Illinois

ALGONQUIN, ILL. — A joint venture between Chicago-based real estate developer Hubbard Street Group and athletic club owner and operator College Park Athletic Clubs is building Pickle Haus, a pickleball-themed sports and entertainment center in the Chicago suburb of Algonquin. The project will breathe new life into a vacant retail property. Pickleball has been the fastest-growing sport in the U.S. each of the last three years, according to the developers. Construction is currently underway on the 41,000-square-foot project, and completion is slated for November. Pickle Haus will feature 12 indoor pickleball courts, three golf simulators, a bar and event space and an outdoor patio. Sheamus Feeley of Family Is Food designed the restaurant and bar portion, including a custom menu. Hubbard Street Group has owned the vacant building since 2018. It was originally developed in 2008 for Dania Furniture. Prior to the pandemic, the building was leased to a national fitness center chain. However, the chain filed for bankruptcy and never occupied the building. The project team also includes Harken Interior Design, Hirsch MPG, William A. Randolph Construction, Greenberg Traurig and Phlox Partners.

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MAHOMET, ILL. — American Street Capital (ASC) has arranged a $3.9 million loan for the refinancing of a 160-unit multifamily property in Mahomet, about 10 miles northwest of Champaign. The community was built in 1972 and recently renovated. There are eight buildings consisting of a mix of one-, two- and three-bedroom units. The asset was more than 95 percent leased at the time of the loan closing. Igor Zhizhin of ASC arranged the agency loan, which features a 10-year term, fixed interest rate and five years of interest-only payments.

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HOFFMAN ESTATES, ILL. — Fairgrounds World’s Fair, a café and food concept from Fairgrounds Craft Coffee and Tea, has opened at Bell Works Chicagoland in Hoffman Estates. The café features 137 seats as well as an outdoor patio with an additional 45 seats. The 5,743-square-foot space is equipped with a full-service kitchen, food and bakery program, cocktail bar and grab-and-go offerings. Fairgrounds offers a selection of craft coffee, tea varieties, cold brews, lattes and sparkling beverages. Designed by Barker/Nestor Architecture and Design with input from Wight & Co. Architects and npz studio+, the space also features a foosball table and other games. Fairgrounds, which maintains 10 locations across the country, is operated and managed by Infuse Hospitality. Bell Works Chicagoland is the redevelopment of the former AT&T corporate campus undertaken by Inspired by Somerset Development.

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CHICAGO — Lendlease has opened The Reed at Southbank, a 41-story residential tower located at 234 W. Polk St. in Chicago’s South Loop. The Reed includes both rental units and for-sale homes and is part of Lendlease’s seven-acre Southbank master plan. Of the property’s 440 residences, 224 are apartments and are located on floors nine through 22. Units range from 544 to 1,417 square feet and monthly rents start at $2,205. Inspired by the literary history of Printers Row, the development’s name is a nod to both reed pens and the grasses that grow along waterways like the Chicago River. Perkins & Will designed the property. The Reed is situated near Southbank Park, a two-acre green space developed and maintained by Lendlease as an amenity for both residents and neighbors in the surrounding community. The eighth floor features a 15,000-square-foot amenity deck with a pool, lawn, fire pits, outdoor kitchens and fitness area. Indoor amenities include a fitness center, lounge room, pool table, virtual sports room, massage room and salon. Apartments at The Reed will be managed by Bozzuto, which will provide renters with services like plant care, pet care, newspaper delivery and in-home package delivery. The Reed is the …

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CHICAGO — General contractor Bulley & Andrews has completed a renovation of The Belden-Stratford, a luxury apartment building in Chicago’s Lincoln Park neighborhood. Overlooking the Lincoln Park Zoo and Conservatory, the 16-story property was originally constructed in 1923 and is listed on the National Register of Historic Places. Designed by architect Meyer Fridstein, the building originally opened as a residential hotel before being converted to apartments. Mansueto Office, the investment firm of Joe Mansueto, who was a resident of the property during the 1980s, purchased the asset in 2018. Renovation work began in late 2020. Today, the property comprises 209 luxury apartment units, including studios, one-, two- and three-bedroom floor plans as well as a selection of penthouses. Monthly rents range from $2,500 to $15,000. Leasing and move-ins are underway. Solomon Cordwell Buenz served as the architect for the renovation project, along with historic architect Vinci Hamp Architects. Waterton manages the property. The team restored many of the original architectural details of the property and added new amenities, including a mezzanine-level lounge, fitness center, billiards and media lounge, wine tasting room, conference rooms, meeting space and a rooftop deck. Residents also have access to services such as valet parking, concierge …

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CHICAGO AND MINNEAPOLIS — Hunter Hotel Advisors has brokered the sale of a four-property hotel portfolio totaling 467 rooms in suburban Chicago and Minneapolis for an undisclosed price. Marquee Hospitality and Endeavor Hotels Inc. purchased the portfolio from Summit Hotel Properties. Spencer Davidson of Hunter represented the seller. The portfolio includes the Hilton Garden Inn Eden Prairie, Holiday Inn Express & Suites Minneapolis Minnetonka, Hyatt Place Chicago Lombard Oak Brook and Hyatt Place Chicago Hoffman Estates.

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HOFFMAN ESTATES, ILL. — VIPAR Heavy Duty Inc., a truck parts distributor and service provider, has signed a 10,074-square-foot office lease at Bell Works Chicagoland in Hoffman Estates. VIPAR will relocate its team of 35 employees from Crystal Lake. Bell Works Chicagoland is the redevelopment of the former AT&T corporate campus undertaken by Inspired by Somerset Development. VIPAR is working closely with Inspired on the build-out of its space, which is slated for completion in August. Colliers represented VIPAR in the lease, while The Garibaldi Group represented ownership.

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PROSPECT HEIGHTS, ILL. — Conor Commercial Real Estate, with its partner Globe Corp., has sold Executive Commerce Center in Prospect Heights, a northwest suburb of Chicago. The sales price was undisclosed. The 151,677-square-foot industrial building was developed in 2020 and fully leased in 2021. Syncreon, a third-party logistics provider for Samsung, leased the west half of the building for warehouse and distribution space. Plitek, a local manufacturer of precision die cut components and converted materials, leased the east half for its company headquarters and manufacturing facility. The building features a clear height of 32 feet, 35 truck docks, two drive-in doors and a 60-foot speed bay. Ed Halaburt and John Huguenard of JLL represented Conor, while Mike Sedjo, Jack Brennan and Ben Dickey of CBRE served as Conor’s leasing brokers. McShane Construction Co. and Ware Malcomb made up the design-build team. Wintrust provided construction financing.

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By Mark Stern, JLL Chicago’s multifamily sector currently enjoys strong market fundamentals highlighted by healthy occupancy rates and continued rental rate growth. The current core apartment rents average over $4 per square foot, which is higher than previous peak pricing. After the pandemic, rental rates between late 2021 to 2022 recorded 10 to 15 percent growth, which is substantially ahead of the historical norms. Currently, the Chicago rental market is experiencing more stable rent growth in the 3 to 4 percent range.  Chicago remains one of the most affordable major markets to rent an apartment when looking at the current average effective rents as a percentage of median household income. This affordability will allow owners to continue to push rental rates in the future. One of the major factors leading to strong operating fundamentals in the Chicago market is the lack of new supply. The supply in Chicago is currently 1 percent of the inventory, which is quite low in comparison to other markets where there could be as much as 10 to 12 percent of the inventory under construction.  In the city, there are just over 7,000 units under construction slated for delivery between 2023 and 2024. The majority …

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CHICAGO — Related Midwest has opened The Row Fulton Market, a 300-unit luxury apartment tower located at 164 N. Peoria St. in Chicago’s Fulton Market District. Designed by Morris Adjmi Architects, the building rises 43 stories. Units range from 617 to 1,933 square feet. A select number of premium penthouse residences on floors 42 and 43 range from 2,358 to 3,418 square feet. Monthly rents start at $2,705. The penthouses start at $15,250 per month. Twenty percent of the units are designated as affordable housing. The Row features 22,600 square feet of amenity spaces, including an entertainment suite, gathering room, workspace options, fitness center, wellness studio and children’s play area. MAWD designed the interiors. The sixth floor features a 13,800-square-foot landscaped deck with a pool, grilling kitchens, fire pits and hammocks. The Row offers a range of services, including a 24-hour concierge, door attendant, move-in coordination, housekeeping and dog-walking services. Residents also have access to valet dry cleaning, package service, bike storage and 144 parking spaces, 12 of which are electric vehicle charging stations. 

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