STRONGSVILLE, OHIO — Peak Construction Corp. has completed a 56,000-square-foot tenant improvement project for Blackhawk Industrial Distribution in Strongsville, a southern suburb of Cleveland. Peak previously constructed the 310,000-square-foot building on behalf of developer Scannell Properties. The property features a clear height of 32 feet, nine docks and 3,500 square feet of office space. HSB Architects & Engineers was the project architect.
By Adam Johnson, NAI Hiffman For years, you’ve read headlines saying the U.S. office market is struggling with record-high vacancy that threatens to push many owners into default. And that is absolutely true. But there’s another side to the story that isn’t getting as much attention, and is playing out not only in Chicago, but also in metros across the country: that smaller, multi-tenant office properties — particularly in suburban locations closer to where workers live — continue to not only survive but thrive following the pandemic. Throughout suburban Chicago, office buildings with less than 50,000 square feet have considerably higher occupancy rates than larger ones. For instance, at the smallest buildings — those under 20,000 square feet — vacancy was as low as 3.8 percent as of the second quarter of 2024, whereas for the largest properties over 200,000 square feet, vacancy climbed as high as 38 percent, according to NAI Hiffman research. By comparison, mid-size, office buildings between 20,000 to 50,000 square feet reported vacancy rates ranging from 14.3 percent in the western suburbs to 23.1 percent north of the city. Small tenants, big impact We’ve all heard about larger office properties going back to their lenders. Look …
GRAND RAPIDS, MICH.— Grand Rapids-based food solutions company SpartanNash has acquired Fresh Encounter Inc. (FEI), a 49-store supermarket chain with locations in Ohio, Indiana and Kentucky. This move expands SpartanNash’s retail footprint by 33 percent and marks the company’s second retail acquisition this year, following its purchase of Metcalfe’s Market in April. FEI operates stores under the banners Community Markets, Remke Markets, Chief Markets and Needler’s Fresh Market, and has been a food distribution customer of SpartanNash for 58 years. The transaction is expected to close in late November, subject to customary conditions.
GENEVA, ILL. — Mid-America Real Estate Corp. has arranged the sale of Randall Square Shops in Geneva, about 40 miles west of Chicago. The sales price was undisclosed. The 54,147-square-foot retail center is home to McAlister’s Deli, Hand and Stone Massage, For Eyes, Men’s Wearhouse, Golf Tec, Milan Laser and Popeye’s. Joe Girardi and Emily Gadomski of Mid-America represented the seller, Viking Partners. Chicago-based Northpond Partners was the buyer.
ST. PAUL, MINN. — Marcus & Millichap has negotiated the sale of Wheelock Parkway Apartments in St. Paul for an undisclosed price. Located at 1609 N. Woodbridge St., the property features 44 one-bedroom units and 59 two-bedroom units across 85,580 rentable square feet. Amenities include an outdoor pool, laundry facilities, picnic areas, a walking path and playground. Constructed between 1965 and 1967, the community is situated near Como Park Zoo and Rosedale Center. Chris Collins, Evan Miller, Eric Wagner, Matthew Shide and Zack Olson of Marcus & Millichap represented the seller, a Minnesota-based limited liability company, and procured the undisclosed buyer.
BATAVIA, ILL. — Brown Commercial Group has brokered the sale of an 18,500-square-foot industrial building in the Chicago suburb of Batavia for an undisclosed price. Dan Brown of Brown Commercial Group represented the seller, Robart Manufacturing. Luke Dummitt of Brown Commercial Group represented the buyer, Acevision, an ultrasound sales, parts and repair provider. The company is expanding from its 9,000-square-foot lease in St. Charles, Ill.
SAINT CHARLES, ILL. — The Boulder Group has arranged the $3.1 million sale of a 2,090-square-foot property net leased to Andy’s Frozen Custard in Saint Charles, about 45 miles west of Chicago. The single-tenant building is located at 2630 E. Main St. and serves as an outparcel to the Foxfield Commons shopping center. Randy Blankstein and Jimmy Goodman of Boulder represented the seller, a Midwest-based development firm, and the buyer, a local real estate group. The asset features a 15-year lease that commenced in 2023 following the completion of construction.
DEERFIELD, ILL. — Walgreens Boots Alliance Inc. (Nasdaq: WBA) unveiled in its fiscal year 2024 earnings report that it plans to close 1,200 stores over the next three years, including approximately 500 closures in fiscal 2025. “In fiscal 2025, we are focusing on stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models to support dispensing margins and preserve patient access for the future,” says Tim Wentworth, CEO. “Fiscal 2025 will be an important rebasing year as we advance our strategy to drive value creation. This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term.” In its fourth quarter, the Deerfield-based company posted a $3 billion loss, which was mostly derived from tax charges related to opioid liabilities and a write down of an investment in a Chinese pharmacy chain. Fourth-quarter sales increased 6 percent from the same period a year ago to $37.5 billion. Sales in fiscal 2024 were $147.7 billion, an increase of 6.2 percent from the same period a year ago. Net loss in fiscal 2024 was $8.6 billion, an increase of 180.4 percent over the …
CHICAGO — JLL Income Property Trust has sold 180 North Jefferson, a 28-story apartment tower in Chicago’s West Loop neighborhood. The sales price was roughly $76 million, according to Crain’s Chicago Business. The property features 274 renovated units along with upgraded amenities. John Jaeger, Justin Puppi and Jason Zyck of CBRE represented the seller, which held the asset for nearly eight years. JLL says the disposition frees up capital for the strategy of pursuing suburban, garden-style apartment communities in highly rated school districts.
HARTLAND, WIS. — Associated Bank has structured a $59.8 million construction financing package for Westrock Residences, a 267-unit multifamily project in Hartland, about 25 miles west of Milwaukee. Three Leaf Partners and Continental Properties are the developers. Plans call for 27 townhouse-style units and 240 units in two-story stacked flats. There will be a mix of one-, two- and three-bedroom floor plans. Amenities will include a fitness center, golf simulator, pool, playgrounds, walking paths and a dog run. JLA Architects is the project architect. Site work is underway, and the project will be completed in phases. The first units are slated for occupancy in summer 2025. Continental Properties will manage the community. Ryan Krombach of Associated Bank originated the financing. Associated Bank, administrative agent and co-lead arranger, was joined by co-lead arranger Johnson Bank and Greenwoods State Bank to complete the construction loan syndication. The Village of Hartland is supporting the project with tax-increment financing that will reimburse the developers up to $15.9 million over 27 years using taxes the new development generates. The project site is a 45-acre former quarry that has been slated for redevelopment for decades.
