This Week's Chicago Deal Sheet
The Chicago Plan Commission last week approved Structured Development’s $250M Shops at Big Deahl project at 1450 North Dayton St. in Chicago’s Lincoln Park neighborhood. If approved by the full city council, the Chicago-based developer would add three residential towers with 487 units to a 2.2-acre site bounded by Blackhawk, Dayton and Kingsbury streets.
The project’s first phase would be a 10-story, 126-unit, market-rate rental building and a five-story, 34-unit condo building, along with a 0.5-acre park. The second phase would be a 27-story, 327-unit, market-rate rental tower on the property’s western end near the North Branch Canal.
To win approval from 27th Ward Alderman Walter Burnett and other city departments, Structured officials agreed to make all of the condos affordable and also agreed to develop another 33 affordable townhomes at its Harrison Row Townhomes community on the West Side at 2849-59 West Congress Parkway.
“By working collaboratively with the Department of Planning, Department of Housing and countless community stakeholders, we were able to create a plan that will be accretive to the neighborhood, continuing its transition from a former industrial buffer zone to its present-day mix of residential and commercial uses,” Structured Development founding principal Mike Drew said in a press release.
The Big Deahl site includes a 40K SF Planet Granite climbing gym under construction on the eastern side of the property. It is scheduled for completion in spring 2021.
EXECS
Andrew Essary joined Dayton Street Partners as director of construction and development. He will oversee the firm’s development portfolio, which includes ongoing projects in Atlanta, Chicago and Houston. Essary was most recently a senior project manager at Sterling Bay, where he oversaw a variety of projects, most notably the redevelopment of 600 West Chicago Ave.
In addition, Danielle Maciejewski joined Dayton Street Partners as controller. She joins the firm from Metra, where she also served as controller.
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Daydream Apartments appointed Jeff Brown general manager of Essex on the Park, a 479-unit apartment building on South Michigan Ave. in Chicago’s South Loop community. Before joining Daydream, Brown served as general manager at several hospitality companies, including Highgate Hotels, Renaissance Hotels and Conrad Hotels.
SALES
A private investor bought Motel 6 Chicago North Central, a 145-room property at 441 West Algonquin Road in Arlington Heights, for about $5M. Ebrahim Valliani, Allan Miller and Chris Gomes of Marcus & Millichap marketed the property on behalf of the seller, a limited liability company. They also secured and represented the buyer, which considers the property a value-add project.
LEASES
An undisclosed plastics company signed a 137K SF lease at Northwest Pointe III, a new industrial building at I-90 and Randall Road in Elgin’s Northwest Corporate Park. Entre Commercial Realty’s Dan Benassi represented the tenant, and Ken Franzese and John Cassidy of Lee & Associates represented the landlord. Northwest Pointe III is a co-development of Conor Commercial Real Estate and Globe Corp. Construction services were provided by McShane Construction Co.
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Sonoco Protective Solutions signed an office lease for 18K SF at 3930 Ventura Blvd., a 57K SF, single-story office building in Arlington Heights. JBS Commercial Real Estate’s Jason Shibata and Brian Silverman represented building owner Pal Group in the transaction. Avison Young represented Sonoco Protective Solutions, which provides packaging for products in the automotive and electronics industries, along with other sectors. The building is now approximately 80% leased.
FINANCING
A Mag Mile Capital team led by Prabhat Jayara and Heather Madsen completed a $7M nonrecourse loan for an 87K SF, 997-unit self-storage facility at 1331 South 55th Court in west suburban Cicero. The family-owned business was recently rebranded as an Extra Space facility. It will now undergo improvements, including a new revenue-generating commercial parking area. The 36-month interest-only loan was closed at 4% over Libor with a 1% floor and allows an option for extension.
CONSTRUCTION AND DEVELOPMENT
Ryan Cos. broke ground on Edward-Elmhurst Health Center at the southeast corner of Route 53 and 75th Street in suburban Woodridge. The village approved the two-story, 36K SF health center this summer, and Ryan aims to complete it next fall. The clinic will offer physician services that include primary and specialty care, behavioral health services, laboratory services, physical therapy and other specialties.
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J.C. Anderson was selected to complete a nearly 8K SF office build-out for the Chicago Public Education Fund at 200 West Adams St. in Chicago. The organization will relocate from the 21st floor to the 11th when construction is complete in Q1 2021. J.C. Anderson’s construction team is led by John Angelovich, Matt Kantro and Mark Zwadaka. ARCHIDEAS is providing architectural services.
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Mosaic Construction completed an office renovation project for Novel Coworking at 73 West Monroe St. in downtown Chicago. The builder also recently completed another renovation for Novel Coworking’s River North location at 420 West Huron St. The two projects represent a combined 6K SF of renovated office space. At 73 West Monroe, Mosaic transformed more than 1K SF of open office space into 10 new private offices.
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Krusinski Construction Co. completed a new research and development center at 1429 Centre Circle in Downers Grove for Flavorchem, transforming a 25K SF building previously used for storage. The company manufactures flavor and color additives for the food and beverage industries. The center now includes test kitchens and a showroom. The Krusinski team included Tim O’Driscoll, Nate Tenpas, Erin Anderson and Rick Drews. Other partners included GMA Architects and civil engineering firm CM Lavoie & Associates.
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Skender completed construction on Sarah’s on Sheridan, a new 36K SF, six-story housing facility at the intersection of Sheridan Road and Leland Avenue in Chicago’s Uptown neighborhood. The facility will be run by Sarah’s Circle, a nonprofit organization that serves women who are homeless or in need of a safe space. Skender broke ground in September 2019 and completed the project within the 15-month schedule. The steel and precast building has 38 units of permanent supportive housing as well as 50 beds for a temporary housing program. Skender collaborated with design firm Perkins+Will and owner’s representative Brinshore Development.
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PREMIER Design + Build Group completed a 72K SF spec warehouse at 2100 South Wolf Road in Des Plaines for real estate developer Seefried Industrial Properties. The site was previously home to a warehouse demolished by PREMIER. The builder repurposed the concrete from the demolition, using it for granular backfill. PREMIER’s Amy DePinto served as project manager and worked with colleagues Dan Wolf and Michael Long. Harris Architects provided architectural design services. Kimley-Horn provided civil engineering services.
THIS AND THAT
The Habitat Co. was awarded the property management contract for two Chicago condominium buildings: the 250-unit 899 South Plymouth Court and the 760-unit South Commons Phase 1 Condominium Association. The company has doubled its condominium portfolio over the past 12 months. Habitat announced its management of the 724-unit Park Tower in January, followed by the 234-unit Metropolitan Tower in July and the 323-unit Eliot House in September.
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Chicago saw 16% fewer multifamily renter applications this year compared to 2019, registering the nation’s second-fastest decline in renting activity, according to RENTCafé’s year-end report. To get a comprehensive overview of this year’s trends, the group analyzed 5.8 million apartment renter applications nationwide. RENTCafé found that 24% fewer Chicago tenants moved within the city’s boundaries in 2020, and apartment prices dropped 8.2% compared to last year, reaching $1,794 by November, the fifth-most-significant decline nationwide.
