SOUTH HOLLAND, ILL. — JLL Capital Markets has arranged the $2.7 million sale of a three-tenant retail building in South Holland near Chicago. The 5,000-square-foot property is home to Chipotle, JJ Fish & Chicken and an unnamed corporate wireless provider. Alex Sharrin, Alex Geanakos and Eric Cline of JLL represented the seller, Glazier Corp., which is a local Chicago developer. A Southern California-based private investor purchased the asset.
Multifamily investors prefer to concentrate capital in the primary markets. Although prices are steep and cap rates low, the gateway cities offer private equity and institutional buyers the young, affluent tenants, economic diversification, deep trough of performance data and property market liquidity that can’t be found in smaller cities. Gateway cities offer these assets…until they don’t. The pandemic recession has turned the usual way of looking at things upside down. At least for the moment, tenants are fleeing the high costs and perceived dangers of dense urban living for the relative safety and larger floor plans found in suburbs and, in some cases, secondary and tertiary markets. The impact on property performance is significant. In the modern urban mid- and high-rise buildings favored by large portfolio investors, occupancy and rents are down materially, trimming forward-looking net operating income 15 percent or more in many Los Angeles, New York and San Francisco buildings. Determining fair asset value is nearly impossible under the circumstances. Buyers still may be willing to bid at prices generating deeply sub-4 percent initial yields but only against conservatively underwritten NOI levels that discount an extended period of performance weakness. Few owners are willing to realize the resulting …
CHICAGO — The Howard Hughes Corp. and Riverside Investment & Development have opened 110 North Wacker Drive, a 55-story office tower situated along the Chicago River. The 1.5 million-square-foot project is the tallest office building completed in the city in the last three decades, according to the developers. Bank of America is the anchor tenant. Other opening-day tenants include real estate investment advisor Heitman, global investment bank Lincoln International and law firms Jones Day and Morgan Lewis. Construction began in summer of 2018. Although no development cost was disclosed, Bank of America and JP Morgan Chase provided a $495 million construction loan at that time. The Class A tower features a 45-foot-wide riverwalk on its ground level. The covered area, which connects two downtown pedestrian paths and a small park, offers 22,000 square feet of public space. The project features technology designed to maximize overall health and wellness. This includes best-in-class HVAC systems, advanced dispatch elevators and a customized app that provides touchless building access, transportation information, event listings and the ability to book fitness and spa activity. Several enhancements have been added to address COVID-19 concerns, including advanced secondary air filtration systems, more air changes per hour than most …
CHICAGO — Industrious will open a 52,000-square-foot flexible office space at Willis Tower in Chicago. Scheduled to open in phases in the first quarter of 2021, the space is now available for lease. It is the latest of more than 100 locations for Industrious. EQ Office, owner of Willis Tower, says the management agreement with Industrious is an opportunity to roll out new flexible layouts and office configurations as well as updated common areas that reflect health and safety standards. The 110-story Willis Tower is currently in the midst of a $500 million renovation project. The revamped office tower will include 125,000 square feet of amenities exclusive to tenants, a 30,000-square-foot outdoor terrace and a 300,000-square-foot retail and dining destination known as Catalog.
CHICAGO — Foxtrot Ventures, a food delivery company, has leased 13,000 square feet at The Glass Factory in Chicago’s East Pilsen. Foxtrot will operate a commissary kitchen at the site in order to serve its eight convenience stores throughout Chicago. Commissary kitchens enable foodservice providers to prepare and store food without having to own and maintain the facilities themselves. Brent Burden of Jameson Commercial represented ownership of The Glass Factory. Andrew Becker and Michael Wexler of Canvas Real Estate Collective represented Foxtrot. Located at 900 W. Cermak Road, The Glass Factory is a former glass manufacturing facility. It is currently undergoing renovations and will ultimately consist of four buildings of office and industrial space.
FOX RIVER GROVE, ILL. — Baceline Investments has acquired Foxmoor Crossing in Fox River Grove, about 50 miles northwest of Chicago. The purchase price was undisclosed. The 22,408-square-foot shopping center is 84 percent leased to tenants such as Panera Bread, T-Mobile, Merle Norman Cosmetics and the UPS Store. Foxmoor Crossing marks the 72nd property in Baceline’s core income fund. The Denver-based company owns neighborhood shopping centers in 27 different metro areas across the country.
WESTMONT, ILL. — Whiskey Hill Brewery & Kitchen has leased 3,740 square feet at Quincy Station in Westmont, about 18 miles west of Chicago. The company will operate a restaurant and bar at the new space. Whiskey Hill currently operates a production facility and tap room in Westmont. Restaurant industry veterans Matt Weil and Rob Salerno founded the company in 2018. Michael O’Connor of Holladay Properties negotiated the new lease at Quincy Station, which is a residential and retail project slated for completion in December 2021.
BETHALTO, ILL. — Berkadia has provided an $18.3 million Fannie Mae loan for the refinancing of Metro Apartments at Bethalto, a 351-unit multifamily complex in Bethalto, northeast of St. Louis. The garden-style asset is located at 190 Rue Sans Souci. It features one-, two- and three-bedroom floor plans along with a basketball court, playground, baseball field and outdoor grilling areas. John Schorgl of Berkadia originated the loan on behalf of the borrower, Missouri-based KH Properties. The 12-year loan features a fixed interest rate at low-3 percent with two years of interest-only payments, a 75 percent loan-to-value ratio and a 30-year amortization schedule.
CHICAGO — Optima Inc. has begun development of Optima Lakeview, a 198-unit luxury apartment project in Chicago’s Lakeview neighborhood. The seven-story, transit-oriented development will replace a shuttered Treasure Island grocery store and parking lot. Designed by Hovey, the project also includes 14,000 square feet of street-level commercial space. Residents will have access to 40,000 square feet of amenities, including a rooftop sky deck, pool, indoor basketball court, golf simulator, fitness center, yoga room, sports lounge, pet spa, game room, business center and two conference rooms. The building will offer 94 fully enclosed parking spaces and storage for 208 bicycles. Optima says it designed larger floor plans to accommodate dedicated space for a home office in today’s work-from-home environment. Completion is slated for March 2022.
CHICAGO — McDonald’s reported that its U.S. same-store sales rose 4.6 percent in its third quarter, which ended Sept. 30. President and CEO Chris Kempczinski cites the fast food chain’s drive-thru presence, delivery and digital capabilities as furthering its competitive advantage. The Chicago-based company says that more Americans turned to McDonald’s for dinner and promotional activity such as the Travis Scott meal drove sales. McDonald’s plans to release full third-quarter earnings before the market opens Nov. 9 and will also broadcast its investor earnings conference call that day.
