Midwest

Easterly Government Properties to Acquire 10-Property VA Portfolio for $635.6M

by Katie Sloan October 14, 2021

WASHINGTON, D.C. — Easterly Government Properties Inc. (NYSE: DEA) has entered into an agreement to acquire a 1.2 million-square-foot, 10-property portfolio of facilities leased to the Department of Veterans Affairs (VA) for $635.6 million. The properties will be purchased in a joint venture with an undisclosed global investor, with Easterly retaining a 53 percent stake in the portfolio. Two of the properties are open, while the other eight are currently under construction. Acquisitions include: VA Chattanooga, a 94,566-square-foot Class A facility in Tennessee that was completed in November 2020. The property offers audiology, imaging, pathology, lab, dental and mental health services. VA Lubbock, a 120,916-square-foot facility in Texas completed in December 2020. The facility is located on the Texas Tech medical campus and features an ambulatory surgery center as well as general health, dental, audiology, ophthalmology, MRI, radiology, pharmacy, lab, physical therapy and mental health services. VA Lenexa, a 31,062-square-foot facility in Lenexa, Kan., that was delivered in May 2021. The property offers primary and specialty care, including audiology, dental, pathology and lab services, as well as radiology. VA San Antonio, a 226,148-square-foot development currently underway in Texas. The three-story facility will feature six patient aligned care team (PACT) modules …

October 14, 2021

Industrial Market Reports Midwest Midwest Market Reports Minnesota

Institutional Capital Targets Minneapolis Industrial Market

by Kristin Harlow October 14, 2021

By Peter Loehrer, Colliers MSP Minneapolis has secured its position as the darling market of the Midwest industrial investment community. Minneapolis was the quintessential Midwest city: cautious real estate development, durable rents with stately growth and moderate but unwavering absorption growth year to year. This, however, is no longer the case. A combination of repeated institutional capital injections, a highly constrained land market and exponential growth in tenants looking for new space has transformed Minneapolis into an institutional and foreign capital target market. Institutional capital By far the most transformational event in recent history for the Minneapolis industrial market was Link Industrial’s entrance into the market. Beginning in 2018 with the Gramercy acquisition, and continuing in 2019 with the Space Center acquisition — both of which have bits and pieces of the national portfolio located throughout Minneapolis — Link made its first real foray into Minneapolis in May of 2019 with the acquisition of the 2.2 million-square-foot Industrial Equities portfolio. Link quickly followed this up with pieces of the GLP and Colony Capital acquisitions, as well as the largest real estate purchase in Minneapolis history, the 7.2 million-square-foot CSM Corp. industrial portfolio, and most recently the 2.5 million-square-foot Prologis portfolio. …

October 14, 2021

Hospitality Loans Midwest Minnesota

D2 Capital Advisors Arranges $48.6M Construction Loan for Minneapolis Hotel Project

by Kristin Harlow October 13, 2021

MINNEAPOLIS — D2 Capital Advisors has arranged a $48.6 million loan for the construction of a 123-room, luxury boutique hotel in the North Loop District of Minneapolis. Commutator LLC is the developer of the project, which will be located at 125 N. 1st St. The 133,000-square-foot hotel will feature a rooftop bar, cellar bar, retail space, meeting space and a restaurant. Snow Kreilich Architects is the project architect, Neri & Hu is designing the interiors and Greiner Construction is the general contractor. Construction is scheduled to begin this month with completion slated for the first quarter of 2023. Jack Cortese and David Frankel of D2 arranged the loan with a Seattle-based REIT.

October 13, 2021

Leasing Activity Midwest Office Ohio

Upstart Signs 240,000 SF Office Sublease in Columbus, Ohio

by Kristin Harlow October 13, 2021

COLUMBUS, OHIO — Artificial intelligence lending platform Upstart has signed a sublease for 240,000 square feet of Class A office space at 3075 Loyalty Circle in the Easton neighborhood of Columbus. The lease is in addition to a recent 54,000-square-foot expansion by Upstart at 711 N. High St. in the Short North neighborhood of Columbus. Through its expansion, Upstart plans to create an additional 500 jobs. The new spaces feature a combination of open offices, breakout rooms and collaboration areas. Upstart’s Short North office opened in early September and its Easton office is slated for completion in January. Clayton Davis and Jeff Carey of JLL represented Upstart.

October 13, 2021

Acquisitions Illinois Midwest Retail

Marcus & Millichap Brokers $7M Sale of Starbucks-Anchored Retail Center in Chicago

by Kristin Harlow October 13, 2021

CHICAGO — Marcus & Millichap has brokered the sale of a Starbucks-anchored retail center located at 5505 S. Kedzie Ave. in Chicago’s Gage Park neighborhood for $7 million. The Starbucks features a drive-thru, and the overall property spans 14,812 square feet. Other tenants are a mix of medical and retail users. Nicholas Kanich and Mitchell Kiven of Marcus & Millichap represented the seller, a Chicago-based developer. The asset sold to an all-cash buyer.

October 13, 2021

Acquisitions Indiana Midwest Retail

Hanley Investment Group Negotiates $2.4M Sale of Planet Fitness-Occupied Property in Fort Wayne

by Kristin Harlow October 13, 2021

FORT WAYNE, IND. — Hanley Investment Group Real Estate Advisors has negotiated the sale of a single-tenant retail property net leased to Planet Fitness in Fort Wayne for $2.4 million. Located at 7528 S. Anthony Blvd., the building spans 20,000 square feet. The former Kmart property was recently redeveloped into a Planet Fitness location as well as a self-storage facility. Dylan Mallory of Hanley represented the seller, a private partnership between locally based McCormack Development and Jackson Investment Group. A Southern California-based private investor was the buyer.

October 13, 2021

Development Illinois Industrial Midwest

Krusinski Breaks Ground on 19,000 SF Automotive Center in Joliet, Illinois

by Kristin Harlow October 13, 2021

JOLIET, ILL. — Krusinski Construction Co. has broken ground on a 19,000-square-foot automotive center for Cassidy Best-One Tire & Service in Joliet. The project will be situated within the Rock Creek Logistics Center at 3100 Channahon Road. The facility will provide truck and automobile tire work as well as general vehicle maintenance services. The project will feature 20 drive-in doors, 10 service bays and 1,000 square feet of office space. Completion is slated for early 2022. Cornerstone Architects is the architect and Jacob & Hefner Associates is the civil engineer. Ketone Partners is the developer of the project and the owner of Rock Creek Logistics Center, which is a 263-acre business park that offers direct access to I-80.

October 13, 2021

Acquisitions Illinois Midwest Office

Clear Height Properties, Buligo Capital Sell 173,017 SF Office Building in Suburban Chicago

by Kristin Harlow October 12, 2021

OAK BROOK, ILL. — Clear Height Properties and its joint venture partner Buligo Capital Partners have sold 814 Commerce, a 173,017-square-foot office building in the Chicago suburb of Oak Brook. The sales price was undisclosed. The three-story property sold to Chicago-based real estate investor Helios Properties. Since acquiring the asset in 2019, Clear Height invested $1.5 million to upgrade the building’s exterior, common areas, parking deck and HVAC systems. The building is 56 percent leased to Innovista Health Solutions, IRC Retail Centers and CPS. Dan Deuter, Michael Simpson and Paul Lundstedt of Cushman & Wakefield represented the sellers.

October 12, 2021

Illinois Leasing Activity Midwest Restaurant Retail

Kindling, Foxtrot to Open at Willis Tower’s Catalog in Chicago

by Kristin Harlow October 12, 2021

CHICAGO — Chicago’s Fifty/50 Group will debut the first full-service restaurant at Willis Tower in downtown Chicago. Known as Kindling, the char-house restaurant will occupy a two-story space and outdoor terrace as part of Catalog, the five-story dining, retail and entertainment portion of Willis Tower. Kindling is slated to open in 2022. The restaurant will feature a large wood-burning grill and guests will enjoy entrees such as rotisserie chicken, brisket and halibut. Also joining Catalog in spring 2022 is the Chicago-based corner store, café and delivery market Foxtrot. The Catalog location will feature a coffee bar plus a selection of everyday essentials, locally sourced goods and grab-and-go offerings. Users of the Foxtrot app can order items for pickup or delivery. EQ Office owns Willis Tower, which is undergoing a $500 million renovation project. The Fifty/50 Group is a hospitality group that owns and operates 14 restaurants and bars across Chicago.

October 12, 2021

Affordable Housing Development Michigan Midwest Multifamily

Annex Group to Develop 220-Unit Affordable Housing Community in Howell Township, Michigan

by Kristin Harlow October 12, 2021

HOWELL TOWNSHIP, MICH. — The Annex Group has unveiled plans to develop Union at Oak Grove, a 220-unit affordable housing community in Howell Township, about 60 miles northwest of Detroit. Located at 1850 Molly Lane, the project will feature one-, two- and three-bedroom units available to residents who earn up to 60 percent of the area median income. Amenities will include a community room, exercise room, playground, computer room and walking trails. Completion is slated for October 2023. Development partners include property manager Sterling Management and architect RQAW. Fraser Trebilcock served as the low-income housing tax credit consultant. National Development Council is providing nearly $14 million in equity; Citizens is providing a $10.5 million construction loan; and Michigan State Housing Development Authority is providing $28 million in permanent financing and issuing the bonds.

October 12, 2021

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