This Week's Chicago Deal Sheet
Chicago was named the greenest city in the U.S. for the second year in a row by the U.S. Green Building Adoption Index by CBRE and Maastricht University. Chicago leads a national trend of the country's largest cities getting greener.
Green office buildings in the U.S. are defined as those that hold either an EPA Energy Star label, LEED certification or both. According to the report, 11.5% of all buildings surveyed are Energy Star labeled, while 5.2% of buildings are LEED certified, both at all-time highs for the five-year study.
Green-certified office space across America’s 30 largest metros has reached 41% of market totals, which is the highest in the index’s history.
Chicago again claimed the top spot, with nearly 70% of its space green certified. In addition to defending its title as the nation’s greenest city, Chicago saw a difference of nearly six percentage points over second-place San Francisco, the largest spread ever recorded in the Green Building Adoption Index. Atlanta maintained the third spot with more than 58% of all space green certified, while a surging Los Angeles claimed fourth — up from sixth last year.
“Chicago is showcasing to the world the impact that cities can have on climate change for their residents and for people around the world,” Chicago Mayor Rahm Emanuel said in a statement. “This national recognition is a testament to the progress and success of our efforts to improve our environment.”
EXECS
Equity Residential President and CEO David Neithercut, in that position since 2006, will retire at the end of 2018, at which time Mark Parrell will be appointed CEO and join the company’s board of trustees. Neithercut will remain a member of the board following his retirement. Parrell has been appointed president effective immediately. He has served as the company’s executive vice president and chief financial officer since 2007.
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International architecture firm Goettsch Partners has named James Goettsch and James Zheng co-CEOs of the firm. Goettsch will continue as chairman, and Zheng will continue as president. Goettsch and Zheng, principal partners in the firm, have worked together for more than 20 years, sharing the leadership and management of the firm since 2013.
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Chad Bosley has been named senior vice president with CBRE’s Valuation and Advisory Services in Chicago. Bosley has more than 16 years of experience as an appraiser within real estate valuation and advisory services, working in the retail, industrial and office sectors. He will report to Les Linder, senior managing director in Chicago.
SALES
Kimco Realty Corp. sold Woodgrove Festival, a 157K SF retail center in Woodridge, to North American Real Estate for $20M. HFF marketed the property on behalf of the seller. Completed in 1985 and renovated and expanded in 2010, Woodgrove Festival is 88.3% leased to Hollywood Blvd. Cinema, Five Below, Carter’s, Shoe Carnival, Pearle Vision, Starbucks, T-Mobile, Carrabba’s Italian Grill, Jameson’s Charhouse, Panera Bread and other tenants.
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Miller Chicago Real Estate has brokered the sale of a retail/warehouse building in the West Loop, 1009 West Lake St., for $3.2M. Jose Diaz, a broker in Miller Chicago's West Loop office, marketed the property on behalf of the seller, a private owner. The buyer, Shorewood Development, was also represented by Miller Chicago Real Estate.
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A 12-unit apartment at 1330 West Main St. in Saint Charles has traded for just over $1M. Andrean Angelov and Ryan Engle, investment specialists in Marcus & Millichap’s Chicago Oak Brook office, marketed the property on behalf of the seller, a private investor. The buyer, also a private investor, was secured and represented by Engle, Angelov and Timothy B. Stephenson Jr.
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A Mariano’s Fresh Market grocery store at 802 East Northwest Highway in Arlington Heights has traded hands. The 66K SF property was sold by an affiliate of Inland Private Capital for $25.5M. Christian Williams and Michael Kaider of CBRE’s Oak Brook office represented the seller. “Grocery-anchored retail continues to be sought-after by investors,” Kaider said. “Well-branded concepts like Mariano’s have become a safe haven.”
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RT Group Logistics has acquired a 51K SF industrial building at 700 Chase Ave. in Elk Grove Village. Lee & Associates’ Chris Nelson represented the buyer. The seller was Midwest Industrial Funds. “RT Logistics will repurpose a 1970s manufacturing building into a functional distribution center in the O’Hare submarket,” Nelson said. “This is a unique opportunity, given the historically low vacancy rate of the O’Hare market.”
LEASES
Transportation One has leased 10K SF at 770 North Halsted St., just south of the Goose Island neighborhood. The deal represents the company's third relocation, a move that will accommodate the firm’s rapid growth. MBRE’s Craig McCaw represented Transportation One in the transaction, and the building owner, R2 Cos., was self-represented by Matt Duhig. Transportation One is a Chicago-based logistics provider.
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Optima Transportation has leased 28K SF for its long-haul trucking facility at 11101 Franklin Ave. in Franklin Park. Optima’s unit has 13 exterior docks and 16 dedicated trailer positions. TCN Worldwide's Phil Reiff and Phil Reiff Sr. represented the tenant. Blackstone Real Estate is the landlord and was represented by Kevin Segerson of CBRE.
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Clarke Packing & Crating Co. has leased 108K SF at 1365-1395 Brewster Creek Blvd. in Bartlett. The property is a recently completed 186K SF industrial building within the Brewster Creek Business Park, at the intersection of Stearns and Munger roads just west of Illinois 59. NKF's Elise Couston, Adam Marshall and Mark Deady represented the owner, Barings Real Estate, acting on behalf of institutional investors.
DEVELOPMENT
Bridge Development Partners has acquired a 48.1-acre site in Itasca, where it plans to develop a three-building industrial complex totaling 741K SF, for an unspecified price. Lee & Associates’ Chris Nelson represented Bridge and its JV partner, Banner Oak Capital Partners, in the land deal, and will market the buildings once they are built. The seller, Entercom Communications Corp., acquired the site in a merger with CBS Radio in 2017.
THIS AND THAT
The city of Chicago has commissioned the Institute for Housing Studies to develop data to help develop Chicago’s 2019-2023 Five-Year Housing Plan. The data informed a series of three Advisory Group meetings held in June and July, where stakeholders discussed housing challenges facing the city and recommended potential solutions. This data is now available as a public resource on the website Overview of Chicago's Housing Market.
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The U.S. Department of Transportation’s Federal Transit Administration has announced $84.45M in grant selections through the Low- or No-Emission Grant program, which funds the deployment of transit buses and infrastructure that use advanced propulsion technologies. Fifty-two projects in 41 states will receive a share of the funding; in Illinois, the Chicago Transit Authority will receive funds to purchase electric buses and chargers with on-route charging capabilities.
