, and Jay Heald joined JLL from DTZ. Todd and Jeff will be managing directors, Andy will be an EVP, Kyle will be an SVP, and Jay will be a senior associate. The team brings more than 65 years of experience providing commercial real estate strategy and portfolio management services to national and local clients.
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James Vozza joined CBRE Capital Markets’ business lending team as VP, focused on owner-occupied and private capital real estate in the Midwest. He was previously at EverBank, where he financed more than $500M in deals over a 12-year career, and before that at GE Capital Real Estate. James holds a bachelor’s degree in finance from U of I.
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SVN | Chicago Commercial tapped Tim Franz as senior advisor, focused on the acquisition and disposition of retail assets. He was previously with Quantum Real Estate Advisors and began his real estate career with Zifkin Real Estate Group. Tim earned a BS in finance and real estate from DePaul.
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Chicago-based First Eagle Bank promoted Faruk Daubasic to VP, commercial lending. Faruk joined the bank in ’05, and also serves as its liaison for community development activities. He completed his MBA at Roosevelt in finance and real estate and is an adjunct faculty member at Northeastern Illinois University, teaching real estate finance.
