This Week's Chicago Deal Sheet
The plans for the Obama Presidential Center recently survived a challenge in federal court, and even though further obstacles remain before construction can start, the Obama Foundation just released more details of its controversial plan for the 19-acre site within the South Side’s Jackson Park.
In anticipation of the group’s third annual summit Tuesday, it released new renderings that foundation leaders said incorporate many of the suggestions made by neighborhood stakeholders.
“We’ve spent the past few years talking with the community and meeting with neighbors and stakeholders to incorporate their input on how the residents of the South Side and the city of Chicago want to experience the Obama Presidential Center in Jackson Park,” Obama Foundation CEO David Simas said. “In response to the feedback we received, we’re presenting updates that create even more ways for the community to enjoy what will become an important and memorable gathering place.”
Environmentalists and preservationists have criticized aspects of the proposal, claiming the $500M center would not benefit the public, violating the original vision for Chicago’s lakefront parks. A judge threw that complaint out in June, and the new plans emphasize public goods, including a 2-acre children’s park, a public plaza and a 1-acre wetland area that will bolster the site’s ecological health.
The designers also softened the look of the main museum building. Critics said in previous renderings, the tower appeared harsh, a mass of stone looming over the park. The proposal now includes an 88-foot glass wall on one side, and a number of architectural details that will give the structure some flair.
The site still needs to get through a federal review, as Jackson Park is on the National Register of Historic Places. Furthermore, a group of about 30 aldermen are pushing for a Community Benefits Agreement they say will help ensure neighborhood residents are not pushed out if property values escalate once the center takes shape.
EXECS
Pathway to Living, the Chicago-based senior housing arm of Waterton, hired Shea Krause as regional vice president of sales. Krause will manage all regional directors of sales, and has more than 12 years of sales and marketing experience in senior housing. She was previously senior regional director of sales and marketing at Enlivant Senior Living, where she helped turn around 21 underperforming communities and integrated seven new properties into the Northern Indiana/Illinois region.
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CA Ventures promoted John Diedrich to the newly created position of global head of investments. In his expanded role, Diedrich will oversee all acquisitions and development activity throughout the U.S., Europe and South America, with a specific emphasis on student and multifamily housing. Diedrich joined CA in 2008 as a senior financial analyst and was later promoted to executive vice president of investments.
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Cushman & Wakefield added two to its capital markets team: Jeff Altenau as executive managing director and Zach Yarnoff as managing director. Both come from Eastdil Secured, where they worked on several notable transactions, including Willis Tower, River Point, 150 North Riverside, Easton Town Center and Wells Fargo Center Minneapolis. Altenau will lead the debt capital markets platform for Chicago and the Midwest, with Yarnoff as his partner.
SALES
JLL closed the sale of Mallard Crossing, an 81K SF, Aldi-anchored retail center at 851-933 Meacham Road in the northwest suburban Elk Grove Village. The firm represented the seller, IRC Retail Centers, and procured the buyer, AmCap Necessity Retail Fund, sponsored by AmCap Management. In addition to Aldi, the center features tenants Ross Dress for Less and Dollar Tree, all of which signed long-term leases within the past year, JLL officials said. The JLL team that represented the seller was led by Janice Sellis.
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Marcus & Millichap’s Ebrahim Valliani, Michael Klar, Allan Miller and Chris Gomes completed the $6M sale of Red Roof Inn Chicago - O'Hare, a 134-room hospitality property at 22 West Algonquin Road in northwest suburban Arlington Heights.
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Newmark Knight Frank’s Michael Prost, Sergio Chapa and Corey Chase completed the sale of 7601 Durand Ave., a 350K SF warehouse in Sturtevant, Wisconsin, about 55 minutes north of Chicago, on behalf of Venture One Real Estate. The property sold to an undisclosed buyer for an undisclosed amount. Venture One bought the property in January 2018, and launched a major renovation, which included a new roof, tearing out the second-floor mezzanine, adding new offices and installing a new parking lot, as well as updating the façade and repairing the docks.
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Interra Realty brokered the $10.6M sale of 1540 Fullerton, a four-story, 25-unit rental community at 1540 West Fullerton Ave. in Chicago’s west Lincoln Park neighborhood. It was the largest multifamily sale in Lincoln Park — both by price and unit count — so far in 2019, according to CoStar data. Interra’s Joe Smazal represented the private seller, while Jeremy Morton and Ted Stratman represented the undisclosed buyer. The building was fully occupied at the time of closing.
LEASES
Colliers International | Chicago’s John D’Orazio represented India-based Pacific Surfaces in its 40K SF lease at 1300 Mark St. in Elk Grove Village. The granite distributor has maintained a sales office in Chicago for years but this is its first warehouse/distribution center in the U.S. The single-story facility is in Elk Grove Industrial Park.
CONSTRUCTION AND DEVELOPMENT
Venture One Real Estate, in a joint venture with USAA Real Estate, broke ground on One North Avenue, a 151K SF infill logistics facility at 1 North Ave. in west suburban Glendale Heights. Company officials said they will deliver the building in the second quarter of 2020. The precast facility, which can be demised down to 30K SF, will feature 32-foot clear height. Brian Kling and Reed Adler of Colliers International will market the facility.
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Bridge Development Partners broke ground on Phase 3 of its Bridge Point North project in Waukegan, Illinois. It will consist of four new buildings, totaling 919K SF, the final addition to the 225-acre, master-planned Bridge Point North campus that Bridge began developing in 2015.
The new buildings will range from 100K SF to 500K SF, and cater to users from 20K SF and larger. Each of the four buildings will feature 32-foot to 36-foot clear ceiling heights. Phase 1, which consists of two buildings totaling 1M SF, delivered in 2017 and is fully occupied. The three-building Phase 2, which totals 927K SF, was completed earlier this year, and was 70% leased when it was sold to a global real estate investment management firm.
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Thor Equities, along with Cushman & Wakefield and design firm Skidmore, Owings & Merrill, will host a Tuesday afternoon groundbreaking for 800 West Fulton at 800 West Fulton Market. The 19-story mixed-use building will hold 450K SF of office space, public amenities, retail, and food and beverage outlets. Occupying a full city block, the project is scheduled to be delivered in spring 2021.
