This Week's Chicago Deal Sheet
Seefried Industrial Properties acquired an 8.82-acre land site along Devon Avenue in Elk Grove Village near O’Hare International Airport and plans to immediately break ground on a two-building, 163K SF speculative development.
The Atlanta-based firm joins many others seeking to capitalize on the growing demand for distribution space in the submarket. According to Colliers International, O’Hare tenants have leased on average 4M SF each year since 2012, and the vacancy rate sank below 4% in 2019. The pace of leasing stayed robust in the spring, although the vacancy rate increased to 4.19% in Q1 2020 as developers opened several new buildings.
“While real estate markets have changed dramatically over the past three months, this project will cater to emerging trends such as last-mile distribution,” Seefried Industrial Properties Senior Vice President David Riefe said.
It took Seefried nearly two years to complete this land assemblage from six individual sellers, as well as secure a needed zoning change from Elk Grove Village, according to Colliers International Chicago’s Jonathan Kohn, who, along with Ron Behm, negotiated the deals on behalf of Seefried.
Located in the Centex Industrial Park, the new warehouse/distribution center will feature 32-foot clear height ceilings, and Seefried plans to deliver it in Q1 2021.
Harris Architects is the project architect, Jacob & Hefner the civil engineer and Premier Design + Build the general contractor.
EXECS
Lee & Associates of Illinois hired Dylan Maher for its industrial team. The recent University of Missouri graduate was an intern with Lee & Associates and also worked at Maher Commercial in Columbia, Missouri.
SALES
An out-of-state private investment group paid $10.6M for a 141-unit apartment community at 232 East 121st Place in Chicago’s West Pullman neighborhood on the southwest side. Jeff Baasch and Finley Askin of SVN Chicago Commercial handled the transaction.
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A local investment group paid $2.3M for 6811 South Paxton Ave., a 29-unit mid-rise apartment building in Chicago’s South Shore neighborhood. The undisclosed seller was represented by Interra Realty’s Jon Morgan, David Goss, Ted Stratman, Lucas Fryman and Jeremy Morton. The same team also represented the buyer. The building was 97% occupied at time of sale, and collections were 95% for both April and May, Interra Realty officials said.
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Towne Park Condo Association retained Mark Kurgan and Sean Connelly of 33 Realty to market for deconversion a 132-unit condo development at 140 Wood in downtown northwestern suburban Palatine.
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An investment group that includes the principals of American Eagle Packaging Co. bought an 82K SF building at 1700 Kiefer Drive in north suburban Zion. As part of this transaction, Kiefer Associates, which occupied the whole building, agreed to an early termination of its long-term lease and entered into a short-term lease for a smaller portion of the property. American Eagle Packaging will use the facility to serve local customers and lease the remainder to additional tenants. Entre Commercial Realty’s Dan Benassi, Dan Jones and Sam Deihs brokered the transaction, and Entre will manage and lease the property.
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A private investor purchased for $1.8M a 6K SF McDonald's property at 2095 West Galena Blvd. in west suburban Aurora. Marcus & Millichap’s Austin Weisenbeck and Sean Sharko marketed the property for the seller, a limited liability company. Adrian Mendoza, also of Marcus & Millichap, secured and represented the buyer.
FINANCING
Evergreen Residential refinanced its Park Tower Apartments, a 134-unit property at 247 Caterpillar Drive in Joliet, with $16.3M in financing arranged by Sue Blumberg and Kevin McCarthy of NorthMarq’s Chicago office. The 14-story building charges rents based on income for households headed by someone 62 or older, and with incomes at or below 50% of the area median income.
CONSTRUCTION AND DEVELOPMENT
General contractor Summit Design + Build completed heavy-timber construction of 1040 West Fulton, a five-story, 42K SF office building with ground-floor retail, in Chicago’s Fulton Market District. Summit will use the fourth and fifth floors as its new headquarters. It’s the first multi-story mass timber building in Chicago in 50 years. Summit officials say using timber helps the new building blend into the neighborhood, a former meatpacking district where the majority of buildings were heavy-timber construction.
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Northbrook, Illinois-based Cannabis Facility Construction began building a new recreational and medical cannabis dispensary for Greenhouse at 755 Skokie Blvd. in Northbrook. The cannabis provider will use the 10K SF dispensary as a national flagship location for its brand. Cannabis Facility Construction has since 2015 built more than 30 cultivation centers, processing laboratories and retail dispensaries for clients in nine different states.
THIS AND THAT
Matanky Realty Group partnered with NATIVE 312 to decorate boarded up stores at its Chicago Kedzie Plaza on Chicago’s West Side. NATIVE 312, an arts events company, gathered 12 artists to paint boarded-up stores with murals, which will remain on display for a short time at 800 North Kedzie Ave.
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Konnect Real Estate launched KNCT Lending II, its second privately held real estate debt fund. It will provide short-term lending with accelerated term sheet delivery, a short approval process, low loan minimums and quick closings, according to Lee Kotler, president of Chicago-based Konnect.
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Wyzendale, a Chicago-based design practice, announced its launch last week. The new firm offers architecture and interior design as core services, along with branding and consulting. Wyzendale is applying to become a certified minority business enterprise with the city of Chicago.
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Darwin Realty joined CORFAC International as an affiliate, the first U.S.-based firm to join CORFAC this year. Darwin Realty/CORFAC International serves the Northeast Illinois, Southern Wisconsin and Northwest Indiana markets, specializing in industrial and office brokerage, investment sales, asset/property management and development.
