CHICAGO — Duke Realty Corp. has signed five leases with industrial tenants for four of its properties within metro Chicago. The leases total 860,296 square feet. Susan Bergdoll and Casey Grant of Duke represented the company in all the lease transactions. At Airport Logistics Center in Romeoville, RJW Logistics leased the entire 543,780-square-foot speculative building that delivered in August. Dominic Carbonari and Frank Griffin of JLL represented the tenant and Jason West and Sean Henrick of Cushman & Wakefield marketed the property for lease. Coda Resources leased all of the 183,296-square-foot speculative building known as 990 North Avenue in Glendale Heights. Frank Melchert of Cawley Chicago represented the tenant, while Kelly Disser, Eric Tresslar and Michael Freitag of NAI Hiffman served as listing brokers. At 375 W. South Frontage Road in Bolingbrook, Battery Systems signed a new lease for 17,850 square feet and Corrosion Materials renewed its 17,850-square-foot lease. Brian Kling and John Bolster of Colliers International represented Battery Systems. Ryan Earley and Terry Grapenthin of Lee & Associates were the listing brokers. Lastly, Black Horse Carriers signed a 97,520-square-foot lease at 1835 West Jefferson in Naperville. George Pappas of Hartford Associates represented the tenant and Brian Kling and David …
GLEN ELLYN, ILL. — Pete’s Fresh Market has opened at Baker Hill in Glen Ellyn, about 25 miles west of downtown Chicago. The store occupies 72,397 square feet at the shopping center owned by Phillips Edison & Co. Inc. (PECO). It is the regional grocer’s 15th location in the Chicagoland area. Since 2017, PECO has executed a comprehensive redevelopment at the property in partnership with the village of Glen Ellyn. In addition to the opening of Pete’s, improvements at the property include LED lighting, two electric vehicle charging stations and a new roof. Other tenants at the 135,355-square-foot Baker Hill include Orangetheory Fitness, Learning Express and Massage Envy.
CHICAGO — Marcus & Millichap has brokered the sales of two multifamily properties on Chicago’s North Side for a combined $7.5 million. Kyle Stengle of Marcus & Millichap marketed the properties on behalf of the sellers. The first property, 1044 W. Newport Ave., is a two-story, nine-unit building in the Lakeview neighborhood. It sold for $4 million. Both the buyer and seller were local partnerships. The second property, 3507-3511 N. Elston Ave. in the Avondale neighborhood, is a four-story, 12-unit building. It sold for $3.5 million. Chicago-based Brennan Investments purchased the building from a California-based seller.
Chicago real estate has been the subject of considerable pessimism from local and national investors due to a variety of factors. Much of this can be blamed on our unfunded pension liability, which is expected to significantly increase real estate taxes across the area in the coming years. Many institutional multifamily investors claim that their data says to avoid Chicago. Instead, they seek multifamily properties at far lower returns and cap rates in places such as Nashville, Austin and Denver. While I believe those cities offer phenomenal investments, investors across the country are missing an amazing opportunity to invest in Chicago apartment properties. Real estate taxes Everyone seems to agree that real estate taxes will rise significantly in Chicago in the coming years. Who pays real estate taxes? Homeowners, commercial landlords and some businesses. Noticeably absent from this list are apartment renters who are generally unaffected by an increase in real estate taxes. In fact, a significant rise in residential real estate taxes should create even more demand for rental apartments in the Chicagoland area as would-be homeowners shift into the rental pool. Effect of high tax rates Do Chicagoans leave the city because of high tax rates? The data …
PARK FOREST AND UNIVERSITY PARK, ILL. — JLL has arranged the sale of Central Park Apartments and Governor’s House Apartments for $25.7 million. David Gaines, Wick Kirby, Mark Barnes and Kevin Girard of JLL represented the seller, a joint venture between Buligo Capital Partners and Ferndale Realty Group. Bender Cos. was the buyer. Jason Bond and Trent Niederberger of JLL originated $20.5 million in acquisition financing through Fannie Mae. The 220-unit Central Park Apartments is located at 11 Fir St. in Park Forest and the 96-unit Governor’s House Apartments is located at 871 Burnham Drive in University Park. Both communities are approximately 30 miles south of downtown Chicago.
GURNEE, ILL. — 33 Realty has brokered the deconversion sale of Deer Creek Condominiums in Gurnee for $18.5 million. Built in 1983, the 198-unit property features one- and two-bedroom units as well as three-bedroom penthouses. Amenities include a pool, fitness center, tennis courts, soccer fields and underground parking. Sean Connelly and John Meyer of 33 represented the seller, Deer Creek Condominium Association. Laramar Group purchased the property, which is 85 percent occupied. Under the Condominium Property Act in Illinois, condo unit owners can elect to sell a condo property if 75 percent or more are in agreement.
Urban Innovations Completes Construction of 16-Unit Affordable Housing Project in Evanston, Illinois
EVANSTON, ILL. — Urban Innovations Ltd. has completed construction of a ground-up, 16-unit affordable housing project in Evanston on behalf of Housing Opportunities for Women (HOW). The three-story building is located at 1305 Pitner Ave. Amenities include community space on each floor, first-floor storage units, laundry facilities and parking. Michael Newman of SHED Studio served as the architect. North Wells Capital is the investment affiliate of Urban Innovations. HOW is a Chicago-based nonprofit that provides affordable housing solutions and poverty prevention strategies.
SCHAUMBURG, ILL. — Marcus & Millichap has brokered the sale of a 9,999-square-foot restaurant property net leased to Capital Grille in Schaumburg for $4.9 million. The building is located at 2000 E. Golf Road. The existing tenant has a new 10-year lease in place. Austin Weisenbeck and Sean Sharko of Marcus & Millichap represented the buyer, a limited liability company completing a 1031 tax-deferred exchange. The seller was not disclosed.
CHICAGO — Willis Tower owner EQ Office has unveiled two new retail tenants for Catalog, the new 300,000-square-foot dining and retail portion under construction at the Chicago office tower. Sushi-San will offer a dine-in experience as well as a grab-and-go station. Guests can customize maki rolls, poke or chirashi bowls at the sushi counter. The Mexican restaurant Tortazo will occupy nearly 3,000 square feet. It is a new concept from Rick Bayless, an award-winning chef. Tortazo is expected to open later this year. The entire Catalog concept is slated for completion in mid-2020.
CHICAGO — Interra Realty has brokered the sales of three multifamily properties in Chicago’s Edgewater and Rogers Park neighborhoods for a combined $5.5 million. Each of the properties, located at 5547 N. Lakewood Ave., 1619 W. Lunt Ave. and 7423 N. Rogers Ave., were fully occupied at the time of sale. In the first transaction, Interra’s Craig Martin represented the seller, the estate of Victoria Altman, as well as the buyer, a joint venture led by Joe Hayes and Mike Cavanaugh. In the second sale, Martin and Brian DiBasilio of Interra represented the private parties. In the third transaction, Martin represented the private buyer as well as the sellers, Gary and Bella Goland.