BEDFORD PARK, ILL. — Atlanta-based MDH Partners has completed the lease-up of 7447 S. Central Ave., a 118,218-square-foot industrial facility in the Chicago suburb of Bedford Park. Better Earth, a sustainable food service packaging company, has leased 55,718 square feet. Calvin Gunn of Lee & Associates represented the tenant, while Steve Connolly and Chris Gary of NAI Hiffman represented MDH. The property features four interior truck docks, 1,517 square feet of office space and a clear height of 21 feet. The building is one of six in the Chicago Infill Net Lease Portfolio, which MDH purchased in October 2021.
GLENDALE, WIS. — Founders 3 Real Estate Services has negotiated the $5.4 million sale of an 86,750-square-foot industrial building in the Milwaukee suburb of Glendale. The property sits on 3.5 acres at 6100 N. Baker Road. Scott Revolinski and Brett Deter of Founders 3 represented the seller, Grandview Park Partners LLC. The buyer was an entity doing business as 2022 Florist LLC.
ROMEOVILLE, ILL. — Schwab Paper Products has renewed its 55,000-square-foot industrial lease at 636 Schwab Circle in the Chicago suburb of Romeoville. The manufacturer and converter of packaging materials previously owned the building, so the new five-year lease was structured in a sale-leaseback transaction. Terri Alexander of Transwestern Real Estate Services represented Schwab. Ryan Earley of Lee & Associates represented the buyer, Link Logistics.
CHICAGO — Knickpoint Ventures has topped off construction of The Fields Studios, Chicago’s first purpose-built film studio. Project costs total $250 million, according to Crain’s Chicago Business. Completion is slated for the first quarter of 2024. Plans call for nine sound stages totaling 132,000 square feet and more than 350,000 square feet of creative and production offices. The project is part of the larger redevelopment of the 1.5 million-square-foot, former Marshall Fields warehouse on the city’s Northwest side. Gov. J.B. Pritzker introduced a development subsidy to spur the growth of additional sound stage infrastructure such as The Fields Studios. In March, he signed a 10-year extension of the state’s long-standing production tax credit for filmmakers. At capacity, The Fields Studios is expected to impact the local economy by driving nearly 12,000 production-related jobs with about $1.3 billion of economic impact in its first five years. The Marshall Fields warehouse was originally built in 1928. In addition to the film studio component, the redevelopment project also includes retail, residential and office space. Cermak Fresh Market is already operating onsite and 123 new apartment units have opened.
MASON, OHIO — Senior Living Investment Brokerage (SLIB) has brokered the sale of The Landing of Long Cove, an 81-unit assisted living and memory care community in Mason, about 25 miles northeast of Cincinnati. The sales price was undisclosed. Built in 2011, the property features 61 assisted living units and 20 memory care units. Daniel Geraghty and Bradley Clousing of SLIB brokered the sale. According to SLIB, the seller was interested in focusing its attention on communities that more closely align with its current footprint, while the buyer, a Midwest-based owner-operator, was looking to add to its existing footprint throughout the region. The buyer plans to make renovations to the community.
WENTZVILLE, MO. — Marcus & Millichap has arranged the $5 million sale of Heritage Townhomes, a 40-unit multifamily property in the western St. Louis suburb of Wentzville. The seller, a private investor, acquired the property in October 2019 and installed new flooring, kitchen appliances and upgrades to the bathrooms. The improvements resulted in a $200 per unit average increase in value over three years, according to Marcus & Millichap’s Ben Margalski, one of the brokers on the transaction. Margalski and colleague Aaron Kuroiwa represented the seller as well as the buyer, a private investor completing a 1031 exchange.
COLUMBUS, OHIO — In a sale-leaseback transaction, Alterra Real Estate Advisors has acquired a 62,000-square-foot office and retail building in Columbus for $3.1 million. Constructed in 1986, the property is 85 percent occupied. The lobby and common areas were recently renovated, but Alterra plans to make additional improvements for energy efficiency such as LED lighting. The seller, Auto Owners Life Insurance Co., remains a tenant in the building. Some of the other tenants include BHM CPA Group, J Gilberts restaurant and Salon Lofts. Rob Sullivan of Kemba Financial Credit Union provided acquisition financing. Alterra will handle leasing and management of the building.
MINNEAPOLIS — Transwestern Real Estate Services has negotiated two office lease renewals for two separate wealth management companies at SPS Tower in Minneapolis. CAPTRUST signed a five-year renewal for its 6,800-square-foot space. Frank Sherwood of CBRE represented the firm. Strong Tower Wealth Management renewed its 3,500-square-foot lease for 15 months. John Lorence of CBRE represented the company. Jim Montez and Reed Christianson of Transwestern represented ownership, Sumitomo, in both leases. SPS Tower rises 31 stories and totals 655,070 square feet. The building features the Turf Club, the largest green space in the Minneapolis central business district, according to Transwestern. SPS Tower is currently 90 percent leased.
By Willy Walker, CEO of Walker & Dunlop I recently had the pleasure of sitting down to talk with some prominent members of the Walker & Dunlop team, including Kris Mikkelsen, executive vice president of investment sales, Aaron Appel, senior managing director of capital markets, and Ivy Zelman, executive vice president of research and securities. In this episode of the Walker Webcast, “State of CRE,” we covered some of the most prominent issues the commercial real estate industry is facing, as well as some headwinds it will continue to face in the future. Changes in Homebuilding and Consumer Spending Although homebuilders had to offer incentives when rates first started increasing last year, they are still seeing a steady demand for homes, as demand still heavily outpaces supply. This imbalance is seen in the new and existing home market. Single-family homes in many markets across the country are in multiple offer situations, indicating that single-family residential real estate is still strong. This is incredible, given the fact that many existing homeowners are locked into mortgage rates in the 2-5 percent range, giving them little reason to move out of their current home. How Mortgage Deals Are Currently Financed Although we are …
CHICAGO — Marquette Cos. has opened The Lydian, a 279-unit luxury apartment tower located at 513 S. Damen Ave. in Chicago’s Illinois Medical District. Rising 22 stories, The Lydian is the second building constructed in a three-phase development by Marquette Cos. The firm completed the first phase in 2021 with the 18-story, 272-unit Atrio. Plans for the third phase are not yet finalized. Managed by Marquette Management, The Lydian is currently 42 percent leased. Units measure from 446 to 1,234 square feet, and monthly rents start around $1,900. Amenities include a 24-hour doorman, fitness center, yoga studio, pet spa, sundeck, outdoor pool and rooftop lounge. Marquette says it selected the name The Lydian because it is a type of yellow Mediterranean flower; it reflects the natural finishes and elements in some of the interiors; and it sounds like a destination or congregating spot.