This Week's Chicago Deal Sheet
Vista Property bought a mixed-use building and land site in Chicago's Fulton Market neighborhood at 413 North Carpenter St. in an off-market transaction. Greenstone Partners represented Vista in the transaction.
The sites encompass 23K SF of land with a fully occupied 21K SF mixed-use building. Vista bought it as part of a strategic assemblage of nearby properties it began acquiring earlier this year, including the purchase of 400 and 401 North Morgan St., also arranged by Greenstone Partners.
"In Fulton Market, there are limited opportunities to assemble multiple acres of adjacent properties providing a unique opportunity for a large-scale development plan," Greenstone Partners CEO and Managing Partner Danny Spitz said in a statement.
The Carpenter property includes two office tenants and 10 apartments, along with a 30-car private parking lot with frontage along Morgan Street.
“It’s very rare in an urban setting to be able to design a set of complementary buildings at this scale, and we are excited to enhance the Morgan Street Corridor even further,” Vista Property principal Hymie Mishan said in a statement.
EXECS
Clayco hired Mary Person as senior vice president of public-private initiatives. Person will develop public and public-private sector business opportunities, as well as lead diversity, equity and inclusion efforts. She joins Clayco from F.H. Paschen, where she oversaw DEI strategy as well as client relations with a focus on the mass transit market. Previously, she was director of diversity programs at CTA where she oversaw the disadvantaged business enterprise and EEO program.
SALES
DIR Development bought 111 Pfingsten, a four-story, 125K SF office building in north suburban Deerfield, for $10.8M from Adventus Realty. The seller paid $15.5M for the property in October 2013 and just finished a renovation. Sam DiFrancesca of JLL brokered the sale. In the last year, DIR acquired four other office buildings in the Chicago suburbs.
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A Chicagoland-based private investor bought Thorntons Truck Terminal and Gas Station Ground Lease, a 305K SF net-leased property at 3737 South Cicero Ave. in west suburban Cicero, for $4.8M. Austin Weisenbeck and Sean Sharko of Marcus & Millichap’s Chicago Oak Brook office marketed the property on behalf of the seller, a developer. The buyer was secured and represented by Weisenbeck, Sharko and Adrian Mendoza, also of Marcus & Millichap’s Chicago Oak Brook office.
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North Carolina-based Barings sold The Reserve at Evanston, a 193-unit mid-rise multifamily property at 1930 Ridge Ave. in Evanston, to California-based Friedkin Property Group for $65M. The deal closed on Nov. 1.
Berkadia Chicago’s Pete Evans and Berkadia Milwaukee’s Richard Evans handled the transaction for both parties.
“Evanston is a market where new supply added each of the last five years was not enough to satisfy demand for household formation,” Pete Evans said in a statement. “The market is fully occupied as housing demand has accelerated in suburban locations like Evanston with urban qualities, excellent access to transportation, quality educational institutions and top recreational amenities.”
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A joint venture between Clear Height Properties and Harbert United States Real Estate Fund VII, along with its parallel fund, acquired the Plumwood Tech Center at 1201 East Wiley Road in northwest suburban Schaumburg. The purchase of the single-story flex building represents the third acquisition for the group, which began with a recapitalization of a 15-building, multi-tenant industrial portfolio earlier this year. The seller was represented in the transaction by CBRE’s Gary Nussbaum, Michael Whisler and Kevin Kobe. Details of the purchase price and seller weren't disclosed. The 65K SF flex building is currently 70.1% leased. Josh Will, Joe Bronson and Aimee Goudas of NAI Hiffman will market the property.
LEASES
3M signed a 12-year lease renewal for its 410K SF global distribution hub at 1211 Fairview Drive in DeKalb, Illinois, about 64 miles west of Chicago. The agreement was signed with landlord Modiv, a public Newport Beach, California-based nonlisted REIT. Jenny Aust Turner of Cresa in Phoenix was 3M’s broker. Modiv was represented in-house.
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BDO USA, an accounting and advisory firm, committed to occupy 28K SF of offices at 2715 Jorie Blvd. in Oak Brook Reserve, the former McDonald’s headquarters and campus. It is the first major commercial lease for the remade development. BDO USA will use the space for the headquarters of its subsidiary BDO Digital, which plans to move into the space in Q4 2022. The 80-acre Oak Brook Reserve offers more than 400K SF and about 2.5 miles of hiking and biking trails. JLL’s Jeff Shay and Jack Connors brokered the lease on behalf of the owner, JPD Oak Brook Holdings. Transwestern’s Larry Serota, Cece Conway and Daye Williams represented BDO Digital.
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Westcore signed a 47K SF deal with the fourth and final tenant for its Mokena Corporate Centre, a two-building, 267K SF industrial warehouse property at 8905-65 West 187th St. in southwest suburban Mokena. Construction was completed 14 months ago, and all of the tenants were signed in 2021. Terry Grapenthin, Jeffrey Galante and Ryan Earley of Lee & Associates represented Westcore. Lee & Associates also represented three of the four tenants, with Cawley Chicago representing the fourth.
FINANCING
Cain International, a privately held investment firm, closed a $117M development loan to Lendlease and Aware Super for the delivery of The Reed at Southbank, a 513K SF, 440-unit residential tower in Chicago’s South Loop. Comprising 224 rental apartments and 216 for-sale condominiums, The Reed is the second phase of Southbank, a 7-acre master plan by Lendlease and Aware Super. It includes more than 2 acres of green space and an adjacent riverwalk, both of which are maintained by Lendlease as public amenities. The project is expected to be completed in 2023.
CONSTRUCTION AND DEVELOPMENT
Clune Construction completed Dentsu International’s new 126K SF Downtown Chicago office at 515 North State St. The space, designed by Studios Architecture, features an interconnecting stairway, as well as film studios, sound booths, production rooms and editing bays. The project team included Gardiner & Theobald as project and cost managers, Environmental Systems Design as engineers and Loop Lighting as lighting designer.
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PREMIER Design + Build Group began construction in Chicago’s West Humboldt Park neighborhood on the city’s newest Amazon delivery station. The 141K SF station near the intersection of Kostner Avenue and Division Street will be the last stop an Amazon package makes prior to delivery to customers in the area. PREMIER Design + Build Group is serving as the general contractor, and Venture One Real Estate is the developer. The build-to-suit project is slated for completion by 2023.
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Pacific Construction completed the design-build of a mixed-use corporate headquarters and production facility for nVenia, a Duravant company, at 750 North Wood Dale Road in suburban Wood Dale. The project involved two phases: a build-out of production areas and a build-out of office space. The facility, owned by Bridge Industrial, is designed to support 300 employees.
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The Opus Group started construction on a build-to-suit industrial building for Chicago Logistic Service at Oakview Corporate Park in northwest suburban West Dundee. This is Opus’ ninth project in Oakview Corporate Park. The 50K SF building will feature a 28-foot clear height, nearly 3K SF of office build-out and the capability to expand an additional 40K SF. The project is slated for completion in July 2022. Opus is providing development services and is the design-builder, interior designer, and architect and structural engineer of record. Noel Liston of Darwin Realty represented Opus and Chicago Logistic Service on the project.
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General contractor Summit Design + Build completed construction of a 55K SF addition to TLC Ingredients’ existing 40K SF precast warehouse at 16901 Advantage Ave. in south suburban Crest Hill. The expansion increased the company’s building size by 140% and included warehouse space, cold storage and four new loading docks. Harris Architects Inc. served as the architect.
THIS AND THAT
Chicago’s South Loop secured a spot among the top 20 apartment markets in the country, according to RentCafé. Since 2017, developers put up more than 3,500 new apartments in the area, making it the eighth-most-active neighborhood in the U.S. New rentals in this neighborhood account for 14% of the city’s latest apartment supply, the largest share in Chicago. River North came in second with 2,693 new units.
