This Week's Chicago Deal Sheet
In a deal that shows investment is hot for office properties with a single, long-term tenant, Nashville-based Montecito Medical Real Estate bought a three-story office building at 5400 Pearl St. in northwest suburban Rosemont.
A source close to the deal confirmed to Crain’s Chicago Business that Montecito paid just under $30M for the 97.5K SF property next to O'Hare International Airport. The building is fully leased to Advocate Aurora Health lab testing subsidiary ACL Laboratories on a 10-year lease.
Montecito senior associate of investments Tony Shallcross said the Rosemont property "will be a great addition to our growing Chicago-area portfolio, and we look forward to continuing to build our relationship with Advocate Aurora Health in the coming years.”
Located in the bustling O’Hare submarket known for its low office vacancy, the sale secured a profit for Skokie-based real estate investment firm Dell Corp., which bought the building in 2017 for $24.3M, according to Cook County property records.
PEOPLE
Attorney David M. Gottlieb has launched GottsLaw, a law firm specializing in commercial and residential real estate, as well as handling trusts and estate matters. Gottlieb brings 30 years of real estate experience. The firm provides contracts, negotiations, due diligence, acquisitions, dispositions, 1031 exchanges, closings, workouts, REO, foreclosures, leases and evictions, and assists in strategic planning by integrating revocable trusts, wills, powers of attorney and more.
SALES
A Kiser Group team led by Aaron Sklar and Noah Birk closed the sale of a 26-unit multifamily property at 7700 South Jeffery Blvd. in South Shore for $1.8M. This is the second time the team has sold the property in two years, offering an opportunity to add value to the courtyard building comprising 26 one-bedroom units, half of which feature updated kitchens and/or bathrooms.
Interra Realty brokered the $17M sale of a three-building, 79-unit multifamily portfolio in the Hyde Park neighborhood on the city's South Side. The properties are 1310 East Hyde Park Blvd., a 25-unit building; 1318 East Hyde Park Blvd., a 26-unit property; and 1334 East Hyde Park Blvd., a 28-unit building. The three buildings combine to offer 43 one-bedroom units and 36 three-bedroom floor plans. Interra Senior Managing Partner Joe Smazal represented the private seller, an East Coast-based investor that renovated 90% of the units. The confidential buyer, a separate East Coast-based investor represented by Interra Managing Partner Ted Stratman, plans to add new amenities.
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Standard Communities led a public-private partnership that acquired Lake Park Crescent Apartments, a 148-unit affordable mixed-income community in the South Side neighborhood of Oakland, for $54M. Built in 2004, the property at 1061 East 41st Place consists of 13 buildings: one eight-story building with 76 units and 12 six-unit buildings, with a mix of one-, two- and three-bedroom apartments. The community includes 36 market-rate units and 112 affordable units, with qualifying incomes ranging from 40% to 80% of the area median income.
Kiser Group closed on a $4.1M condo package at Onan Place Condos at 3370 West Brooke Ave. in north suburban Waukegan. Senior Director Matt Halper and Director Danny Mantis represented the seller, who owned 58 of the building’s 74 units. The seller developed Onan Place Condos in 2006, placing it among the newest housing stock in the area. All 58 units included in the sale are rented to tenants. The buyer will have the opportunity to acquire additional units over time while continuing to operate the condos.
LEASES
Brown Commercial Group partner Mike Antonelli and President Dan Brown represented Bulldog Cartage in a 78K SF, full-building lease at 1549 Glenlake Ave. in northwest suburban Itasca. This follows a 38K SF lease in west suburban Addison that the Brown team negotiated for Bulldog, a storage, staging and shipping company, in the spring of 2022. The landlord was represented by John D'Orazio and Jonathan Kohn of Colliers.
THIS AND THAT
Peak Realty Chicago, sister company of Peak Properties, will lease three new apartment buildings in River North, Wicker Park and Uptown.
The properties are at 943 North Crosby St., 1741 North Western Ave., also known as Western Lofts, and 4501 North Sheridan Road, which is under construction by Mavrek Development.
PRC will commence the branding efforts internally in the next 30 days. Apartment rents are projected to achieve over $3 per SF for a Q2 2023 delivery. Peak Properties will manage both the residential and commercial components of the North Sheridan Road property.
