Illinois

Chicago’s Suburban Commercial Real Estate Sector Proves Its Mettle Once Again

by Danielle Everson February 4, 2015

Here’s the Chicago commercial real estate market’s big secret: the suburbs never went away. While it’s true that office vacancy rates hit the high 20s in 2008, the truth is that suburban absorption never faltered. In early 2014, Savills Studley reviewed all office leasing transactions from 2010 to 2013, a recessionary period for the sector. The analysis revealed that of the nearly 7.4 million square feet of deals tracked, nearly three-quarters of the moves (5 million square feet) involved tenants moving from one suburb to another. Compare that trend to the relocations from the suburbs to the city, which totaled approximately 1.8 million square feet during the same period. The exodus of companies like Hillshire Brands and Motorola Mobility from the suburbs made it seem like the city was the only place to be for high-growth firms. The analysis also showed that firms moving from out of town to the area went to the suburbs rather than the city by a factor of more than 2 to 1: 385,000 square feet versus 160,000 square feet. So, it’s no surprise that the suburban Chicago office market ended 2014 with the lowest vacancy rate since 2008. The 22.6 percent vacancy rate in …

February 4, 2015

Illinois Midwest Multifamily

Interra Realty Arranges $2.1M Sale of Two Multifamily Properties in Oak Park, Ill.

by Danielle Everson February 4, 2015

OAK PARK, ILL. — Interra Realty has arranged the sale of two multifamily properties in Oak Park for a total of $2.1 million. An 11-unit apartment building at 426 S. Wesley Ave. sold for $1.2 million. Patrick Kennelly, James Clough and Joe Smazal of Interra Realty represented both the undisclosed seller and buyer in the transaction. The property features an elevator and a 12-car parking lot in the rear of the property. The unit mix includes one and two bedroom apartments with most featuring granite countertops, stainless steel appliances and cherry cabinets. The other mixed-use property at 113 N. Oak Park Ave. sold for $865,000. Smazal, Clough and Kennelly also represented the undisclosed seller and buyer in this transaction. The property features four apartments above a first floor retail space occupied by a restaurant tenant.

February 4, 2015

Illinois Loans Midwest Office

Mesa West Originates $220M Loan to Refinance Chicago’s 1KFulton Office Building

by Danielle Everson February 3, 2015

CHICAGO — Mesa West Capital has provided Sterling Bay $220 million to refinance 1KFulton, a 10-story, 535,000-square-foot office building in Chicago’s West Loop. The property will serve as Google’s new regional headquarters. Other tenants include bicycle gear maker SRAM International Corp. and Venture Capital firm Sandbox Industries. The financing included $35 million of mezzanine debt, which was placed at closing with Morgan Stanley Real Estate Investing. The building features efficient floor plates up to 71,000 square feet with 11-foot floor-to-ceiling glass and 12-foot slab-to-slab height. Additionally, select property amenities include a subterranean parking garage, fitness center and unmatched rooftop common areas as well as easy access to the newly completed Morgan & Lake CTA stop located one block south of the property. Local development firm Sterling Bay acquired the former Fulton Market Cold Storage warehouse in 2012. The nearly 100-year-old vacant 10-story structure is now a state-of-the-art LEED Gold certified office and retail building. Michael Kavanau, Tim Joyce and Christopher Knight of HFF arranged financing. The building was 88 percent leased at the time of financing.

February 3, 2015

Illinois Midwest Office

GLL Real Estate Partners Buys 18-Story Chicago Office Tower

by Danielle Everson February 2, 2015

CHICAGO — GLL Real Estate Partners has purchased 550 W. Adams, an 18-story office building in the West Loop area of downtown Chicago. The seller was SEB Asset Management, an established Frankfurt, Germany-based real estate manager, which had owned the property since it opened in 2006. The purchase price was undisclosed, but Crain’s Chicago reports that the office tower sold for $185 million. The 483,677-square-foot tower is currently 94 percent leased and is anchored by the global headquarters of USG Corp., a producer of high performance buildings systems. Other major tenants include the law firm of Lewis, Brisbois, Bisgaard & Smith LPP, healthcare provider Humana HealthPlan and JP Morgan, which recently renewed its lease and, like USG, will remain a tenant on a long-term lease.

February 2, 2015

Illinois Midwest Multifamily

Essex Realty Group Brokers Sale of 15-Unit Apartment Building in Chicago

by Danielle Everson February 2, 2015

CHICAGO — Essex Realty Group Inc. has brokered the $335,000 sale of 8057 S. Carpenter St., a 15-unit apartment community in Chicago. The recently renovated property was built in 1928 and consists of one-bedroom units. Upgrades to the building include a new boiler, new hot water tank, newer windows, doors and new porches. Brian Kochendorfer of Essex was the broker in the transaction.

February 2, 2015

Illinois Loans Midwest Multifamily Student Housing

KeyBank Secures $25.9M Loan for Illinois Student Housing Apartment Complex

by Danielle Everson January 30, 2015

EDWARDSVILLE, ILL. — KeyBank Real Estate Capital has secured $25.9 million in CMBS financing for Enclave West, a 552-bed student housing apartment complex in Edwardsville. Randy Martin of KeyBank Real Estate Capital Markets arranged a $22.7 million non-recourse, fixed-rate CMBS first mortgage and a $3.24 million full-recourse, fixed-rate life company mezzanine loan for the undisclosed borrower. Located 20 miles northeast of downtown St. Louis, the 98.4 percent occupied property was built in phases in 2013 and 2014. The property is the closest off-campus student housing property to the University of Southern Illinois Edwardsville.

January 30, 2015

Illinois Industrial Midwest

M&M Brokers $2M Sale 45,883 SF Industrial Property in Alsip, Ill.

by Danielle Everson January 30, 2015

ALSIP, ILL. — Marcus & Millichap has brokered the $2 million sale of Fasco Inc., a 45,883-square-foot, net-leased property located in Alsip. Fasco Inc. is located at 11610 S. Austin Ave. The property is a tilt-up concrete building and has a rentable area of 50,483 square feet. Approximately 20 percent of the building is office space. Sean O’Brien of Marcus & Millichap’s Chicago Oak Brook office marketed the property on behalf of the seller, a private investor, and represented the buyer, another private investor.

January 30, 2015

Illinois Industrial Midwest

Darwin Arranges Sale of 1,500 SF Industrial Condo in Roselle

by Danielle Everson January 30, 2015

ROSELLE, ILL. — Darwin Realty & Development Corp. has brokered the sale of a 1,500-square-foot industrial condo unit in Roselle. The #208 condo unit is located at 820 W. Lake St. Mas Plumbing leased the space, which will be used as the base of operations for the firm’s plumbing business. Dan Fanelli of Darwin represented the undisclosed buyer. Russ Nelms of Coldwell Banker represented undisclosed the seller.

January 30, 2015

Illinois Industrial Midwest

Sitex Group Acquires 128,000 SF Warehouse in Chicago

by Danielle Everson January 29, 2015

CHICAGO — Sitex Group has acquired a 128,000-square-foot vacant warehouse located at 5000 S. Homan in Chicago for an undisclosed sales price. Situated on nearly 16 acres, the property is located in the city’s 14th ward near the I-55/Pulaski Avenue interchange. The former CN Railroad distribution facility features 30-foot clear heights, 30 exterior loading docks, grade level access and office space. Sitex Group will soon begin renovations, which will include façade enhancements, parking lot improvements, upgrades to the office space and the addition of modern lighting.

January 29, 2015

Illinois Midwest Multifamily Retail

Akara Partners to Develop Retail/Apartment Building in Chicago

by Danielle Everson January 29, 2015

CHICAGO — Akara Partners plans to develop a two-building, 270,202-square-foot apartment complex at 500 N. Milwaukee in Chicago’s River West Neighborhood Fulton River District near the West Loop. Following demolition of an existing vacant building on the site, Akara will proceed with construction of 227 apartment units, 14,000 square feet of street-level retail space and 102 parking spaces at the northwest corner of Milwaukee and Grand avenues. The design by Pappageorge Haymes Ltd. includes a four-story building on the corner totaling 55,074 square feet and a 14-story building on the other side of Green Street totaling 215,128 square feet. BMO Harris Bank is providing construction financing for the development and Goldman Sachs serves as the equity partner. CA Residential is Akara’s development partner and Tishman Construction is the general contractor. The development is scheduled for completion in 2016.

January 29, 2015

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