Illinois

Brookfield Purchases 22-Story Office Tower in Downtown Chicago for $305M

by John Nelson May 1, 2018

CHICAGO — A private fund sponsored by Brookfield Asset Management (NYSE: BAM) has purchased 175 West Jackson, a 22-story office tower in downtown Chicago’s Central Loop district, for $305 million. JLL Capital Markets represented the seller, a high-net-worth European family advised by Extell Development. Built in 1912 and designed by Chicago-based architect Daniel H. Burnham, the Class A office tower spans 1.4 million square feet, encompassing a full city block. The property features rooftop decks, conference facilities and a recently renovated, 7,500-square-foot athletic club. The building also features retail and dining space, including Starbucks Coffee, Fifth Third Bank and CVS on the street level. The office tower provides tenants access to public transit and is one block from the Brown, Red, Blue, Pink and Purple El lines. The building is also within walking distance to Chicago Union Station and Ogilvie Transportation Center. Extell Development invested heavily in the redevelopment of 175 West Jackson after purchasing the neo-classical building in the late 1990s, according to Crain’s Chicago. The redevelopment included the addition of a two-story atrium lobby, exterior restoration and common area upgrades, according to Extell’s website. Lucien Lagrange Architects Studio designed the upgrades to include wood, granite, marble and metal …

May 1, 2018

Acquisitions Illinois Midwest Net Lease Retail

The Boulder Group Arranges $12.7M Sale of Property Net Leased to Jewel-Osco in Orland Park, Illinois

by Kristin Harlow April 30, 2018

ORLAND PARK, ILL. — The Boulder Group has arranged the sale of a 63,400-square-foot property occupied by Jewel-Osco on a net-lease basis in Orland Park for $12.7 million. The property is located at 17930 Wolf Road. Renovated in 2009, the asset features a drive-thru pharmacy. Jewel-Osco has 20 years remaining on its lease. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private real estate investment company based in the Southwest. A West Coast-based investor was the buyer.

April 30, 2018

Acquisitions Illinois Midwest Multifamily

Essex Brokers $7.2M Sale of Two Apartment Properties in Crystal Lake, Illinois

by Kristin Harlow April 30, 2018

CRYSTAL LAKE, ILL. — Essex Realty Group Inc. has brokered the $7.2 million sale of two apartment properties in Crystal Lake, about 45 miles northwest of Chicago. One of the properties, located at 431-455 Brandy Drive, is an 18-unit townhome property that consists of six buildings. The asset sold for $2.4 million. The other, located at 223-265 Uteg St., is a 48-unit garden-style complex comprised of six buildings. The property sold for $4.8 million. Doug Fisher and Brian Kochendorfer of Essex brokered the transaction. Neither the buyers nor the sellers were disclosed.

April 30, 2018

Acquisitions Illinois Midwest Multifamily

29th Street Capital Purchases 32-Unit Apartment Property in Westmont, Illinois

by Kristin Harlow April 30, 2018

WESTMONT, ILL. — 29th Street Capital (29SC) has purchased Warwick Apartments in Westmont, a western suburb of Chicago, for an undisclosed price. The company plans to make approximately $500,000 in capital improvements to the 32-unit apartment property. Planned interior upgrades include stainless steel appliances, new paint, countertops and cabinets. Exterior improvements will include roof repairs, window replacement, paint and new lighting. The seller was not disclosed.

April 30, 2018

Illinois Leasing Activity Midwest Office

Publicis Signs 681,545 SF Office Lease Renewal, Expansion in Chicago

by Kristin Harlow April 27, 2018

CHICAGO — Publicis has signed an office lease renewal and expansion at 35 W. Wacker Drive in Chicago. The new lease for 681,545 square feet represents a 50,000-square-foot expansion for Publicis, which is an advertising and public relations company. The firm is consolidating three other Chicago-area offices into this location. Also known as the Leo Burnett Building, 35 W. Wacker is a 1 million-square-foot, Class A building that is now fully leased. Drew Nieman and Christy Domin of CBRE represented the landlord, UBS Asset Management, in the lease transaction. Mike Christian and Steve Schneider of Cushman & Wakefield represented Publicis.

April 27, 2018

Development Illinois Midwest Office Top Stories

Sterling Bay Receives $181.5M Construction Loan for Office Tower in Chicago’s Fulton Market

by Kristin Harlow April 27, 2018

CHICAGO — Sterling Bay has received a $181.5 million loan for the construction of 333 N. Green St., a 548,932-square-foot office tower in Chicago’s Fulton Market district. The Class A office tower will rise 19 stories, with floor plates ranging from 13,634 to 40,589 square feet. The property will feature 31,521 square feet of street-level retail space and a four-floor parking garage. Amenities will include a fitness center, conference area, tenant lounge and private rooftop. The LEED Silver-certified building is 47.2 percent preleased to GroupM and will serve as the advertising media company’s North American headquarters. The building will also serve as the regional headquarters for GroupM’s parent company, WPP. Other big-name companies that have chosen to open offices in the bustling Fulton Market district include Google, McDonald’s and Dyson. Timothy Joyce, Danny Kaufman and Christopher Knight of HFF arranged the floating-rate loan through Wells Fargo. Sterling Bay is a real estate investment and development firm with over 10 million square feet in its portfolio. The Chicago-based company currently has a pipeline of over $10 billion in development. — Kristin Hiller

April 27, 2018

Illinois Industrial Leasing Activity Midwest

K2 Express Signs 91,859 SF Industrial Lease Renewal and Expansion in Franklin Park, Illinois

by Kristin Harlow April 26, 2018

FRANKLIN PARK, ILL. — Freight shipping and trucking company K2 Express has signed a 91,859-square-foot industrial lease renewal and expansion at 10800-10900 Belmont Ave. in Franklin Park. The company previously occupied 67,337 square feet at the 600,000-square-foot property, which is owned by Prologis. Brian Carroll of Newmark Knight Frank (NKF) represented K2 Express in the lease transaction. Scott Gibbel of Cushman & Wakefield represented Prologis. In addition, K2 Express signed a long-term lease at a neighboring four-acre trailer yard. Carroll represented the tenant, while Steve Levitas and Bob Chodos of NKF represented the landlord, Hill Mechanical.

April 26, 2018

Illinois Midwest

How Cook County Takes the Benefit Out of Taxpayer Incentives

by Kristin Harlow April 26, 2018

The Cook County Board of Commissioners may have dealt manufacturing districts in South and Southwest Cook County, Illinois, their final blow. The use of property tax incentives has increased over the past several decades and has been a vital economic development tool in this manufacturing belt. The industrial corridor suffered a one-two punch during the Great Recession and is still hanging onto the ropes, trying to recover while the rest of Cook County thrives. Cook County property tax incentives reduce assessed values used to determine a property’s tax bill. Assessors normally set taxable value at 25 percent of a property’s market value, while assessing real estate qualifying for the incentive at 10 percent of market value. This yields a taxable value 60 percent lower than the asset would carry under the standard calculation. The recession gutted Cook County’s manufacturing belt. Numerous manufacturing companies either closed their doors for good or relocated to nearby Indiana, recruited with the promise of a feather-weight tax burden. The migration left a glut of vacant facilities in its wake, driving market values and the assessment base into a downward spiral. As the market and occupancy rates plummeted, local tax rates spiked, exceeding 35 percent in …

April 26, 2018

Acquisitions Illinois Midwest Office

Franklin Partners, Bixby Acquire Former OfficeMax Headquarters in Suburban Chicago, Plan Redevelopment

by Kristin Harlow April 25, 2018

NAPERVILLE, ILL. — Franklin Partners, in a joint venture with Bixby Bridge Capital, has purchased the former OfficeMax headquarters at 263 Shuman Blvd. in Naperville with plans to redevelop the property. The 350,000-square-foot vacant office building will be transformed into a multi-tenant building. The main entrance and atrium will be redesigned with a grand staircase. A lower level will feature baristas, a market-style deli, fitness center, co-working lounges and other amenities. Construction is scheduled to begin later this year with completion slated for early 2019. Wright Heerema Architects is the project architect. Francis Prock and David Florent of Colliers International will market the renovated property for lease.

April 25, 2018

Development Hospitality Illinois Midwest

Skender Breaks Ground on 14-Story Hyatt House Hotel in Chicago’s Fulton Market

by Kristin Harlow April 25, 2018

CHICAGO — Construction firm Skender has broken ground on a 14-story Hyatt House hotel in Chicago’s Fulton Market district. The 167,000-square-foot, 200-room development is located at 105 N. May St. The Hyatt House will be the first hotel in the Fulton Market district to cater to extended-stay corporate travelers. Amenities will include an indoor pool, green roof, fitness center and bar and lounge. Sterling Bay is the project developer, and Eckenhoff Saunders Architects is the architect. Completion is slated for summer 2019.

April 25, 2018

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