This Week's Chicago Deal Sheet

Marcus & Millichap brokered a number of recent sales throughout Illinois and northwest Indiana, including the acquisition of two 12-unit apartment properties in Chicago for a total of $6.25M.

The Chicago properties are located at 922 and 855 West Grace St. 

Kyle A. Stengle, senior managing director and investment specialist in Marcus & Millichap’s Chicago downtown office, had the exclusive listing to market the property on behalf of the Golub Co. and its Boston-based partner. Senior Vice President Steve Rachman and associate Benjamin Conte represented the buyer, a New York-based investor.

The CRE brokerage firm also announced the following deals:

— The sale of a portfolio of two retail centers in Hammond, Indiana, for about $1.9M. One property is a three-tenant retail center at 902 Roby Drive with a drive-thru near the Horseshoe Hammond Casino, and the other property is at 2739 169th St. by the Purdue University Hammond Campus.

Mitchell Kiven and Nicholas Kanich, first vice presidents and investment specialists in Marcus & Millichap’s Chicago downtown office, had the exclusive listing to market the Hammond properties on behalf of the original developer of the properties and secured the buyer, a private investor in Chicago’s southwest suburbs.

— The sale of a 12K SF retail property, a strip center anchored by Verizon and FedEx Office and Print, in Springfield, Illinois. Brian Parmacek, first vice president and investment specialist in Marcus & Millichap’s Chicago downtown office, had the exclusive listing to market the property at 3422 Freedom Drive on behalf of Chicago-based developer Tartan Realty Group Inc. 

PEOPLE

Brokerage firm Greenstone Partners expanded its Wisconsin market presence by adding two new brokers, Kelly Rodenkirk and Amelia Bifano. 

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Hines promoted Steve Luthman to CEO of the U.S. Midwest and Southeast regions. He will oversee development, acquisition, asset management and operations in those regions.

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FitzGerald, a Chicago-based architecture, interior design and sustainability firm, hired Elma Milanovic as a managing associate to lead the company’s workplace practice. 

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Clear Height Properties announced that Arturo Radilla joined the company as director of project and development services.

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The Building Owners and Managers Association of Suburban Chicago announced its 2023 officers and board of directors. The officers are Suzanne Boryscka, president; Patricia L. Pierce, vice president; Jeffrey Wingert, secretary-treasurer; and Kimberly A. DeFily, immediate past president. The board of directors consists of Thomas Civitanova, Jonelle Dzikowicz, Daniel J. Flores, Anne Persaud, Lindy Schrik and Jonathan Swindle.

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Brown Commercial Group promoted Mason Hezner and Jim Pietrarosso to vice presidents of sales. Both were senior brokers specializing in industrial and office real estate brokerage services in the Chicago suburbs.

SALES

Transwestern Real Estate Services completed its acquisition of Chicago-based MB Real Estate after striking a deal to do so in November. The transaction adds 120 team members and a 12M SF Chicago-area property management portfolio to Transwestern’s books.

MBRE was founded in 1982 and provides services like asset and facilities management, leasing, project management, tenant representation and investment, according to a news release. MBRE handles several significant Chicago properties, including Michigan Plaza, 550 West Washington Blvd. and 181 West Madison St., Bisnow previously reported.

Transwestern already had a Chicago presence, handling leasing for large downtown properties such as NBC Tower, The National and 77 West Wacker Drive. The combination of the two private companies aims to create a “client-focused business model and innovative, collaborative workplace culture,” according to the news release.

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Interra Realty brokered several deals, including:

— The sale of a 130-unit mixed-use multifamily portfolio in Chicago’s Hyde Park neighborhood for an undisclosed price. Senior Managing Partner Joe Smazal represented the seller, an affiliate of Tricap Residential Group. Managing Partner Patrick Kennelly and Director Paul Waterloo represented a private buyer based on the West Coast.

— The $13.15M sale of reVerb Oak Lawn, an 84-unit multifamily portfolio in south suburban Oak Lawn. Smazal, Kennelly and Waterloo represented the private seller and the undisclosed buyer.

— The $11.05M sale of a 36-unit multifamily property in the Fulton River District. Managing Principals David Goss and Jon Morgan and Director Harrison Pinkus represented the seller, Monroe Residential Partners. Senior Managing Partner Brad Feldman represented the buyer, a local private investor.

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LEASES

Colliers represented NewCold in expanding its North American headquarters with a new lease at Accenture Tower, located at 500 West Madison St. This expands the company’s office space from 6K SF to about 35.6K SF.

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Zoro.com signed a new lease for about 41.9K SF at Accenture Tower. Zoro.com previously occupied the 16th floor and now occupies the 39th and 40th floors.

CONSTRUCTION AND DEVELOPMENT

Silver Cross Hospital and Premier Suburban Medical Group, represented by NAI Hiffman, broke ground on a new $25M medical office building in southwest suburban Orland Park. The 42K SF, two-story medical office building is estimated to be completed in early 2024.

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Over the course of five months, Krusinski Construction Co. completed a 49K SF fire restoration project for Bay Marine in Waukegan. A four-alarm fire broke out in February 2022 at Bay Marine’s boat storage facility in Waukegan Harbor. Krusinski’s restoration included replacing all roof, wall and boat access door insulation systems at the boat storage facility, along with reworking the sprinkler system and adding 10 destratification fans and a new mezzanine. The company also renovated the 9K SF office. 

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The Saint Grand, a co-development between Mavrek Development, GW Properties, Luxury Living and Double Eagle Development, broke ground at 218 East Grand Ave. on Jan. 11. The 21-story property will include 248 Class-A luxury apartments, 40K SF of offices and 8K SF of retail.

FINANCING

Northmarq finalized the refinancing of the Illinois Bone and Joint Institute's approximately 7,900 SF of medical office space in Downers Grove. Erik Kunz, vice president of Northmarq’s Chicago debt and equity team, arranged a permanent, fixed loan for about $2.18M.  

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Berkadia secured financing for The Magnuson in Tinley Park for $10.6M. Jason Bond, Berkadia managing director, secured the PACE loan construction financing for the 144-unit multifamily property on behalf of One Magnuson Lane LLC.

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Real estate firm Draper and Kramer arranged a $14.9M nonrecourse refinance and construction loan for The Park at Constitution Trail Centre in Normal, Illinois, on behalf of 100 McKnight LLC. The three-phase student housing community is located at 120 McKnight Drive and is an off-site, purpose-built community for students at Illinois State University.

THIS AND THAT

Project REAP, the real estate associate program, is accepting applications for its Spring 2023 Academy until Jan. 31. The REAP Academy is designed to further the careers of diverse professionals looking to enter the field of commercial real estate, though prior real estate experience is not required.

Candidates who live in or within commuting distance of REAP’s eight metro markets — Atlanta, New York City, Chicago, Cleveland, Los Angeles, Dallas, Washington, D.C., and Columbus, Ohio — may apply for the 10-week hybrid track, which includes three weeks in person. Candidates outside of commuting radius may apply for a seven-week virtual track. The academy begins April 10 and concludes on June 12.