This Week's Chicago Deal Sheet
Essex Realty Group Inc. arranged the sale of The Northland Apartments at 1550 North Wieland St. in Chicago’s Old Town neighborhood. An out-of-state buyer entering a reverse 1031 exchange paid about $24.5M for the luxury boutique building, which was completed earlier this year and has 60 apartments and one restaurant, the Two Lights Seafood & Oyster.
The seller, local developer JAB Real Estate, secured transit-oriented development zoning due to the property’s proximity to the Sedgwick 'L' station on the CTA’s Brown Line.
“This development not only adds high-end, new rental units in a neighborhood that has extremely high demand and very low supply, but it also adds appealing new retail tenants that serve the area,” said Essex Realty Group principal Jim Darrow, who was one of three Essex principals on the deal.
Darrow and Jordan Gottlieb represented JAB, and Kate Varde represented the buyer.
The Northland features high-end finishes, including quartz countertops, plank flooring, stainless steel appliances, Nest thermostats and Sonos in-wall speakers in each unit. The building has a dog run as well as a rooftop deck with skyline and lake views.
EXECS
The McShane Cos. promoted two of its executives. Molly McShane has been named chief operating officer, and Dan McShane has been named chief strategy officer. Both work at the Rosemont, Illinois-based firm’s national headquarters. Molly McShane will provide day-to-day leadership and management, focusing on long-term strategic growth and operations. Dan McShane will coordinate strategic planning and risk management strategies. He will continue as general counsel. Most recently, Molly McShane served as chief investment officer of Conor Commercial Real Estate. Dan McShane joined the firm as general counsel in 2005. He previously served in the real estate department of Chicago-based law firm Winston & Strawn.
SALES
Inland Real Estate Commercial Brokerage facilitated the sale of Deer Creek Condominiums, a 58-unit residential property in Gurnee, Illinois, a northern suburb of Chicago. Inland Senior Vice Presidents Paul Montes and Eric Spiess handled the transaction on behalf of the sellers, Deer Creek Venture Corp. and Condo Opportunities Corp., wholly owned subsidiaries of Oak Brook, Illinois-based Inland National Development Co. A private investment group purchased the property. At 1600-1800 Wedgewood Drive, the property consists of one- and two-bedroom units and provides a variety of community amenities, including a clubhouse with a fitness center, an outdoor pool, tennis courts, a large sports field and nearby walking and biking trails.
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Marcus & Millichap sold a 16-unit apartment property in Chicago, according to David G. Bradley, regional manager of the firm’s Chicago Downtown office. The asset sold for $1.85M. Marcus & Millichap Senior Associate Anthony Hardy and associate Thomas Heitzman represented the buyer and seller. The 1923 building, at 6816 South Oglesby Ave., was completely renovated in 2014 and is within walking distance of Jackson Park, home to the Museum of Science and Industry, an 18-hole golf course, and one of two proposed sites for the Obama Presidential Center.
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First Western Properties arranged the sale of 2360 North Clybourn Ave., a property in Chicago’s Lincoln Park neighborhood. Company officials met the seller at the International Council of Shopping Centers convention in Las Vegas, according to First Western President Paul Tsakiris. The seller was frustrated that it could not get activity on the historic building, constructed in 1882. Upon returning to Chicago, First Western showed the property twice, quickly had two offers, and had the property under contract within days.
Marcus & Millichap has arranged the sale of DaVita Dialysis Center, a 10K SF net-leased property at 16110 LaSalle St. in suburban South Holland, according to Steven D. Weinstock, regional manager of the firm’s Chicago Oak Brook office. The asset was completed in 2016 and sold for $3.7M. Senior Associate Valerie Cook, along with Austin Weisenbeck and Sean R. Sharko, both senior vice presidents of investments, represented the seller. This is their 12th sale of a DaVita Dialysis center in the last 24 months. An out-of-state buyer purchased the property in a 1031 exchange.
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Venture One Real Estate, through its acquisition fund, VK Industrial IV L.P., a partnership between Venture One and Kovitz Investment Group, acquired a 68K SF, two-building industrial property at 1555-1567 Frontenac Road in suburban Naperville. The acquisition was a sale-leaseback. The buildings were constructed in 1980 and are joined by a fenced 0.8-acre concrete storage yard. The property features 18-foot clear height, seven docks, six drive-in doors and parking for 42 cars. Transwestern's Justin Lerner and Joe Karmin represented Venture One.
LEASES
EnTrust Realty Advisors represented LEAP Innovations Inc., a nonprofit that delivers personalized learning experiences, in the leasing of nearly 12K SF at The Merchandise Mart, EnTrust Managing Principal Jim Clark said. LEAP outgrew its current space at the Mart’s 1871 tech incubator and hired EnTrust to identify and negotiate a lease for its new headquarters space. This solution minimizes disruption to LEAP’s programming and allows it to continue development sessions at the 1871 incubator while occupying a full floor in The Mart’s tower.
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Jameson Commercial Senior Vice President Brent Burden represented Home Health Infusion Options for a lease of 12K SF of office space at 309 North Justine St. in Chicago’s West Loop neighborhood.
FINANCING
CIBC Bank USA has been selected to provide $31.1M in financing to Vermilion Development for the construction of 43 luxury condominium units and 12 townhomes at Alcove M.D.P. in Chicago’s Wicker Park neighborhood, according to officials from HFF. Vermilion plans to break ground on the project at 1650 West Division St. in the first quarter. The condo units in the seven-story tower will average almost 2K SF. The townhomes, each with attached garages, will be between 3K and 3,500 SF. The project will also have a professionally landscaped courtyard and walkways. The HFF debt placement team representing Vermilion consists of Director Christopher Knight.
THIS AND THAT
Chicago-based Truss won two Real Estate Tech Awards in the Listing Marketplace and Tech-Enhanced Brokerage categories at the CREtech New York Venture Conference on Dec. 6. CREtech, an event, content and connectivity platform for the commercial real estate industry, awards the #RETAS to tech startups and founders that have played an integral role in advancing tech in the real estate industry throughout the year.
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NAIOP Chicago awarded Bridge Development Partners a 2018 Award for Excellence as the Industrial Speculative Development of the Year for the first building in the Bridge Point 290 Business Park project in Cicero, Illinois. The site is less than 7 miles from Chicago’s central business district and lies just south of Roosevelt Road between Central and Laramie avenues. Building 1, which was 100% leased on its opening day, has already brought 250 jobs and $600K annually in tax revenue to Cicero, a figure up 10 times from what it was previously. Bridge Development projects that Buildings 2 and 3 will increase revenue by four to five times. In total, the three-building business park will comprise more than 899K SF, complete with 36-foot ceilings and above-standard parking areas.
