This Week's Chicago Deal Sheet

GK Development of northwest suburban Barrington has hired CBRE to sell a 22-story office building at 123 West Madison St. in yet another effort to redevelop older Loop offices in the struggling downtown corridor.

A GK venture paid just over $10M for the 81K SF building, which sits along the south side of Madison between LaSalle and Clark streets, in 2015, according to Crain's Chicago Business. No price tag is listed on the tower, which is being marketed as a strong contender for residential use. 

Other older Loop offices at 105 West Adams St., 318 West Adams St. and the upper floors of 79 West Monroe St. are also being scouted as potential residential conversions. 

The redevelopment comes on the heels of Google’s recent interest in opening an office in the problem-prone Thompson Center on LaSalle Street as a potential catalyst for a Loop rebound.

The property at 123 West Madison could see a conversion into over 100 residential units. 

CBRE Senior Vice President Marcello Campanini is marketing the property for GK Development.

PEOPLE

Jeffery Gilbertsen is joining Cullinan Properties as executive vice president and chief financial officer. Gilbertsen brings over 30 years of global financial and accounting experience and held the same position at Harbor Shores Community Redevelopment. He will be responsible for the firm’s accounting, treasury, tax, insurance, financial planning and analysis, corporate controllership and cash management.

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Michael Swain has joined as vice president of PDB Construction, and Marty Mansch has been promoted to general superintendent. Swain brings 23 years of construction management and development experience, and Mansch brings more than 30 years. Collectively, they will oversee the construction of commercial facilities. 

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Louis Paschos is joining High Fidelity Property Management as senior property manager. Paschos will manage client relationships and business development and oversee a team of property managers across 1,000 units. With nearly 16 years at Kass Management behind him, Paschos has experience working with income-restricted units, Illinois Housing Development Authority-funded properties and low-income housing trust fund units.

SALES

In an off-market deal, EQT Exeter has acquired the 380-unit Reserve Randall Road multifamily property in northwest suburban Dundee. Formerly called Seasons at Randall Road, the garden-style apartment complex comprises 19 two-story buildings totaling 403K SF and features studio, one-, two- and three-bedroom layouts. EQT Exeter’s property management company, Redwood Residential, will manage the property.

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Cresa Managing Principal Ed Lowenbaum represented ConCan II in the sale of a 58K SF industrial facility at 11058 Addison Ave. in west suburban Franklin Park. Clear Height Properties acquired the multitenant building for an undisclosed price. Alliance Paper has occupied the space since 2002 and signed a multiyear lease for approximately 55% of the building. The remainder of the facility will be vacant by August. 

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Inland Private Capital Corp. of western suburban Oak Brook announced the sales of 29 pharmacy properties in five months, including six CVS and 23 Walgreens stores across the country. The properties, totaling 398K SF, sold for $172.3M. IPC facilitated the sales on behalf of nine IPC 1031 investment programs. Investors have the opportunity to utilize their sales proceeds to complete a subsequent tax-deferred exchange.

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Savlan Capital has acquired an 18K SF medical building at 12200 South Western Ave. in south suburban Blue Island for $6.1M. Developed in 2007 as a retail strip center, the property sits west of Interstate 57 and is fully leased to Fresenius, Dental Dreams and Midwest Express Clinic. Eric Cline of Cushman & Wakefield represented Shops at Blue Island in the sale.

LEASES

Bell Works Chicagoland has signed a lease beginning May 2023 with branding and marketing company Club Colors, making the company the building’s largest tenant to date. Club Colors will bring its team of 125 employees from its current home in Schaumburg to the 52K SF space that will become its national headquarters in northwest suburban Hoffman Estates. Jon Springer, vice chairman at CBRE, represented Club Colors. Steve Kling, principal at Colliers International, represented Bell Works Chicagoland. 

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CBRE has arranged a new retail lease within River Pointe of Algonquin for Fun City Adventure Park. The indoor entertainment concept that features arcades, trampolines and party rooms will occupy 36K SF in the grocery-anchored retail center located in northwest suburban Algonquin. CBRE’s Joe Parrott and Sean McCourt represented River Pointe of Algonquin ownership in the transaction.

CONSTRUCTION AND DEVELOPMENT

Belgravia Group has announced a new condo development, CAX, is coming to 1032-1042 West Jackson Ave. in the West Loop. Priced at $1.7M, the four-bed, four-and-a-half-bath open floor plans start at 3K SF with a penthouse level containing five-bed, five-and-a-half-bath duplex homes priced around $3.2M. Penthouse condos will be almost 5K SF and include the same floor plan features as the four-bed homes.

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Housing Trust Group has closed on financing and is breaking ground on Crescent Place, a new $18.2M affordable housing community coming to northwest suburban Arlington Heights in spring 2023. Located on a 2.3-acre lot at 310 West Rand Road, the four-story community will offer a mix of one- and two-bedroom units ranging from 646 SF to 880 SF. Apartments will be reserved for income-qualifying residents who earn no more than 30% to 60% of area median income, with rents ranging from $524 to $1,258 per month. Crescent Place is a joint venture between HTG and nonprofit developer Turnstone Development Corp. 

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J.C. Anderson has completed a 59K SF renovation project for Ipsos, relocating its Chicago office from 222 Riverside to the 11th floor of 222 West Adams St. in a move that gives it more collaboration spaces, offices and open seating. Champlin Architecture was behind the renovations, and Cushman & Wakefield’s I-Lee Hwa and Nick Ferro provided project management and consulting services.

THIS AND THAT

Double Eagle Development is launching a development platform targeting projects in top markets, primarily within the Midwest. The company, located in both Chicago and St. Louis, will focus on multifamily and mixed-use developments in the near term. Former Aimco Senior Director of Development Andrew Juiris has been appointed president of the platform and will be responsible for day-to-day operations.