This Week's Chicago Deal Sheet

With over $4B in sales last year, Chicago was the nation’s second strongest industrial real estate market. Developers are making mint off deals. The latest blockbuster: Panattoni Development sold six suburban warehouses for $105M.

Five of the warehouses are at Turnberry Lakes Business Park in Roselle (shown). Those were acquired by Deutsche Bank’s investment unit for $83.5M. The 4.85% cap rate is believed to be a Chicago-area record for an industrial deal. The sixth warehouse, a 150k SF unit in Skokie, sold for $21M. Panattoni continues to be aggressive in industrial, with 2.3M SF under construction in Franklin Park and Romeoville.

SALES

HFF’s Amy Sands, Clinton Mitchell and Barry Brown repped Retail Properties of America in the $17.5M sale of Stateline Station, a 143k SF shopping center in Kansas City, MO (pictured), to Shottenstein Property. The property was 85% leased at the time of the deal.

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The Boulder Group’s Randy Blankstein and John Feeney repped a Northeast-based real estate firm in the $594k sale of a single-tenant net-leased Jiffy Lube at 660 N Grandstaff Dr in Auburb, IN. The buyer was a private investor.

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Marcus & Millichap’s Sean O’Brien, Brandon Kramer and Bob Kaplan repped the seller of 740 Burr Oak Dr, a 40k SF industrial property in Westmont, for $1.5M.

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Paine Wetzel’s Jeff Blake repped M&R Printing Equipment in the $3.7M sale of 1372 Main St, a 107k SF building in Glen Ellyn, to LifeStorage. The buyer was repped by Cushman & Wakefield’s Sean Henrick.

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CTK Chicago Properties’ Nick Saraceno repped buyer Skyline Properties in the acquisition of a four-building, 161k SF industrial portfolio at 5040–5050 N River Rd and 9420–9500 W River St in Schiller Park. The seller, a trust in the name of the late Howard Bernstein, was repped by Transwestern’s Phillip Rosenberg and Ryan Phillips.

LEASES

NAI Hiffman’s Chris Gary repped Nufarm Americas in a 376k SF lease at 21399 Torrence Ave in Sauk Village (pictured) with landlord STAG Industrial.

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Mid-America Real Estate’s Peter Scannell repped Ivy Rehab in a new lease at Central Parkway, a 65k SF retail development at 799 Central Ave in Highland Park. Owner Tucker Development was repped in-house by Andrew White.

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NAI Hiffman’s Perry Higa repped Viskase Cos in a long-term lease with Highland Pointe for 27k SF at 333 E Butterfield Rd in Lombard.

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Lee & Associates’ Joe Grody repped landlord Cameo Management, in a 10-year, 3k SF lease at 21000 S LaGrange Rd (pictured) in Frankfort with Orangetheory Fitness. The tenant was repped by Metro Commercial Real Estate’s Nathan Tonnies.

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CBRE’s Dan Persa repped NuCurrent in the lease of 4,100 SF at 641 W Lake St.

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Transwestern’s John Marquardt, Cece Conway, Phil Utigard and William Briggs repped Coyne College in a 47k SF lease at 1 N State. The college will move from its campus at 330 N Green. Transwestern’s Michael Lirtzman, Jeff Dowdell and Katie Steele repped the building owner, FD Stonewater.

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Transwestern’s team of Michael Lirtzman, Courtney Baratz, Jeff Dowdell and Katie Steele completed the following leases, totaling 89k SF, at 200 W Madison:

• Greensfelder, Hemker & Gale P.C. renewed and expanded to 23k SF;
• Premier Business Centers leased 15k SF;
• Philadelphia Insurance Cos leased 11k SF;
• VacayStay Connect leased 6,500 SF; and
• Beacon Hill Financial Corp leased 5,262 SF.

FINANCING

Aries Capital’s Rushi Shah arranged three non-recourse CMBS loans totaling over $17M on behalf of Jariwala Hotels for the refinance of three limited-service hotels in North and South Carolina. The 10-year, fixed rate loans with interest rates ranging from 5.1% to 5.3%, include a $6.3M loan for a 120-key Comfort Suites in Charlotte, NC; a $6M loan for a 126-key Clarion Inn & Suites in Greenville, SC; and a $5M loan for a 130-key Best Western Plus in Winston-Salem, NC.

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Aries Capital’s Eric Jones arranged a $9.3M permanent loan on behalf of Douglas Crocker II and partners for a 23-unit apartment building at 858 N Franklin in River North. The 10-year, fixed-rate, non-recourse loan with 30-year amortization was secured at 100% of the total cost basis.

HIRES/PROMOTIONS

Aries Capital promoted Rushi Shah to EVP of the originations and business development team. Rushi is also president of LendingCap Commercial, Aries’ online non-recourse loan platform that streamlines the commercial loan process. Since joining the firm in 2014, he’s secured over $100M in bridge and permanent financing on behalf of his commercial real estate owner clients nationwide.

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Inland Real Estate Acquisitions promoted Mark Cosenza and Matthew Tice to SVP. Mark joined the firm in 2006 as a property manager and acquisitions negotiator and has handled negotiations for over 200 properties, totaling over $3B and nearly 21M SF. Matthew joined Inland in 2003 as VP of property management and acquisitions negotiator, and has handled negotiations for over 240 acquisitions, totaling more than $6B and nearly 25M SF.

KUDOS

NGKF’s James Schutter and Terry Alexa were named the leasing agents for NEC Taylor & Jefferson, a 119k SF, eight-story retail center in the South Loop. The development will feature four floors of retail space, 209 on-site parking spaces, 20-foot ceilings and elevated exposure for tenants with pylon signage.

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CBRE’s Joe Parrott and Sean McCourt were named leasing agents for the following properties:

• Dunning Square, a 128k SF retail property at Irving Park Road and Narragansett Avenue in Chicago;
• Marketplace of Matteson, a 263k SF retail property at Route 30 & Crawford in Matteson;
• River Pointe of Algonquin, a 160k SF retail property at Randall and Algonquin roads in Algonquin;
• Shoppes at Schererville, a 260k SF retail property at 701 US Hwy 41 in Schererville, IN; and
• Southpoint Shopping Center, a 250k SF retail property at 750 E Rand Rd in Arlington Heights.