WILMETTE, ILL. — The Boulder Group, based in Wilmette, has released its second-quarter net lease research report. Cap rates in the single-tenant net lease sector increased for the fifth consecutive quarter to 6.4 percent, a 13 basis point increase compared with the prior quarter, according to the firm. When broken down by sector, single-tenant cap rates increased to 6.17 percent (12-basis-point increase) for retail, 7.27 percent (27-basis-point increase) for office and 6.8 percent (3-basis-point increase) for industrial. “The rise in interest rates, combined with available investment returns in other fixed income investment opportunities, continue to be the primary drivers for the upward pressure on cap rates,” says Randy Blankstein, president of The Boulder Group. “Accordingly, transaction volume for the first half of 2023 significantly lagged the pace of prior years.” Additionally, Boulder Group says that certain segments within the net lease market such as dollar stores, drug stores and coffee users experienced an oversaturation of certain tenants. This resulted in a more significant rise in cap rates for the respective tenants.
DEER PARK, ILL. — Three new tenants are opening at Deer Park Town Center in the Chicago suburb of Deer Park. Sweetgreen opened a 2,156-square-foot restaurant in July. Victoria’s Secret will occupy 4,965 square feet. Construction on that store is scheduled to begin this fall. The Shade Store, a retailer offering customized window treatments, blinds, shades and drapes, is scheduled to open in spring 2024. Additionally, three existing tenants have either renovated their space or plan to do so. Pottery Barn is in the process of a renovation that will expand its square footage to approximately 12,000 square feet. Completion is slated for this fall. Bath & Body Works recently relocated its store to a new 3,710-square-foot space. Crate & Barrel plans to remodel its store, with completion in time for the start of the holiday shopping season. Managed by JLL, Deer Park Town Center is an outdoor lifestyle center featuring more than 60 retail, restaurant and service brands.
ADDISON, ILL. — Marcus & Millichap has brokered the $1.1 million sale of a 12-unit apartment building in Addison, a western suburb of Chicago. The property at 41 E. Blecke Ave. features two studios and 10 one-bedroom units. Christopher Malay and Eric Bell of Marcus & Millichap represented the seller, a limited liability company. Ryan Engle and Andrean Angelov of Marcus & Millichap secured and represented the buyer, a private investor completing a 1031 exchange.
DECATUR, MARION AND DANVILLE, ILL. — Meridian Design Build has completed construction of three industrial build-to-suit projects in Illinois. A global shipping and information services provider will occupy all three buildings. The first project is a 317,518-square-foot facility in Decatur. Scannell Properties developed the building, which features 10,920 square feet of office space, 174 interior van loading positions, 78 loading docks and a 607-car employee parking lot. Cornerstone Architects and civil engineer Spaceco made up the project team. SunCap Property Group served as the developer of a similar 251,000-square-foot building in Marion. The property features 11,411 square feet of office space, 147 interior van loading positions, 68 loading docks and a 537-car employee parking lot. Architect Ware Malcomb and civil engineer Manhard Consulting made up the project team. The third facility totals 217,323 square feet in Danville. Jones Development was the developer on the project, which features 10,500 square feet of office space, 119 interior van loading positions, 56 loading docks and a 390-car employee parking lot. The project team included Ware Malcomb and civil engineer Farnsworth Group.
DOWNERS GROVE, ILL. — Lifespace has completed renovations to the independent living building at Oak Trace, a continuing care retirement community in Downers Grove, about 20 miles west of Chicago. The renovations were part of a $112 million full-campus redevelopment. The first phase of the project occurred in 2019 with the opening of Oak Trace’s Health and Wellness Center offering assisted living, memory care rehabilitation and skilled nursing. The latest phase, completed last week, features renovated shared spaces of the independent living building. Highlights include the Oak Room, a formal restaurant-style dining room; the Lounge, a casual gathering space offering cocktails and small-plate items; a newly furnished library; an outfitted art studio; and a lobby. Oak Trace’s full redevelopment is scheduled for completion in spring 2024 with its independent living expansion. The final phase will add 140 new independent living apartments, a fitness center and aquatic center, multiple dining venues, a spa and performing arts center.
MUNDELEIN, ILL. — Marcus & Millichap has arranged the $1.4 million sale of an 1,800-square-foot retail property occupied by Grease Monkey in Mundelein, a far north suburb of Chicago. The building is located at 1079 W. Maple Ave. across from Mundelein High School. Brian Bailey and Drew Isaac of Marcus & Millichap represented the seller, a limited liability company. Mitchell Kiven and Nicholas Kanich of Marcus & Millichap secured and represented the buyer, a boutique real estate investment firm based in California. Grease Monkey provides services such as oil changes.
HUNTLEY, ILL. — Kuriyama of America, an industrial hose supplier, has signed a 329,210-square-foot lease at Huntley Commercial Center in the Chicago suburb of Huntley. The tenant will occupy 60 percent of the 540,960-square-foot development, which is slated for completion in the fourth quarter. Adam Marshall and Mark Deady of Newmark represented ownership, Huntley Investment Partners, which is a partnership between Craig Realty Group Inc., The Prime Group Inc. and The Capital Cos.
GURNEE, ILL. — Bullfrog International, a designer and manufacturer of high-end hot tubs, has inked a new lease for 10,840 square feet at Gurnee Town Center in Gurnee, a far north suburb of Chicago. Rick Scardino, Michael Petrik and Sean Bishop of Lee & Associates represented the tenant. Branden Reedy and Jimmy Danaher of CBRE represented the landlord, Kite Realty. Lee & Associates also assisted Bullfrog International with a lease in Vernon Hills earlier this year.
AURORA, ILL. — Focus, in collaboration with development partner Atlantic Residential and property owner Centennial, has begun the second phase of redevelopment at Fox Valley shopping center in Aurora. This phase includes a 323-unit luxury apartment community as well as a 212-unit seniors housing development, each expected to be completed by fall 2025. In June, Focus completed Lumen, a 304-unit luxury apartment community now being leased at Fox Valley. Being constructed on the site of a former Carson’s store, Phase II will feature apartments with unique amenities such as an outdoor coworking space. The senior living component will offer independent living, assisted living and memory care services. Announcements regarding retail, entertainment and restaurant tenants will be made closer to the completion of Phase II.
CHICAGO — Moody Bible Institute has renewed its 36,956-square-foot industrial lease at 2701 S. Western Ave. in Chicago. Situated in the city’s Little Village neighborhood, the property features a clear height of 20 feet, four loading docks and convenient access to I-290 and I-55. Mandy Lewandowski and Chris Mergenthaler of DarwinPW Realty/CORFAC International represented the landlord, Welbic IV. Julie Lane of Cresa represented the tenant.