OAK BROOK, ILL. — Rasmussen Inc., a provider of online educational experiences, is relocating to Regency Towers in Oak Brook. The company will occupy 61,844 square feet of office space on four contiguous floors at 1415 W. 22nd St. The company plans to begin move-in during the second quarter of 2010. Perry Higa of CB Richard Ellis represented Rasmussen in the transaction. Details of the transaction were not disclosed.
DEERFIELD TOWNSHIP, OHIO — Encore Retail, a subsidiary of Dallas-based Encore Enterprises, has acquired Governor’s Point, a retail complex located on Mason-Montgomery Road in Deerfield. The 360,000-square-foot center consists of the 161,061-square-foot Governor’s Point North and the 198,940-square-foot Governor’s Point South. Tenants include Lowe’s Home Improvement Warehouse, Bigg’s Supervalu supermarket, Staples, Mattress Warehouse, Chipotle, UPS and T-Mobile. The property was built by owner/developer, Duke Realty Corp., in 1998. Encore Opportunity Fund, a $150 million equity fund in which Encore Equities is a partner, is funding the acquisition. Encore Equities is also a subsidiary of Encore Enterprises. The acquisition price was not disclosed.
ROCK ISLAND, ILL. — Cambridge Realty Capital Cos. has closed an $11.9 million FHA-insured HUD first mortgage loan for St. Anthony’s Nursing and Rehabilitation Center in Rock Island. The loan will be used to refinance the property, which offers 130 skilled beds and 24 board-and-care beds. The fully amortized, 40-year term loan was underwritten by Cambridge Realty Capital Ltd. of Illinois utilizing HUD’s Section 232 MAP funding program.
KANSAS CITY, MO. — Kansas City-based Land Source has merged with KCTerra Land Realty and Stag Commercial to form one commercial real estate company. Based in downtown Kansas City at 112 W. Ninth St., the new firm will operate under the Land Source and Stag Commercial brands. The firm will offer more than $750 million in land to the market, as well as services for land buyers and sellers, including development expertise and brokerage of improvements to the land.
MILWAUKEE — Walker’s Point Center for the Arts has acquired an office building located at 839 S. Fifth St. in Milwaukee. Constructed in 1885, the cream-colored, brick building underwent extensive renovations in 1998. The art center will house an expanded exhibition gallery, administrative offices, a performance and community resource room and approximately 2,500 square feet of classroom and educational space. RNC Walker Property sold the property for $275,000. Dwight Kellogg and Brent Landfried of Ogden & Co. brokered the transaction.
MCHENRY, ILL. — Berkadia Commercial Mortgage has originated two permanent, fixed-rate loans totaling approximately $24.1 million for two multifamily properties in McHenry. The 35-year, fully amortizing loans both carry an interest rate of 4.63 percent. Westside Crest Apartments received an approximately $7.14 million loan and Fawn Ridge Apartments received a $16.96 million loan. John Oharenko, Tom Sigrist, Paul Matusiak and Laura Cathlina of Berkadia’s Chicago office secured the loans through the company’s FHA/HUD program. The borrowers were Westside Crest LP and Fawn Ridge Apartments LP.
CHICAGO — Essex Realty Group has completed the disposition of a two-story, eight-unit mixed-use building in Chicago. Located at 2309-2311 W. Howard, the property offers six two-bedroom apartment units and 6,200 square feet of commercial space. Matt Welke and Jim Barcelona of Essex brokered the transaction. The sales price was approximately $750,000. The seller and buyer were not disclosed.
ST. LOUIS — The Chicago office of Holliday Fenoglio Fowler (HFF) has arranged a $10.75 million loan for Gateway Tower, a 20-story, Class A office tower in St. Louis. The 213,228-square-foot tower is 95 percent occupied by a variety of tenants, including KMOV-TV, Fox Galvin, Infinity Broadcasting Corp. and East-West Gateway Council. Matthew Schoenfeldt of HFF secured the financing through Ladder Capital Finance for the borrower, Sovereign Partners.
DARIEN, ILL. — The University of Chicago Medical Center has renewed its lease at the 175,969-square-foot Darien Business Center in Darien. The medical center occupies 62,399 square feet of medical office space at 7955 and 8205 S. Cass Ave. Jason Streepy and Linda Garske of Grubb & Ellis Co. negotiated the lease on behalf of the landlord, Grubb & Ellis Realty Investors. Andrew Davidson and Jay Beadle of MB Real Estate represented the tenant. Terms of the transaction were not disclosed.
The retail market in Chicago, mirroring that of the nation, has been plagued with vacancies as a result of retailers suffering from lack of consumer demand. From 2003 to 2008, roughly 80 percent of the American GDP was comprised of spending. This means that the country’s output, or contribution to the world, has been focused on consumption. By contrast, from 1990 to 2006, the earnings of individual workers in the United States increased by less than 0.5 percent per year, while the GDP increased about 3.6 percent per year. This consumer psychology led to increased debt and home equity lines of credit given to many unqualified borrowers. The additional debt introduced to the American economy enabled people to spend money on items they were not, in reality, able to afford. How does this shift in consumption impact retail real estate in the third largest metropolitan statistical area in America? It moves the consumer to buy goods based on need and reduces the retail therapy or impulse buy. In the same way, business owners also make cuts in acquiring goods for luxury and begin focusing on the items needed for basic survival. Add to that a staggering 11 percent unemployment rate …