This Week's Chicago Deal Sheet
Steve and Randy Fifield have two major Chicago multifamily developments in the pipeline. The Sinclair in the Gold Coast is on track for a September delivery and last week, the Fifields broke ground on 727 West Madison.
The groundbreaking is somewhat miraculous. The 44-story project, designed by Fitzgerald Associates Architects, was in danger of losing its zoning last March. Fifield entered the picture late last year and secured $118M in construction financing through the Bank of the Ozarks last month.
727 West Madison will include 492 luxury apartments and more than 10K SF of retail. When it is delivered in late 2018, it will be the tallest building in the West Loop.
SALES
Interra Realty’s Joe Smazal repped Newcastle Limited in its $19M acquisition of a 48-unit trophy multifamily property at 325 West Fullerton Pkwy. in Lincoln Park. The seller, a family that has owned the property since it was first built in 1917, was repped by Cagan Management Group. The new owners plan to add amenities and make in-unit renovations.
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The Boulder Group’s Randy Blankstein and Jimmy Goodman repped the seller in the $1.2M sale of a single-tenant new construction Dollar General at 710 East 4th St. in Delavan, Illinois. Delavan is part of the Peoria metropolitan area. The buyer was a high-net-worth private investor.
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First Western Properties’ Bradford Dessy repped an out-of-state buyer in the acquisition of 631-653 Morse Ave., a 15K SF industrial building that was 92% occupied at the time of the sale. Kinzie Brokerage’s Jeff Schultz repped the seller.
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Essex Realty’s Doug Imber, Kate Varde and Clay Maxfield were the sole brokers in the $5M sale of 2137 North Sheffield, a four-unit walk-up apartment building in Lincoln Park; 3052 North Seminary, a five-unit multifamily property in Lakeview; and 821 West Newport Ave., a six-unit greystone apartment building in Lakeview.
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SVN | Chicago Commercial’s Tim Franz was the sole broker in the $10.5M sale of a 15K SF, four-building retail and office portfolio at 19-27 West Jefferson in Naperville. The collection boasts a strong retail lineup including: Lululemon, Jimmy John's, Adagio Teas, Francesca's Collection and Cold Stone Creamery. The site also offers the possibility of additional mixed-use development in the rear of the parcels.
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Rockwell Partners recently completed the $30.5M acquisition of Mont Clare Apartments, a 281-unit apartment complex with 21K SF of commercial space anchored by a U.S. Bank. Rockwell will take over property management responsibilities and plans to make significant improvements to Mont Clare’s common areas and building amenities in addition to upgrading units in need of renovation.
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Duke Realty acquired two newly constructed industrial buildings totaling 502K SF at 16328 South John Lane Crossing and 16410 South John Lane Crossing in Lockport. Both buildings are fully leased. A third building, which is available for lease, is under construction on an adjoining parcel and will be acquired by Duke when completed in July.
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33 Realty’s Chet Kondas repped Armitage Milwaukee Development in the sale of the historic Weyland Building at 1970-84 North Milwaukee Ave. to CRG Real Estate Solutions, a subsidiary of Clayco. The buyer will build a transit-oriented development with 132 units — 10% of which will be allotted for affordable housing — and 7K SF of retail. CRG was repped by Chicago Real Estate Resources’ Justin Moore.
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Baum Realty’s Greg Dietz and Danny Spitz completed the following transactions:
- Dietz and Spitz repped the seller in the disposition of a 4K SF TOD lot at 1966 North Milwaukee Ave.
- Dietz and Spitz repped the seller in the $7M disposition of a 32K SF retail center at 4600 North Harlem in Harwood Heights. The buyer was an out-of-state investment group.
LEASES
Golub & Co. and Diversified Real Estate Capital completed a lease with Chase Bank to open a retail branch at the new Sienna apartment community at 423 Ohio St. in Streeterville. The new branch will occupy 3,600 SF on Sienna’s ground level and represents a relocation of a branch from approximately two blocks south. It is expected to open in this spring.
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Lee & Associates completed the following transactions:
- Tom Condon repped ICE Mobility in its new 99K SF lease at 610 Schelter Road in Linconshire. The landlord, Industrial Property Trust, was repped by Cushman & Wakefield’s Brett Kroner.
- Chris Nelson repped Lake Court Medical in its new 40K SF lease at 1400 Mark St. in Elk Grove Village. Prologis is the landlord.
- Jeff Janda and Mike Plumb repped Pinnacle Exhibits in a new 43K SF lease at 11130 Katherine’s Crossing in Woodridge. The landlord, Lakeview Realty Investors, was repped by Lee & Associates’ Terry Grapenthin, Jeff Galante and Ryan Earley.
FINANCING
Maverick Commercial Mortgage closed on a $39M construction loan on behalf of Cedar Street Capital. The loan will finance ground-up construction on a vacant lot on North LaSalle and the redevelopment of an adjacent outdated office building at 676 North LaSalle. The property will be home to a mixed-use, primarily multifamily complex that will include 149 apartments and 10K SF of ground-floor retail space. Attorneys Eric Kordish and Val Barbosa of Pedersen Houpt represented the borrower, and Cindy Thomas of CT Property Law represented the lender.
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Bridge Development Partners recapitalized a 715K SF portfolio of three Chicago-area cold storage warehouse properties to Investcorp International Realty. The portfolio is 93% leased to a mix of third-party logistics firms and direct distributors of cold storage product. The buildings are at 2635 South Western Ave., a 308K SF building in Chicago; 8424 West 47th St., a 315K SF building in Lyons; and 1544 Hecht Drive, a 92K SF building in Bartlett.
HIRES/PROMOTIONS
Brixmoor Property Group hired Vincent Corno as executive vice president to head the firm’s Midwest region. Corno, who was most recently executive vice president of leasing and development at DDR, will have strategic and day-to-day responsibility for the leasing, value-enhancing reinvestment and ancillary income efforts for more than 20M SF of open-air retail properties.
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NGKF hired Joe Arnstein as executive managing director. Arnstein, who comes to NGKF from Savills Studley, specializes in tenant representation for a myriad of public and privately held organizations locally and across the country.
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Institutional Property Advisors, a division of Marcus & Millichap, hired Kenneth Szady as a national director based out of Chicago. Szady will represent and coordinate the firm’s institutional, corporate and major private clients on office and industrial transactions regionally and nationwide.
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MBRE Healthcare hired David Martin as senior vice president of its development division. Prior to joining MBRE, Martin was vice president for Duke Realty’s healthcare division for 10 years.
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Ware Malcomb interior architecture studio manager Toni Chiovatero is relocating to the firm’s recently opened downtown Chicago office to take a leadership role in the office’s growth and management.
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Interra Realty hired Paul Waterloo, Dan Connor and Brian Geiger to its broker team. Waterloo is a multifamily and mixed-use sales specialist. Connor comes to Interra from Pine Tree, and has a diverse background in both multifamily and commercial real estate. Geiger focuses on multifamily investment sales.
KUDOS
Peak Construction’s PeakGiving team recently joined Northern Illinois Food bank staff and volunteers to distribute food to 128 families in need in suburban Wheaton. PeakGiving partners annually with Northern Illinois Food Bank as a Circle of Hope member.
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Leopardo Cos. CEO James Leopardo was named a 2017 Distinguished Alumni by his alma mater, Western Illinois University. The award, given since 1973, recognizes alumni who have brought credit to the university and themselves through exceptional professional accomplishments and meritorious service to their communities. Leopardo graduated from Western Illinois in 1977 with a bachelor’s degree in construction engineering and founded his company the same year.
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Inland Real Estate Group chairman Daniel Goodwin was awarded the Illinois Realtors Lifetime Achievement Award during a ceremony at the Abraham Lincoln Presidential Library in Springfield. The award is given to an Illinois realtor who has played a key role in shaping housing policy at the local, state and national levels, and recognizes an individual for adherence to the Realtor Code of Ethics with its emphasis on professionalism.
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CBRE extended its partnership with the Chicago Cubs for the 2017 season and will once again host the annual CBRE Charity Bash at Wrigley Field on July 31, with several Cubs players and celebrities attending.
