This Week's Chicago Deal Sheet
Turner Impact Capital acquired the 448-unit Clayson Apartments community in northwest suburban Palatine. The firm now counts more than 1,600 units of affordable workforce housing in Chicagoland, part of a national strategy that has led to its acquisition of 11,361 units nationwide.
“The pandemic and resulting economic turmoil have revealed stark disparities throughout our society and deepened the housing crisis nationwide,” Turner Impact Capital CEO Bobby Turner said in a statement. “Our innovative investment model puts stable, high-quality housing within reach for families and individuals, and generates strong risk-adjusted returns for investors. The model proves that doing good and doing well need not be mutually exclusive.”
Origin Investments, in partnership with Draper and Kramer and LEM Capital, was the seller. The partnership acquired the asset in December 2016, then launched a capital improvement program totaling about $9M that upgraded the property’s amenities, landscaping and common areas, and addressed deferred maintenance issues.
Marty O’Connell and Kevin Girard of JLL Capital Markets represented the partnership and brokered the sale.
“The Clayson is a great example of the turnaround of an underperforming property after adhering to an investment thesis and operating strategy that aligned a robust capital improvement program with a keen focus on the resident experience,” Origin Investments Senior Associate Ken Lodge said in a statement.
EXECS
WPD Management, a property management company operating throughout the south side of Chicago, hired Dan Nagle as director of business development. Nagle is the first person to hold this position at the company and said in a statement he plans to help the third-party management company grow to 5,000 units under management by the end of 2022. Prior to joining WPD, Nagle was a banker and served as regional vice president for Devon Bank.
SALES
Fundamental Income, a Phoenix-based net lease real estate platform, acquired RH Chicago, The Gallery at the Historic Three Arts Club, for $44.7M. The 70K SF historic building, formerly known as The Three Arts Club, was originally constructed in 1914. The building includes six levels of home furnishings, a rooftop park and conservatory, The 3 Arts Club Café and The 3 Arts Club Wine Vault. The property was acquired subject to an in-place, long-term lease to RH.
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ML Realty Partners acquired a fully leased industrial building at 2105 Corporate Drive in northwest suburban Addison. Occupied by Huskie Tools LLC and Shape LLC, the 65K SF building is less than a mile southwest of a full interchange at Army Trail Road and I-355. Steve Disse, Jeff Devine and Tyler Ziebel of Colliers International were the representative brokers in this transaction.
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A Texas-based investor sold 1948 North Halsted St., formerly the Manhandler Saloon, a single-story building on a double lot in Chicago’s Lincoln Park neighborhood, for $2.5M. Kyle Stengle of Marcus & Millichap marketed the property on behalf of the seller. The buyer, a local investor, was secured and represented by Stengle, and plans to redevelop the property with retail on the first floor and apartments above.
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A private investor bought Oak Creek Center, a 79K SF industrial property at 818-890 Oak Creek Drive in west suburban Lombard, for about $10.2M. Peter Doughty, an investment specialist in Marcus & Millichap’s Chicago Downtown office, marketed the property on behalf of the seller, another private investor. He also secured and represented the buyer. Financing was obtained on behalf of the buyer by Frank Montalto and Dean Giannakopoulos of Marcus & Millichap Capital Corp.
LEASES
The owner and operator of Players Indoor Sports, an indoor athletic and entertainment facility in Naperville, signed a two-part lease and sale transaction for its 94K SF facility at 1740 Quincy Ave. Cawley Chicago’s Daniel Cawley and Brenten Blakeman represented the owner first in a 12-year master lease for TOCA Football, an entertainment company based in Costa Mesa, California. The pair then took the property to market and sold it as an investment deal to Acies Capital Group. Kip Hennelly with Patrick Commercial Real Estate represented the buyer.
FINANCING
JLL arranged $13.1M in acquisition financing for Woodridge Commerce Center, a 97% leased, three-building industrial complex at 10204, 10210 and 10216 Werch Ave. in southwest suburban Woodridge. JLL worked on behalf of the borrower, a joint venture between Unilev Capital and real estate investor Nitin Chexal, to place the three-year loan with Wells Fargo Bank. The 148K SF complex was completed in 2006 and sits on nearly 12 acres within the International Centre Business Park. The acquisition was led by Unilev’s Raymond Levy, Ian Konowitch and Peter Berges. The JLL team was led by Jeff Sause and Brian Walsh.
CONSTRUCTION AND DEVELOPMENT
Skender, along with its joint venture partner Ashlaur Construction, broke ground on Oct. 22 on Torrence Place, a three-story, mixed-use affordable housing and health clinic project for affordable housing developer Full Circle Communities at 2320 Thornton-Lansing Road in Lansing. The wood-framed building will have 48 affordable, accessible units for veterans and people with disabilities, as well as a 3K SF health clinic on the ground floor operated by Christian Community Health Center. The project team also includes architect Cordogan, Clark & Associates and CAGE Civil Engineering.
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The Missner Group was selected as general contractor by the McGrath Auto Group for its new, two-building McGrath City Mazda dealership on adjacent lots at 6601 West Fullerton Ave. and 6701 West Grand Ave. in Chicago. Missner will construct a showroom, as well as a sales and service center. Both buildings will feature aluminum and glass exteriors as well as roof-deck parking. The dealership will also include a tunnel car wash. Missner’s project team includes Aldo Bottalla, Paul Cohen, Angelo Christopher and Pat Howard. Simon Design Group will provide architectural services.
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Chicago-based Pangea Properties completed renovations at 2050 East 72nd Place, an 18-unit apartment building, and 7800 South South Shore Drive, a 31-unit apartment building. The properties, both in Chicago’s South Shore neighborhood, are part of the 281-unit portfolio that Pangea acquired from the Better Housing Foundation in July 2020.
There were hundreds of code violations across the BHF portfolio and only six units within 2050 East 72nd Place were occupied at acquisition. 7800 South South Shore Drive had been completely boarded up. All vacant units were updated and renovation work included complete overhauls of the common areas. Over the past 12 years, Pangea has invested almost $500M to acquire and renovate almost 13,000 units in Chicago, Indianapolis and Baltimore.
