This Week's Chicago Deal Sheet

Pedestrian activity in Chicago’s Loop nearly hit its pre-pandemic level last month, according to Chicago Loop Alliance. The group just released its February report on downtown activity, finding several metrics improved alongside a decline in coronavirus positivity rates and infection cases, with parking volumes even exceeding the numbers seen in 2019.

Over the final week of the month, pedestrian activity reached more than 91% of 2019 levels, the highest monthly rate measured since the pandemic’s beginning, CLA found. In addition, the Michigan Avenue-Wacker Drive intersection surpassed 2019 recovery metrics.

“The Loop has seen a dramatic increase in activity in the past couple of weeks, with restrictions easing, and office workers beginning to make a gradual return, we are feeling a bit of the weight release,” President and CEO of CLA Michael Edwards said in a statement. “February’s data is promising for return of a semblance of normalcy to day-to-day activity downtown.”

February visitor counts in the Loop reached 72.1% of the same month in 2019. And the week beginning Feb. 28 hit 1 million counts on State Street in the Loop between Wacker Drive and Ida B. Wells Drive. The Michigan Avenue-Wacker Drive intersection recorded pedestrian counts of 115% of the same week in 2019.

Parking reservations surpassed 100% of their 2019 levels, with a high point of 120% during the week of Feb. 28. 

SALES

An East Coast-based buyer purchased a four-building Hyde Park portfolio in an off-market transaction for $8.5M, or $356K per unit. The buildings at 5409-11 South Blackstone Ave., 5533-35 South Blackstone Ave., 5623-25 South Dorchester Ave. and 5427-29 South Greenwood Ave. were all built in the early 20th century and include three one-bedroom, three three-bedroom and 18 four-bedroom apartments. Interra Realty’s Joe Smazal brokered the multifamily transaction. This marks the second time since 2017 that Smazal has sold the portfolio.

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Thor Equities Group acquired 1211 Tower Road in Schaumburg in the O’Hare Airport submarket. Thor plans to develop a Class-A, 109K SF industrial building at the 6-acre site. The company’s construction plan includes a 32-foot clear height.

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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 on the purchase of a 196K SF industrial building at 10550 86th Ave. in Pleasant Prairie, Wisconsin. The precast building in LakeView Corporate Park sits on 11 acres and was partially leased to two tenants at the time of acquisition. Mike Tenteris, Adam Tyler and Keith Puritz of Cushman & Wakefield represented the seller. Puritz, Eric Fischer and Marc Samuels will market the remaining 48K SF for Venture One.

LEASES

Somerset Development’s Bell Works Chicagoland, the former AT&T corporate campus in northwest suburban Hoffman Estates, will welcome It Gym as its newest tenant. Spanning more than 3K SF, the facility will offer personal training and group exercise. It Gym is scheduled to open in the summer and feature a main gym, which will hold up to 15 people, and a training studio, which can hold up to six people. Other tenants include Platinum Home Mortgage Corp., CPA Advisors Group, Mosquito Hunters, a residential and commercial mosquito control service, and The Next Unicorn, an equity crowdfunding firm.

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The development firm Moceri + Roszak awarded Stream Realty Partners the leasing of 145 South Wells St. Mark Baby, Matthew Lerner and Brittany Hughes will lead the efforts for the new 205K SF, 20-story creative office building. Speculative suites offer 12-foot ceilings, and tenants can access a penthouse floor of amenities, including a fitness center, Peloton studio, conference center, golf simulator, foosball, pingpong, outdoor deck with grills, and a fire pit.

FINANCING

JLL arranged acquisition financing of $8M for a two-property portfolio totaling 91K SF of small-bay, light industrial space in Chicago. Working on behalf of the borrower, Beverly Hills, California-based Unilev Capital Corp., JLL placed the financing with a national bank. Unilev launched an industrial platform less than 18 months ago and has since acquired $120M of industrial property across the country. Recent acquisitions include 10 Chicago-area assets, three Las Vegas properties and a San Diego asset. The JLL team representing the borrower was led by JLL’s Jeff Sause, Brian Walsh and Wyatt Strahan.

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Chicago Atlantic Real Estate Finance, a commercial real estate finance company, led a $30M senior secured credit facility to a private cannabis operator in Florida. At closing, Chicago Atlantic funded $17.5M of its total $22.5M. The facility will fund a new cultivation and processing facility in Florida and build out more than 20 dispensaries during the next two years.