This Week's Chicago Deal Sheet

Waterton Residential just made history. Its 2,346-unit Presidential Towers in the West Loop is now the largest rental property in Chicago to be 100% smoke-free.

The announcement comes a year after Waterton added a non-smoking clause to all new leases, which earned Presidential Towers an award from the American Lung Association in Greater Chicago and helped the building achieve LEED-EB Silver certification. The property will host the association's annual “Fight for Air Climb” on March 8. We recently caught up with Waterton Associates’ Max Peek (right), snapped with Highgate Capital Group’s John Kinzelberg (a Waterton alum) at an invite-only Bisnow event for up-and-coming real estate all-stars. Max tells us the rental giant is finishing fundraising for its latest value-add fund. Capital markets are aggressive these days on both the debt and equity front, Max says, but fundamentals in most markets around the country are supporting current pricing. Outside of the office, he’s been skiing in Deer Valley, gearing up for a Morocco climbing trip with other real estate folks in May and prepping his Badgers for another NCAA tourney run.

SALES

Entre Commercial Realty’s John Gazzola and Mike Gazzola repped Jimenus in the acquisition of 727 Larch Ave (above), a 40k SF property in Elmhurst, for more than $2M. The firm is using the space for warehouse/manufacturing in response to an expansion in its business, which was located at 220 Gateway Dr in Bensenville. Nicolson, Porter & List’s Mark Barbato repped the seller.

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Kiser Group senior managing directors Bill Baumann and Mike Anguiano repped both sides in the $8.3M sale of 3634-48 and 3637-47 W Montrose in Albany Park. Built in 2011, the buildings total 39 units, each offering two bedrooms and two bathrooms. Each building includes garage parking and a rooftop deck.

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A 24k SF retail building sold at 5742 Northridge Dr in Gurnee. The property was previously operating as Gurnee Antique Center and will be relaunched as Gurnee Antique Market. The building and business sold for $1.2M. Dennis Arndt, Paul Cawthon and Angelo Labriola of SVN|Chicago Commercial repped the seller, a couple looking to relocate to Texas. The buyer, a local investor, plans many updates to the building.

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Kiser Group principal Lee Kiser completed the $1.7M sale of the 1898-built 3000-3002 N Sheffield in Lakeview, a five-unit mixed-use property. It includes two one-bedroom units, one two-bedroom, and Studio Within and Panes occupy two street-level retail spaces.

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Crossroads Development Partners closed on the purchase of 22k SF of vacant land at 5970 N Ridge Ave in Edgewater. The parcel was the former home of Carson’s Ribs, which closed in 2005. XRD recently completed three other single-user developments in the area, including a Walgreens, LA Fitness and Physicians Immediate Care.

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Kiser Group senior managing director Mike Anguiano repped the seller and managing director Jeff Shandling repped the buyer in the $1.6M sale of 4957 N Troy in Albany Park. The vintage walk-up includes 18 fully occupied one-bedroom apartments. Recent improvements include a new roof, windows and porches.

LEASING

Darwin Realty & Development Corp completed 393k SF of transactions on behalf of TA Associates, including one of the largest industrial leases in 2014 in the O’Hare submarket. Two leases that closed in late 2014 bring 3501 Mt Prospect Rd (above) in Franklin Park to 100% leased. Darwin principal Richard Daly and director of brokerage services Adam Haefner repped TA in both deals and secured real estate tax incentives from the Village of Franklin Park. Coregistics, expanding from Wheeling, leased 262k SF, and Sonoco, also expanding, leased 101k SF. JLL’s Robin Stolberg and Chris Tomasulo repped Coregistics. Avison Young’s Mike Fonda and Annie Koch repped Sonoco. Richard and Adam also repped TA in the disposition of the 12k SF 2500 Brickvale Dr in Elk Grove Village to a user and a 19k SF lease at 1723-57 Marshall Dr in Des Plaines.

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Ivanhoé Cambridge and co-investor and developer Hines announced that Mead Johnson signed a lease to relocate its corporate HQ to the 1M SF River Point in the West Loop. The company leased 75k SF on three floors and will move in mid-2017. Cushman & Wakefield’s J Frank Franzese, Steven Bauer and Aaron Schuster repped Mead Johnson in the lease. Hines’ Greg Van Schaack, Tom D’Arcy, Jim Walsh and Laura Hines repped ownership.

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Paine/Wetzel TCN Worldwide VP Terry Lynch repped Bus and Truck of Chicago in a new 63k SF lease within a 118k SF building at 7447 S Central in Bedford Park. The company is moving from its former HQ at 3330 S Pulaski in Chicago. NAI Hiffman’s Steve Connolly and Brett Tomfohrde repped ownership, KTR Capital Partners.

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Panasonic Corp of North America signed a long-term lease for 49k SF at the 911k SF Continental Towers in Rolling Meadows, owned by GlenStar Properties. The office will serve as the firm’s Midwest regional HQ and it will take the entire 11th and 12th floors of Tower 3 when the lease commences in June. NGKF’s Mitch Loveman and Kevin Duckler repped Panasonic. GlenStar’s Dave Trumpy and Bill Debb repped ownership. GlenStar recently completed the first phase of a two-phase, $12M capital improvement plan at the property.

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Paine/Wetzel TCN Worldwide principal Jerry Sullivan and associate Brian Wabick completed a 31k SF industrial lease for Amerisource at 217-219 E 71st St in Harvey. The lease is within a 95k SF building and represents a new Illinois location for Amerisource. Simborg Commercial Real Estate’s Bob Hennessy repped the landlord, CT Harvey LLC.

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At the 130k SF Woodfield Corners, 1300 E Woodfield Rd in Schaumburg, Crossroads Development Partners leased 2,608 SF to Opus Software and entered into a lease renewal with Bank of America for 3,444 SF, bringing the property to 94% occupancy. XRD also agreed to a 12k SF long-term lease with Conestoga-Rovers & Associates at 6400 Shafer Ct in Rosemont, which is currently undergoing renovations. In Northbrook, KRD entered into a lease with one of the largest franchisees of Dunkin’ Donuts stores in the Chicago area for a new store at Dundee and Pfingsten (with construction beginning this year).

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Bradford Allen senior managing director Ben Azulay completed a lease consolidation, expansion and renewal for 23k SF on behalf of MedSpeed at 142k SF Corporate Commerce Center, 650-655 W Grand Ave, in Elmhurst. The firm has leased space within the property for more than 10 years. Korman, Lederer & Associates’ Patrick Lederer repped ownership.

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Savills Studley executive managing director Lisa Davidson and senior managing director Tiffany Winne repped One North Interactive in its HQ relocation from 1 N Dearborn to more than 17k SF on the 15th floor of 222 N LaSalle. Tishman Speyer’s Joseph Gordon repped ownership. The company will move into the new location in June.

CONSTRUCTION & DEVELOPMENT

Hilton Worldwide added Oxford Capital Group’s LondonHouse to Curio – A Collection by Hilton. The hotel will be located in the historic London Guarantee Building, 360 N Michigan (above), and a new 22-story architecturally synchronized Modernist glass tower. The lifestyle hotel, opening in spring 2016, will feature 452 rooms, 25k SF of meeting and pre-function space, a spa and fitness center, and two floors of upscale retail. The hotel’s name is a nod to the building’s name, as well as the renowned jazz club, London House, once located inside. The refurbished cupola at the top of the building will be part of Chicago’s only tri-level hotel rooftop. As a member of the Hilton portfolio, the hotel will offer guests the benefits of the Hilton HHonors guest-loyalty program.

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Draper & Kramer announced the opening of a 40k SF LA Fitness in the Lake Meadows Shopping Center at East 35th Street and MLK Drive in Bronzeville. Lake Meadows will ultimately include up to 7,800 residences and more than 1M SF of retail and commercial space. Construction financing was provided by Urban Partnership Bank, represented by senior business banker Marcia Nicholson. GC services were provided by Ujamaa Construction. DK Mallon, a D&K company, is the exclusive management and leasing agent for the shopping center and Mid-America Real Estate Group’s Greg Bayer and Dan Tausk repped LA Fitness.

EXECUTIVE MOVES

JLL’s capital markets team tapped Tim Noonan to join the firm’s Midwest platform as managing director. Working in partnership with managing directors Dave Hendrickson and Keith Largay, Tim is tasked with securing debt and equity for office, industrial, retail, hospitality, multifamily and condo product. The 20-year industry vet joins JLL from CBRE and earned his degree from University of Wisconsin.

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Tim Henry joined Avison Young as principal, providing retail advisory services to local and global clients. He was most recently SVP with SRS Real Estate. The 25-year industry vet has completed more than 250 deals on behalf of retailers, corporations, REITs, IT professionals and branded manufacturers. Tim holds a BA in economics and history from Denison University.

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20-year real estate vet Andrew Kiener joined Kinzie Real Estate Group as director of project sales. He was previously president of Private Holding Group and prior to that president of Garrison Partners Consulting. During his career, he’s overseen $1B in real estate projects. Andrew joins Steven Maher, Kinzie’s managing broker, and Christine Lutz, director of residential brokerage.

KUDOS

Essex Realty Group is celebrating its 25th anniversary. According to CoStar, it’s the leading mid-market multifamily brokerage in Chicago, having completed 25% of all deals ($1M to $30M) in 2014. President Doug Imber attributes that success to a nimble staff that quickly adapted to serving lenders during the downturn, then serving private capital once the market recovered.

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NGKF senior managing director Elise Couston was awarded the 2014 Largest Land Transaction with a Platinum Sponsor award from the SIOR Chicago chapter. Elise received the award for her representation of longtime client Liberty Property Trust in the sale of 52 acres in Minooka to WW Grainger, which plans to build a second distribution center. A 32-year industry vet, Elise recently finished her term as 2014 SIOR Chicago chapter president.

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BOMA Chicago awarded The Chicago Board of Trade Building “The Outstanding Building of the Year TOBY” for “Renovated Building” at the 2015 TOBY/Gold Circle Awards Gala. The building now moves on to compete against local winners across the Midwest at the North Central Regional TOBY Awards this month. The CBOT Building was designated a BOMA 360 Performance Building in January 2014.