This Week’s Chicago Deal Sheet
Fulton Street Cos. and Skender broke ground on a 401K SF office building in Fulton Market.
The 11-story office development at 217 North Sangamon St. is the first major new Chicago office building to begin construction in over a year. The building’s major tenants will include Chicago-based real estate investor Harrison Street Real Estate Capital and a first-floor restaurant from Gibsons Restaurant Group.
“Today’s groundbreaking event is a win for Chicago,” Alex Najem, founder and CEO of Fulton Street Cos., said in a press release. “We have assembled the very best organizations and companies, led by exceptional people, to remind the world that we can — and will — continue to build in downtown Chicago.”
Financial backing for the project was provided by Bank of the Ozarks and Manulife, and SNK Capital is the lead equity investment partner.
Delivery is expected in 2025.
PEOPLE
Colliers appointed Nik Bex as its managing director and North-Central multifamily lead, based in Chicago. Bex comes to Colliers with over 12 years of experience in the appraisal industry, having previously held positions as first vice president at CBRE and most recently as executive director at JLL. In his new role at Colliers, Bex will focus on multifamily and mixed-use asset valuation in Chicago and markets throughout the greater Midwest.
***
Principle Construction Corp. tapped Andrew Mackintosh and Nathaniel Barrett to join its team as senior project manager and associate project estimator, respectively. Prior to joining Principle, Mackintosh worked as a senior project manager for JLL project and development services’ industrial team. Barrett previously worked at Empire Construction, where he managed construction projects at the University of Iowa Hospitals & Clinics.
***
Klein & Hoffman Inc. added Scott Lumsden, Scott Stolarz and Nick Casaletto to its team. Lumsden has a background in the federal market sector and a 24-year military service tenure. Stolarz has had a diverse career working with several Fortune 500 leaders. Casaletto brings urban architectural knowledge.
***
Luxury Living, a multifamily leasing company, chose co-founder Amy Galvin to lead its business as CEO. Formerly the company’s chief culture officer, Galvin will replace co-founder Aaron Galvin. Amy Galvin said her strategy will be to refine the company’s product offerings and processes, re-establish an executive leadership team and support the company's future growth.
SALES
Fortec acquired a 10K SF childcare center in Yorkville for $2.4M. Fortec is investing an additional $500K in a complete remodel of the existing building where Learning Care Group will open its newest location in fall 2024. The school will serve about 170 students.
LEASING
Lee & Associates negotiated a 92K SF lease for Nova Medical Products at 410 Smoke Tree Plaza in North Aurora. Construction on the new Class-A industrial facility is set to finish in the second quarter. Nova will occupy 55% of the 166K SF building in a long-term lease. Lee & Associates principals Kenneth Franzese and John Cassidy represented Nova Medical Products, a manufacturer and distributor of medical equipment products. NAI Hiffman’s John Whitehead and Jack Brennan represented the landlord, TradeLane Properties.
***
DarwinPW Realty/CORFAC International principal Ed Wabick and Vice President Chris Mergenthaler represented Lampshades Inc., a manufacturer and distributor of lampshades, in its new lease of 17K SF at 5009 West 66th St. in Bedford Park. The tenant is relocating from a previous location along Ogden Avenue in Chicago. Colliers’ John D’Orazio represented the building owner, Mumford Properties.
***
Sterling Bay signed four biotech tenants to a recently revamped scientific research facility at 2430 North Halsted St. in Lincoln Park. The developer added Seq Biomarque, CeGaT Corp., Evoq Therapeutics and Cyclopure but didn’t disclose the size of the leases. The building is designed for life sciences startups with small-scale, short-term leases to support their evolving needs as they scale and seek funding.
CONSTRUCTION AND DEVELOPMENT
Principle Construction Corp. completed an 80K SF speculative distribution warehouse and office building at 2240 South Busse Road in Mount Prospect for Seefried Industrial Properties. Principle also built out 34K SF for an undisclosed tenant to occupy. The new Class-A project has a 32-foot clear height, 16 exterior docks, two drive-in doors and 17 trailer stalls.
***
McHugh Construction completed the construction of a five-story healthcare facility and medical office at 3501 North Halsted St. in Lakeview for Howard Brown, a Midwestern LGBTQIA+ healthcare organization. The federally qualified health center offers primary care and dental services and opened to patients in the last week of September while McHugh Construction finished building an upper level. The location offers 38 exam rooms and 12 dental chairs and is expected to serve 23,000 patients a year upon full occupancy.
***
Pickle Haüs, a 41K SF pickleball facility, opened at 1621 South Randall Road in Algonquin. The building has 12 indoor pickleball courts with a restaurant, bar, two golf simulators, private event space and an outdoor dining patio.
THIS AND THAT
The Marshall Bennett Institute of Real Estate at Roosevelt University held its 22nd Annual Real Estate Gala, raising nearly $250K to benefit student resources and educational programs for the school. The event honored Harry Huzenis, co-founder and principal of JRG Capital Partners LLC, with its 2023 Industry Leadership Award.
***
Entre Commercial Realty’s Sam Deihs won the Association of Industrial Real Estate Brokers Frank Mahoney award for 2022. The award recognizes outstanding leadership, community service and real estate brokerage success among young industrial real estate professionals with less than five years of experience. Deihs joined Entre in 2018 and has helped train and mentor other brokers in the firm while working extensively in the community.
