Illinois

Origin Investments: Variable-Rate Loans Reaching Maturity Will Spawn Unique Investment Opportunities in 2024

by Kristin Harlow December 20, 2023

CHICAGO — An analysis from Origin Investments (Origin) predicts a tumultuous 2024, with concerns of a recession and elevated interest rates likely to continue. Despite this, the Chicago-based real estate fund manager expects next year to bring unique opportunities for multifamily investors to secure protected positions in the capital structure and enhance investment returns. “The volume of variable-rate bank loans — made when the Secured Overnight Financing Rate was 0 percent and the 10-year Treasury note yield was below two percent — coming due in 2024 will create a generational opportunity in senior debt and preferred equity investments,” explains David Scherer, co-CEO of Origin. “Despite uncertainties, it remains a mistake to stay out of the multifamily investment market in 2024.” Origin predicts that rent growth will stabilize to historic norms in 2024. The analysis theorizes that the negative rent growth some markets — such as Austin, Texas — experienced in 2023 was likely due to oversupply, and will reverse by January 2025. The report also indicates that long-term demand and absorption of apartments and rental homes is likely to remain strong for several years, as the U.S. is facing a shortage of between 5.5 million and 6.8 million housing units. …

December 20, 2023

Affordable Housing Development Illinois Midwest Multifamily Seniors Housing

Evergreen Completes $31.5M Bellwood Senior Apartments Affordable Community in Metro Chicago

by Kristin Harlow December 20, 2023

BELLWOOD, ILL. — Evergreen Real Estate Group has completed Bellwood Senior Apartments, an 80-unit affordable seniors housing community in Bellwood, a western suburb of Chicago. The $31.5 million project replaces a former Walgreens store that had been vacant for nearly five years. The four-story development offers 76 one-bedroom and four two-bedroom apartments for seniors age 62 or older with incomes at or below 60 percent of the area median income (AMI). Evergreen says the building is 40 percent leased and will reach full occupancy in the next few months. Weese Langley Weese Architects designed the project. F.H. Paschen served as general contractor on the development. Financial partners for Bellwood Senior Apartments include the Illinois Housing Development Authority as the tax credit issuer (both Low-Income Housing Tax Credits and Illinois Affordable Housing Tax Credits) and subordinate funds provider; the Village of Bellwood, which provided a TIF loan; Bank of America, which is the investor and construction loan lender; Hudson Housing Capital, which syndicated the tax credits; Cook County, which provided HOME funds; and the ComEd Energy Efficiency Program.

December 20, 2023

Acquisitions Illinois Midwest Multifamily

Interra Realty Brokers $9.6M Sale of Apartment Building in Chicago’s Lincoln Park

by Kristin Harlow December 20, 2023

CHICAGO — Interra Realty has brokered the $9.6 million sale of a 28-unit apartment building in Chicago’s Lincoln Park neighborhood. Located at 1900-16 N. Lincoln Ave., the property features a mix of studio, one- and two-bedroom units. The building, constructed in 1906, underwent a capital improvement program for new appliances, countertops, cabinets and floors. Joe Smazal of Interra represented the buyer, Chicago-based ICM Properties. He also represented the local private seller. The property was fully occupied at the time of sale.

December 20, 2023

Acquisitions Illinois Midwest Retail

Northpond Launches $200M Investment Partnership Targeting Unanchored Neighborhood Retail Centers

by Kristin Harlow December 19, 2023

CHICAGO — Chicago-based real estate investor and operator Northpond Partners has partnered with a southeast U.S. pension fund to form Northpond Retail Partners, a $200 million investment vehicle. The fund will target the acquisition of unanchored neighborhood retail centers with an initial focus across the Southeast and select Sunbelt markets. As an all-cash buyer, the partnership will target properties housing convenience, necessity and service-oriented tenants. Categories typically include food and beverage, medical, fitness, and health and beauty. Northpond says the multi-tenant properties ideally contain smaller spaces ranging from 1,000 to 5,000 square feet per tenant.

December 19, 2023

Development Illinois Leasing Activity Midwest Retail

Pottery Barn to Open at Westfield Old Orchard Mall Redevelopment in Skokie, Illinois

by Kristin Harlow December 18, 2023

SKOKIE, ILL. — Home furnishing retailer Pottery Barn is relocating its store at Westfield Old Orchard, joining Arhaus, Puttshack and Zara in the former Lord & Taylor space set to open in summer 2024. Unibail-Rodamco-Westfield owns Westfield Old Orchard shopping mall, which is undergoing redevelopment. The center is set to welcome six new retailers over the next year. Jewelry brand Little Words Project and Canadian women’s fashion brand Aritzia are opening in December. Urban Outfitters is opening in January, and Italian intimates store Intimissimi is slated to open in the spring. Westfield Old Orchard will also welcome new dining options next year, including local all-day lounge Cupitol and Cafe Castemila, an independently owned café and bakery. The redevelopment of the former Lord & Taylor department store is part of a multi-phase plan at Westfield Old Orchard that was first announced in 2022. Plans also call for new residences, dining establishments, wellness facilities and outdoor amenities such as a public park and event space. More detailed plans will be unveiled in 2024.

December 18, 2023

Acquisitions Illinois Midwest Retail

SVN Chicago Brokers $2.4M Sale of Retail Center in West Chicago

by Kristin Harlow December 18, 2023

WEST CHICAGO, ILL. — SVN Chicago Commercial has brokered the sale of Tower Station Center in West Chicago for $2.4 million. The 11-unit retail center, located at 956 N. Neltnor Blvd., is 73 percent occupied. Aldi shadow anchors the property. Ron Weissenhofer and Karen Kulczycki of SVN represented the undisclosed seller. After six months of negotiations, the property sold to an out-of-state buyer completing a 1031 exchange.

December 18, 2023

Acquisitions Illinois Industrial Midwest

Entre Commercial Realty Brokers Sale of 111,594 SF Industrial Building in Schaumburg, Illinois

by Kristin Harlow December 15, 2023

SCHAUMBURG, ILL. — Entre Commercial Realty has brokered the sale of a 111,594-square-foot industrial building located at 933 Remington Road in the Chicago suburb of Schaumburg. The sales price was undisclosed. The property, which features modern office finishes, is located within the Woodfield Business Center. Dan Benassi, Dan Jones and Sam Deihs of Entre represented the seller, a private investor who wished to sell the building in advance of a pending lease expiration in early 2024. Phil Reiff of JLL represented the buyer, NBS Corp., which plans to relocate from its current facility in Elk Grove Village.

December 15, 2023

Acquisitions Illinois Midwest Office

Colliers Arranges Sale of Former Experian Headquarters Building in Schaumburg, Illinois

by Kristin Harlow December 14, 2023

SCHAUMBURG, ILL. — Colliers has arranged the sale of a 178,000-square-foot office building in the Chicago suburb of Schaumburg for an undisclosed price. The vacant building at 955 American Lane formerly served as Experian’s regional headquarters. Experian vacated the property in August of this year. Built in 1999, the four-story property features a shared parking deck, conference center, training room, cafeteria, fitness center, outdoor volleyball court and walking path around Woodfield Lake. The building is situated just west of Woodfield Mall and is divisible for up to seven tenants. Alissa Adler and John Homsher of Colliers represented the seller, Orion Schaumburg LLC. A private investor purchased the asset. Jon Connor and Steve Kling of Colliers also assisted with the transaction.

December 14, 2023

Illinois Leasing Activity Midwest Office

Insurance Provider Argo Group Signs New Office Lease at Marshall Field Building in Chicago

by Kristin Harlow December 14, 2023

CHICAGO — Specialty insurance provider Argo Group has signed a new long-term lease at 24 E. Washington St., also known as the Marshall Field & Co. building, in Chicago. Argo’s lease is for roughly 20,500 square feet on the ninth floor. The company plans to begin operating out of its new office in early 2024. In 2021, owner Brookfield Properties completed a major restoration of the historic building, which has been listed on the National Register of Historic Places since 1978. Built in the early 1900s, the building served as the flagship location of the Marshall Field department store. The property rises seven stories and totals 636,000 square feet. This year, Ferraro North America, Olam International and Spot Logistics also signed leases at the property. Jeff Miller and Corey Siegrist of JLL represented Argo in its lease, while Jack O’Brien and JD Parcheta of The Telos Group represented Brookfield.

December 14, 2023

Illinois Industrial Leasing Activity Lee & Associates Midwest

Thinnes Transport Renews 91,267 SF Industrial Lease in Crystal Lake, Illinois

by Kristin Harlow December 14, 2023

CRYSTAL LAKE, ILL. — Thinnes Transport Inc. has renewed its 91,267-square-foot industrial lease at 450 Congress Parkway in the Chicago suburb of Crystal Lake. John Joyce, Kenneth Franzese and John Cassidy of Lee & Associates represented the tenant, which is a family-owned freight transportation and logistics company. Dan Jones of Entre Commercial Realty represented the landlord, STAG Industrial Holdings.

December 14, 2023

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