This Week's Chicago Deal Sheet
JLL has arranged $215.1M in financing for the redevelopment of 801 South Canal St., a 684K SF office space rebranding as Canal Station in the South West Loop.
The space will house a fitness center, tenant lounge, conference center, outdoor terraces and a lobby, and will offer 376 parking spaces with large, open floor plates and glass windows — a rarity for buildings in the city’s Central Business District, according to JLL.
JLL worked on behalf of the borrower, 601W Cos., to secure a senior loan through Bank OZK and a mezzanine loan and preferred equity through Lionheart Strategic Management on behalf of Milestone Asset Management. The JLL team representing the borrower was led by Senior Managing Director Keith Largay, Director Lucas Borges and analyst Ryan Sullivan.
“The West Loop of Chicago is probably one of the best neighborhoods in the U.S. for attracting new companies,” Lionheart Managing Director Sebastian Post told Commercial Observer. “I think Class-A product in great locations is still attractive to both domestic and foreign investors."
Located one block away from the Old Post Office — an art deco building that underwent the largest historical redevelopment in the nation in 2021 — the Canal Station redevelopment is hoped to spur a renaissance along the south branch of the Chicago River.
PEOPLE
Geraldine Healy has joined Colliers as a senior associate with the retail sales and leasing team where she will work with local and national clients. She brings more than 20 years of industry experience, having worked as an associate with David King & Associates, and is also a former project manager with Sudler Property Management where she handled a nine-month, multimillion-dollar capital improvement project for a local condominium association.
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Dave Wilson has been named principal of Cresa while Ryan Foran and Jonathan Zeitler are becoming senior vice presidents. Wilson, formerly executive vice president with Transwestern, is entering his 40th year in the industry. Foran, also a former Transwestern vice president, brings 20 years of experience representing office tenants in primary and secondary domestic markets, while Zeitler has completed transactions valued at more than $500M during his career.
SALES
Apartment Investment Advisers arranged the sale of a luxury five-story, 32-unit apartment complex at 2050 Clark St. in Lincoln Park for $20.5M, or more than $640K per unit, breaking a unit price record for a mid-market multifamily property in Chicago. The building, known as Twenty Fifty, features one-, two- and three-bedroom floor plans ranging from 780 SF to 1.8K SF and was fully leased at the time of the sale. The seller was the developer, Novak Construction Co. and the buyer was HP Ventures Group-Development Services. The transaction was brokered by AIA’s Bill Cassin.
LEASES
HSA Commercial Real Estate executed a 140K SF lease with global logistics provider Rhenus Logistics at Gateway Industrial VI, marking the full lease-up of the 278K SF building at 915 Airtech Parkway in Plainfield, Indiana. The deal closed out leasing for the seven-building Gateway Business Park and concluded HSA’s 15-year chapter of developing and leasing the property. Nick Wigoda of Newmark’s Miami office and Matt Kiger of Newmark’s Indianapolis office represented Rhenus Logistics in the transaction. Ownership was represented by Terry Busch and Jared Scaringe of CBRE.
CONSTRUCTION AND DEVELOPMENT
Ryan Cos. started construction on Vyne on Haven, a 200-unit, transit-oriented apartment community at 102 Haven Road in western suburban Elmhurst. Vyne on Haven will offer 40 studios, 103 one-bedroom and one-bedroom-plus-den, 48 two-bedroom and nine three-bedroom units, ranging from 600 SF to 1.5K SF. Designed by Ryan A+E, the six-story, 320K SF building will be finished in 2024. Ryan is the developer and general contractor for the project and will manage the property upon completion.
THIS AND THAT
CA Health & Science Trust Inc., a REIT focused on the acquisition and development of medical office and life sciences facilities, is celebrating its first anniversary, having built a seven-building medical office portfolio that includes Rush University Medical Center, Cancer Treatment Centers of America, Northwestern Medicine and Advocate Aurora Health, among others, over the past 12 months. CAHST is also celebrating the closing of a $275M line of credit.
