This Week's Chicago Deal Sheet
PNC Realty Investors sold The Tides and The Shoreham in the lakefront’s 28-acre Lakeshore East neighborhood to Chicago-based Waterton as part of a transaction that closed Dec. 22, 2021. Sales prices weren't disclosed for the multifamily properties, which have a total of 1,156 units, but Crain’s Chicago Business reported in September that the total price for the then-pending sale would be close to $400M.
The sales illustrate that there is still investor appetite for multifamily properties in downtown Chicago, even as uncertainties remain over the threat of the coronavirus.
“We believe that the multifamily investment fundamentals in Chicago are favorable,” Julie Heigel, vice president of acquisitions at Waterton, said in a statement. “Record setting absorption as renters return downtown, coupled with historically low levels of new construction, continues to fuel Chicago’s recovery.”
The Tides at Lakeshore East, located at 360 East South Water St., was built in 2008 and comprises 608 units across 51 floors with more than 3K SF of first-floor commercial space. The Shoreham at Lakeshore East, located at 400 East South Water St., was built in 2005 and is composed of 548 units across 47 floors with more than 8K SF of commercial space.
CBRE’s John Jaeger, Dan Cohen and Justin Puppi represented PNC in the sale of both buildings. According to Jaeger, the 14- and 17-year-old properties will soon see upgrades.
“Both are in excellent condition and well-appointed with amenities yet still offer a compelling renovation opportunity to match other top-tier properties,” Jaeger said in a statement. “We are seeing that capital is ready to deploy and Chicago is poised to see even more investor interest in 2022.”
With this acquisition, Waterton has 10 rental communities in Chicagoland totaling more than 6,000 units.
SALES
Bayshore Properties bought the 752-unit multifamily community Park Ridge Commons in northwest suburban Des Plaines from H.A. Langer & Associates for $117M. The transaction was brokered by Kiser Group’s Matt Halper, Danny Mantis and Lee Kiser. The garden complex’s units are spread across 47 buildings with a mix of one- and two-bedroom apartments.
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R2 Cos. and Concord Capital Partners acquired in an off-market transaction a 35-property, 580-unit portfolio at the University of Illinois at Urbana-Champaign amassed over 60 years by Leon Bankier and his family. The assets are primarily located along Green Street in Champaign's Campustown subdistrict. The portfolio includes 1,323 beds, more than 80K SF of retail and four sites for development.
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Chicago-based Dayton Street Partners acquired a trailer parking and storage facility at 4900 South Merrimac Ave. near Interstate 55 in Chicago. The developer has already begun to transform the 8-acre infill site, having leveled two existing structures in order to make way for 237 truck trailer stalls. When complete, the site, which is adjacent to the CN Rail Yard, will be fully lit and fenced with a motorized gate. NAI Hiffman’s Kelly Disser, Michael Freitag and Ben Ryan represented DSP in the acquisition.
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A local limited liability company sold The Shops at Main Station Crossing, an 11K SF retail property at 950 Warren Ave. in west suburban Downers Grove, according to Joe Powers of Marcus & Millichap’s Chicago Downtown office. Brian Parmacek of Marcus & Millichap marketed the property on behalf of the seller. The property features a mix of long-term tenants that includes Sushi House, Gia Mia, Skin Med Spa and Yoga Six.
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Becovic, a Chicago-based multifamily owner and operator, added The Howard Theater Building to its Rogers Park portfolio. The mixed-use property at 1615-43 West Howard St., originally built in 1918, sold for $7.5M in a transaction brokered by Becovic Realty. The building’s 40 rental units are a mix of studio, one- and two-bedroom floor plans. The property, repurposed in 1999 by Cornerstone Investment Group with elements of the original theater, also includes 60 surface parking spaces and 15K SF of fully leased ground-floor retail.
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Molto Properties sold a 1.5M SF portfolio located across five markets, including Chicagoland. A fund managed by a subsidiary of Ares Management Corp., which acquired Black Creek Group’s U.S. real estate investment advisory and distribution business in 2021, bought the six-building portfolio. Cushman & Wakefield’s Adam Tyler, Jim Carpenter and Mike Tenteris represented Chicago-based Molto in the transaction. The portfolio included 945 Corporate Blvd. in west suburban Aurora, which totals 274K SF, along with two buildings in the Houston area and one each in the Louisville, Kentucky; Nashville, Tennessee; and Cincinnati regions.
LEASES
Spaulding Ridge signed a lease for 25K SF at 203 North LaSalle Dr., a 27-story, 625K SF office tower in the Central Loop submarket. This will be the cloud technology advisory and implementation firm’s only Chicago location and quadruples its office space at 105 West Madison St. Colliers Chicago’s Jeff Mulder arranged the deal.
CONSTRUCTION AND DEVELOPMENT
J.C. Anderson completed an amenity build-out on the 14th floor at 303 West Madison St., a 26-story, 310K SF office building in Chicago designed by architects Skidmore, Owings & Merrill. Construction included relocating management’s office, adding a fitness center and changing rooms, the addition of a large meeting/training room and a new game room. J.C. Anderson also renovated restrooms and created a tequila tasting room for private tenant events. The company’s construction team was led by Joe Maguire, Larry Regovic, Mike Ruffolo and Dave Abbinante. Wright Heerema Architects provided the architectural services, and CBRE was the project manager.
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General contractor Skender completed interior construction on the three-and-a-half-floor, 87K SF corporate office for Stepan Co., a global chemical manufacturer, at 1101 Skokie Blvd. in north suburban Northbrook. The office serves as Stepan’s global headquarters and now includes a learning and development suite with a training room, cafés on each floor, a board room, a fitness center, an IT Genius bar and a library space. Skender collaborated with Avison Young and architect and engineer CannonDesign on the project.
THIS AND THAT
Bridge Industrial and Canada Pension Plan Investment Board formed a joint venture to develop industrial properties in several core markets across the U.S. CPP Investments and Bridge have allocated $1.1B in equity to the joint venture. CPP Investments will own a 95% stake in the joint venture, and Bridge will own the remaining 5%.
