This Week's Chicago Deal Sheet
CT Acquisitions, a partnership between Philadelphia-based Rubenstein Partners and Chicago-based GlenStar, has acquired Continental Towers in Rolling Meadows for $121.5M. With an infusion of $20M earmarked for additional renovations, the Rubenstein-GlenStar JV said it plans to build upon prior renovations.
The partnership envisions a complete overhaul of the 2-acre plaza deck as well as the property's lobbies, café and amenity spaces. Restroom and corridor work will also continue.
“Our main focus is to seek out value-add office assets in emerging markets, and Continental Towers represents everything we look for in an investment,” Rubenstein Partners' Brandon Huffman said in a statement. “We believe strongly that the combination of the property’s location in northwest suburban Chicago and our planned capital improvements will make this an attractive choice to office users.”
Continental Towers, developed in the early 1980s, is a three-tower office complex. GlenStar initially acquired the property in 2013 and has since spent about $30M on capital upgrades to redevelop the 910K SF office property.
GlenStar’s capital spending, launched in 2013, included building a 734-stall parking garage and reconfiguring the overall site plan. Other renovations included a complete rebuild of the fitness center as well as signage, restroom and corridor upgrades. As a result, the buyers said, occupancy increased from 55% in 2013 to 90% now.
EXECS
Ventas Inc. Chairman and CEO Debra Cafaro has been recognized by Modern Healthcare as one of 2018’s 100 Most Influential People in Healthcare. This is Cafaro’s fourth consecutive year and fifth appearance on the list. Chicago-based Ventas has a portfolio of about 1,200 assets, including senior housing communities, medical office buildings, life science centers, inpatient rehabilitation and long-term acute care facilities, and skilled nursing facilities.
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InvenTrust Properties Corp.'s Michael Podboy is resigning as executive vice president, chief financial officer, chief investment officer and treasurer. Adam Jaworski, InvenTrust’s senior vice president and chief accounting officer, will assume the role of InvenTrust’s interim principal financial officer.
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Mortenson, a developer and provider of energy and engineering services, has promoted Andy Stapleton to general manager of its Chicago office. Stapleton will work with Mortenson Senior Vice President Greg Werner in overseeing local operations for the company.
SALES
Interra Realty has brokered a $2.15M sale of a multifamily community in Chicago’s Edgewater neighborhood. At 6203-09 North Ravenswood Ave., the 12-unit building was recently renovated by the seller, who purchased it as part of a bankruptcy sale in 2016. Interra Realty Managing Partner Brad Feldman and Director Adam Saxon brokered the transaction.
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Marcus & Millichap has brokered the sale of a 32-unit apartment property in Schiller Park for $2.25M. The complex is at 3871-3873 Ruby St., adjacent to the Schiller Park Plaza retail center, and consists of two adjacent 16-unit buildings. Andrean Angelov, Ryan Engle and Samuel Antreasian, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, marketed the property on behalf of the seller, a private owner. The buyer, also a private investor, was also represented by Engle and Angelov.
LEASES
Big Lots has inked a lease for 48K SF at 3201 East Lincoln Highway in Merrillville. The lease paves the way for the opening of a Big Lots “Store of the Future” and represents the last of five spaces in the Next Realty portfolio that were previously occupied by Sports Authority. Big Lots' new store format will see home goods, furniture and seasonal items prominently displayed at the front of the store, while food and other consumables will be relocated to other areas in the store. Next Realty Director of Leasing Amy Levin represented Next Realty, while Big Lots in-house Director of Real Estate Vince Cattano represented the retailer.
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CBRE recently represented Globe Corp. in a 39K SF, full-building lease to WOW at 4350 Weaver Parkway in Warrenville. The single-story property is in the Cantera development along Winfield Road and the Interstate 88 interchange. CBRE's Pete Adamo and David Justh represented the owner, Globe Corp. JLL's Ben Erskine, Todd Schaefer and Dan McGowan represented WOW, which is a broadband provider serving residential, business and wholesale customers.
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Talman Consultants, a Chicago engineering design consulting firm, has moved to the landmark Chicago Board of Trade Building at 141 West Jackson Blvd. The firm will occupy 17K SF at the property. Bespoke Commercial Real Estate brokered the lease.
DEVELOPMENT
Chicago-based HSA Commercial Real Estate and New York-based Clarion Partners have started construction on Heartland Corporate Center, a 757K SF warehouse on a 46-acre site in Shorewood. The spec distribution center, slated for completion in early 2019, will feature 36-foot clear heights, 108 truck docks and 240 parking spaces. “Despite the unprecedented growth and development in the I-55 corridor over the last couple years, absorption and demand have remained extremely strong,” HSA CEO Robert Smietana said in a statement.
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Ryan Cos. has released a first round of concepts for 5th Avenue, a mixed-use development in Naperville that will include about 100K SF of office space, 400 multifamily units, 30 to 50 for-sale condominiums, 15 to 30 brownstones, 30K to 50K SF of retail and over 2,800 commuter and private parking spaces. According to the developer, it will continue to study the inclusion of attainable/workforce housing in the project, with the goal of up to 10% of the multifamily units as that kind of housing.
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900 North Michigan Shops, in partnership with Chicago restaurant group Hogsalt, is planning to open Aster Hall, a 22K SF property with 16 different stations known as “vaults.” The vaults, on the fifth and sixth levels, will feature a range of offerings, including street tacos, sushi, bread-bowl chowder, vegan bowls, hot dogs, ramen and more. An additional vault — an outpost of the Doughnut Vault — will be on the ground floor.
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Interforum Holdings has selected McShane Construction Co. to build a rental community called Cantera Residences in Warrenville. The property will be on 18 acres and will consist of a total of 364 one-, two- and three-bedroom units.
FINANCING
Talonvest Capital has facilitated a $25.25M bridge loan secured by Wicker Park Commons, two adjoining multistory buildings consisting of 91K SF of self-storage space and 20K SF of office space. The recently completed mixed-use property is at 1279-95 North Milwaukee Ave. and 1300 North Ashland Ave. in the Wicker Park neighborhood of Chicago. The loan was funded by a global investment adviser; the borrower was a partnership between two Chicago-based firms, JSM Venture, a self-storage development firm, and its venture partner CEDARst, a diversified real estate investment company.
THIS AND THAT
The Chicago office of CBRE and the Chicago Cubs recently hosted the 11th Annual CBRE Charity Bash at historic Wrigley Field. The event raised $500K, with 100% of net proceeds benefiting numerous local charities. This is the third year that CBRE and the Cubs have partnered on this charity initiative, which has raised a total of $1.35M.
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The John D. and Catherine T. MacArthur Foundation has announced more than $26M in new grants and impact investments to support organizations that foster economic opportunity and equity, as well as peace and safety, in Chicago neighborhoods that have experienced disinvestment, segregation and isolation. “A more peaceful city requires urgent attention to people and places that are most affected by violence,” MacArthur President Julia Stasch said. “We want to help local leaders, organizations, and networks across the city that are tackling both."
