CHICAGO — Lubert-Adler, in a joint venture with The Farbman Group, has sold a 23-story office building in Chicago for $100 million. Beacon Investment Partners LLC partnered with Tel Aviv-based Harel Insurance Investments and Financial Services Ltd. to acquire the 535,911-square-foot building located at 200 W. Monroe St. Lubert-Adler and The Farbman Group acquired the office building in July 2012 for $75 million. The joint venture was able to increase occupancy from 80 to 91 percent. Lead tenants include Select Hotels, Equinox Fitness, and Barcodes Inc. The office tower was built in 1973 and renovated in 2006. Philadelphia-based Lubert-Adler, which invests on behalf of leading national university endowments and state retirement systems, owns five other Chicago properties with The Farbman Group.
Midwest
ALSIP, ILL. — Sperry Van Ness has arranged the $1.1 million sale of a 42,500-square-foot industrial building in Alsip, a southern suburb of Chicago. The building is located at 4101 W. 124th Place. The Shred Authority, a professional paper shredding service, purchased the property, which had been vacant for three years. Beverly Hayes of Sperry Van Ness represented the buyer. Robert Barr of Strategic Advisors represented the seller, Praxair Surface Technologies Ltd.
LISLE, ILL. — Brennan Investment Group LLC and its joint venture partner Westminster Capital have sold a Class A office property to a private investor for an undisclosed sales price. The Ogden Corporate Center is located at 801-815 Ogden Ave. in Lisle, a suburb approximately 26 miles east of Chicago. The property consists of two single-story office buildings. The buildings are fully leased to three tenants with the majority of space occupied by an affiliate of DuPage Medical Group. Brennan Investment Group purchased the property in 2012.
CLEVELAND — First Market Properties LLC has purchased the first lien mortgage on a Class B, mixed-use complex in Cleveland. The property, Playhouse Square, is located at 1220 Huron Road N.E. The building includes 100,800 net rentable square feet and is currently 30 percent occupied. The loan was originated in 2011 and matured in June 2013 with an unpaid balance of approximately $1.7 million. Miami-based First Market Properties is a fully integrated real estate investment firm that originates first lien debt, purchases loans and REOs nationwide.
ST. LOUIS — The city of St. Louis has contracted Kwame Building Group Inc. to provide construction supervision and materials testing services for a taxiway reconstruction project at Lambert-St. Louis International Airport. Construction is set to begin in September and wrap up in 2015. The contract includes three projects: reconstruction of a taxiway, removal of a taxiway, and reconstruction of an apron. Kwame currently is the project manager on Lambert’s nearly complete $70 million Airport Experience renovation project.
ST. LOUIS — Cushman & Wakefield | Gateway Commercial has arranged the lease of a 32,445-square-foot industrial building in St. Louis for Fitz’s Root Beer. The bottling company will occupy space at 6135 Horton Place. Pat Reilly and Dan Bamberger of Cushman & Wakefield | Gateway Commercial represented Fitz’s in the transaction. Hilliker Corp. represented the landlord, JGDD Horton LLC.
FARMINGTON HILLS, MICH. — L. Mason Capitani has brokered the sale of a two-building office complex in Farmington Hills. The Westridge Office Center spans 18,412 square feet. The office complex was 78 percent leased at the time of sale. California-based investor LSTC California LLC purchased the property. The asking price for the property was approximately $1.4 million, but the final sale price was undisclosed.
INDIANAPOLIS — Lee & Associates has arranged the lease of a 1,600-square-foot retail space for a tanning salon in Indianapolis. Fast Tans will occupy space in the George Thomas Plaza located at 1016 N. Shadeland Ave. Cindy Hoskinson of Lee & Associates represented the tenant and the landlord, Ladywood Apartments LLC, in the transaction.
The Twin Cities retail market continued to improve in the second half of 2013 due to robust leasing activity at neighborhood centers. The vacancy rate registered 7.2 percent at the end of 2013, down from 8.6 percent a year earlier, according to Cushman & Wakefield/NorthMarq. That is the lowest vacancy rate since the fourth quarter of 2008. The market saw healthy absorption of 439,000 square feet during the second half of 2013. With retail spaces filling, rental rates declined modestly, dropping from an average of $27.73 per square foot during the second quarter of 2013 to $27.60 per square foot in the fourth quarter. The rental rate decrease was primarily due to the decline in rates at community centers, as discount retailers negotiated lower rents. Many of these discount retailers filled big-box and junior-box spaces that had been vacant for a long time. (To view larger version of chart, click here.) The Franchise Factor The majority of retailers that entered the Twin Cities in 2013, or expanded their operations locally, were focused on food and services such as hair care, massage, cellular and fitness. Five Guys Burgers & Fries and Yogurt Lab, relative newcomers to the market, now operate multiple …
ROSEVILLE, MINN. — Dougherty Mortgage has originated a $14 million loan for the refinancing of Hillsborough Apartments, a multifamily property in Roseville. The three-story building includes 206 market rate units. Dougherty arranged the loan on behalf of Hillsborough Manor Apartments LLP. The HUD loan includes a 35-year term and a 35-year amortization schedule.