This Week's Chicago Deal Sheet

CORRECTION, DEC. 20, 10:58 A.M.: NKF hired Brian Younge as an executive managing director and national practice leader of the hospitality, gaming and leisure group.

Supermarkets have proven to be preferred buys for retail investors because of resistance to e-commerce and because shoppers still want an experiential component to their grocery shopping. Locally, Mariano's Fresh Markets are in high demand and Inland Private Capital recently sold one in the suburbs.

Inland Private Capital sold a 71K SF Mariano's at 545 North Hicks Road in Palatine to a private investor for $29M. For Inland, the sale completes an investment program that began in 2011. Inland was quick to recognize the growth of Mariano's in Chicago and began acquiring locations throughout the area, then selling them after short-term holds. Inland investors realized an aggregated total return of 158% from the program. 

CBRE's Michael Kaider and Christian Williams represented Inland. It is the fifth Mariano's trade CBRE brokered this year.

SALES

HFF’s Bryan Rosenberg, Jamie Fink, Patrick Shields, Mark Katz and Jeff Bramson represented a venture of Long Wharf Capital and Hamilton Partners in the $78M sale of One Pierce Place and 500 Park Blvd., a two-building suburban office campus totaling 976K SF in Itasca. HFF also procured the buyer, a partnership between Balfour Pacific Capital and Hamilton Partners.

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Berkadia’s Chris Bruzas, Alex Blagojevich, Greg Gonzalez and Kevin Larimer brokered the sale of Eagle Village Apartments, a 128-unit garden-style student housing community in Evansville, Indiana. The asset was purchased by Kahuna Investments.

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Podolsky Circle’s Alissa Adler, John Homsher and Paul Tesdal represented CP Highlands Fund in the $3.5M sale of 1755 Park St., a 38K SF office building in Naperville.

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Avison Young’s Erik Foster and Mike Wilson represented Clear Height Properties in the sale of a 190K SF four-building industrial portfolio in Mount Prospect. The portfolio consists of 501 Algonquin Road, 401-411 West Algonquin Road and 1840-1864 and 1870-1894 South Elmhurst Road and is 97% leased.

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First Western Properties completed the following transactions:

• Paul Tsakiris and Gene Hart represented both parties in the sale of a nine-unit multifamily property at 4116 West End in Garfield Park.
• Paul Tsakiris and Marion Abramiuk represented the buyer in the acquisition of a 30K SF mixed-use building at 2719 West Cermak Road in Little Village.

LEASES

Colliers International’s Dougal Jeppe and Matthew Stauber represented Vital Proteins in a 10-year headquarters lease at 939 West Fulton Market. The new space is expected to be completed in late 2018 and will total 12K SF of retail space and 26K SF of office space. MB Real Estate’s Kelsey Scheive and Mark Buth represented ownership, a partnership of ASB and Madison Capital Partners.

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ML Realty Partners completed the following transactions, totaling 212K SF:

• American Louver signed a 128K SF lease at 100 East Howard in Des Plaines. CBRE’s Kevin Segerson and Matt Mulvihill represented ML Realty Partners. Paine Wetzel’s Denise Chaimovitz represented American Louver, a manufacturer of a wide range of plastic products.
• TAWI USA, a developer and manufacturer of ergonomic lifting equipment, will occupy 19K SF at 380 Internationale Blvd. in Bolingbrook. Cawley Chicago’s Josh Hearne and Mike O’Leary represented the landlord, a partnership of ML Realty Partners and HSA Commercial Real Estate. Lee & Associates’ Terry Grapenthin represented TAWI.
• Advance Mechanical Systems, a full-service mechanical and plumbing contractor, renewed its lease for 46K SF at 425 East Algonquin Road in Arlington Heights. Cushman & Wakefield’s Larry Goldwasser, Andy Heymann and Matt Cowie represented Advance Mechanical.
• Axelent, a worldwide workplace safety equipment supplier, has signed a lease renewal for 19K SF at 14503 South Gougar Road in Lockport. Lee & Associates’ Terry Grapenthin represented the tenant in Heritage Crossing’s first lease renewal.

FINANCING

Berkadia’s Jeanne Peck secured $10M in refinancing on behalf of H.A. Langer & Associates for 1030 North Dearborn, a 216-unit vintage apartment building in the Gold Coast.

HIRES/PROMOTIONS

Newmark Knight Frank made the following hires:

• John Mackris was hired as senior managing director and market leader for Illinois, Missouri and Kansas.
• Bryan Younge was hired as an executive managing director and national practice leader of the hospitality, gaming and leisure group.
• Gil Licudine was hired as a senior managing director and national leader of the firm’s property tax services practice.
• Robert Colantonio will serve as senior vice president and industrial property valuation leader for Illinois, Missouri and Kansas.
• Christopher Jarvis is a first vice president in NKF’s valuation and advisory practice.
• Shawn Vetter was hired as a senior vice president.

CONSTRUCTION

Krusinski Construction completed the build-out of a 440K SF warehouse and office fulfillment center in Crest Hill Business Park. The building was developed by Ridgeline Property Group with the support of a design team that included architects SM Design & Consulting and Harris Architects, as well as civil engineers Jacob & Hefner Associates.

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LCS, Harrison Street Real Estate Capital and Ryan Cos. started construction of Clarendale of Addison, a $45M senior living community in suburban Addison. The development will consist of 188 units — 95 will be independent living units, 55 are assisted living units and 38 units are memory care. Amenities include restaurant-style dining, a billiards room and pub, a bistro, movie room, salon and spa and a wellness center incorporating fitness and physical therapy.

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Mortenson Construction completed a four-year expansion and renovation of Advocate Good Shepherd Hospital in Barrington. Mortenson and architect HOK worked under a Lean Project Delivery approach to add 230K SF to the facility and renovated another 150K SF, while the 176-bed hospital continued all operations and medical services.

KUDOS

Morgante Wilson Architects celebrated its 30th anniversary at the historic Dawes House in Evanston. Fred Wilson founded MWA in 1987, two years after completing graduate school. His wife, Elissa Morgante, joined him several years later.