This Week's Chicago Deal Sheet
Developer David Hovey and partner DeBartolo Development were approved for a $159.5M loan to finance construction of a 53-story apartment tower at 220 E Illinois St.
Groundbreaking for the 496-unit apartment tower, Optima Tower II, will happen any day now after the City of Chicago approved foundation construction and tower crane permits, Crain's reports. Optima Tower II will join its 42-story sister building to Optima Place Chicago in Streeterville.
SALES
CBRE investment sales team John Jaeger, Dan Cohen and MJ Zaring advised Shodeen Group in the sale of Wessel Court, a 228-unit multifamily property at 1820 Wessel Court in St. Charles to Axiom Properties Inc for $20.8M. Wessel Court Apartments has 192k SF of total net rentable space and is the third property CBRE has sold for The Shodeen Group. The CBRE team also advised Kinzie Realty Corp in the sale of Fox Run, a 220-unit multifamily property at 145 Walnut Dr in St. Charles to Windy City RE LLC for $17.4M.
***
The Baum Realty Group Investment Sales Team of Greg Dietz and Danny Spitz have been busy. Greg and Danny repped a subsidiary of Wintrust Financial Corp in the OREO transaction of a 17.5k SF center at 4700-4708 N Kimball Ave for $2.3M. Baum’s landlord rep team of Ken Robberechts and Doug Renner leased the retail center. The center was 86% occupied at the time of sale and was purchased by a private investor based on the East Coast. They also represented the Neuman Family in the transaction of an 18.45k SF mixed-use building at 1422-1426 N Milwaukee Ave for $4.2M. The building consisted of three retail suites that were 100% occupied at the time of sale, with an additional value-add multifamily component above the retail. The asset was purchased by a private developer that plans to redevelop the multifamily units.
***
Danny and Greg represented Heartland Bank in the OREO transaction of a 10k SF mixed-use building at 1321 N Larrabee St and 1312-14 N Clybourn Ave for $1.15M. The building consists of two commercial spaces and four apartments. The property was purchased by a private developer that plans to redevelop the building.
***
Danny and Greg represented a private owner in the transaction of a 22k SF land parcel at 847 N Larrabee St for $4.1M. The site was bought by a private developer that plans to build luxury residential condos.
***
Danny and Greg represented a private owner in the sale of Prairie Crossings, a 14k SF retail strip center anchored by the Westin North Shore hotel (pictured) at 701-749 N Milwaukee Ave in Wheeling for $4.9M. The retail center is 100% occupied by national and regional tenants with new 10-year leases. All six tenants were procured by Baum’s Landlord Team, Doug Renner and Trevor Jack. Originally sold by Baum’s Investment Sales Team 18 months ago to an out-of-state investor, the property was hemorrhaging with only 3k SF occupied at the time. With consultation and a strategic leasing plan put into place by Baum’s landlord team, the property was 100% leased within 14 months.
***
Finally, Danny and Greg represented a private seller in the transaction of a 10.5k SF commercial condominium at 1669-1681 N Milwaukee Ave for $3.7M. The commercial condo is divided into three suites and was 100% occupied by two tenants at the time of sale. The property was purchased by a private investor as a 1031 exchange.
***
NelsonHill's Mark Nelson, Michael Nelson and Frank Melchert repped seller Joe Reina in the sale of an 82k SF industrial building at 5109 W Lake St for $4.2M. The purchaser, private investor Sam Scarlato, was not repped. Built in 2003, the building is on three acres and is 100% occupied by seven tenants, including Johnstone Supply, Chicago Performance and A Moon Jump 4U. Features of the precast facility include 24-foot clear ceiling height, over 11k SF of office space, four drive-in doors and 10 docks with levelers. The property offers 91 parking spaces and is well-located between Chicago’s Midway Airport and O’Hare International Airport.
***
DELIVERIES
Wight & Co delivered a new corporate HQ for Land O’Frost, a company known for its brands of lunch meats and sausages. The 28k SF, Class-A building at 630 Hagburg Dr in Munster, IN, includes a technology-rich open office environment, a restaurant-quality demonstration kitchen, and a “pilot plant” for exploring new manufacturing and product ideas. The new building replaces Land O’Frost’s offices in Lansing, IL.
PEOPLE
Pine Tree Commercial Realty recently promoted four VPs:
* Senior vice president, asset management and due diligence Erin Bremen will lead all underwriting, due diligence, financing and closing efforts on new acquisitions as well as overseeing asset management of Pine Tree’s portfolio.
***
FINANCING
Bradford Allen and Security Benefit Life Insurance Co will provide $30M in financing for the acquisition and renovation of the Beverly Hills Country Club, a bath and tennis facility in the Cheviot Hills’ neighborhood of West Los Angeles. The club was purchased by a JV between Meriwether Cos of Boulder, CO, and Chicago-based investment fund Singerman Real Estate. The club rests on 3.91 acres and is improved with a 35k SF clubhouse, 10 lighted tennis courts and an outdoor swimming pool. Ownership plans a series of renovations, which will dramatically improve the exterior appearance, interior and amenities.
LEASING
ML Realty Partners signed LG Electronics to a five-year renewal for its 338k SF facility at 1251 W 115th St in Bolingbrook. The single-tenant industrial complex is part of the Highland Corporate Center in Chicago's South I-55 Corridor Industrial submarket. LG has fully occupied the facility since 2009. James Frank and Jason West of Cushman & Wakefield represented LG Electronics in this deal.
***
Paris Present Inc., a personal care manufacturer and distributor, signed a four and a half year extension of its full occupancy lease at 3800 Swanson Ct in Gurnee. The 224k SF distribution warehouse is just north of Chicago and features 28-foot clear heights and 10 exterior loading docks. The facility is owned by Stag Industrial Inc. a Boston-based REIT specializing in single-tenant industrial properties throughout the US, which purchased the property in 2012 for $9.17M.
***
Bradford Allen Realty Services senior managing director Ben Azulay and director Justin Kessler completed a new 19.5k SF lease on behalf of Walton Isaacson at the Reid Murdoch Center, 325 N LaSalle St. Walton Isaacson is an independent marketing agency with offices in Los Angeles, New York, Chicago and Miami. Due to the firm’s organic growth and need for additional space, Walton Isaacson chose to relocate from 400 N State St, where they are spread over multiple floors, to the fifth floor of the Reid Murdoch Center, where they will have room for continued growth. Ben and Justin assisted the firm with site selection analysis, ultimately securing space at the Reid Murdoch Center based on its location as well as the building’s large floor plates. Walton Isaacson will move in this summer.
