CHICAGO — NAI Hiffman has arranged the sale of InterPark Corporate Center in Chicago for an undisclosed price. The 12-building, 165,000-square-foot office complex is situated on seven acres. Jonathan Berger of Berger Asset Management LLC purchased the property from AREI (InterPark) LLC with plans to revitalize and reposition the asset. Plans call for a new fitness center, conference and lounge space and bike share program. The property will be renamed Concourse Chicago and is expected to reopen this fall. John Cash, Art Burrows, David Haigh and Steve Chrastka of NAI Hiffman brokered the transaction.
Illinois
SCHAUMBURG, ILL. — Retail Properties of America Inc. (NYSE: RPAI) has sold Schaumburg Towers in suburban Chicago for $86.6 million. The former Zurich headquarters was the company’s one remaining office complex. American Landmark Properties purchased the 882,071-square-foot asset, which spans two buildings. The property is currently 48 percent leased. Dan Rosenberg and Matt Terpstra of Cohen Financial, a division of SunTrust Bank, secured a $110 million acquisition loan from a dual partnership of lenders, including Prime Finance Partners and Pearlmark Real Estate Partners. Cohen Financial partnered with Steve Roth of CBRE to secure the financing, which closed on June 1. American Landmark will utilize the financing to acquire the asset as well as complete capital improvements and expand tenancy.
CHICAGO — McDonald’s Corp. has opened its new corporate headquarters in Chicago’s West Loop neighborhood. The move marks a return to Chicago where the company was headquartered from 1955 to 1971. McDonald’s was most recently headquartered in Oak Brook, Ill. In addition to the approximately 2,000 employees based there, the property will house the flagship Hamburger University location, providing state-of-the-art learning for the company’s employees and future leaders. The new headquarters features open floor plans, a 700-person conference center, work cafe, fitness center and outdoor terraces. The ground floor is home to a one-of-a-kind McDonald’s restaurant that features a rotating menu of favorites from around the globe. Sterling Bay developed the building, while Gensler served as architect of record. IA Interior Architects and Studio O+A designed the interiors. McHugh & ECI Executive Construction Inc. were the general contractors.
CHICAGO — Avison Young has brokered the sale of Kennelly Square in Chicago’s Old Town neighborhood for $78 million. The buyer, Strategic Properties of North America, plans to convert the 268-unit condominium building into rental apartment units. James Hanson, Richard Hanson and Paul Cohen of Avison Young represented the seller, Kennelly Square Condominium Association. Meridian Capital Group arranged the financing. More than 75 percent of the owners at Kennelly Square voted to approve the sale, a threshold required by the Illinois Condominium Property Act. This strategy reflects a growing trend in Chicago’s multifamily market as investors and developers identify opportunities to meet strong demand for rental units, according to Avison Young.
ELK GROVE VILLAGE, ILL. — Wells Fargo has provided a $56.5 million loan for the acquisition of Willow Crossing in the northwest Chicago suburb of Elk Grove Village. The 579-unit multifamily property consists of 14 buildings. Amenities include two swimming pools, two playgrounds, a fitness center, clubhouse and business center. Matthew Schoenfeldt of HFF arranged the five-year loan on behalf of the borrower, The Marquette Companies. In addition to using the loan proceeds to acquire the property, the borrower plans to renovate the asset. Renovated units will feature new countertops, stainless steel appliances, walk-in closets and private balconies.
BLUE ISLAND, ILL. — Kiser Group has brokered the $18.6 million sale of Blue Station Apartments in Blue Island, about 16 miles south of Chicago. The 345-unit apartment complex is located at 2130 W. 122nd St. The buyer, an undisclosed national portfolio owner, purchased the property from Kinzie Realty Corp. Kinzie assembled the apartments through multiple acquisitions. Community amenities include an on-site convenience store and daycare center. Lee Kiser and Matt Halper of Kiser brokered the transaction.
CHICAGO — Baker Development Corp. has completed the exterior construction of 2017 N. Mendell, a 62,000-square-foot office redevelopment in Chicago. The property was formerly an industrial building and will be the first Class A office project completed in the North Branch Industrial Corridor since the adoption of zoning changes last year. Customizable spaces at 2017 N. Mendell, a speculative office development, range from 3,800 to 17,000 square feet. The property will feature a 3,000-square-foot rooftop deck and a dedicated food truck court. Windows will automatically adjust to sunlight to reduce glare and improve temperature control. Baker expects to deliver the first spaces during this quarter. A streamlined interior build-out process, featuring pre-selected options for paint, lighting, flooring and wall partitions, will enable businesses to quickly occupy their space.
BUFFALO GROVE, ILL. — Exeter Property Group has acquired a two-building industrial portfolio in Buffalo Grove, a suburb of Chicago. The properties, spanning a combined 180,766 square feet, are located in Covington Corporate Center. One of the buildings, 951 Commerce Court, is a 95,810-square-foot property fully leased to Veritas Document Solutions. The other is an 84,956-square-foot building fully leased to five tenants, including Sears, Midwest Sealing Products and Perfect Power. Robin Stolberg, Kurt Sarbaugh and Sam Berry of HFF represented the undisclosed seller.
HOFFMAN ESTATES, ILL. — In its first-quarter results released today, Sears Holdings Corp. says that it has identified approximately 100 non-profitable stores, 72 of which will begin store-closing sales in the near future. The Hoffman Estates-based retailer had already announced plans to close 103 Kmart and Sears stores nationwide at the beginning of this year. Sears says the closings are part of ongoing efforts to streamline the company’s operations and focus on its best stores. After the 72 store closings, Sears will have 822 Kmart and Sears stores in operation. A full list of store closures can be found here. Sears reported a net loss of $424 million for the first quarter of 2018. This compares to $245 million reported for the first quarter of 2017, which included a gain of $492 million from the sale of the Craftsman brand. Sears generated total revenues of approximately $2.9 billion during the first quarter of 2018, compared with $4.2 billion this time last year, with store closures contributing to nearly two-thirds of the decline. “In a challenging quarter, we continued to focus on our strategic transformation, identifying additional opportunities to streamline operations and adjust inventory and operating expenses,” says Edward Lampert, chairman …
CHAMPAIGN, ILL. — MCR has acquired three Hilton-branded hotels in Champaign near the University of Illinois campus. The purchase price was not disclosed. The properties include the 104-suite Home2 Suites by Hilton, the 99-room Hilton Garden Inn and the 98-suite Homewood Suites by Hilton. All properties feature fitness centers, pools, convenience stores, meeting space and free Wi-Fi. The sellers were not disclosed. MCR is the seventh-largest hotel owner-operator in the country and has invested in and developed 103 hotels with more than 12,000 rooms in 27 states. MCR’s hotels operate under 11 brands. The company maintains offices in New York City and Dallas.