This Week's Chicago Deal Sheet
Developer Prime Data Centers will expand its Midwest market presence with a 750K SF data center campus in northwest suburban Elk Grove Village. The 150-megawatt campus will house three tri-level facilities and become one of the largest data center campuses in the Chicago-O’Hare market.
The developer’s announcement comes just after the Elk Grove Village Board unanimously agreed to sell four parcels of land along the Busse Road Corridor to Prime for the campus.
“This rare project will enable hyperscalers, large enterprises and retail colocation providers to meet the growing capacity demands,” PDC Executive Vice President of Sales and Business Development Jeff Barber said in a statement. “In addition, it helps Elk Grove Village solidify its competitive position as a premier data center destination.”
The expansion illustrates Prime Data Centers’ strategy to develop data centers across sought-after markets, he added. In addition to this location, the company has four centers across California and is further expanding its footprint with other active projects in the U.S. and Europe.
EXECS
WiredScore appointed Sean Recht as head of its Midwest region. Recht previously worked at CoStar and will oversee business development for all WiredScore’s product lines across Illinois, Ohio, Michigan, Minnesota, Missouri, Wisconsin, Indiana, Nebraska, Iowa and Kansas.
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JLL appointed Luke Vanderpoel senior managing director and co-lead of the company’s Freddie Mac platform alongside Senior Managing Director Steve Henderson. Vanderpoel began his nearly 20-year career as a production analyst with HFF, which was acquired by JLL in 2019.
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Transwestern Real Estate Services appointed Greg Munson executive managing director, leading the firm’s Midwest region. In this expanded role, he will oversee operations across the firm’s offices in Chicago, Minneapolis, Milwaukee and Detroit. A member of Transwestern’s board of directors and executive committee, Munson previously served as managing principal and market leader for the firm’s Minneapolis office.
Transwestern also added Nicholas Schlanger as research manager for the Midwest region. Based in Chicago, he will oversee the production of local market reports and forecasting. Prior to joining Transwestern, Schlanger was a senior research analyst for Cushman & Wakefield’s Salt Lake City office.
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The Chicago Association of Realtors installed Antje Gehrken of A.R.E. Partners as its 2021-2022 president on Sept. 24 during the 138th Inaugural Gala at the Hilton Chicago. Gehrken has been involved in a variety of CAR committees and work groups over the years, including the finance committee, professional development advisory group and treasurer of the CAR Foundation Board of Trustees. Gehrken is also an active mentor for the Goldie B. Wolfe Miller Women Leaders in Commercial Real Estate Initiative.
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Cresa brought Tricia Trester aboard as head of global portfolio solutions. She will lead Cresa’s portfolio solutions and consulting teams. Trester most recently served as managing director and principal at JLL, where she led multi-regional teams. Prior to JLL, Trester was the London-based head of enterprise solutions for Cushman & Wakefield.
SALES
Bridge Industrial acquired a site at 290 Townline Road in north suburban Mundelein, where it will develop Bridge Point Mundelein, a 320K SF industrial facility. Groundbreaking on the site began immediately, and Bridge expects to complete the project in the third quarter of 2022.
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Albion Residential acquired Birchwood on Sterling, a 719-unit apartment community in northwest suburban Palatine. Birchwood was built in the 1970s, but Albion plans to spend $23M on renovations and updates. Voya Investment Management provided the Chicago-based Albion a $94.2M loan to embark on the project, which the new owner expects to complete in early 2024. The loan was arranged by Matt Schoenfeldt at JLL Capital Markets.
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A local investor paid $14.8M for 2827-47 North Clybourn Ave., a 36-unit building in Chicago’s Lakeview neighborhood. The building includes six commercial spaces on the ground floor and 30 luxury apartments. Alex Ivankevych, owner of Northfield, Illinois-based Dream Develops, which built the property in 2020, had hired Steven Livaditis and Jacob Goldstein of Essex Realty Group to market the property for sale. Interra Realty’s Brad Feldman represented the buyer, who plans to rent out the vacant retail space and increase rents.
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Venture One Real Estate, through its acquisition fund VK Industrial V LP, a partnership between Venture One and Kovitz Investment Group, closed the acquisition of an 11K SF industrial building at 691 Country Club Drive in suburban Bensenville. The acquisition was a sale-leaseback with Graphic Engravers Inc. The building was constructed in 1979 and sits on 0.69 acres of land. Jack Brown, Tyler Sharp and Adam Abushagur of Marcus & Millichap represented the seller in the transaction.
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The Equitable Funds acquired the 48K SF 1340-1350 Remington Road in northwest suburban Schaumburg, a two-building, single-story multi-tenant office asset. The company will combine this asset with 1305-1375 Remington Road to create One Story Schaumburg, a 130K SF property. The Equitable Funds acquired the first Remington asset, a four-building single-story office complex of more than 80K SF, in December 2020.
The buildings, located directly across the street from one another, were built in the same style by one developer. At the time of acquisition, the buildings at 1340-1350 Remington were about 30% leased. NAI Hiffman is the exclusive leasing agent of Remington Office Court. One Story LLC, a property management firm recently formed by Jonathan Berger and Joshua Silverglade, will manage the asset.
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An affiliate of Interra Realty paid Anixter Center $15M for 2032 North Clybourn Ave., a 150K SF building and some adjacent land near Sterling Bay’s Lincoln Yards development. Cushman & Wakefield’s Dirk Riekse, Eric Sorensen, Larry Goldwasser and Kathleen Nelson represented Anixter, which serves people with disabilities. The new owner plans to transform the building into a multifamily asset.
LEASES
Hazel Technologies signed an agreement with Tishman Speyer to lease more than 50K SF at 320 North Sangamon St. Hazel Tech is the second client to sign a lease at the new Fulton Market property in recent weeks. Founded in 2015 by a group of Northwestern University students, Hazel Tech develops technologies that help growers, shippers and retailers reduce food waste in their supply chains. David Saad at CBRE represented Hazel Tech in the transaction.
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Sunda New Asian, a Southeast Asian restaurant started by restaurateur Billy Dec, signed a lease with Chicago-based developer Sterling Bay and will occupy more than 8K SF on the ground floor of 333 North Green St. The 19-story office and retail development is now fully leased, according to Sterling Bay.
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Donohue Brown Mathewson & Smyth LLC signed a new lease for 24K SF at 131 South Dearborn St., joining other tenants such as Citadel, JPMorgan Chase Bank, Constellation Brands and Sprout Social. Jack O’Brien, Nikki Kern and Colton Riemenschneider of The Telos Group represented ownership in the transaction. Ari Klein and David Findling of Cushman & Wakefield represented DBMS.
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Luft Balloons signed a long-term lease for 7K SF of flexible space at 2300 West Fullerton Ave. in Chicago. Avison Young’s Konstantine Sepsis represented Luft Balloons, which occupies the entire building. The property, vacant for 20 years and the former home of Berteau-Lowell Plating Works, was constructed in 1930 and has since been fully restored.
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Three leases totaling 27K SF were signed at 26TWENTYFIVE in Oak Brook. The 214K SF building is owned by Clear Height Properties and the leasing agent is NAI Hiffman. In the first lease, BestRx, a family-owned pharmacy software business, leased 21K SF on the building's second floor. In another lease, MedOP Solutions, a healthcare consulting firm, completed a lease expansion totaling almost 4K SF, nearly doubling its space. In the final transaction, Supreme Home Health, a home healthcare provider, completed a 12K SF lease extension.
FINANCING
Asia Capital Real Estate provided a $25.4M bridge loan to developer CEDARst for its 92-unit, mid-rise multifamily property at 1435 West 15th St. The property was formerly the headquarters for Otis Elevator. CEDARst acquired the property in 2015 and repurposed it as a multifamily community, which it completed in 2017.
CONSTRUCTION AND DEVELOPMENT
Kinzie Builders completed construction on 10 North Main, a $20M rental development in northwest suburban Mount Prospect. The five-story, 97-unit building is located in the village’s downtown Prospect and Main TIF district. Kinzie Builders worked with 10 North Main owner First Equity Group LLC, developer Harlem Irving Cos. and architect OKW Architects from the pre-development phase through completion. Other partners include ECL Engineer Consultants, Pierce Engineering, LETech Inc., V3 Cos. and Kathryn Talty Landscape Architecture.
