This Week's Chicago Deal Sheet
Interest rates remain favorable for property owners to refinance acquisitions made in the past few years. And that is exactly what Zeller Realty is doing with a trophy East-West Corridor property it bought nearly two years ago.
Zeller and its partner, Olympus Ventures, secured an $89.4M refinancing package for Commerce Plaza through PGIM Real Estate Finance. The Zeller-Olympus JV acquired the 556K SF office complex in Oak Brook from Blackstone Group for $125M in August 2016. Zeller closed on leases in the interim, bringing Commerce Plaza's occupancy rate to 97% at the time of the refinance.
JLL’s David Hendrickson, Keith Largay and Derek Siadak arranged the financing on behalf of ownership.
SALES
CBRE’s Keely Polczynski represented ownership in the $3.8M sale of 314 West Institute Place, a 22K SF office property in River North, to Elmdale Partners.
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Interra Realty’s Craig Martin was the sole broker in the $1.5M condo deconversion sale of 4063 North Sheridan Road, a seven-unit building in Buena Park. The buyer, Aljack Investments, will restore the fire-damaged building and modernize the units.
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The Boulder Group’s Randy Blankstein and Jimmy Goodman represented the seller in the $4.4M sale of a single-tenant, net-leased Fresenius Medical Care property at 9924 South Vincennes Ave. in Washington Heights. The tenant is locked into a new 15-year lease on the property with 10% rental escalations every five years.
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O’Malley Real Estate's John O'Malley represented Independence Plus in the $2.1M sale of its headquarters building at 720 Enterprise Drive in Oak Brook to Carvana, a Tempe, Arizona-based online car dealership. JLL’s Jason Press represented the buyer, which will demolish the building and construct a 75-foot-tall glass tower.
LEASES
Adelphia Properties completed the following transactions:
- Simeon Spirrison and George Spirrison were the sole brokers in a 4,200 SF lease at Rand Road Corporate Center in Kildeer to Luna Carpets.
- Simeon Spirrison represented Porto’s Peri Peri restaurant in a 3,600 SF lease at 100 East Roosevelt Road in Villa Park.
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CBRE's Jack Brennan and John Hamilton represented iHerb, a California-based nutritional supplements provider, and JLL's Dominic Carbonari and Frank Griffin represented Zilber Property Group in a 257K SF lease at 2640 Auto Mall Drive in Elgin. The warehouse will be iHerb's first location in Illinois.
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First Western Properties’ Marion Abramiuk and Laryssa Moros represented ownership in a 1,500 SF lease with a nail salon at 136-162 West Higgins Road in Hoffman Estates.
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O’Malley Real Estate's John O'Malley represented Independence Plus in a 24K SF lease at 800 Jorie Plaza in Oak Brook. NAI Hiffman’s Jim Adler and Dan O’Neil represented the landlord, Server Farm.
FINANCING
American Street Capital’s Igor Zhizhin and Alex Rek arranged $4.6M in acquisition financing for a 10-building, 98-unit multifamily portfolio in South Shore and Woodlawn.
HIRES/PROMOTIONS
Arbor Lodging Management hired Lucio Pelloso as the firm’s corporate director of sales. Pelloso will oversee the sales and marketing departments of Arbor Lodging’s growing portfolio of hotels across the country.
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Earles Associates and Architects promoted Mark Nemececk and Octavio Zavala to senior architectural associate. Both will assist EAA’s growing client base of financial services, commercial real estate, technology and related clients in Chicago.
CONSTRUCTION
Capitol Seniors Housing and The Arbor Group opened Arbor Terrace Naperville, a $27M, 74K SF, 95-unit assisted living and memory care community in Naperville. Capitol Seniors Housing is set to deliver Atria Glenview, an 83-suite senior living community in Glenview, this fall.
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Meridian Design Build completed construction of a 113K SF truck terminal for CenterPoint Properties within CenterPoint Business Center I-80 in Joliet. The new terminal includes 18K SF of office space.
KUDOS
Newmark Knight Frank was appointed the exclusive broker to sell or build-to-suit lease 68.3 acres in Huntley. The former Huntley Factory Outlet Center site has 2K SF of tollway frontage along the north side of Interstate 90, and is 30 minutes from O’Hare International Airport. Adam Marshall, Jim Schutter, Mark Deady and Luke Sementa were hired by ownership to lead the brokerage team. The site is owned by a joint venture of Craig Realty, The Capital Cos. and The Prime Group.
