This Week's Chicago Deal Sheet
SALES
HFF closed the sale and arranged acquisition financing for The Seneca on Chestnut (above), a 254-unit, 95% occupied Class-A apartment building at 200 E Chestnut in the Gold Coast. HFF managing directors Sean Fogarty and Marty O’Connell, associate director Wick Kirby and executive managing director Matthew Lawton marketed the property on behalf of seller Waterton Associates. HFF managing director Stephen Skok and associate director Jason Bond placed a five-year, fixed-rate loan with a life company on behalf of the buyer, Emmes Asset Management.
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Inland Real Estate Brokerage & Auctions president Paul Rogers and senior broker John Hanson completed the sale of 255 acres of an 831-acre farm in Marengo, owned by a prominent Chicago-area family. The parcel was purchased by a local developer for $4.7M ($18k/acre). The property was recently annexed into the City of Marengo and is zoned Agricultural Transitional, allowing the owner the right to rezone the property.
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Sitex Group acquired a 128k SF vacant warehouse at 5000 S Homan, a former CN Railroad distribution facility on almost 16 acres near the I-55/Pulaski Avenue interchange. The company will immediately begin renovations, including façade enhancements, parking lot improvements, renovated office space and the addition of modern lighting.
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Interra Realty director Edward Logvinsky closed three multifamily properties in Chicago and Melrose Park totaling over $3M. A 51-unit property at 5606-24 S Wabash Ave in Washington Park sold for $2.5M ($49,019/unit). In December, a 10-unit property at 5329-33 W North Ave closed in Austin and an 11-unit mixed-use property at 171 N 25th Ave closed in Melrose Park. Both were owned by an East Coast private equity group that acquired them via a distressed debt acquisition.
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First Western Properties’ Paul Tsakiris completed the following sales: With Kellen Duggan, he sold a 100% occupied strip center (AT&T, Jimmy John’s, Edward Jones, Battery Giant) at 2321 Ogden Ave in Downers Grove; with Mark Zeglen, he sold a bank-owned, mixed-use building (three apartments and five storefronts, including a renovated recording studio) at 6901 S Halsted St; and Paul sold a mixed-use building (one storefront and seven apartments) at 3150 W Cermak Rd in Pilsen/Little Village.
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Ellas Commercial Real Estate president Georgia Kokkinias repped the buyer in the sale of a 16k SF storage facility at 509 Colfax in Palatine. LandStar Realty Group’s Bruce Bahrmasel repped the seller.
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Lakeview Pantry completed the purchase of a 7,500 SF building at a 3945 N Sheridan Rd in Lakeview that will double the amount of space for the organization’s HQ. This is the first building purchase for the nonprofit, which has served the local community since 1970. Architecture firm Wheeler Kearns is designing the interior space and construction will begin this summer.
LEASING
Savills Studley completed long-term lease negotiations for GCG Financial and Coldwell Banker at 3 Parkway North Blvd at Parkway North Center in Deerfield. GCG will expand its HQ from 32k SF at 3000 Lakeside Dr in Bannockburn to 37k SF to accommodate future growth. Coldwell Banker will move its Chicago home office and NRT central region HQ from Northbrook to 25k SF in the building. Savills Studley’s John Goodman and Jonathan Metzl repped GCG along with Interstate Tenant’s Brian Netzky. John and Jonathan co-brokered the Coldwell Banker deal with the firm’s in-house broker, Jordan Schnoll. NGKF’s John Clark repped ownership, The John Buck Co, in both deals, and Savills Studley’s Rich Dale served as project manager for both tenants.
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Northcoast Logistics renewed its 161k SF lease at 340 Crossroads in Bolingbrook with Cabot Acquisition LLC/RREEF. CBRE’s David Prioletti repped Northcoast, and CBRE’s John Humphrey and Traci Buckingham repped ownership.
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Avison Young completed four leases totaling 42k SF at the newly renovated 1.2M SF 1 S Wacker Dr (owned by Harbor Group International), including an almost full-floor 22k SF lease for AY’s Chicago office. AY principals Michael Curran, Brad Despot and Eric Myers, along with VP Annie Welsch, are the building’s exclusive leasing agents and repped Harbor in each deal. The other deals include: a 6,800 SF lease with Chicago Fundamental Investment Partners, a 7,300 SF expansion for Stout Risius Ross (now 32k SF), and a 5,800 SF lease renewal with Kutak Rock.
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RTKL renewed its 26k SF lease at 200 S Michigan Ave with Alliance Partners HSP. The firm has been located in Chicago since 1996. CBRE SVP Bill Sheehy repped RTKL in the deal.
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Peet’s Coffee & Tea opened its latest 1,140 SF Chicago store in The Wrigley Building’s south tower, which also signed a new lease for 7k SF of retail space with Ghirardelli Chocolate Co. The ice cream and chocolate shop is targeted to open on Memorial Day. NGKF’s Greg Kirsch repped ownership in the Ghirardelli lease and Conlon Commercial’s David Goldberg repped the tenant.
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First Western Properties’ Kellen Duggan and Paul Tsakiris completed two leases at 1727 S Indiana Ave, a South Loop office building. The first space was leased to a national hospice company and the second was leased to a prominent Chicago nonprofit for 10 years.
FINANCING
SomerCor 504 VP Bill Kornit completed four SBA 504 financing deals. He assisted: Yu’s Mandarin in obtaining financing for its $1M purchase of a 5,850 SF restaurant property in Vernon Hills, located at 4 E Philip Rd; Unlimited Freight in acquiring an 8,400 SF office/warehouse building at 16400 S Dixie Hwy in Markham for $500,000; Galati’s Pizza in buying a 7,900 SF restaurant property at 800 Feinberg Ct in Cary for $1M; and Ashland Millwork in buying a 58k SF industrial property (it formerly rented) at 1-5 Messner Dr in Wheeling for $2.4M.
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Berkeley Point Capital, led by director Doug Harper, closed the refi of Cedarhurst of Shiloh, a 95-unit senior housing community in Shiloh. The cash-out refi was structured as a fixed-rate Freddie Mac 10-year loan with a period of IO. This is Berkley Point Capital’s first financing with Dover Capital CEO and borrower Joshua Jennings and Dover Development. Cedarhurst is managed by Frontier Management.
