This Week's Chicago Deal Sheet
Fulton Street Cos. secured a $233M loan to build a 400K SF, 11-story office building at 919 West Fulton St. in Fulton Market.
The company reached an agreement with SNK Capital, led by Shanna Khan, to serve as the lead equity investment partner. Bank of the Ozarks and Manulife will finance the project, while FSC and JDL Development will provide development services.
The project broke ground on Monday.
“This is not the most hospitable environment to get deals done but we are thrilled to partner with Shanna and SNK Capital, Bank of the Ozarks and Manulife to launch this one-of-a-kind project in Chicago’s hottest neighborhood,” Fulton Street CEO and founder Alex Najem said in a release. “Our goal is to retain the character of the neighborhood while introducing a property that attracts those tenants who want to cultivate culture and loyalty via office space and location.”
Harrison Street signed a 112K SF anchor tenant lease at the property, which will feature amenities such as a conferencing center, a health club and tenant lounge, as well as 40K SF of ground-floor retail.
PEOPLE
McHugh Construction, a Midwest construction firm, brought on two new hires to boost its leadership team. The company added Jill Paukstis as director of marketing and Ryan Pyatenko as director of business development. Paukstis has over 17 years of experience in marketing and brand strategy and was creative marketing director for Coda Resources.
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Baker Barrios Architects added William Maffett and Jeff Saad to its leadership team. Maffet joins as national director of higher education, and Saad will assume a role as Midwest regional director of healthcare. The firm’s hires are part of its efforts to expand across the country, which include the opening of its Chicago office in 2022 and attaining licensing in all 50 states.
SALES
Interra Realty, a Chicago-based commercial real estate investment services firm, sold a seven-unit apartment building in Old Town at 1338 North LaSalle St. for $2.25M, or $321K per unit. Interra Director Harrison Pinkus represented the seller, while Interra Senior Managing Partner Joe Smazal represented the buyer. The names of both the buyer and seller were undisclosed.
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Kiser Group closed on a deal for a historic property in Morgan Park dubbed The Castle. The building at 2324 West 111th St. sold for $1.925M and features 16 vacant residential units. It was built in the late 1800s as a funeral home and was later converted to a mixed-use property. John George and Joe Bianch brokered the transaction.
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Marcus & Millichap sold a 17-unit apartment property in Evergreen Park for an undisclosed price. Marcus & Millichap’s Ryan Engle, Andrean Angelov, Zack Mahoney and Jack Stanton marketed the property on behalf of the seller. The buyer was secured and represented by Engle, Angelov and Sam Antreasian. Both parties were private.
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Lee & Associates sold a 6.5-acre lot at the southwest corner of Route 59 and Hoffman Boulevard in Hoffman Estates for $4.1M. Lee & Associates principal Rick Scardino represented the seller, Prairie Pointe Commercial. Jacob Dell and Gary Fazio of CBRE represented the buyer, Advocate Health and Hospitals Corp. Advocate Health Care is planning to build a 36K SF outpatient center for an expected cost of $34M, inclusive of land costs, with potential for an 11.3K SF future expansion.
LEASES
Irvine Co. leased more than 100K SF at One North Wacker, bringing the building to nearly 90% leased, and is preparing to work on transforming the dedicated amenities floor as a part of a $10M reinvestment plan. Tenants include national law firm BakerHostetler, cloud communications leader Sinch and Berkshire Hathaway Specialty Insurance Co. Enhancements on the 17K SF amenity floor include a new coffee bar, an updated conferencing venue and an expansion of the private fitness center.
FINANCING
PGIM Real Estate gave Logistics Property Co. a $66M fixed-rate loan to refinance two newly built industrial assets. Logistics Property will use the loan proceeds to pay off construction debt, cover closing costs and return equity. The buildings, which encompass 760K SF, include Palatine 90 Logistics Center in Palatine and 2800 West Diehl Road in Aurora.
CONSTRUCTION AND DEVELOPMENT
Premier Design + Build Group broke ground on a building expansion project for Sumitomo Drive Technologies in Glendale Heights. When the project is finished, the building will more than double its existing footprint to 82K SF. Premier will create a fully modular crane building, enabling integration between assembly and distribution. The work also includes building new docks and doors, adding on-site parking and updating landscaping.
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AmTrust RE, a national real estate owner-developer of commercial, mixed-use and residential properties, is launching a $50M capital improvements program at two of its Chicago office properties, One East Wacker and 33 North Dearborn. At One East Wacker, AmTrust will upgrade the property’s exterior and entrances and complete a corridor and restroom renovation program. At 33 North Dearborn, the company will add an outdoor deck, expand its bike room and create new ground-floor retail offerings, among other improvements.
