This Week's Chicago Deal Sheet

Multifamily is the hot real estate sector this year, and that activity is beginning to boil over beyond the downtown core. A JV of Guggenheim Real Estate, Atlantic Realty Partners and Focus Development announced it’s planning a major multifamily development in the Illinois Medical District.

The GRE-led JV will redevelop the 410-unit Medical District Apartments (pictured, foreground), which is 94% occupied. The JV also wants to build two 250-unit buildings next to the existing apartments. This development would allow medical professionals who work in the Medical District to be close to work, and the site is within walking distance from Taylor Street nightlife. KIG arranged the $111M JV.

SALES

Cushman & Wakefield’s Nicholas Kanich, Evan Halkias and Michael Marks repped Klaff Realty in its $6.2M acquisition of a 26k SF shopping center at 542-566 West Roosevelt Road in Chicago (shown).

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Essex Realty completed the following transactions:

• Jim Darrow, Jordan Gottlieb and Steve Livaditis were the sole brokers in the $1.3M sale of 1044-46 North Spaulding, a 14-unit multifamily property in Humboldt Park.
• Brian Kochendorfer and Brian Karmowski were the listing agents, and Doug Fisher repped the seller of 4401 North Beacon, a 13-unit multifamily property in Sheridan Park.

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A JV of Stocking/Urban and Condor Partners acquired 855 West Blackhawk, a 40k SF loft office building in Lincoln Park.

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Building Equity’s Dan Rosenberg was the sole broker in the $11M sale of 1342 West Randolph St, a 20-unit apartment building in the West Loop.

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Darwin Realty’s Richard Daly repped Hicks Properties in the disposition of a 71k SF warehouse at 925-1065 Chase Ave in Elk Grove Village (pictured). Colliers’ Jonathan Kohn repped the buyer, TMI Properties.

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CBRE’s Brian Silberman, Stanley Wang and Scott Miller repped CWS Management II in the disposition of Candlewood Suites Appleton, an 82-room hotel in Appleton, WI, to Batra Hospitality Group.

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Colliers completed the following transactions:

• Peter Block, Thomas Gorman, Jared Prince, Michael Sullivan and Jason Yale repped a private investor in the $7.5M acquisition of a five-building mixed-use property at 6315-6440 Main St in Woodridge. The buyer was repped by Equitable Realty Group’s Joseph Yendrek.
• Steven Kohn repped CenterPoint Properties in the $6M sale of 13 acres at 3400 West Pratt Ave in Lincolnwood. The buyer, South Bay Partners, will build a senior housing facility on the site.

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SVN | Chicago Commercial’s Jeff Baasch was the sole broker in the $1.9M sale of a 10-unit mixed-use building at 3035 North California.

LEASES

MBRE’s Kathleen Bertrand and Mark Buth repped ownership in a long-term lease extension and expansion with the Alzheimer’s Association at 225 North Michigan Ave in Michigan Plaza (shown). The tenant, whose lease runs through March 2030, added 16k SF and now occupies 79k SF. It was repped by Savills Studley’s John Goodman and Richard Schuham.

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CBRE’s Zach Graham and Ryan Bain were the sole brokers in CenterPoint Properties’ lease renewal and expansion with Akorn at 5605 Centerpoint Court in Gurnee. Akorn now occupies 161k SF.

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Bridge Development Partners and Akard Street Partners completed the following leases:

• A long-term lease with NavePoint for 36k SF at Bridge Point 94 Building 1 at 851-899 East Park Ave in Libertyville. NavePoint was repped by NGKF’s Sergio Chapa.
• Bridge and Akard also signed AllTech Automotive to a 59k SF lease at Bridge Point 94. AllTech was repped by RD Strategic’s Rick Delisle. Avison Young’s John Hauser, Michael Fonda and High Williams repped Bridge/Akard in both transactions.
• Colliers’ Vern Schultz repped the landlord in a 32k SF long-term lease with Chicago Fine Motors at Bridge Point McCook II, a 226k SF building at 8401 West 47th St in McCook. The tenant was repped by Nicholson Porter & List’s Adam Stokes.
• NAI Hiffman’s Brian Colson and Joe Bronson repped Bridge and Akard in a 138k SF long-term lease with Pilot Air Freight at Bridge Point Grand at 11600 Grand Ave in Northlake. The tenant was repped by JLL’s Dan McGillicuddy and Sam Durkin.

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NGKF’s Matthew Ward and Melissa Porcelli repped Alter in a lease expansion with WeWork at 20 West Kinzie (shown). WeWork now occupies 129k SF at the River North tech epicenter, making it the largest WeWork space in Chicago.

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Senca Real Estate’s Joe Padorr repped ownership and Metro Commercial Real Estate’s Nathan Tonnies repped Orange Theory Fitness in its 4,000 SF lease at 2209 North Halsted St in Lincoln Park.

FINANCING

SomerCor 504 completed the following SBA 504 deals:

• Pro-Beam USA obtained $465k in financing to purchase a 24k SF industrial facility 2050 Mitchell Drive, Oswego.
• Fathom Media acquired $270k in financing to purchase a 16k SF commercial building at 5462 West US Route 34, Oswego.
• Magro’s Processing obtained $914k to purchase a 28k SF industrial property at 3150 Stanton St, Springfield.
• Elite Cardiology Solutions locked in $233k to purchase a 3,100 SF office condo property at 2550 Hauser Ross Drive; Suite 350, Sycamore.
• Rainbow Lighting obtained $1M to purchase a 106k SF industrial property at 200-220 Fencl Lane, Hillside.
• Haeger Engineering acquired $361k to purchase a 9,195 SF office building at 100 East State Pkwy, Schaumburg.

HIRES/PROMOTIONS

Draper & Kramer senior property manager Shruti Kumar was appointed to serve on the 2017 IREM Chicago Governing Council as secretary. Shruti manages Lake Meadows Apartments, where she oversees 1,869 rental units in the mixed-use community that includes four high-rise and five mid-rise towers on 70 acres in Bronzeville.

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Colin Cosgrove joined Inland Securities as EVP and national sales manager. He will be responsible for overseeing Inland Securities' external and internal sales efforts. He comes to Inland from Griffin Capital, where he served as EVP–head of sales strategy for Eagle Capital Markets.

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Michael Tenuta joined Avison Young as VP in the project management practice, where he will assist the firm’s growing construction and development team in Chicago and across the US.

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Ken Verne joined Bridge Development Partners as senior director of asset management. Ken was most recently VP of asset management at HSA Commercial Real Estate.

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After a 10-year hiatus to start a family, Ellen Trager returned to MB Real Estate. Ellen is diving back in with an important leasing assignment she’s familiar with: One North LaSalle.

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Venture One real estate hired Kyle Grant to assist in the analysis, pursuit and diligence of new investments in addition to assisting with portfolio leasing and new market underwriting.

KUDOS

Podolsky|Circle CORFAC International was named property manager of 400 Skokie Blvd, the Class-A, eight-story, 195k SF office building in Northbrook. As part of its responsibilities for the building ownership group (now led by Syndicated Equities Group), Podolsky|Circle is overseeing a series of capital and tenant improvement projects.

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MB Real Estate was awarded the office leasing assignment for 939 West Fulton Market. The property, a half block east of Google’s offices at 1K Fulton, is being redeveloped for mixed office and retail use, and will feature approximately 25k SF of office on the second and third floors, a 6k SF rooftop terrace and 13k SF of ground-floor retail. Mark Buth, Denny McGann and Kelsey Scheive will rep ownership.

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Waterton received multiple industry awards from SatisFacts and ApartmentRatings.com for providing an excellent resident experience across its national portfolio of multifamily communities. For the fourth consecutive year, Waterton received a National Resident Satisfaction Award from SatisFacts, the industry’s leading retention and reputation management authority. In addition, 45 Waterton communities were individually recognized by SatisFacts for achieving superior scores, while 35 properties received the 2015 Top Rated award from ApartmentRatings.com.