This Week's Chicago Deal Sheet
Elk Grove Village is pushing forward with the development of its industrial base. The Village Board approved the rezoning of 7 acres on Devon Avenue, where a developer will build two more new industrial sites. The Village annexed the properties at 202-224 East Devon Ave. in 2017 with plans to improve and beautify the land.
Seefried Industrial Properties Inc. will redevelop the 7.7-acre site and construct two light industrial facilities totaling 139K SF — one 77K SF building and one 62K SF building. The new buildings will have large office entries as well as landscaping along Devon.
“It has always been our goal to encourage development that strengthens our economic base and improves the aesthetics in the area,” Mayor Craig Johnson said.
This is the latest in a series of ongoing redevelopment projects in Elk Grove Village: CA Ventures is investing an estimated $8M to construct a new 146K SF industrial facility as part of a redevelopment project at the corner of Devon Avenue and Tonne Road, Duke Realty is investing an estimated $21M to construct a 115K SF facility at 901 Chase, and CN Group is investing an estimated $1M to construct a 14K SF facility at 228 East Devon.
Seefried brought its proposal before the Elk Grove Village Plan Commission at a public hearing earlier this month. The Plan Commission unanimously recommended approval of the project, and the Elk Grove Village Board unanimously voted to accept their recommendation.
The company plans to invest approximately $8M into the project and expects the new buildings to come online in November 2020.
EXECS
CBRE appointed Abe Gamboa the Midwest division leader for project management. The division includes 14 offices and approximately 150 employees. He replaces Jim Carter, who will move into a business development role and pursue new clients in the Northeast and Mid-Atlantic regions. Gamboa previously served as managing director of PJM for Chicago and Milwaukee.
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Dermody Properties hired Tyler Scheppmann as vice president of investor relations. Prior to joining Dermody, Scheppmann was vice president of GLP, where he handled fund management across the U.S. industrial platform, including strategy, syndication and communication with 14 global institutional fund partners across three funds, totaling $7B in equity commitments.
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James Mark Jr. rejoined Wight & Co. as chief strategy officer. His first tenure at Wight was from 1999 to 2017, during which he rose to senior vice president and managing director of the Chicago office. Afterward, Mark served as North America central region practice leader for Skidmore, Owings & Merrill LLP.
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Inland Mortgage Capital appointed Daniel Greenberg as senior vice president of loan origination. He will oversee all facets of the company’s commercial real estate bridge loan origination for the eastern U.S. Greenberg brings more than 30 years of experience to his position. He previously served as the senior fund manager at Spectrum Mortgage Group.
LEASES
Colliers International | Chicago’s Christopher Volkert represented Panattoni in a long-term, 161K SF, full-building lease to NorthShore Care at the developer’s project under construction at Rockland Road and Interstate 94 in Lake County’s Green Oaks. NorthShore Care, a provider of incontinence products, will move in January from its facility at 1200 Barclay Blvd. in Buffalo Grove. Whit Heitman of CBRE represented NorthShore Care.
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The Chicago office of Duke Realty signed a lease with Acer Service Corp., a computer repair and service provider, for an additional 50K SF in its building at 16508 South John Lane Crossing in suburban Lockport. Following Acer’s expansion, which comes just 16 months after its first lease for 166K SF, the 300K SF building, known as Lockport 16508, will be 72% occupied. The logistics facility was delivered in 2017, and features 32-foot clear heights. Colliers International’s Jim Herbst represented Acer, while Cushman & Wakefield’s Jason West and Sean Henrick represented Duke.
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Monroe Plaza, twin office towers at 200 and 230 West Monroe in the West Loop, added over 125K SF of new leasing in the past six months and introduced Loft 18, a half-floor tenant lounge and conference center at 230 West Monroe St.
The AIDS Foundation leased 33K SF, Risk Connect leased 20K SF, the Dialysis Center leased 11K SF and RTM Engineering leased more than 5K SF in the 23-story 200 West Monroe.
Next door, at the 29-story 230 West Monroe, the law firm of Sweeney & Sharkey leased 6K SF; Falkenberg, a financial services firm, leased 4K SF; Point B, a management consulting firm, leased more than 5K SF; and accounting firm Smith & Cull leased nearly 5K SF, along with several smaller tenants.
Cushman & Wakefield’s Loop downtown agency rep team, headed by Andrea Saewitz and including Mark Baby and Ben Cleveland, represents landlord Accesso in leasing Monroe Plaza.
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Biddeford Blankets leased 97K SF at 13820 South Business Center Drive in Green Oaks. The heated blanket manufacturer will move to Green Oaks from a Mundelein location that it occupied for the last 15 years. Avison Young’s Michael Fonda and John Hauser represented the tenant. The building's owner, Colony Capital Inc., was represented in-house by Scott Cordes.
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CBRE Group’s Sara Spicklemire and Kelsey Scheive represented Shorenstein Properties in leasing a 68K SF office space at One North State to software company Showpad. James Stein of Cushman & Wakefield represented Showpad. The lease represents a significant expansion for Belgium-based Showpad, which last year occupied 18K SF of the property. The building was constructed between 1900 and 1912 to serve as the flagship for the Mandel Brothers department store. It later became home to Wieboldt’s Department Stores and Central Trading Co.
CONSTRUCTION AND DEVELOPMENT
Chicago-based general contractor Summit Design + Build completed the interior office build-out for Coates Group, a digital merchandising company, at 112 North May St. in the West Loop. The new location follows the industry's shift to the West Loop and Summit’s completion of the core and shell remodel of the base building. Coates’ 14K SF office spans the first and second floors of the three-story timber loft building, owned and managed by CLK Commercial Management. Australian architect Bennett Murada, in collaboration with Chicago-based EWP Architects, served as the project architect, and Carr Realty Advisors was the owner’s representative.
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TimeLine Theatre Co. selected HGA as the architect for the company’s new home at 5033-35 North Broadway Ave. in Chicago’s Uptown neighborhood. The project — which includes renovation of a historic building as well as new construction — will house the theater’s future operations and expand its mission of presenting plays inspired by today’s social and political issues. The HGA team joins Chicago-based theater planners Todd Hensley and Christopher Sprague of Schuler Shook, and project manager David Rotholz of Rotholz LLC.
SALES
Kiser Group's Noah Birk and Aaron Sklar brokered the $2.85M sale of 7000 South Dorchester Ave., a 29-unit building. The brokers represented both the buyer, Jean RE2 LLC, and seller, AG Fund LLC.
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CBRE’s Cal Payne, Matt Mulvihill, Kevin Segerson and Philip DeBoer represented Helm Tool Co. in the acquisition of 1420 South Wright Blvd. in suburban Schaumburg. The 93K SF property will serve as the company’s new headquarters. Glenwood Commercial’s Jason Talanian represented ownership. Helm Tool will relocate from three properties — two in Elk Grove Village and one in Des Plaines — after completing significant renovations to the new Schaumburg location.
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SVN Chicago Commercial’s Al Lindeman and Wayne Caplan completed the $2.1M disposition of a single-tenant absolute triple-net McDonald’s ground lease in Hoffman Estates. The retail property at 2270 West Higgins Road sold to a California-based purchaser as part of a 1031 exchange.
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Essex Realty Group closed the $4.3M sale of 2900 West Logan Blvd., a nine-unit multifamily property in Chicago’s Logan Square neighborhood. The converted church was built in 1906 on the corner of Logan Boulevard and Francisco Avenue. It was on the market for eight days before going under contract, and closed within 90 days of the list date. The building features a mix of two- and three-bedroom apartment units with high-end finishes and restored stained glass windows.
Essex’s Jim Darrow, Jordan Gottlieb and Jordan Multack represented the seller, a venture of JAB Real Estate, which purchased the property in 2017 and completed an extensive restoration earlier this year. Brian Kochendorfer, Brian Karmowski and Troy Beebe represented the purchaser, a private investor.
THIS AND THAT
Benefit Chicago, a Chicago-based impact investment fund that has committed $53M in investments since 2016, will provide a $3M loan to DL3 Advisors, a new company created by DL3 Realty. This investment will allow DL3 Advisors to accelerate development projects on the South and West Sides, including the first full-service grocery store in Woodlawn.
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Cushman & Wakefield started a strategic partnership with Fifth Wall, a venture capital firm focused on technology solutions for the global real estate industry. Its second fund closed at $503M, more than doubling the size of its initial fund, which closed in May 2017 at $212M.
