This Week's Chicago Deal Sheet
Related Midwest broke ground on 400 Lake Shore, a two-tower residential development in Streeterville on the site of the failed Chicago Spire development.
The first phase of 400 Lake Shore includes a 72-story, 858-foot tower on the northern end of the site that will include 635 apartments, 127 of which will be designated as affordable.
“Chicago is a city defined by innovation and tenacity, that continuously rises to meet challenges and exceed expectations,” said Curt Bailey, president of Related Midwest, in a press release. “400 Lake Shore is the latest embodiment of this spirit and will set a new standard for vibrant, and equitable, urban living. I deeply appreciate everyone who has played a role in getting us to this pivotal moment.”
LR Contracting Company, Related Midwest's in-house contracting company, and BOWA Construction are building the first phase of the development. The 70-foot-deep cofferdam will be filled by August of this year, with the developer completing vertical construction of the concrete superstructure by October 2025. The first phase of the project is set for delivery in 2027.
PEOPLE
Heitman hired Gabrielle Hanson as a senior vice president in its client service and marketing group. In her new role, Hanson will develop and maintain relationships with institutional investors in the western United States and Canada, focusing on the firm’s private real estate equity, private real estate debt and public real estate securities strategies.
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Kiser Group promoted Jack Petrando from adviser to director. In his new role, Petrando will leverage his midmarket knowledge to negotiate on behalf of clients and see transactions through from inception to conclusion.
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Colliers added Scott Barrett to the firm as senior vice president of retail leasing. Over the past three decades, Barrett has worked for REITs, owners and asset managers in the industry, including Simon Property Group, Kite Realty, Washington Prime Group and CASTO.
SALES
A private investor purchased a three-building, 24-unit multifamily rental portfolio in Oak Lawn for $3.2M from another private investor. The buildings, at 10310-10326 Mayfield Ave. and 10310 Mansfield Ave., each house eight apartments. Interra Realty's Michael Duckler represented the portfolio’s seller and buyer.
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360 Chicago, the observation deck located on the 94th floor of 875 N. Michigan Ave., previously known as the John Hancock Center, purchased the 95th and 96th floors of the building. The floors have remained vacant since the closure of The Signature Room in September 2023. Plans for the 30K SF have not been finalized.
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Labels & Specialty Products purchased an industrial building at 3800 Commerce Drive in St. Charles for $1.2M. The 11K SF industrial building will be the company's second facility. Andrew Block, executive vice president at Lee & Associates, represented Labels & Speciality Products. Transwestern's Michael Marconi and Marko Kaplarevic represented the seller, Voestalpine Eifeler Coatings.
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Stream Realty Partners acquired the Halsted Pershing Business Center at 815 W. Pershing Ave. in the Stockyards. The 104K SF industrial property is 100% leased to three tenants with an average of four years of term remaining. Stream's Patrick Russo, Mustafa Ali and Ben Harrison facilitated the acquisition. JLL’s Capital Markets team, which includes Ed Halaburt, Sean Devaney, John Huguenard, Kurt Sarbaugh, Will McCormack and Michael Conway, represented the seller.
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Northpond Partners bought Iroquois Center, a value-add neighborhood center in Naperville, for an undisclosed sum. Mid-America Real Estate Corp.'s Joe Girardi, Rick Drogosz and Ben Wineman brokered the transaction on behalf of IRC Retail Centers/DRA Advisors.
LEASES
John B. Sanfilippo & Son signed a 445K SF lease at Venture Park 47, at 12300 Jim Dhamer Drive in Huntley. Lee & Associates' Frank Griffin and John Sharpe represented the tenant, who has begun occupying the facility concurrently with tenant improvement buildout. Colliers' Brian Kling and Reed Adler represented the owner, Venture One Real Estate.
CONSTRUCTION AND DEVELOPMENT
Time Equities, JK Equities and Oak Capitals hosted a grand opening event to celebrate first move-ins at 1000M, a luxury rental community at 1000 S. Michigan Ave. The 73-story tower cost $435M to build, featuring 738 apartments and over 80K SF of amenities. The building, now one-third leased, was designed by architect Helmut Jahn.
THIS AND THAT
Glenstar, a national commercial real estate developer, owner and property manager, launched a new strategic initiative to assist third-party owners of Class-A offices in increasing net operating income and overall asset value. Glenstar initially plans to work with lenders, investors, special servicers and receivers that are in the process of reevaluating business plans for office assets in Chicago, Dallas and their surrounding markets. Glenstar named Adam Parritz as director to lead the new initiative.
