This Week's Chicago Deal Sheet
The Habitat Co. has received approval from the city of Chicago for Low-Income Housing Tax Credits.
The company said it will use those to help finance the first phase of 43 Green, a $35M mixed-income, mixed-use development on a vacant, city-owned lot just north of Hadiya Pendleton Park near the 43rd Street Green Line stop in Chicago’s Grand Boulevard neighborhood.
Habitat will develop the project in partnership with P3 Markets, a real estate development firm in the Bronzeville neighborhood.
The developers expect to break ground on the northeast corner of East 43rd Street and Calumet Avenue in 2021 on the first of three buildings. It will be the largest, with 91 units and more than 7K SF of street-level retail. Half of the residences will be market-rate and the other half offered as income-restricted, affordable units.
“While most of the recent development in the community has focused on single-family lots or multifamily projects concentrated north of this area, we are all optimistic that 43 Green will serve to drive new investment in the neighborhood and lead to long-term economic growth,” The Habitat Co. President Matt Fiascone said.
The developers plan to eventually construct two additional mixed-income buildings along with more street-level retail and commercial development, he added.
EXECS
Essex Realty Group has promoted Jaimie Steinher from associate to director. Since March 2017, Steinher worked on a team led by Doug Imber and Kate Varde, concentrating on the acquisition and disposition of multifamily and mixed-use properties.
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Clear Height Properties has named Edward Ogorzaly chief financial officer. For the last several years, Ogorzaly was a consultant with CFO Simplified.
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Robert Muller joined architecture and engineering firm BKV Group as managing partner and design leader of its Chicago-based development group. Prior to joining BKV, Muller was a design leader at Gensler, Goettsch Partners and SCB and a project architect with Murphy/Jahn.
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MB Real Estate has promoted Craig McCaw to vice president from assistant vice president within the firm’s corporate services and tenant advisory group. McCaw joined the firm in 2005, focusing on tenant representation and new business development.
SALES
HSA PrimeCare has sold a four-building medical office portfolio totaling 108K SF to Irvine, California-based IRA Capital. A division of Chicago-based HSA Commercial Real Estate, the firm developed or acquired each of these hospital-anchored assets.
The portfolio comprises:
Advocate Good Samaritan South at 6840 Main St. in Downers Grove, Illinois, a 35K SF outpatient clinic developed by HSA PrimeCare in 2008 and anchored by Advocate Aurora Health.
Hawthorn Surgery Center at 240 Center Drive in Vernon Hills, Illinois, a 15K SF freestanding surgery center developed by HSA PrimeCare in 2014 as a build-to-suit for Deerfield, Illinois-based Surgical Care Affiliates.
Advocate Aurora Health Beverly Clinic at 1357 West 103rd St. in Chicago, a 33K SF multi-tenant office building constructed in 1955 and redeveloped by HSA PrimeCare in 2007 to house an Advocate Aurora primary care clinic, as well as a bank.
Advocate Aurora Health Muskego Clinic at S68W15500 Janesville Road in Muskego, Wisconsin, a 24K SF retail healthcare clinic offering OB/GYN and radiology services, bought by HSA PrimeCare in 2012.
Mike Wilson and Erik Foster of Avison Young represented HSA PrimeCare in the transaction.
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North Park Ventures and MF Development has paid $19M for a nearly 20K SF land parcel in the Fulton Market District and plan to redevelop the property as a hotel. @properties Commercial brokers Marty Casey and Matt Scales assembled the parcel after working with three different owners over the course of two years.
The sale covers three properties: a two-story building at 204 North Halsted St. that houses Paddy O’Fegan’s Irish pub; a three-story building at 804-808 West Lake St. that houses the offices of restaurant and bar operator One Off Hospitality Group; a two-story retail building and adjacent parking lot at 810-816 West Lake St.
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Landrosh Development has paid almost $2M for an 11K SF building at 1800-1808 West Berenice Ave. in the North Center neighborhood.
The Chicago-based developer plans to redevelop the former warehouse into a 58K SF mixed-use building with micro-offices and 42 apartments units.
Doug Imber, Kate Varde, Jim Darrow and Jordan Gottlieb of Essex Realty Group represented the seller. Abe Eilian of Essex represented the buyer in this transaction.
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An out-of-state 1031 exchange buyer paid $4.3M for a 5K SF Panera Bread property at 2400 West Jefferson St. in Joliet. Austin Weisenbeck and Sean Sharko of Marcus & Millichap’s Chicago-Oak Brook office marketed the property on behalf of the seller, and Karly Iacono of Marcus & Millichap’s New Jersey office represented the buyer.
LEASES
Del Monte Foods has signed a 10-year lease renewal for 9860-9880 South Dorchester Ave., a 48K SF warehouse within the Calumet Business Center in Chicago’s Cottage Grove Heights neighborhood.
The Walnut Creek, California-based food production and distribution company signed the original lease in 1999. NAI Hiffman’s Chris Gary represented Austin, Texas-based landlord Glen Una Properties, which owns the 12-building, 2M SF industrial park.
Flint Group has renewed its 31K SF lease at 1225 Lakeside Drive, an industrial property in suburban Romeoville. The printing and packaging supplier operates more than 140 facilities worldwide. It was represented by Corey Chase of Newmark Knight Frank. George Cibula of Darwin Realty/CORFAC International represented the owners.
CONSTRUCTION & DEVELOPMENT
Conor Commercial Real Estate began developing a 162K SF build-to-suit distribution facility at 315 South Hicks Road in Palatine. An unnamed e-commerce retailer will use the last-mile facility to serve residents of Chicago’s northwest suburbs, according to Conor. Crain's Chicago Business reported that Amazon would occupy the building.
Conor originally planned a 335K SF speculative industrial facility, company officials said, but once the client took an interest in the property, plans were revised. The building will feature a 36-foot clear height and 15K SF of office space.
The developer said it expects to complete the project by early October 2020. McShane Construction Co. is the general contractor and Ware Malcomb is the architect.
