The Deal Sheet
Stabilizing distressed assets takes patience, a well-fitting hard hat, and a good bridge loan. (Just like in fairy tales: to save a distressed damsel, the hero needs a bridge to cross a moat.)
Cedar Street Co can thank the strong performance of its 1,000-unit North Side FLATS apartment portfolio (projected to hit 3,000 units next year) for its recent Prudential Mortgage Capital Agency Gateway loan (the first in Chicago, originated by principal Matt Bertram). FLATS microunits are 98.5% occupied, with rents/SF that are even trending higher than some of River North's new luxury rental towers, Cedar Street Co CEO Alex Samoylovich tells us. The $17.4M, 12-month, non-recourse refi (replacing $12.6M in acquisition and construction loans) includes three of FLATS' full gut rehabs in Uptown: 4875 N Magnolia Ave, 5051 N Kenmore Ave (above), and 5411 N Winthrop.
SALES
California-based Younan Properties completed the acquisition of 300 N Martingale (above) in Schaumburg in an all-cash deal. The 156k SF, Class-A office building was developed as part of the Woodfiled Corporate Center complex. Transwestern’s Joseph Stevens, Fred Ishler, and Zach Fox will continue to lease the building on behalf of Younan.
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Pine Tree Commercial Realty acquired Poplar-Prairie Stone Crossing, a 312k SF, Class-A power center in Hoffman Estates. The center is shadow-anchored by Target, and tenants include TJ Maxx and Michaels. Acquisition financing was provided by JPMorgan and arranged by Draper & Kramer’s Bill Barry. JLL’s Carson Good brokered the sale. This is Pine Tree’s 70th acquisition and brings its current portfolio to 3.4M SF across 19 properties.
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Cushman & Wakefield’s Larry Goldwasser, Colin Green, and Brad Weiner repped the seller, CenterPoint Properties, in the sale of the 100k SF industrial property at 6460 W Cortland St to Alpina Manufacturing (repped by Lowenbaum REP’s Ed Lowenbaum). Alpina plans to use the property to house its manufacturing operations.
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255 Corporate Woods Parkway LLC sold a 48k SF industrial property at 255 Corporate Woods Parkway in Vernon Hills to S&W LLC for $3.5M. CBRE’s Keith Puritz, Brett Kroner, Ryan Bain, and Zach Graham repped the seller and Entre Commercial Realty’s Brian Bocci repped the buyer.
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Darwin Realty & Development Corp principal Noel Liston, along with associate Brendan Sheahan, repped Sitex Group in the sale of 41k SF at 1700 Big Timber Rd in Elgin to Multifilm Packaging Corp (also repped by Noel). They also repped a private partnership in the sale of a 41k SF building at 1295 Helena Dr in West Chicago. Brendan repped the buyer, PJ Spring Co.
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Greenstone Partners' Jason St. John and Peter Weitz represented the seller, a large local investor, in the $5.8M sale of Oswego Commons, a five-tenant 19k SF nationally tenanted retail center in Oswego. The center is 100% leased and positioned directly in front of a Meijer Supercenter and a Ross, Michaels, Old Navy, and Bed Bath & Beyond power center.
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SVN | Chicago Commercial completed the $5M sale of Harley Davidson’s 82k SF showroom/flex space at 14000 Rockland Rd in Green Oaks. SVN’s Vince D’Amico repped the seller. The buyer was Delta Real Estate Holdings.
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Essex Realty Group’s Jim Darrow and Jordan Gottlieb repped the seller and Essex’s Doug Fisher repped the buyer in the $1.8M sale of The North Hotel at 1622 N California in Humboldt Park. The brick SRO hotel/apartment building includes 66 apartments/rooms and two retail spaces.
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CBRE NNN Retail Investment Properties FVP Michael Kaider repped Kimco Realty Corp in the sale of 170 Countryside Plaza in Countryside to a private investor. Burger King occupies the 3,500 SF space.
LEASING
HSA Commercial executed a 60k SF lease with Black Horse Carriers (repped by JLL senior associate Brian Buschuk) in its recently completed industrial spec development (above) at 1025 S Columbia Rd in Plainfield, Ind. This is the first lease for Gateway Industrial III, a 220k SF warehouse developed in partnership with Great Point Investors. CBRE’s Terry Busch and John Hanley repped ownership.
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Darwin Realty & Development Corp principal Noel Liston and associate Brendan Sheahan repped DCT Industrial in its lease of 56k SF at 200-220 Corporate Dr in DCT Business Center in Elgin to Rational Cooking Systems (repped by JLL’s Dominic Carbonari).
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Bradford Allen senior managing director Joel Berger, along with co-broker Skyline Properties from Troy, Mich., completed a 17k SF lease on behalf of Residential Home Health at 1431 Opus Pl (Executive Towers West I) in Downers Grove. The firm is relocating from 40 Shuman Blvd in Naperville. NGKF’s John Norris, John Clark, and Rob Lundin repped ownership.
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Mid-America Real Estate Corp principal Paul Bryant and VP Michael Wexler were retained to rep Yoga Six in its multiple store rollout around Chicago. The yoga studio signed a 6,626 SF lease at 1150 N State (ownership repped by Jameson’s Justin Collins) in the Gold Coast and a 6,028 SF lease at the Roosevelt Collection (ownership repped by McCaffery Interests) in the South Loop. Yoga Six has one location in Lincoln Park and plans to open five stores around Chicago by 2015.
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First Western Properties’ Tom Peterson and Paul Tsakiris completed three leases: a five-year NNN lease of a fully equipped nail salon to Nail’s Designer at 148-170 N Gary Ave in Carol Stream; a Metro PCS lease at 105 E 51st St; and another Metro PCS lease (in a former Cricket Wireless) at 1573 E Sibley Blvd in Calumet City.
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EnTrust Tenant Advisors SVP Jud Henry repped SET Environmental in a new 7,063 SF lease at 1400 W 16th St, a 70k SF office building in Oak Brook. EnTrust works with entrepreneurial firms, including minority-owned businesses and women-owned businesses, along with non-profit associations and foundations.
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Mid-America Asset Management secured new retail leases on behalf of two NW suburban shopping centers: DSW (repped by Tartan Realty Group’s Mike Schertler and Midwest Commercial Realty’s Scott Stefanik) signed a 24k SF lease at 335k SF Village Square of Northbrook (Mid-Am VP Liz Krebs repped the landlord) and Zip Fitness (repped by Transwestern’s Patrick Owens) signed a 22k SF lease at 296k SF Arlington Plaza in Arlington Heights (Mid-Am leasing rep Sarah Drumgould repped ownership).
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Kudan Group EVP Brian Laskov completed a lease at 734 W Fullerton, formerly Nesh, in Lincoln Park. Brian repped the new tenant, Chef Wren-Martin of Epiphania Blu, who will bring a Southern concept to the neighborhood this fall. Taste of New Orleans will also feature live jazz music.
FINANCING
HFF director Ken Martin arranged $9.9M in financing for 333 Penn, a 78-unit adaptive reuse apartment building (above) in downtown Indianapolis. HFF repped the borrower, TWG Development, to secure the fixed-rate loan through JPMorgan Securities that will retire an existing construction loan. The building conversion was completed last year.
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NGKF Real Estate Finance senior managing director Ben Greazel arranged a $2.2M, 10-year, fixed-rate loan (from National Life Insurance Co) for a local real estate investor on a 13k SF retail property at 2740 N Clark St in Lakeview. The property is 100% leased to three tenants.
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Maverick Commercial Mortgage president Benjamin Kadish arranged $2M in first mortgage debt for an 18k SF Save-A-Lot-anchored retail center on the SW corner of 79th and Halsted. Proceeds from the loan were used to refi an existing first mortgage on the property and pay for closing costs associated with closing the loan. It has a term of 30 months, a 4.75% interest rate, and amortizes on a 20-year schedule.
CONSTRUCTION & DEVELOPMENT
The Community Builders celebrated a ribbon cutting (above) for the new Oakley Square residential development, formerly St. Stephens Terrace. The $38M redevelopment includes a financial recapitalization, new building systems, and 247 renovated mixed-income apartments. Funding and support came from: IHDA, TCB Neighborhood Stabilization Program 2, HUD, the Illinois Department of Commerce and Economic Opportunity, Hudson Housing Capital, JPMorgan Chase, and Bellwether Enterprise.
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CA Ventures and Tartan Realty Group kicked off Phase I construction at One Uptown on the Circle, a multi-phased mixed-use retail and hotel development in Normal. The $27M Phase I includes a 114-room Hyatt Place Hotel and 1,600 SF of retail. Phase II is planned to be a 6,500 SF restaurant/retail first floor area with five floors and 34 units of market rate apartments and below grade heated parking.
EXECUTIVE MOVES
JLL vet Parikshat Suri was appointed global internal audit director, moving from the role of CFO for JLL India. He joined JLL after its acquisition of the India operations of Trammell Crow Meghraj in 2007. Parikshat previously worked with Motorola in both India and Chicago and earned a bachelor of commerce degree from Pubjab University in India.
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Tony Schillaci joined Jameson Commercial as a broker associate. With over 25 years in the business, Tony has built his own development and GC companies, managed deals in excess of $65M, and performed $46M of contracting work. He’s consulted with companies including Newcastle, Belgravia Group, Vapor for Life, and MSRP Industries.
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JLL added Jason Press as VP in the firm’s retail tenant rep practice, working on the team led by EVP Lew Kornberg. Jason previously co-founded North Park Properties to acquire investment properties in the Chicago area, and he also spent six years as VP with Continental Real Estate Cos in Coral Gables, Fla. He received his BS from Florida State.
KUDOS
Inland was honored as the first inductee into the Chicago Association of Realtors Corporate Hall of Fame. Founded by Dan Goodwin, Robert Baum, Joe Cosenza, and Robert Parks, Inland companies cumulatively employ more than 1,400 people and own and manager over 65.1M SF of commercial real estate in 49 states, as well as managed assets exceeding $16.4B.
