The Deal Sheet
From pharmacies to eateries to auto shops, net-leased properties continue to trade at record-low cap rates. We’re sure the seller wasn’t crabby after this breaking seafood sale. (Don't hate us for the pun... hate the pun for being so easy.)
Adelphia Properties’ George Spirrison and Simeon Spirrison just repped the seller in the $4.2M sale of a NNN single-tenant, 7,500 SF Joe’s Crab Shack at 2000 E Golf Rd in Schaumburg’s retail corridor. The property sold at a 6.5% cap rate, making it the lowest Joe’s cap rate in the nation to-date. “The hottest commodity in real estate right now is single-tenant corporate deals,” George says. As evidence of the market’s froth, he tells us the property went under contract in less than a month at full price. The buyer was an out-of-state private investment group in a 1031 exchange. As long as interest rates stay low, George expects continued thirst for NNN from 1031 investors and more record-breaking low cap rates.
SALES
Hansen Realty and Centrum Partners have taken ownership of Bradley Business Center (above), the 500k SF North Center office and recreation complex at 2500 W Bradley Pl, with the buyout of Angelo Gordon and Co. The new partnership recently signed two leases with IK Gymnastics and Lil Sluggers for a total of 44k SF. It also completed a 5,000 SF shared office space center and is building out 55k SF of new office space including a fitness center and roof deck.
***
JLL international director Bruce Miller and SVP Nooshin Felsenthal repped the seller, Hines, in the sale of 600k SF, 24-story 101 N Wacker to LaSalle Investment Management on behalf of a European investor client. Hines had invested more than $12M in recent years on base-building improvements at the 90% leased property. LaSalle appointed JLL SVP Nikki Kern and associate Kim Doyle as the building’s new exclusive leasing agents.
***
Kiser Group completed the following multifamily sales:
-
Principal Lee Kiser and managing director Noah Birk repped the seller, and senior managing director Sean Connelly repped the buyer, in the $7.1M sale of a 206-unit portfolio at the intersection of 71st and Jeffrey Boulevard in South Shore.
-
Managing director Michael D’Agostino repped the buyer, Laramar Group, in the $7M sale of a 24-unit building at 2215-23 N Clifton in Lincoln Park (the seller was a partnership of the 24 condo owners).
-
Managing director John Meyer repped the seller, Windy City Realty, and associate Zack Hofstadter repped the buyer, Laramar Group, in the $2.8M sale of the mixed-use corner building at 3152 W Diversey in Logan Square.
-
Senior managing directors Mike Aguiano and Brian Semel repped both sides in the $1.8M sale of a 19-unit mixed-use building at 4401 N Mozart in Ravenswood Manor.
***
ML Realty Partners acquired a 57k SF industrial building at 650 S Schmidt Rd in Bolingbrook. Lee & Associates of Illinois’s Terry Grapenthin and Jeff Galante repped ML Realty Partners and will also begin immediate lease-up of the building.
***
CBRE’s Bill Novelli, Keely Polczynski, and Derek Fohl repped the seller, a private partnership, in the $7M sale of 1000 and 1010 Lake St in Oak Park to Urban Street Development. The 102k SF properties include low and high-rise, multi-tenant, mixed-use retail and office buildings on a 1.2-acre parcel.
***
Essex Realty Group’s Doug Fisher completed the $3.4M sale of 7100 N Sheridan Rd (above) in East Rogers Park. The fully renovated courtyard building includes 58 apartments and six retail units.
***
Brown Commercial Group’s Dan Brown and Gay Crain repped the seller, a trustee-managed portfolio overseen by Seyfarth Shaw partner Gus Paloian, in the sale of a 23k SF industrial facility at 1941 Selmarten Rd in Aurora. The new owner, a private investor repped by Lee & Associates of Illinois’s Nick Eboli, will double its warehouse capacity with the acquisition.
***
Transwestern principal John Joyce and associate Chris Rickett repped 6021 Associates LLC in the sale of a 55k SF building at 850 N Milwaukee Ave in Vernon Hills. Centrum Partners acquired the Lake County property. Centrum plans to enhance the building with interior and façade improvements.
***
NelsonHill principals Mark and Michael Nelson repped Economy Folding Box in the $3.2M sale of 2601 S LaSalle in the South Loop to U-Haul International. Economy Folding Box owned the 166k SF property for 60 years. This deal is part of U-Haul’s expansion in the Chicago area; in November 2013, it acquired a 102-year-old Pilsen warehouse on Cermak Road.
***
Brown Commercial Group’s Mason Hezner repped Toreo Holdings in its acquisition of the 14k SF industrial building at 1851 Touhy Ave in Elk Grove Village; McLennan Commercial Properties’ Jim Conrad repped the seller. Toreo subsidiary Sweiss Group, a distributor of wine and spirits, will expand into the building.
***
KrohVan RE Services principal Christopher Krohe repped the buyer, a private family trust, in the $2.05M sale of a 4.3-acre vacant lot at 3535 Oakton Ave in Skokie. Kiser Group’s Lee Kiser repped the seller, Lakeshore Waste Services. The deal closed in three weeks from contract date.
***
Austin Weinsenbeck, Aaron Baum, and Sean Sharko, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, repped the seller, the original developer, and the buyer, a national investor, in the sale of an Aldi ground lease, a 17k SF property at 4111 Harbor Town Ln in Manitowoc, Wis. Broker Matthew Fitzgerald assisted in the closing.
LEASING
NAI Hiffman SVP Kelly Disser and EVP Jeff Fischer repped TRR in its new lease at 720 Frontenac Rd (above) in Naperville with Norandex. The firm leased 40k SF within the 172k SF facility. TRR is a private ownership group that bought the property in 2013 (repped by NAI Hiffman). Fischer and Co’s JD Salazar repped Norandex.
***
Customer service outsourcing company APAC renewed its 74k SF lease at 7180 Spring Brook Rd in Rockford, where it operates a large call center. JLL VP Henry Lee and managing director Dan McCarthy repped APAC in the deal.
***
Transwestern EVP Tony Karmin repped Blatt, Hasenmiller, Leibsker & Moore in a 10-year, 23k SF full-floor HQ lease at 10 S LaSalle Dr. The firm is relocating its corporate HQ from 125 S Wacker. The office will accommodate 170 people when the firm takes occupancy in October. JF McKinney’s Mark Baby repped ownership, The Feil Org.
CONSTRUCTION & DEVELOPMENT
Conor Commercial Real Estate, in partnership with Inland Mortgage Capital, launched Matteson Center Park (above), a new industrial park with build-to-suit opportunities for sale or lease. Located at the interchange of I-57 and US-30, the park can accommodate users ranging from 100k SF to 900k SF. Cawley Chicago Commercial Real Estate’s Timothy Gallagher, Joshua Hearne, and Dennis Wilson are marketing the site.
***
CIM Group secured initial permits for the construction of a 34-story, 690-unit apartment tower above Block Thirty Seven, the existing five-level, 275k SF shopping, dining, and entertainment development in the Central Loop. The last phase of the site’s development, the tower will be positioned on the northern portion of the block and feature a fifth-floor amenity deck. Construction will begin with the installation of barricades.
***
One year after Bridge Development Partners, in partnership with Akard Street Partners, purchased 41 acres at 8201-8401 W 47th St in McCook for the construction of build-to-suit and spec projects, it sold its 365k SF build-to-suit corporate facility for Dallas-based Freeman Decorating Services to California-based American Realty Advisors (for one of its client portfolios). In July 2014, Freeman, repped by Paine/Wetzel TCN Worldwide’s Jerry Sullivan and Ed Wabick, along with CASE Commercial Real Estate Partners’ Tom Sutherland in Dallas, signed a 15-year lease for the build-to-suit. Bridge’s next development on site, a 226k SF spec industrial facility, is being leased by Colliers’ Vern Schultz and Tom Condon.
***
Mariano’s grocery store opened at the intersection of Ashland and Webster in Bucktown. The company leased the freestanding, 80k SF building for 20 years from owner Chicago Ashland Webster LLC. Transwestern’s project management team, led by SVP Robert Klinger, completed the project, Milwaukee, Wis.-based Mariano’s 23rd store, in eight months.
EXECUTIVE MOVES
Pine Tree Commercial Realty tapped Michael Gold as VP of leasing, overseeing leasing and tenant placement for a majority of Pine Tree’s shopping centers across the US. Michael was previously senior associate at CBRE. He graduated cum laude from ASU and is pursuing his MBA from DePaul’s Kellstadt School of Business.
BUSINESS
Colliers principal Steven Kling and SVP Jason Simon were retained by Rockville, Md.-based BECO Management to market and lease the 1.1M SF former Motorola Mobility campus at 600 N US Hwy 45 in Libertyville. BECO is planning significant renovations to the campus, similar to its 1.8M SF “Innovation Park Charlotte” project in North Carolina (95% leased following a $100M renovation). Innovation Park Libertyville is slated for occupancy in the summer or early fall of 2015.
***
SVN Crossroads Management was awarded property management contracts for five separate suburban properties (industrial, office, and industrial flex) comprising 157k SF of space: 525-533 S Ashland Ave in Chicago Heights; 740 Industrial Dr in Cary; 726 McHenry Ave in Woodstock; 630 N Rte 31 in Crystal Lake; and 1940-1950 Lehigh Ave in Glenview. SVN’s development arm, Crossroads Development Partners, announced 16k SF of lease renewals and expansions at Woodfield Corners, 1300 E Woodfield Rd in Schaumburg, from tenants including Royal United Mortgage, Paul Grauer and Associates, and US Tech Source (bringing the 133k SF building to 93% occupied).
