This Week's Chicago Deal Sheet
A lot of developers have their eyes on Wisconsin. Logistics Property Co., a Chicago-based firm that acquires, develops and manages logistics properties in key North American markets, acquired another 106 acres in Kenosha, Wisconsin, the third Kenosha site it recently bought.
The land sits just west of Interstate 94, northwest of the company’s 94 Logistics Park Phase 1 and across 128th Street from Uline’s under-construction distribution center. The site is also near the 1M SF Amazon fulfillment and sortation center, and is 6 miles south of Foxconn’s new $10B manufacturing facility.
“Now that we’re in play in southeast Wisconsin, activity at 94 Logistics Park is fantastic,” LPC Executive Vice President Aaron Martell said.
LPC now has 225 acres in Kenosha where it can eventually build more than 3.5M SF. The largest building on its new 106-acre parcel will accommodate users seeking 1M SF, and eventually have three buildings totaling 1.7M SF.
LPC anticipates soon closing on additional properties in leading industrial markets across the U.S. with strong population demographics and significant in-place infrastructure, including ones in the Midwest, Pennsylvania, Georgia, Texas and Washington, as part of a development pipeline exceeding 20M SF.
Last fall, the company broke ground on 1M SF at 94 Logistics Park, including a 750K SF cross-dock facility targeting regional distribution players, and a rear-loaded 288K SF building geared toward manufacturing and local distribution companies. It expects to deliver the spaces by the end of summer 2019.
Colliers International Chicago’s Fred Regnery and Ned Frank teamed with Colliers Milwaukee broker Steve Sewart to lease the project.
“A lack of big-box supply makes this the opportune time to break ground,” Regnery said.
EXECS
Chicago retail leasing veteran Gregory Kirsch joined Cushman & Wakefield as executive managing director and Midwest retail leader. Kirsch came from Newmark Knight Frank and will focus on both tenant and landlord clients. He plans to grow Cushman & Wakefield’s retail services offering across the region, including recruitment of a Chicago-based retail team. He has represented retail occupiers around the country, including Starbucks, FedEx Office, Under Armour, Vineyard Vines, It’Sugar, Vans, The North Face and Design Within Reach.
LEASES
Chicago-based Hubbard Street Group began pre-leasing at The Field’s Lofts, a 123-unit loft-style rental community housed in a portion of the redeveloped Marshall Field’s warehouse at 4000 West Diversey Ave., near Chicago’s Logan Square neighborhood. Located in the easternmost portion of the 1.5M SF building, the 144K SF community will welcome first move-ins on April 1. Rents start at $1,495 per month for junior one-bedrooms, $1,795 per month for one-bedrooms and $2,395 per month for two-bedroom units. It was designed by architectural firm Hirsch MPG and design firm Harken Interiors.
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League Inc. signed a 12K SF lease at 515 North State St. in Chicago. CBRE’s Brad Serot and Tony Coglianese represented League. Jamey Dix of Telos represented the landlord, Beacon Capital. League, a Toronto-based digital benefits platform, will expand from its current coworking space of less than 3K SF, and use 515 North State as its U.S. headquarters. Serot and Coglianese helped League establish its first Chicago location in June 2017, then negotiated four separate short-term leases as the office grew from two to 34 employees. The firm’s new space can accommodate more than 100 employees.
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The General Services Administration agreed to occupy 70K SF at 747 East 22nd St. in suburban Lombard. The property, recently rebranded as Aria Park Innovation Center, was acquired by a New York-based data center developer in 2016. NAI Hiffman’s Mike Van Zandt and Brian Edgerton represented ownership. The GSA was represented by JLL’s Hugh Murphy and Alyssa Brooks.
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HSA Commercial Real Estate signed a 68K SF lease with LifeNet Health at its Gateway V distribution center at 845 Airtech Parkway in Plainfield, Indiana, near the Indianapolis International Airport. CBRE’s Jared Scaringe and Terry Busch represented ownership. HSA will deliver the 263K SF speculative warehouse this month, and LifeNet Health will take occupancy in July.
SALES
An affiliate of Next Realty acquired Arlington Executive Plaza, a 63K SF medical and general office complex consisting of six single-story buildings on 6.2 acres at 3385 North Arlington Heights Road in suburban Arlington Heights. Cook County records show a purchase price of $4.5M. A diverse roster of tenants, many of which specialize in medical-related fields, lease 90% of the complex. PSI’s Tony Lombardo represented the seller, and Wintrust Bank financed the acquisition.
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Cawley Chicago’s Jack Brennan and Daniel Cawley completed two separate investments sales in January. In the first transaction, High Street Realty bought a two-building industrial portfolio totaling nearly 80K SF in suburban East Dundee. In the second, Venture One Real Estate purchased 179 Easy St. in Carol Stream, a 16K SF industrial building. Cawley Chicago represented the sellers, both private investment entities, in each transaction.
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Titan Development sold Prairie Glen Medical Office Center, a 74K SF, three-building complex in Glenview, for $21M. The brokers were Paul Zeman of Bull Realty, and Illinois broker Dimitri Development. The center sits inside The Glen, a collection of new homes, offices, retail, restaurants, a children’s museum, two golf courses, walking and biking trails, and an assisted living facility.
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First Western Properties' multifamily division completed the sale of Douglas Park Flats, located directly across from Douglas Park at 3001 West 19th St. in Chicago's Douglas Park neighborhood. The 32-unit building, the largest in the immediate area, is walking distance from the CTA Pink Line, the new El Paseo Bike Trail, Lagunitas Brewery, Cinespace Film Studios and The Medical District.
CONSTRUCTION AND DEVELOPMENT
J.C. Anderson completed a 100K SF renovation project in the 1M SF Schaumburg Corporate Center at 1501 Woodfield Road, Schaumburg. GlenStar Properties, the owner, hired J.C. Anderson to complete the large capital improvement project, which consisted of a new tenant lounge, new conference center and a new management office, as well as renovations to the fitness center and the atrium. J.C. Anderson also connected a stairway from the first-floor atrium to the lower-level fitness center. The construction team was led by John Angelovich, Jason Hawkins and Gary Kuechler. Wright Heerema Architects provided architectural services.
THIS AND THAT
More than 1.35 million American households earning more than $150K became renters in the past decade, making them the fastest-growing renter segment in the U.S., with a 175% increase between 2007 and 2017, according to RentCafé. Seattle leads the top 20 cities with the most significant increases, with 7.4 times more of these renters than in '07. Chicago also makes the top 20 — here the number of high-income households living in rentals multiplied by 3.3, from 11,800 to 39,700.
