This Week's Chicago Deal Sheet
SALES
Essex Realty Group’s Jim Darrow and Jordan Gottlieb repped the seller and Doug Fisher repped the buyer in the $2.7M sale of 932-40 W Dakin St (pictured), a 27k SF warehouse building built in 1914 by the ER Moore Co in Lakeview. The building may be a candidate for the National Register of Historic Places and offers the opportunity for conversion of the existing structure into loft apartments or condos, with potential Federal rehab credits.
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Lee & Associates of Illinois principal Brian Vanosky and associate Tim McCahill repped Red Hen Bread in its purchase of a 40k SF food grade industrial building at 745 N Larch in Elmhurst. Nicolson Porter & List’s Mark Barbato repped the seller.
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Sean Sharko, Adrian Mendoza and Austin Weisenbeck, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, and Kyle Stengle, an investment specialist in M&M’s Chicago Downtown office, repped the seller, an LLC, in the $3.6M sale (5.5% cap rate) of Chase Bank | European Wax | Wrigleyville, a 5,893 SF retail property at 3728-3730 N Southport Ave in Lakeview. This is one of the lowest cap rates ever achieved for multi-tenant retail in the Chicago area. Zachary Weiss and Preet Sabharwal, investment specialists in M&M’s Manhattan office, repped the buyer.
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AIV purchased a 15k SF industrial building at 1520 Ardmore Ave in Itasca. Lee & Associates of Illinois principal Jeff Janda and SVP Mike Plumb repped the seller, Prologis. SCGroup Real Estate’s Edward Viliunas repped the buyer.
LEASING
500 W Madison (pictured) secured leases totaling 73k SF in December (including HERE North America for 8,559 SF and National Financial Partners Corp for 36k SF), bringing total leasing activity at the building to 145k SF for 2014. Owner KBS REIT III also has extensive capital improvements underway on the 1.5M SF building (atop Ogilvie Transportation Center), now 95% occupied. Transwestern EVP Michael Lirtzman and VP Courtney Baratz are exclusive leasing agents for the property. KBS’ repositioning plan includes upgrades to public spaces, a new tenant lounge, an expanded conference center and a new 11k SF fitness center.
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Lear Corp leased 93k SF of industrial space at 6750 Daniel Burnham in Portage, IN. Lee & Associates of Illinois principal Brian Vanosky and associate Tim McCahill repped the landlord and CBRE’s George Maragos repped the tenant.
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Dixon Valve & Coupling Co leased a 30k SF industrial building at 1011 Hilltop Dr in Itasca. Lee & Associates of Illinois principals Jeff Galante and Jeff Janda repped the landlord, Liberty Property Trust. Transwestern’s Joe Karmin and Justin Lerner repped the tenant.
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JK Global leased a 20k SF industrial space at 1100 Arthur Ave in Elk Grove Village. Lee & Associates of Illinois principals Chris Nelson and Jeff Janda repped the landlord, KTR Capital. Cawley Chicago Commercial Real Estate’s Terry Herlihy repped the tenant.
FINANCING
HFF managing director Danny Kaufman, senior managing director Mike Kavanau and managing director Steve Skok arranged $118M in financing for 496-unit K2 (pictured) in the West Loop, recently acquired by The Georgetown Co. HFF worked on behalf of Georgetown to secure the 10-year, fixed-rate loan through Freddie Mac’s CME Program. The securitized loans will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program. The property is 96% leased and Georgetown plans to upgrade public spaces and amenities.
