Nuveen has signed a 168,741-square-foot lease at its industrial facility in Monee, Ill., within Chicago’s Southern Will County submarket. NewAge Products joined the roster, bringing the property to full occupancy.

Seefried Industrial Properties developed the 621,246-square-foot asset. Cushman & Wakefield brokered the deal on behalf of both parties.

Reynolds Consumer Products is the other tenant at 25100-25340 S. Ridgeland Ave., occupying 452,505 square feet.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The building has 40-foot clear heights, 26 exterior docks, two drive-in doors, ESFR sprinkler systems, LED lighting with motion sensors and cross-dock configuration. Additional features include a 2,555-square-foot office component, 139 vehicle parking spots and 46 trailer parking spots, which can be expanded to 96.

The asset provides access to major transportation corridors that connect to the wider Chicago metro area and the Midwest, such as interstates 57, 80 and 294. Union Pacific Global IV Intermodal Terminal, BNSF Intermodal Yard and the Canadian National Intermodal Terminal are within 20 miles.

Cushman & Wakefield’s Executive Vice Chairman Jason West worked on behalf of NewAge Products, while the company’s Vice Chairman Sean Henrick and Managing Director Ryan Klink represented the landlord.

Chicago’s industrial vacancy lagged other Midwest metros

Industrial vacancies increased in nearly every market over the past two years due to a large amount of new supply. As of January 2025, the national industrial vacancy rate clocked in at 8 percent, unchanged from the previous month, a recent CommercialEdge report shows.

Chicago’s vacancy clocked in at 10 percent in January—one of the highest in the nation and the only Midwestern market that fared worse than the national average. The metro’s rate had increased 530 basis points year-over-year, the same source shows.

Earlier last month, Seefried Industrial Properties was involved in another deal in the area. The company signed a 152,014-square-foot lease with nonprofit David C. Cook at its 1700 Madeline Lane Facility in Elgin, Ill.

Also in February, CenterPoint Properties landed an approximately 1 million-square-foot deal with 3PL firm RJW Logistics in Joliet, Ill. The tenant signed a full-building agreement at 2903 Schweitzer Road, within CenterPoint’s 6,400-acre Intermodal Center.

The post Nuveen Inks 169 KSF Chicago-Area Industrial Lease appeared first on Commercial Property Executive.

Seefried Industrial Properties and a U.S.-based family office have signed a 152,014-square-foot long-term lease at their 1700 Madeline Lane facility in Elgin, Ill., with David C. Cook, a 150-year-old Christian organization. The nonprofit will use the space as its main distribution center.

CBRE brokered the deal on behalf of the tenant, while the landlord was represented by Cushman & Wakefield.

The recently built Class A speculative industrial property is within Chicago’s Interstate 90 Golden Corridor submarket, and features 32-foot clear heights, ESFR sprinkler systems, a 2,980-square-foot office space, a drive-in door and 22 exterior docks. Additionally, it includes 138 vehicle parking spots and 35 trailer parking spaces. David C. Cook will be the anchor tenant at 1700 Madeline Lane, with another 168,932 square feet still available for lease.

READ ALSO: Top 10 Markets for Industrial Deliveries

The asset was developed by Seefired Industrial properties as a two-building industrial campus totaling 465,360 square feet. Earlier this month, the developer sold the second building, a 144,414-square-foot facility at 1705 Madeline Lane, to an Atlanta-based plastic molded parts manufacturer.

Chicago ends 2024 with high vacancy

At the end of last year, Chicago’s vacancy rate was 9.7 percent, marking a 570 basis-point year-over-year increase, a recent CommercialEdge industrial report shows, mainly due to the excess supply added between 2021 and 2022. The national vacancy rate stood at an average of 8 percent.

Meanwhile, Chicago’s pipeline decreased by 5.6 million square feet year-over-year to 7.6 million at the end of 2024. The pipeline represented 0.7 percent of total stock, below the 1.7 percent national average and other peer markets such as Phoenix (5.3 percent), Kansas City (3.9 percent) and Dallas (1.9 percent).

The post Seefried JV Signs 152 KSF Chicago Tenant appeared first on Commercial Property Executive.

Chicago’s office market ended 2024 with few positive outlooks. New construction was muted, while overall asset values declined. Although office utilization remained low, high-quality space was still in demand, as highlighted by some significant lease deals.

There were some bright spots, however, including the launch of a new framework aimed at fast-tracking office-to-residential conversion projects. As the sector continues to transform, 2025 looks like it might be another challenging year for office, the latest CommercialEdge report suggests.

New construction stalled in 2024

At the end 2024, Chicago’s office market held just 870,000 square feet of office space under construction. This was 0.3 percent of existing stock, 50 basis points below the national figure. Utilization rates leveled off and hybrid work is here to stay, but there are still pockets of demand for high-quality space.

Chicago lagged all its peer markets in terms of office space under construction. Boston (3.4 percent of stock underway) and Miami (1.5 percent) led growth, followed by Los Angeles (0.7 percent) and Manhattan (0.6 percent).

Fulton Street Cos.’ 919 West Fulton remained the largest office building still under construction at the end of the year. In July, general contractor Skender topped out the $300 million project, which encompasses 369,000 square feet. Harrison Street will anchor the asset, having preleased 112,000 square feet.

Developers completed seven projects encompassing slightly more than 1 million square feet of office space in 2024. This amount was down more than 50 percent year-over-year and represented 0.3 percent of existing stock, 30 basis points below the national figure.

The largest office project completed in the metro last year was Sterling Bay’s 360 North Green in the West Loop. The 500,000-square-foot, 25-story building had been nearly fully preleased prior to completion, with Boston Consulting Group on the roster.

Construction starts were few and far in between last year across metro Chicago, as investors and developers are waiting for better economic circumstances. A total of six properties broke ground, encompassing just under 950,000 square feet.

City authorities emboldened office-to-residential projects

Office-to-residential conversions are growing in popularity among owners and investors in the sector, as they present an opportunity to infuse value in underutilized assets. In November last year, Chicago’s Departments of Planning and Development and Transportation sought to create a framework for these projects to take shape and benefit from Tax Increment Financing. Last month, the two departments officially launched this initiative, named A Vision for LaSalle Street, as it is focused on the area between Wacker Drive and Jackson Boulevard.

According to the city’s website, proposed conversions submitted for approval across the city totaled more than $750 million in total investments as of November last year, with nearly $250 million in TIF support already approved. These projects encompass some 1.6 million square feet of unused space, of which a significant share is office.

CommercialEdge’s Conversion Feasibility Index helps developers by ranking buildings across the largest office markets in the U.S., with the aim to identify the most likely candidates for office-to-residential conversion. At the beginning of this year, Chicago had 131 office buildings with a CFI score between 90 and 100, placing them in Tier 1—the highest in terms of conversion potential. These encompassed more than 1.5 million square feet of office space.

In October last year, R2 Cos. and Campari Group secured $28 million in TIF funding for the conversion of the office building at 79 W. Monroe St., in the city’s CBD. The 1913-built property is slated to include 117 residential units, with construction start scheduled sometime this year. This Tier 1 property boasts a perfect 100 CFI score, making it ideal for residential conversion.

Investment volume slightly grew while asset values declined

Investment activity across Chicago’s office market increased in 2024, with $1.1 billion changing hands, up 14.6 percent year-over-year. A total of 74 properties traded last year, encompassing 12.4 million square feet.

Average prices in the metro remained some of the lowest among similar markets. Chicago office buildings traded for an average of $85.13 per square foot in 2024. It was followed by Boston ($249.27), Los Angeles ($281.07), Manhattan ($369.33) and Miami ($400.07).

In June, Beacon Capital Partners acquired the office tower at 333 W. Wacker Drive for $125 million, or $144 per square foot. This remained the largest single-asset transaction in the metro last year. Another significant transaction was the $74 million acquisition of the 882,071-square-foot asset at 1400 American Lane by Sigma Plastics Group. At the start of last year, R2 Cos. paid $60 million for the 661,482-square-foot Crain Communication Building, at 150 N. Michigan Ave.

Asset values continued to drop across the metro. These three examples alone changed hands for a combined $259 million last year, which was a 50.9 percent drop in value from their previous total price.

Vacancy failed to improve

Vacancy across Chicago’s office market rose 70 basis points in 2024, to 18.8 percent at the end of the year. This was 100 basis points below the national figure. Some large lease agreements took shape across the metro last year, with high-quality space still in demand, either in newly constructed or established assets.

Chicago lagged all its peer markets in terms of vacancy. Miami’s rate was the lowest (15.2 percent), followed by Los Angeles (16.0 percent), Manhattan (16.6 percent) and Boston (17.0 percent).

In September last year, law firm Smith Gambrell & Russell signed a 57,000-square-foot agreement at 155 N. Wacker Drive, where it will relocate next year. The John Buck Co. is the owner of the 1.2 million-square-foot property.

Another high-profile deal closed in February, when Pinterest agreed to occupy 24,000 square feet at 10 and 120 S. Riverside Plaza, owned by Hines and Ivanhoé Cambridge. The Class A, 1.4 million-square-foot asset underwent a $75 million redevelopment.

Perhaps most indicative of the state of Chicago’s office market was a 100,000-square-foot agreement closed in January last year. Heitman signed a 10-year extension with tenant Mesirow at 353 N. Clark St. This represented a 65,000-square-foot downsizing from the financial services firm’s previous arrangement.

Coworking providers expanded their presence

Chicago’s office market had 6.9 million square feet of shared space in 2024, which represented 2.1 percent of its entire inventory. The metro’s growing coworking segment remained a bright spot, with demand at healthy levels. Chicago lagged some of its peers, but not by a lot. Miami had the most, at 3.8 percent of its office stock as coworking space, followed by Manhattan (2.3 percent), Los Angeles (2.2 percent) and San Francisco (2.2 percent).

In September, flexible workspace provider Expansive signed a deal for the 35th floor of Two Pru, where it aims to open its seventh location in the metro. The space was undergoing a renovation at the time. Expansive partnered with Wanxiang Real Estate Group and Riverside Investments for the new location.

The post Chicago Office Market Faces a Bumpy Start in 2025 appeared first on Commercial Property Executive.

This shift is primarily due to an oversupply from record-setting development activity in 2021 and 2022, which have surpassed tenant demand, according to CommericalEdge data.

Leveraging its strategic location and well-developed rail and airport infrastructure, Chicago’s industrial market continues to demonstrate resilience and flexibility. Even with the pipeline shrinking to half of the previous year’s volume, the metro area remains a key player in industrial development. The Windy City delivered almost 14.9 million square feet of logistics space last year, while the investment volume reached roughly $2.7 billion.

Sales volume increases

Last year, Chicago’s industrial investment volume totaled approximately $2.7 billion, surpassing the $2.2 billion recorded in 2023. Despite this increase, assets traded at an average of $92 per square foot, up slightly from $89 the previous year. A total of 242 properties—amounting to approximately 32.6 million square feet—changed hands in the metro in 2024.

Only Kansas City ($42 per square foot) and Indianapolis ($73 per square foot) recorded lower numbers. Meanwhile, New Jersey ($213 per square foot), Dallas ($173 per square foot) and Phoenix ($162 per square foot) continued post high prices.

In one of the larger transactions of last year, Stonepeak purchased a three-building, 1.7 million-square-foot rail-served logistics portfolio for $125 million. The fully leased assets are part of CenterPoint Intermodal Center–Joliet/Elwood—the largest inland port in North America. The properties are in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.

Industrial development still active

At the end of December, Chicago’s industrial sector had 7.6 million square feet under construction, according to CommercialEdge data. The pipeline represented 0.7 percent of total stock, below the 1.7 percent national average and other peer markets such as Phoenix (5.3 percent), Kansas City (3.9 percent) and Dallas (1.9 percent).

Near the end of last year, Trammell Crow Co. broke ground on the first building of Plainfield Business Center, an industrial campus to total more than 8 million square feet in Plainfield, Ill. Taking shape on approximately 52 acres at 26220 W. 143rd St., the property will feature 40-foot clear heights, 80 dock doors expandable to 160 and 211 trailer parking stalls. 

One month prior, CyrusOne also commenced construction on its second data center campus in Aurora, Ill. The project comprises two buildings totaling 446,000 square feet and will deliver an initial IT capacity of 40 MW with scalable capacity to meet future growth needs. The development is taking shape at 2725 Bilter Road.

Deliveries slow down

Last year, The Windy City delivered 41 properties totaling almost 14.9 million square feet—accounting for 1.4 percent of the metro’s total inventory, slightly lower than the national average of 1.8 percent. This amount was notably less than the 29.4 million square feet completed in 2023.

Among its peer markets, only Phoenix (32.7 million square feet) and Dallas (29.1 million square feet) recorded more completed space, CommercialEdge data shows.

HSA Commercial Real Estate delivered Highland Commerce Center of Somers, one of the largest speculative industrial buildings in Wisconsin. Located at 2655 113th Ave., the 918,884-square-foot distribution facility is directly off Interstate 94 at the Burlington Road Interchange in Kenosha.

Bridge Industrial also completed the 669,914-square-foot Building 2 and the 707,953-square-foot Building 3 of Bridge Point Melrose Park, a cutting-edge industrial campus that will exceed 1.5 million square feet in the coveted O’Hare submarket in Melrose Park, Ill.

Vacancy rate higher than the national average

At the end of December, the metro’s vacancy rate clocked in at 9.7 percent—above the 8 percent national average—climbing 570 basis points year-over-year and being the fifth-highest rate across top U.S. markets. Among peer markets, Indianapolis (9.8 percent) and Dallas (9 percent) recorded similar numbers.

In one of the largest recent industrial deals in Greater Chicago, Crow Holdings has signed a full-building lease at 9850 Mississippi St. in Merrillville, Ind. The more than 1 million-square-foot industrial facility is part of the 195-acre Silos at Sanders Farm master plan.

W. P. Carey also inked a 1.6 million-square-foot industrial lease at 701 Central Ave. in University Park, Ill. A global tech and logistics company occupies the entire building, marking it as one of the largest deals in the market.

The post Chicago Industrial Market Showed Resilience in 2024 appeared first on Commercial Property Executive.

CenterPoint Properties has signed a full-building lease with 3PL firm RJW Logistics Group for a 976,954-square-foot industrial facility in Joliet, Ill. NAI Hiffman represented the owner.

The property is at 2903 Schweitzer Road inside the 6,400-acre CenterPoint’s Intermodal Center – Joliet/Elwood, North America’s largest inland port.

BNSF Railway and Union Pacific Railroads operate within the park, while U.S. Route 6 and Interstate 80 are about 3 miles from RJW’s newly leased facility. Downtown Chicago is some 50 miles northeast.

READ ALSO: Industrial Sector Transitions as Supply Shrinks

The cross-dock building features 40-foot clear heights, 70-foot speed bays, four drive-in doors, 100 loading docks, as well as 220 trailer and 387 car parking spots, among others.

RJW’s newest distribution center is part of its rapid expansion. As of December, the firm had more than 7.3 million square feet of warehouse space across the Chicago and Dallas transportation hubs.

NAI Hiffman Executive Vice Presidents Dan Leahy and Adam Roth represented the owner. The team negotiates on behalf of CenterPoint all the leases inside the master-planned intermodal development.

Windy City’s industrial leasing activity slows down

Chicago industrial leases dropped 25.8 percent year-over-year to 26.8 million square feet in 2024, according to a fourth-quarter report by Cushman & Wakefield. Manufacturing, transportation and warehousing companies comprised the bulk of activity, accounting for 62.9 percent of the new deals signed last year.

Agreements past the 250,000-square-foot mark decreased to 16 in 2024, down from 26 in 2023, the report revealed. John B. Sanfilippo & Son Inc. signed one such lease last June, when the food industry company committed to 444,600 square feet at Venture One’s 729,823-square-foot facility in Huntley, Ill.

As fewer deals closed, the vacancy rate climbed 20 basis points over the year, reaching 4.7 percent in December, the same source shows. Despite increasing, the index remained on par with the 10-year average of 4.7 percent.

The post CenterPoint Secures 1 MSF Tenant in Chicagoland appeared first on Commercial Property Executive.

Dubbed Chicago Shallow-Bay, the portfolio comprises more than 390,781 square feet of space in four key submarkets, including North DuPage County and the I-55 corridor. These submarkets continue to outperform the Greater Chicago industrial market, according to a company statement.

Twenty-eight industries are represented in the spaces. Cumulatively, the properties are 91 percent leased to 37 tenants. Westmount would not disclose the price or specifics about the assets.

In 2022, Westmount divested an industrial portfolio consisting of 21 buildings near O’Hare International Airport, according to the same source. Its current footprint in the market totals 4.8 million square feet.

That same year, the company also sold a 709,652-square-foot industrial asset in metro Nashville, Tenn. Located at 245 Couchville Industrial Blvd. in Mt. Juliet, in the Wilson County submarket, 840 Logistics Center was fully leased at the time of sale.

Chicago’s industrial strength

JLL calls the Chicago MSA the second-largest industrial market in the U.S. and the market to watch in 2025. Recent activity reflects that reputation.

T2 Capital Management is currently financing the construction of two industrial buildings in the Chicago area, according to John Felker, its co-CIO.

“Chicago’s industrial market has fared better than other major industrial markets,” he told Commercial Property Executive. “Vacancy rates in Chicago are below the national average, and development of new space slowed considerably in 2024. This has kept supply more in check with demand growth.”

READ ALSO: Why Light Industrial Properties Will Continue to Shine

Chicago is a prime location for industrial assets for multiple reasons, according to Felker. Nearly 50 percent of Americans live within a one-day drive of Chicago; however, other midwestern cities share that characteristic. Chicago’s workforce and transportation infrastructure set it apart from other midwestern industrial hubs, Felker added.

Chicago-based developers Range Group and HSA Commercial Real Estate plan to develop a pair of 35,000-square-foot small-bay warehouses on Chicago’s Near West Side—at 2519 W. Fulton Ave. and 2520 W. Lake St.

The goal is to capitalize on the growing demand for Class A infill industrial facilities in established population centers, according to Robert Smietana, president & CEO of HSA Commercial.

Developed on a speculative basis, the warehouses can accommodate multiple tenants or a single user. They will offer 28-foot clear heights, individual drive-in doors, drive-in docks capable of accommodating 40-foot trucks, and secured automobile parking. Demolition of existing structures on the parcels is expected to begin this spring, with the new buildings being completed by early next year.

“Downtown Chicago and its surrounding neighborhoods are some of the nation’s fastest-growing areas yet are drastically underserved in new warehouse supply, particularly for smaller users,” Smietana told CPE. “Growth industries such as e-commerce and manufacturing will drive competition for urban industrial space in the near future.”

In December, there was ground-breaking for the final phase of Pullman Crossings with Ryan Cos.’ 160,000-square-foot development in the South Side that is expected to come online in August.

Not so boom and bust in Chicago

“Boom and bust cycles in the sector have been more muted throughout Chicago versus the coasts, as deliveries and a construction pipeline support Chicago’s below market vacancy rates, with the national average at 7 percent and Chicago at 5.5 percent,” said Laura Dietzel, real estate senior analyst with RSM based in Chicago.

Deliveries over the last 12 months comprise just 1 percent of Chicago’s total inventory while the national figure is about 2 percent or double that, she added.

“Landlords in Chicago are well positioned to face less supply-side competition than in other markets through the near term,” Dietzel said.

Chicago’s central location also makes it a critical logistics hub in the U.S., with proximity to major airports, railways and highways allowing for effective distribution.

“Lastly, there’s an underlying macro-trend related to re-shoring of critical manufacturing to the U.S., which the current administration’s focus will bolster.”

The post Westmount Realty Buys Chicago Portfolio appeared first on Commercial Property Executive.

DLC has obtained $41.7 million in acquisition financing from Webster Bank for Danada Square West, a 314,819-square-foot grocery-anchored shopping center in Wheaton, Ill.

The firm had purchased the asset from PGIM Real Estate for $61.7 million earlier this month, in a joint venture with Crow Holdings Capital and Temerity Strategic Partners. JLL represented the borrower in arranging the five-year, fixed-rate note.

Completed in 1988, Danada Square West was 92.7 percent leased at closing. The property is part of a major retail cluster at Butterfield Road and Naperville Road in west suburban DuPage County, roughly 30 miles from downtown Chicago.

A Jewel-Osco grocery store, which has been a tenant since the property opened, anchors the shopping center. The roster also features a mix of national retailers, including TJ Maxx, HomeGoods, Burlington, The Paper Store, Ulta and Five Below.

The new owner is focusing on filling the nearly 23,000 square feet that are vacant, with letters of intent already under review. In addition, recent upgrades and leasing momentum from national tenants have set the stage for the property’s further appreciation.

JLL Senior Managing Director Scott Aiese, Managing Director Christopher Knight and Director Alex Staikos led the Capital Markets’ Debt Advisory team representing DLC.

READ ALSO: What’s in Store for Retail in 2025?

The acquisition of Danada Square West was DLC’s first deal with Crow Holdings Capital and its 10th with Temerity Strategic Partners. The firm has acquired more than $400 million in open-air shopping centers in the last 12 months.

In one of the more recent purchases, DLC paid $76.3 million for a shopping center portfolio in metro Columbus, Ohio, in partnership with Principal Asset Management. The two properties total 622,000 square feet.

Chicago retail development soft, rents are up

Chicago has a tight retail market, despite sluggish population and income growth recently in the metro area. By mid-2024, the vacancy rate dropped to a new record low of 5.1 percent, the result of seven consecutive quarters of decline, according to a Marcus & Millichap report. The lowest vacancy rate previously was 5.9 percent in 2018.

The reason for the current market climate, according to the brokerage, is that developers put the brakes on during the pandemic, combined with the higher cost of construction and construction financing in the years immediately after the pandemic. 

Strong net absorption in recent quarters has driven up single-tenant asking rents for Chicago retail, reaching an average of $20.13 per square foot, Marcus & Millichap reported.

The post DLC Locks In Loan for Chicagoland Retail Buy appeared first on Commercial Property Executive.

SL Industrial Partners has acquired a 925,391-square-foot, 17-building portfolio of industrial flex space across three business parks in Chicago’s suburbs. Cushman & Wakefield’s Vice Chairs Mike Tenteris, Adam Tyler and Jim Carpenter represented the seller.

Stockbridge previously owned the Class A assets, according to CommercialEdge information. The firm had acquired them in 2019 for a combined $73.4 million.

Located in Buffalo Grove, Ill., Vernon Hills, Ill., and Elgin, Ill., in the Lake County and Northern Fox Valley submarkets, the properties were 92 percent leased overall at the time of sale. The parks will be rebranded under the SL Business Center name.

READ ALSO: 2024 Industrial Net Lease Sales and Cap Rates

SL Industrial Partners is a member of The Silverman Group. The acquisition more than doubles the firm’s presence in the Chicago area, expanding its local portfolio to just under 2 million square feet.

Blake Silverman, president of The Silverman Group, told Commercial Property Executive his company is assessing opportunities to enhance these newly purchased properties. “A key part of our approach involves rebranding the parks and strategically repurposing availabilities to offer light industrial and flex configurations. This allows us to better cater to the specific requirements of small business tenants, while ensuring the properties remain versatile and aligned with market needs.”

The industrial parks, up close

SL Business Center at Buffalo Grove, at 1601 Barclay Blvd., is an eight-building park totaling 406,406 square feet of industrial flex space. Developed between 1989 and 1994, the single-story buildings range from 42,000 to 69,000 square feet and are suitable for office, industrial and manufacturing uses. Features include multiple dock and drive-in doors, and 15-foot clear heights. Its location has direct access to U.S. Route 45 and is close to Interstate 94.

SL Business Center at Vernon Hills, carrying the address 100 N. Fairway Drive, has five buildings totaling 281,340 square feet. Ranging from 43,000 to 69,000 square feet, the facilities feature office and flex suites, multiple dock and drive-in doors, and 14-foot, 6-inch clear heights. The park, located near U.S. Route 60 and Interstate 94, was completed in the late 1990s.

SL Business Center at Elgin is a four-building complex at 2511 Technology Drive comprising 237,645 square feet. Delivered between 2001 and 2003, the single-story structures range from 59,000 to 60,000 square feet and offer 18-foot clear heights. 

Deep strength

The Chicago industrial market witnessed a total investment volume of nearly $2.5 billion last year from January to November, according to a CommercialEdge report. The metro led the Midwest and ranked fourth nationally after Dallas ($4.2 billion), the Bay Area ($3 billion) and Houston ($2.8 billion). Assets changed hands for $94 per square foot, way below the national average of $128 per square foot.

In one of the more recent transactions, Standard Real Estate Investments and Trammell Crow Co. sold a 217,000-square-foot industrial property in Woodridge, Ill. IDI Logistics purchased the asset for $33.6 million.

The post SL Industrial Partners Buys Chicagoland Light Industrial Portfolio appeared first on Commercial Property Executive.

The mental health company ComPsych Corp. has signed a long-term, 50,000-square-foot lease at One Pru, in downtown Chicago.

The tenant will relocate from the current 152,000-square-foot space it occupies at NBC Tower and will establish its new headquarters on the 7th floor in the first quarter of 2027.

Riverside Investment & Development represented the ownership, while JLL worked on behalf of ComPsych.

One Pru is part of the 2.3 million square-foot The Pru, previously knows as Prudential Plaza, which also includes the 1.1 million Two Pru. Wanxiang America Real Estate Group has been the majority owner since 2018. The company owns the property together with Sterling Bay.

READ ALSO: What’s Defining Office in 2025?

The tenant roster includes Wilson Sporting Goods, Clark Hill, Lessen, The Terry Group and Hubbard Radio, among others, according to CommercialEdge information. Back in September 2024, it was announced that Expansive will occupy the 35th floor at Two Pru, marking its seventh coworking space in the metro.

Located at 130 E. Randolph St. and 180 N. Stetson Ave. in Chicago’s central business district, The Pru is across the street from Millennium Park and has access to multiple transportation options. Chicago O’Hare International Airport is 18 miles northwest of the property.

JLL Executive Vice President Brian Means and Senior Vice President Kellen Monti worked on behalf of ComPsych, while Riverside’s Senior Leasing Manager Annie Kwasigroch, together with Senior Vice President Dan Heckman, represented the ownership.

Current renovations at The Pru

Completed in 1955 and completely renovated in 2014, One Pru was the first skyscraper built in Chicago after World War II. The 41-story building features floorplates ranging between 22,000 and 70,000 square feet, 30 passenger elevators and 45,000 square feet of retail.

The ownership invested $50 million in 2024 in a new renovation plan for The Pru, currently underway, Crain’s Chicago Business reported. The upgrades will include a 20,000-square-foot conference center, coworking spaces and an entertainment suite.

Additionally, the outdoor deck will feature a pickleball court and a bar area. In the next two months, One and Two Pru will be connected through a glass-enclosed walkway, in order for tenants to easily access the 72,000-square-foot shared amenity space on the 11th floor.

The post Chicago Tower Lands 50 KSF Lease appeared first on Commercial Property Executive.

A 30-story, Class A office property at 303 E. Wacker Drive on Chicago’s East Loop secured in $62.5 million collateralized first mortgage, senior-secured acquisition and lease-up loans.

The loan comes from Northwind Group, a Manhattan-based real estate private equity firm, and was structured so that $32.5 million was advanced for the acquisition, with the remaining $30 million held back as a good-news facility for accretive future leasing costs.

Repeat Northwind borrowers 601W Companies and David Werner Real Estate Investments acquired the property at a significantly low basis, reflecting over a 65 percent discount to the previous purchase price.

John Vavas of Polsinelli Law Firm represented Northwind.

A star of the Chicago office market

The property, which totals over 1 million square feet and includes a 282-space parking garage, is 75 percent occupied, with five years remaining on the lease term.

Since the pandemic, some 300,000 square feet of new leases have been signed there, making it one of Chicago’s best-performing office buildings by leasing volume.

“For various reasons, the Chicago CBD has endured incredible trauma over the past several years,” Jeff Brown, CEO of T2 Capital Management, a real estate private equity firm located just outside Chicago, told Commercial Property Executive.

READ ALSO: What’s Defining Office in 2025?

“With this purchase within the East Loop office market, it is encouraging to see well-heeled groups step out and be contrarians while also providing a benchmark on pricing. 303 E Wacker is a core located property, and Northwind’s commitment to fund good news money (leasing commissions and tenant improvement allowances for new leases) bodes well for the property’s viability,” Brown said.

The prior owners renovated and upgraded the asset for $32 million, including a new amenity center on the 30^th floor overlooking Lake Michigan.

In August, a joint venture between two New York City-based firms—Lloyd Goldman’s BLDG Management Co. Inc. and David Werner Real Estate Investment—acquired 100 Wall St., a 29-story Manhattan building from Barings for $116 million with a loan from Northwind Group.

The post East Loop Office Tower Finds Financing in Chicago appeared first on Commercial Property Executive.

In partnership with Skybox Datacenters, Prologis is converting one of its warehouses into a high-capacity, turnkey data center with a marketed capacity of 32 MW.

The announcement did not include any further information on the transaction or the property, including its location. However, the Skybox website describes a similar project: Skybox Chicago I, a 10-acre, 190,000-square-foot, 30 MW in the northwestern Chicago suburb of Elk Grove Village, Ill.

Prologis stated that warehouse conversions are a key element of the company’s data center strategy, and that the warehouse in question is held in the U.S. Logistics Fund, a Prologis co-investment vehicle that’s focused on “premier logistics real estate, including higher and better use conversions.”

READ ALSO: Are Data Centers Immune to CRE Market Forces?

In a statement, Chris Curtis, global head of data centers, said that owning the world’s largest portfolio of warehouses gives Prologis the ability to identify higher-value conversion opportunities among the company’s approximately 5,600 buildings and 12,400 acres of land.

Prologis stated that over the next four years, it intends to develop about 20 data center projects, representing $7 billion to $8 billion in additional investment.

Sustained heat

The buyer has acquired the property under its DigiCo Infrastructure REIT, which reportedly intends to amass a AUD$4.3 billion ($2.76 billion) portfolio of data centers in Australia and the U.S.

In May, Commercial Property Executive took the temperature of the rapidly heating data center sector, in which Prologis and Blackstone are leaders among a sizable number of commercial real estate firms looking to take advantage of the AI-driven boom in data center development.

And earlier this month, we looked at the sector again, this time partly through the lens of the White House’s National Security Memorandum on AI.

The post Prologis, Skybox Sell Chicago-Area Data Center Project appeared first on Commercial Property Executive.

With a $3 billion investment, Eli Lilly and Co. will expand its manufacturing operations at a facility purchased earlier this year in Pleasant Prairie, Wis. Construction on a new manufacturing building is expected to begin next year.

This is the company’s single largest U.S. manufacturing investment outside of its home state of Indiana, according to prepared remarks by Edgardo Hernandez, executive vice president & president of Lilly Manufacturing Operations. Lilly’s latest Indiana investment clocked in at $5.3 billion in May.

The Pleasant Prairie facility

Lilly acquired the Pleasant Prairie plant in April from Nexus Pharmaceuticals. However, the facility is yet to be fully operational and Lilly expects production to start by the end of 2025.

The property is inside the 440-acre Prairie Highlands Corporate Park, which is located along a stretch of Interstate 94 running about 40 miles south of Milwaukee. Notable tenants at the park include Advocate Aurora Health Care and HARIBO of America.

READ ALSO: Manufacturing’s Comeback Gains Ground

Upon completion, the expanded facility will use advanced automation—incorporating guided vehicles and robotics—to enhance the company’s medicine production. The plant will produce injectable medicines and assemble and package products across various therapeutic areas and allow Lilly to grow its existing and future medicine pipeline in the Midwest.

As of December, the company’s footprint at the Pleasant Prairie site totaled 696,960 square feet, according to Kenosha News.

Lilly’s manufacturing expansion

The firm has gradually expanded in Kenosha County since the beginning of the year. In November, Lilly paid $40.8 million for a 323,930-square-foot warehouse in the nearby Bristol, Wis., and another $10.2 million for 30.9 acres surrounding that property, according to BizTimes. This brought the company’s total planned investment across Wisconsin to $4 billion.

At a global scale, Lilly has deployed upward of $23 billion for the construction and expansion, as well as the acquisition, of manufacturing sites since 2020. The company’s medication aims to combat diabetes, obesity and cancer, among others.

Chicago industrial investment soars

Greater Chicago’s industrial investment volume totaled more than $2.6 billion during the first 10 months of the year, according to a CommercialEdge report. For the first three quarters, the metro’s industrial sales were $678.2 million higher than the figure registered during the same period of last year.

However, Chicagoland was not one of the top 3 Midwest markets for industrial pipeline size, the same source shows. The metro had only about 6.9 million square feet under construction as of October, behind Kansas City (11.7 million square feet), Columbus, Ohio (8.1 million square feet) and Detroit (7.7 million square feet).

One of the largest projects underway in the market is Plainfield Business Center, developed in phases by Trammell Crow Co. At full build-out, the industrial campus will comprise 8 million square feet.

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Ryan Cos. has broken ground on a 160,000-square-foot industrial development in the South Side submarket of Chicago. This addition is the final phase of Pullman Crossings and is expected to come online in August next year.

The developer entered into a joint venture with Namdar Realty Group and Mason Asset Management for the project.

Pullman Crossings’ fourth and final speculative building will rise at 10800 S. Doty Ave. Plans call for 32-foot clear heights, ESFR sprinklers and designs intended to cater for multiple uses, such as distribution, warehousing and light manufacturing. Additionally, the building will have outdoor eating spaces and exterior bike racks.

READ ALSO: Top 5 Markets for Industrial Deliveries

The 10-acre site is across Interstate 94 and allows easy access to Interstate 57, while being 19 miles from Chicago Midway International Airport and within 23 miles of Gary-Chicago International Airport.

Since 2017, Ryan Cos. developed three other industrial buildings at Pullman Crossings, encompassing 685,000 square feet. Two are used as distribution centers by Whole Foods and Amazon, while the third is a warehouse used by SC Johnson.

Chicago industrial pipeline dwindles

Chicago had nearly 7 million square feet of industrial space under construction as of October, according to a recent CommercialEdge industrial report. Among Midwestern markets, Chicago placed fourth, while Kansas City remained the leader with 11.7 million square feet underway.

Significant projects in the metro include Venture One Real Estate’s 2 million-square-foot built-to-suit project in Crown Point, Ind. The company received city approvals in March. In early November, Trammell Crow Co. started construction on the first building of Plainfield Business Center, which is slated to include more than 8 million square feet of space in Plainfield, Ill.

The post Ryan Cos. JV Moves Forward With Chicago Industrial Park appeared first on Commercial Property Executive.

Venture One Real Estate has closed on VenturePark65, an industrial build-to-suit project encompassing 2 million square feet in Crown Point, Ind. Lee & Associates will lead the marketing efforts.

Hallmark Construction Co., together with Venture One, requested a zoning modification in January. Lake County Council unanimously approved the motion in March. Additionally, the development will benefit from a 50 percent tax abatement for 10 years.

VenturePark65 may take on two forms. The conceptual design envisions either a 2 million-square-foot single-facility plan or a two-building layout with the structures slated to measure 1 million square feet and 859,940 square feet. Across both plans, the buildings would have 40-foot clear heights and four drive-in doors.

READ ALSO: Chicago’s Industrial Sales Lead the Midwest

Located on roughly 137 acres at the intersection of 101st Avenue and Interstate 65, VenturePark65’s site is more than 47 miles southeast of downtown Chicago and approximately 20 miles from the Port of Indiana, as well as some 45 miles from the Midway Airport.

Lee & Associates Principal Brian Vanosky and Executive Vice President Michael O’Leary will lead VenturePark65’s marketing efforts.

In September, Venture One partnered with DRA Advisors to purchase a 718,709-square-foot, fully leased industrial asset in Monee, Ill., just 28 miles from VenturePark65’s site. Venture One’s acquisition fund, VK Industrial VI closed the deal. Kovitz Investment Group, along with Venture One, co-sponsored the fund. Additionally, the duo co-sponsored VK Industrial VII, utilized in the acquisition of a 421,638-square-foot industrial portfolio throughout the Windy City.

Chicagoland’s industrial pipeline shrinks

At the end of September, metro Chicago’s industrial pipeline included 11 million square feet under construction. Of these, 5.7 million square feet were in build-to-suit projects, according to a report by Cushman & Wakefield. The pipeline shrunk 42.7 percent year-over-year.

During the third quarter, developers broke ground on 16 industrial projects throughout the Windy City, while last year 46 developments were added to the pipeline during the same interval, the report shows.

In terms of industrial completions, Chicago had 10.3 million square feet added to its inventory during the first nine months of the year, a 52.9 percent decrease year-over-year, the same source reveals. However, build-to-suit deliveries rose 18.2 percent year-over-year, clocking in at 2.7 million square feet year-to-date through September.

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The transaction marks the first sale in the $150 million investment vehicle for minority-owned firm Standard.

Located at 8110 Lemont Road, the 217,000-square-foot facility is on a 17-acre parcel in the Village of Woodridge, Ill. It is 99.6 percent occupied, and rent is $8.29 per square foot. The facility includes 22 dock doors with 130-foot truck courts, a single-load, 291-foot-deep building and 270 parking spaces.

Two miles north of the I-55/I-355 interchange, the location offers efficient access to more than 4 million people within a 20-mile radius.

Chicago’s strong industrial market

Suburban Chicago is experiencing a significant boom in industrial development, driven by several key factors, Doug Ressler, business manager at Yardi, told Commercial Property Executive.

“The surge in online shopping has increased the demand for last-mile warehouses and distribution centers,” he said. “Companies like Amazon are expanding their footprint with large facilities in suburban areas like Markham and Matteson.”

Developers are constructing industrial spaces on speculation, anticipating high demand, Ressler added. “For example, a major 880,000-square-foot speculative facility is being built in Monee.”

According to Ressler, some suburban office spaces are being converted into industrial use due to changing market dynamics and the need for more warehouse space.

“Many new developments are strategically located along key transportation corridors like Interstate 55 and I-80, facilitating efficient logistics and distribution. These developments are part of a broader trend to meet the growing needs of businesses and consumers in the region.”

Tenants have a deep demand for shallow-bay industrial products, especially when the space is proximate to end-customer rooftops, according to Palladius Capital Management CEO Nitin Chexal.

“The Chicago MSA is one of the strongest in the country for this kind of product. We recently sold Woodridge Commerce Center in July of 2024. We are selling a large shallow-bay portfolio across the Great Chicago metro that closes in December and will be closing on another acquisition in January 2025.”

READ ALSO: Top 10 Markets for Cold Storage Development

The fundamentals within the Chicago industrial market have shown substantial resilience over the past 12 months where some markets across the country have not fared so well, Erik Foster, principal & head of industrial capital markets for Avison Young, told CPE. “This will lead to continued industrial asset optimism in the Greater Chicago area, which is positive for landlords and future investors.”

With the Federal Reserve lowering interest rates and industrial remaining one of the strongest property types, the metro Chicago industrial investment sales volume rose to $774.4 million in the third quarter, according to Nick Schlanger, director of research at NAI Hiffman.

This represents a 16.5 percent increase from the third quarter of 2023 and is significantly higher than the first-quarter figure of $370.7 million and the second quarter’s $454.5 million.

“Chicago industrial tenant demand remains strong, vacancy rates are still low, and rents continue to rise,” Schlanger said. “These market fundamentals led to robust pricing for industrial investment opportunities in 2024 and should produce a very active 2025.”

Trammell Crow Co. this month broke ground on the first building at Plainfield Business Center, a more than 8 million-square-foot industrial campus in Plainfield, Ill. The 788,000-square-foot speculative warehouse is forecast to be delivered by next fall.

Standard deals

Recently, Standard invested in several industrial projects, including the Apopka Business Center in Orlando, Fla., in partnership with TCC; Veterans Memorial Business Park, a 463,000-square-foot speculative, Class A industrial park in Houston in partnership with IDV; and a 180,000-square-foot industrial project in Reno, Nev., in partnership with Mohr Capital.

In addition to these projects, Standard targets transactions with a preference for shovel-ready warehouse/logistics properties of approximately 150,000 to 500,000 square feet in major logistics markets nationwide.

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Vista Property Group has received $32 million for the refinancing of 609 West Randolph, its 95,000-square-foot, Class A boutique office building in Chicago’s West Loop/Fulton Market. JPMorgan Chase & Co. provided the five-year, 7.23 percent fixed-rate loan in a deal arranged by JLL.

The transaction marked the second refinancing of the property this year, according to CommercialEdge information. Initially, Vista took out a $30.7 million construction loan from Bank OZK in 2021, which matured in January.

Then, the owner obtained a $30.4 million in bridge financing from the same lender. That note had a maturity date set in January 2025.

READ ALSO: Life Cos. Drive More Lending While Banks Take a Back Seat

Completed in 2022, the office building features touchless technology and floorplates of 5,500 to 7,100 square feet. Amenities include a penthouse lounge and conference room, a green rooftop space with an amenity terrace, offices with private outdoor terraces and a lobby design modeled after boutique hotels.

The LEED Silver-certified property was 93.5 percent leased at the time of closing to 10 tenants. The roster includes Fetch Rewards, Buford Capital and NTT Data, among others.

Because it’s barely a block from the Ogilvie Transportation Center, the building offers quick access to three Metra commuter rail lines, as well as two Chicago Transit Authority elevated lines and numerous CTA bus lines. In addition, Interstate 90/94 is two blocks west.

JLL’s Debt Advisory team led by Managing Director Christopher Knight, Associate Matt Maksymec and Analyst Katia Novi represented the borrower.

Seeking stability

Chicago’s CBD office market is seeing greater stability, as total availability has decreased for two straight quarters, to 28.9 percent, according to a third-quarter report from Colliers.

Further, some timelines for proposed new developments have been pushed back to 2026–27, as office-to-residential conversions too are reducing office inventory.

In Fulton Market specifically, the total availability is 22.4 percent, on an inventory of 7.7 million square feet.

In July, Fulton Street Cos. topped out 919 West Fulton, their $300 million, 409,000-square-foot office building in the West Loop/Fulton Market submarket. The 11-story building is expected to open next year.

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Trammell Crow Co. has broken ground on the first building at Plainfield Business Center, an industrial campus to total more than 8 million square feet in Plainfield, Ill. The 788,000-square-foot speculative warehouse is slated for delivery by next fall.

The industrial building will take shape on approximately 52 acres at 26220 W. 143rd St. When complete, the cross-dock facility will feature 40-foot clear heights, 80 dock doors expandable to 160 and 211 trailer parking stalls. Matt Mulvihill and Phil DeBoer of CBRE represented TCC in acquiring the land and are marketing and leasing the property.

TCC is currently planning the future phases of Plainfield Business Center. Harris Architects designed the entire project, Krusinski Construction Co. is the general contractor, while Kimley-Horn and Associates serves as civil engineer.

READ ALSO: Chicago’s Industrial Sales Lead the Midwest

The site is some 40 miles from both downtown Chicago and Chicago O’Hare International Airport. The location provides proximity to both interstates 55 and 80, two of the Chicago area’s major thoroughfares.

TCC Senior Vice President Josh Udelhofen said, in prepared remarks, that the location’s desirability will be heightened by local road improvements. The entire 143rd Street will be extended to both east and west, with the goal of eventually rerouting Highway 126 onto that street to reduce downtown Plainfield congestion.

Ample activity

The Interstate 55 corridor in Chicago’s southwestern suburbs is seeing a rising average vacancy in industrial space—although only to 2.5 percent—driven in large part by the delivery of two speculative developments totaling 438,200 square feet, according to a third-quarter report from Colliers.

This could be either a blip or a trend, because industrial absorption remained strong—1.3 million square feet in the third quarter—even as two more spec projects totaling 967,000 square feet are currently underway. Colliers predicts an increase in overall vacancy, followed by a lull in construction.

In late October, Stream Realty Partners secured $63 million in financing for its five-building Chicagoland Industrial Portfolio. JLL Capital Markets arranged the five-year, fixed-rate loan. Two of the five buildings are in Mokena, Ill., in the Joliet submarket.

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Glenstar, a national commercial real estate owner, developer and operator which has had ownership stakes in the 14.7-acre property dating back to 2006, did not disclose the name of its new equity partner.

However, Crain’s Chicago Business reported earlier this month a venture led by Patrick Halloran of Wayzata, Minn., was under contract to buy Presidents Plaza in a joint venture with Glenstar for more than $60 million. Halloran is an executive with private equity firm Wayzata Investment Partners. Dan Deuter, Tom Sitz and Cody Hundertmark of Cushman & Wakefield represented the seller in the transaction.

The sale is significantly less than the $147 million price tag from 2018, when Glenstar and TPG Angelo Gordon—then known as Angelo Gordon—acquired the office campus, according to CommercialEdge data. In July 2021, the owners refinanced the asset with a 10-year, $147.5 million loan provided by Bank of America.

READ ALSO: Chicago Office Buildings Trade for Less, Development Slows

Located at 8600-8700 W. Bryn Mawr Ave. in the O’Hare submarket, the buildings are LEED Gold certified and were completed in 1979 and 1982. The campus is at the four-way intersection of Cumberland Avenue and Interstate 90 and served by the CTA Blue line, which allows tenants to recruit employees from both the Chicago suburbs and city. Numerous dining, entertainment and retail venues are nearby.

Glenstar has served as the property and asset manager of the complex since 2006 and its property management team will continue serving tenants on-site and through Glenstar Connect, an app-based platform to improve tenant experiences. Crain’s reported the complex was 63 percent leased at the time of sale, down from 92 percent in 2018.

Upgrades planned

Glenstar and TPG Angelo Gordon invested $34 million to renovate the buildings in recent years. Property upgrades included a three-story atrium lobby, three-level health club, fully renovated lounge, café with full seating and 6,300-square-foot conference center.

The latest infusion of capital will enable Glenstar and the new equity partner to make about $16 million in additional capital improvements to common areas, add a golf simulator and build spec suites to make it easier and cheaper for new tenants to move in. The spec suites will feature open ceilings, collaborative working spaces and conference rooms.

Michael Klein, Glenstar co-founder & managing principal, said in prepared remarks the availability of fresh capital will allow the tenant improvement projects to move forward quickly because they will be insulated from interest-rate pressures and cash constraints. Klein noted companies want to be in top-tier buildings with modern, creative work environments that help with attracting top-level talent.

The post Glenstar JV Recaps Chicago Office Complex in $62M Deal appeared first on Commercial Property Executive.

The portfolio consists of the following properties:

•  Mokena Logistics I and II, 268,226 square feet across two buildings at 8965 and 8905 W. 187th St. in Mokena in the Joliet submarket;

•  Rockwell Logistics Center, a 174,262-square-foot building at 2545 W. 24th St. in Chicago in the City South submarket;

•  Asbury Drive, a 157,500-square-foot building at 850 Asbury Drive in Buffalo Grove in the Lake County submarket; and

•  Halsted Pershing Business Center, a 104,008-square-foot building at 815 W. Pershing Ave. in the Stockyards submarket.

Stream had purchased four of the five buildings (all but the last one on the list above) from Westcore Properties for $83.5 million this past July.

These Class A distribution and warehouse facilities total 703,996 square feet, and feature suites ranging from 25,100 to 174,262 square feet with an average clear height of 32 feet. The portfolio serves 10 diverse tenants, representing the IT, electronics manufacturing, health-care and construction industries; food distribution; and government agencies.

READ ALSO: E-Commerce Growth Revives Industrial Market

The buildings are in infill distribution sites or near key transportation networks within the Chicagoland MSA, according to JLL, and are situated in densely populated areas with extensive infrastructure and strong labor markets, enabling local and regional customer access.

The JLL Debt Advisory team was led by Senior Managing Director Colby Mueck, Senior Director Brian Walsh and Associate Tara Hagerty.

Portfolios are popular

Industrial portfolio transactions seem to be the “in thing” in Chicagoland this year.

In July, Sperry Equities acquired the two-building, 640,000-square-foot Northwest Indiana Logistics Portfolio, in Portage, Ind., from Investcorp for an undisclosed amount. JLL both brokered the deal on behalf of the seller and arranged a five-year, fixed-rate acquisition loan through New York Life Real Estate Investors.

In September, Venture One Real Estate purchased a five-building, 421,638-square-foot industrial portfolio through its VK Industrial VII acquisition fund. Zilber Property Group was the seller of the five buildings, in Mokena, Elgin, Willowbrook and Northbrook, Ill.

Just last week, Commercial Property Executive reported that  metro Chicago led the Midwest in industrial sales, with a combined $1.9 billion over the first eight months of this year. That figure represents 165 properties totaling 20.8 million square feet, according to CommercialEdge data.

The post Stream Realty Secures $63M for Chicago-Area Portfolio appeared first on Commercial Property Executive.

Benefiting from its position, robust rail and airport systems, Chicago’s industrial market remains strong and adaptable. Despite a pipeline reduction to half of last year’s volume, the metro remains one of the most active markets for industrial development. As of the end of August, the Windy City had 10.3 million square feet of industrial space under construction.

Chicago’s industrial market continued to demonstrate its strength this year, leading the Midwest with $1.9 billion in transactions during the first eight months, and ranking fourth nationally in sales volume. Below, we’ve compiled CommercialEdge data for a current overview of the Windy City’s industrial market performance.

Driving success in industrial sales

Chicago led the Midwest with industrial sales amounting to $1.9 billion during the first eight months of this year, ranking fourth nationally, according to CommercialEdge data. A total of 165 properties changed hands in the metro, totaling 20.8 million square feet. Assets traded at an average of $98 per square foot, the highest in the region but still well below the national average of $132 per square foot.

The Inland Empire ($263 per square foot) and New Jersey ($230 per square foot) were the priciest metros, while Cleveland ($49 per square foot) and Kansas City ($48 per square foot) recorded the lowest average sale prices nationwide. 

In one of the larger transactions, Stonepeak purchased a three-building, 1.7 million-square-foot rail-served logistics portfolio in the Chicago market from CenterPoint Properties. The New York-based company paid $125 million for the fully leased assets. Situated in the CenterPoint Intermodal Center–Joliet/Elwood—the largest inland port in North America—the properties are in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.

Development pipeline remains steady

At the end of August, Chicago had 10.3 million square feet of industrial space under construction across 31 projects. The pipeline accounted for 0.9 percent of existing stock, below the national average of 1.9 percent. The Windy City ranked fifth nationally on a square footage basis and second regionally after Kansas City, according to CommercialEdge data.

In the first eight months of 2024, approximately 2.7 million square feet of industrial space broke ground in Chicago across 14 properties, representing 0.3 percent of the total stock. The index was lower than the national average of 0.9 percent.

In June, Dermody Properties broke ground on LogistiCenter at Pleasant Prairie, a 2.4 million-square-foot logistics park in Pleasant Prairie, Wis. As Wisconsin’s sole rail-served logistics park, the facility will be able to accommodate build-to-suit projects ranging from 250,000 to 1.8 million square feet.

Uline Inc. also is working on the expansion of its campus in Kenosha, Wis. The 1.4 million-square-foot addition, a distribution center located at 3002 128th Ave., will offer racking totaling approximately 882,900 square feet, as well as 476 dock doors and 41 bays.

Deliveries slow down

Chicago’s industrial sector saw 25 properties completed year-to-date through August, totaling 9.4 million square feet. This represents 0.9 percent of total stock, lower than the 1.3 percent national figure. The metro’s deliveries fell to nearly half its year-ago volume, when 17.2 million square feet of industrial space entered the market.

Among peer markets, Chicago surpassed Indianapolis (6.1 million square feet), Atlanta (5.8 million square feet) and New Jersey (5.8 million square feet). The Inland Empire (19.2 million square feet), Phoenix (20.2 million square feet) and Dallas (22.8 million square feet) recorded the highest number of industrial deliveries.

Logistics Property Co. recently completed Oak Forest Logistics Center, a 664,453-square-foot industrial building located at 16799 Cicero Ave. in Oak Forest, Ill. The facility marked the developer’s 11th project in metro Chicago.

HSA Commercial Real Estate also delivered Highland Commerce Center of Somers, one of the largest speculative industrial buildings in Wisconsin. Located at 2655 113th Ave., the 918,884-square-foot distribution facility is directly off Interstate 94 at the Burlington Road Interchange in Kenosha.

Vacancy rates surpass national average

Chicago’ industrial vacancy rate at the end of August clocked in at 7.3 percent, higher than the national average of 6.7 percent and the 3.7 percent rate registered same month last year, as CommercialEdge data shows.

Other vacancy rates higher than the national average were reported in markets such as New Jersey (8.1 percent), Dallas (7.7 percent) and Inland Empire (6.9 percent). Other markets recorded lower vacancy rates, such as Atlanta (5.8 percent). 

WestRock signed a build-to-suit with Dermody Properties at LogistiCenter at Pleasant Prairie. Upon the facility’s expected delivery next year, the company will occupy more than 580,000 square feet.

Venture One Real Estate secured a 444,600-square-foot lease with John B. Sanfilippo & Son Inc. at Venture Park 47, an industrial building totaling 729,823 square feet in Huntley, Ill. The deal was the largest industrial lease of the second quarter in Chicago’s North Kane County submarket and the fourth largest in the Chicago metropolitan area.

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JPMorgan Chase has named Michelle Herrick as head of its commercial real estate business, the company said on Wednesday. The appointment will take effect in January 2025.

According to Bloomberg, Herrick has been the company’s deputy head of commercial real estate since earlier this year. She joined the company in 2017 and has also served as its central region market manager for real estate. She also previously worked at Bank of America.

In her new role, Herrick will oversee the company’s commercial real estate loan portfolio. She succeeds Al Brooks, who will take on a new role as vice chair for commercial banking. Based in Chicago, Herrick will report to John Simmons, head of the company’s commercial banking arm.

READ ALSO: Will CRE Market Conditions Improve?

JPMorgan is the largest commercial real estate lender in the U.S., with a current loan volume of $173.8 billion as of the second quarter.

A timely promotion

Herrick’s new assignment takes place amid improving sentiment from investors following the Fed’s recent rate cut, with several more likely on the way. A recent survey from NAIOP shows that sentiment scores for equity, debt and first-year ownership cap rates were all over 50, indicating broadly bettering conditions.

Still, CRE loan delinquencies and special servicing rates continue to climb, and this could cause existing owners to either lose defaulted-on assets or sell them to investors which waited for lower costs of capital. Either way, there should be no shortage of new business for JPMorgan and its competitors.

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Saxum Real Estate has kicked off construction on a 322,600-square-foot, build-to-suit cold storage facility in Crown Point, Ind. Arcadia Cold is slated to occupy the facility upon completion in the second quarter of 2026.

The building will feature 50-foot clear heights and comprise roughly 45,000 pallet positions, as well as convertible rooms with temperature capabilities ranging from -10 to 38 degrees F. According to Inside Indiana Business, the warehouse will be used to support food manufacturers and retailers.

The 26-acre development is at 13301 Mississippi Parkway, about 51 miles southeast of downtown Chicago. Interstate 65 and U.S. Route 231 are within 3 miles.

Earlier this year, the company unveiled plans to build two cold storage facilities throughout Greater Windy City in collaboration with Saxum. Arcadia Cold COO JD Schwefler said in prepared remarks that the company will announce its proposal regarding the other property at a later date.

Saxum Real Estate owns another 294,840-square-foot cold storage project in the metro, which is currently in the planning and permitting stages, CommercialEdge data shows. Bank OZK originated a $53.3 million construction loan in August for that development.

Developers bullish on Chicago cold storage

Metro Chicago’s industrial construction pipeline shrunk by 23 percent year-over-year through June, as developers had 12 million square feet of industrial space underway, a report by Avison Young shows.

According to Grand View Research, the cold storage market was valued at $36.9 billion in 2023 and is projected to grow by 17.5 percent annually through 2030. Developers seized the opportunity, as Avison Young’s report shows that the largest industrial development to break ground across metro Chicago during the second quarter was Alston Construction and Barber Partners’ 389,880-square-foot speculative cold storage project in Plainfield, Ill.

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Chicago’s office fundamentals didn’t show signs of improvement year-over-year through August, except for its sales volume, which has increased since last year. Developing headwinds continue to put pressure on the sector and some owners are trying to minimize their exposure, leading to swaths of office space being divested.

Others look to conversions as a means to address the fundamental shift in how office buildings are utilized and repositioned. Far from being a catch-all solution to the sector’s woes, office-to-residential redevelopment can be a good avenue for some owners to capitalize on these shifting trends.

CommercialEdge recently released the Conversion Feasibility Index, a proprietary tool that offers scores assessing the potential for an office building’s conversion to residential. Chicago has around 18.6 percent of its office space in buildings that have a high potential for such adaptive reuse, putting it around the top of the list nationwide.

Pipeline decreases, large projects are few and far in between

As of August, Chicago’s office construction pipeline dropped significantly to just 811,394 square feet, or 0.3 percent of stock—70 basis points behind the national rate. There is still demand for high-quality product, those developments tending to have significant preleasing activity.

Among its peer gateway office markets, Chicago’s rate of construction as a percentage of stock was the lowest. Boston led with 4.4 percent, followed by Miami (3.9 percent). On the lower end were Manhattan (0.6 percent) and Los Angeles (0.9 percent).

Fulton St. Cos.’ 919 W. Fulton was the largest office project underway, taking shape in the West Loop submarket. The developer topped out its $300 million development earlier this year, with 112,000 square feet out of its 409,000 already preleased to Harrison Street Real Estate Capital.

About 1.1 million square feet of office space came online in the metro year-to-date through August, across nine properties. Nearly half of this space was in a single project, as Sterling Bay completed its 25-story tower at 360 N. Green St. The 500,000-square-foot office building is also in Chicago’s West Loop, and has a tenant that preleased a large portion of the property. Boston Consulting Group will use it as its Midwest headquarters.

Sales volume grows, but assets depreciate

Chicago investors traded $699 million in office assets year-to-date through August, 47.6 percent more than the volume recorded the same period last year. A total of 62 properties, encompassing 12.5 million square feet, changed hands for an average of $92.6 per square foot, nearly half the $168.8 national figure.

Chicago office buildings sold for the least amount per square foot when compared to peer gateway markets. On the higher end of that spectrum were Los Angeles ($423.4 per square foot) and Manhattan ($370.6 per square foot).

In June, Beacon Capital Partners acquired the office tower at 333 W. Wacker Drive for $125 million. This was the largest single-asset sale year-to-date through August, with the building trading at roughly $144 per square foot. The new owner also secured a $185 million acquisition and development loan from Allianz. Notably, the asset had previously changed hands in 2015 for $320 million.

This trend was present in virtually all major transactions that closed in the first eight months of the year. Of the top five office building sales across metro Chicago, all except one—which traded for the first time—changed hands for at least 50 percent less than their previous sale value.

Office vacancy grows year-over-year

Office vacancy in metro Chicago increased 120 basis points year-over-year to 19.0 percent as of August, 40 basis points below the national figure. Compared to gateway markets, only San Francisco’s 27.6 percent was higher than Chicago’s.

A few significant leasing deals took shape at the start of the year. In January, financial services company Mesirow signed an extension at Heitman’s office tower in Chicago’s CBD, at 353 N. Clark St. The tenant downsized its footprint to 100,000 square feet and agreed to a 10-year lease.

In February, Pinterest signed a 24,000-square-foot agreement at Hines and Ivanhoé Cambridge’s office campus in the West Loop. JLL represented the tenant.

Shared space solutions gain ground

In August, Chicago’s coworking footprint amounted to more than 6.2 million square feet, or 1.9 percent of its entire office stock. The national figure stood at 1.8 percent, while a few peer gateway markets exceeded Chicago’s rate—Miami (3.7 percent), Manhattan (2.3 percent), Los Angeles (2.1 percent) and San Francisco (2.1 percent).

Regus is one of the largest operators in Chicago’s coworking market, with nearly 985,000 square feet across 45 locations. It recently ceded one of those to Expansive—the shared space provider leased the 35th floor at Two Pru at 180 N. Stetson Ave., its seventh location in the metro. Expansive previously had slightly more than 487,000 square feet of shared office space across six locations.

The other large providers with significant footprints were WeWork, with 474,000 square feet across eight locations, Industrious with 360,000 square feet and eight locations and Convene, which had three locations encompassing 315,000 square feet.

The post Chicago Office Buildings Trade for Less, Development Slows appeared first on Commercial Property Executive.

Sentinel Net Lease has signed two new leases totaling nearly 45,000 square feet at Bannockburn Corporate Center, a three-story office building in Bannockburn, Ill., within Chicago’s North Shore submarket.

JLL’s Managing Director Chris Cummins worked on behalf of the landlord on both deals.

London-based insurance provider AON will occupy some 40,000 square feet of the former Donlen space, which became vacant in August. The company planned the move since July this year, when AON downsized from the 600,000 square feet it occupied at Realty Income’s office complex at 4 Overlook Point in Lincolnshire, Ill., according to The Real Deal. The insurance provider will move at its new location by December.

Engineering firm Baxter Woodman, which signed a 4,768-square-foot commitment at the property, will also move to the corporate center by the end of 2024.

Other tenants include Winix America Inc., Resurgence Capital, Webley Systems Inc. and DeLaval Inc.

READ ALSO: Office Finance Freeze Begins Slow Thaw

Bannockburn Corporate Center is a 209,225-square-foot building located at 3000 Lakeside Drive. Sentinel Net Lease purchased the property last year for $28.6 million from seller Axial Real Estate Advisors, according to CommercialEdge.

Completed in 1999 and renovated in 2016, the building features 69,742-square-foot floorplates, two passenger elevators and a tenant lounge. Additionally, the property includes a fitness center, a conference room, landscaped greenspaces and provides 837 parking spots.

The 14-acre office campus is near Interstate 94, allowing easy access to the Greater Chicago area. The property is 17 miles from Chicago O’Hare International Airport and 31 miles from downtown Chicago.

Recent office leases in Chicago

In September, Medline expanded its footprint at The Mart, a 3.7 million-square-foot mixed-use property in the city’s central business district. The company committed to 161,000 square feet, while also signing another 210,000-square-foot lease in Northbrook, Ill.

That same month, law firm Smith, Gambrell & Russell signed a 57,000-square-foot deal at 155 N. Wacker Drive, the 1.2 million-square-foot office tower owned by The John Buck Co. JLL negotiated on behalf of the tenant, which will relocate its Chicago office at the property’s 30th and 31st floors.

The post Sentinel Inks 2 New Leases in Suburban Chicago appeared first on Commercial Property Executive.

CyrusOne has broken ground on its second data center campus in Aurora, Ill., a Chicago submarket. The project is set to comprise two buildings totaling 446,000 square feet and will deliver an initial IT capacity of 40 MW with scalable capacity to meet future growth needs.

Partners on the project include ComEd, which will help deliver the needed electrical infrastructure. The development is expected to cost about $350 million and is scheduled to come online in two years.

Owned by KKR and Global Infrastructure Partners, CyrusOne currently operates 24 sites across the U.S. The new data center campus marks a key expansion for the REIT in Illinois, where its total capital investments have now surpassed $1 billion.

READ ALSO: More Data Centers, Please!

The development is taking shape at 2725 Bilter Road, just off Interstate 88. Downtown Chicago is 34 miles away, while downtown Aurora is some 10 miles southwest.

The data center’s site was initially designated for hospitality and retail uses. Earlier this year, CyrusOne and the city of Aurora reached an agreement, in which the company paid $15.5 million to compensate for the alteration in land use.

The campus will also feature two 350-foot towers, which will accommodate a collaboration between the developer, CME Group and Google, according to Yahoo Finance. The buildings are set to house financial trading systems for CME customers, which are currently operating in CyrusOne’s other Aurora data center.

More data centers to come online in Chicagoland

According to a JLL midyear report on U.S. colocation data centers, Chicago had about 818 MW completed in the first half of this year. Additionally, there were 733 MW under construction, with 1,222 MW in planning stages. A total of 466 MW were absorbed in the first six months of this year.

In June, Compass Datacenters began work on a hyperscale data center campus in Hoffman Estates, Ill. The project will include five buildings and will be the firm’s first hyperscale campus in the state. The development’s total cost is estimated at about $10 billion.

The post CyrusOne Kicks Off Chicago Data Center Campus appeared first on Commercial Property Executive.

Medline is significantly expanding its footprint in the Chicagoland area by tripling the company’s space at The Mart in Chicago’s Central Business District and adding 210,000 square feet of new space in a nearby suburb.

Medline and landlord Vornado Realty Trust—owner of the 3.7 million-square-foot mixed-use property in downtown Chicago previously known as the Merchandise Mart—revealed that the firm was expanding its lease from 51,000 square feet to 161,000 square feet as part of a single, contiguous space across most of the 12th floor. The medical supplies giant committed to a long-term lease with Vornado at the 222 Merchandise Mart Plaza property, running through 2036.

READ ALSO: Innovative Solutions for Return-to-Office Challenges

In a separate announcement, Medline said it was renting 210,000 square feet at 2375 Waterview Drive in Northbrook, Ill., located about 4 miles west of the company’s global headquarters in Northfield, Ill. Previously known as 1 Astellas Way, the Northbrook campus totals 432,000 square feet across two six-story buildings owned by Astellas Pharma Inc., which has its headquarters there. Last March, CF Industries signed a long-term, 77,863-square-foot lease at the Class A office campus managed by Transwestern.

A Medline official told Commercial Property Executive the expansion at both properties will accommodate current and future growth. Medline will be continuing as a hybrid workplace but the expansion will bring various teams together, as more than 1,000 employees will relocate across the two locations with room for incremental growth.

With the expansion of The Mart office space, which first opened in 2022, and addition of the new Northbrook space, Medline’s footprint across Cook and Lake counties will be more than 3.8 million square feet. In the last five years, Medline boosted its Chicagoland workforce by 33 percent, growing from more than 4,600 local employees at the end of 2019 to nearly 6,100 as of Sept. 1. Medline has more than 39,000 employees worldwide and does business in more than 100 countries and territories.

Medline expects to complete expansion at The Mart by the end of the first quarter of 2025 and at the Northbrook office by the second quarter of 2025.

Iconic growth

Located on 6.2 acres, The Mart is an iconic mixed-use property that fronts North Orleans Street in Chicago’s Central Business District. It was built in 1930 and underwent thorough renovations in 1991 and 2007. Vornado acquired the asset for $356 million from Joseph P. Kennedy Enterprises in April 1998 as part of a larger, $625 million portfolio transaction.

Vornado recently completed the final phase of a more than $70 million renovation program at The Mart. The upgrades included adding a grand staircase leading to a second-floor amenity program and gathering space that features food and beverage options, fitness and conference center, tenant lounge and landscaped River Park, which serves as a “front lawn” to the building.

The 25-story building spans two full city blocks and has about 3.5 million square feet of rentable office space, 90,000 square feet of retail space and is the largest design center in North America, with more than 250 premier design showrooms offering resources for residential and commercial markets. The LEED Platinum certified building has 2,250 parking spaces in both above-ground and subterranean facilities.

READ ALSO: Chicago Office Prices Lowest Among Gateway Markets

The Medline lease expansion will make the company one of The Mart’s largest tenants. Other companies in the building include tech firms such as Motorola Mobility, 1871 and MATTER, as well as Fortune 500 companies including Conagra Brands, Allstate, Beam Suntory, Avant and Grainger. PayPal leases 108,000 square feet, GoHealth leases 180,297 square feet and Interpublic Group leases 77,535 square feet of space, according to CommercialEdge.

J. Frank Franzese and Steven Bauer of Colliers represented Medline in its lease transaction. Vornado was represented by Andrea Saewitz, Wendy Katz and Ben Cleveland of Stream Realty, which is the leasing manager for The Mart.

More Medline expansion

In October 2022, Medline leased about 710,000 square feet at 264 S. 5750 W., a newly built industrial development in Salt Lake City. The health-care company had outgrown its 250,000-square-foot distribution center in the metro.

The new building is located on a 42-acre site and features 113 dock doors, 40-foot clear heights, 251 trailer parking spots and 383 parking spots for employees. It is close to interstates 80 and 215, less than 5 miles from Salt Lake City International Airport and about 8 miles from downtown Salt Lake City.

The post Medline Expands Chicago Office Presence by 320 KSF appeared first on Commercial Property Executive.

The John Buck Co. has signed a 57,000-square-foot lease at 155 N.  Wacker Drive, an approximately 1.2 million-square-foot office tower in Chicago’s central business district.

The tenant is law firm Smith, Gambrell & Russell, that will relocate its Chicago office at the building’s 30th and 31st floors, with moving in scheduled for early 2026. JLL brokered the deal on behalf of the tenant.

Notable tenants at the property include Monroe Capital, Marsh USA Inc., LSV Asset Management, Greenhill & Co., WP Global Partners, American Hospital Association and UL Solutions, among others, according to CommercialEdge. A recent office deal signed at the property is Sompo International’s more than 28,000-square-foot relocation, The Real Deal reported. The lease closed in February this year with the insurance provider doubling its footprint at the location.

The office tower earned WELL Health-Safety Rating, Wired Platinum certification and SmartScore Platinum rating. 155 N. Wacker Drive rises 46 stories and features 20 passenger elevators, 25,570-square-foot floorplates, 11,393 square feet of retail space and 160 vehicle parking spots, according to the same source. Other features include a fitness center, a conference center, energy-efficient glass and column-free spaces.

Designed by Goettsch Partners and completed in 2009, the property is close to multiple bus and subway stations, as well as to various dining and retail options. The building allows easy access to interstates 290 and 90, being 11 miles from the Chicago Midway International Airport and 17 miles from Chicago O’Hare International Airport.

JLL International Director Meredith O’Connor and Executive Managing Director Matt Carolan negotiated the lease on behalf of the tenant.

Low rent prices in the Windy City

Chicago’s office vacancy rate stood at 19.1 percent as of July, a recent CommercialEdge office report shows. The figure is higher than the national figure of 18.1 percent and marked a 50 basis points year-over-year decrease. Meanwhile, the average asking rent fell 1 percent year-over-year and stood at $27.27 per square foot, putting Chicago among the top five most affordable office markets in the U.S.

Among significant leases closed in the metro is Heitman’s 10-year extension signed with financial services firm Mesirow. The tenant will continue to occupy more than 100,000 square feet at 353 N. Clark St., a 1.2 million-square-foot office tower in downtown Chicago.

The post The John Buck Co. Inks Lease at 1.2 MSF Chicago Tower appeared first on Commercial Property Executive.

MCB Science + Health has acquired iMed Naperville Medical Office, a 72,000-square-foot medical office building in Naperville, Ill., a Chicago submarket. DynaCom Management Inc. sold the asset for $28 million, in a deal brokered by Greenstone Partners.

The four-story medical office building came online in 2015 and was 96 percent leased at the time of sale. Endeavor Health, previously known as Edward-Elmhurst Health, anchors the facility. Other tenants include ABC Pediatrics, Basko Dermatology and Naper Grove Vision Care.

READ ALSO: Outpatient Facilities Step Into the Spotlight

The Class A property features floorplates averaging 18,000 square feet, 10-foot ceiling heights, a two-story lobby atrium and covered patient drop-off and pick-up areas, as well as a 300-spot parking.

The property is at 1331 W. 75th St., 2 miles from the Endeavor Health Edward Hospital and 1 mile from downtown Naperville. Downtown Chicago is 35 miles northeast.

Greenstone Partners Managing Partner Jason St. John brokered the transaction on behalf of the seller.

MCB’s expansion in the health-care sector

MCB Real Estate launched the Science + Health platform in 2022 in a partnership with real estate executive Wilkingson Germain. The venture focuses on acquisition and development in the medical office, senior housing and life science sectors across the U.S.

Earlier this year, MCB broke ground on Drexeline Medical Office Building, the 60,000-square-foot health-care component of Drexeline Town Center in Drexel Hill, Penn. The three-story facility is already fully leased to Delaware County Human Services and Children’s Hospital of Philadelphia.

And, last year, the firm completed the construction of Wellness Center at Yard 56, an 80,000-square-foot, Class A medical office building in Baltimore. The asset is leased by Baltimore Medical System, Innovative Physical Therapy, Bay Vanguard Bank and LabCorp.

The post MCB Acquires Chicago-Area MOB appeared first on Commercial Property Executive.

Expansive will open a new flexible workspace location in Chicago at Two Pru, a nearly 1.1 million-square-foot Class A office tower. The company’s expansion will come to fruition through a partnership with Wanxiang Real Estate Group and Riverside Investments.

This is Expansive’s seventh location in the metro. The flex office provider will occupy the building’s 35th floor, previously leased by Regus.

Expansive’s new location is currently under renovation, plans calling for private offices, on-demand meeting rooms, coworking spaces and day offices. Upgrades are slated for completion this month, with an official opening ceremony scheduled for October.

READ ALSO: Managing Coworking: Building Brands, Building Experiences  

Two Pru is part of The Pru, the 2.3 million-square-foot office complex formerly known as Prudential Plaza. Notable tenants at the property include Amsted Industries Inc., Presidio Aircraft Leasing, The Chicago Council on Global Affairs, Eckenhoff Saunders Architects, Envisionit and The Terry Group, according to CommercialEdge.

A closer look at One and Two Pru

Wanxiang Real Estate Group has been the majority owner of The Pru since 2018, when it purchased the majority stake in the property for $680 million, the same source shows. The company owns the asset together with Sterling Bay, which retained a minority stake.

At the time of the sale, the two-building asset became subject to a $389 million loan provided by CW Capital, with a maturity date set for 2027 and a two-year extension option. The ownership is currently investing $50 million in upgrades, with a focus on tenant amenities, The Real Deal reported.

One Pru, at 130 E. Randolph St., comprises 1.3 million square feet across 41 stories. Completed in 1955 and renovated in 2014, the high-rise features 30 passenger elevators, floorplates ranging between 22,000 and 70,000 square feet and 336 parking spots.

Two Pru rises 58 stories at 180 N. Stetson Ave. The 1.1 million-square-foot property came online in 1990 and features 21,000-square-foot floorplates, 30 passenger elevators and 608 parking spots.

The amenity package includes a 7,000-square-foot rooftop terrace with lounge spaces, 23,000-square-foot tenant lounge, fitness center, space for nursing parents and a public park with outdoor seats. The amenities at One and Two Pru are currently undergoing multiple upgrades, which will include the addition of golf simulators, an entertainment area, a 22,000-square-foot conference center, an extended tenant lounge and rooftop terrace.

The Pru is at the edge of Grant Park, in the city’s central business district, close to multiple train and bus stations. The Chicago Midway International Airport and Chicago O’Hare International Airport are 12 and 18 miles away, respectively.

The post Expansive to Open 7th Chicago Coworking Location appeared first on Commercial Property Executive.

Venture One Real Estate has purchased a five-building, 421,638-square-foot industrial portfolio through its VK Industrial VII acquisition fund. Zilber Property Group previously owned the five facilities throughout metro Chicago, according to CommercialEdge data.

In February, Venture One set out to raise $300 million for its seventh industrial fund, SEC filings show. Kovitz Investment Group is a co-sponsor of the investment vehicle. This portfolio acquisition is among the first to use proceeds from VK Industrial VII. Its previous industrial fundraiser had set its goal at $250 million, the same source shows.

READ ALSO: First-Half Investor Darlings

CBRE Vice Chairmen Zach Graham, Ryan Bain and Michael Caprile alongside Vice President Joe Horrigan represented the seller in the transaction.

Comprising single- and multi-tenant facilities, the portfolio was fully leased to 13 tenants at the time of the acquisition. The buildings range from 37,174 to 154,335 square feet with units between 7,953 and 84,373 square feet.

The largest of the five assets is in Northbrook, Ill. The 154,335-square-foot facility came online in 1974. Features include 24-foot clear heights, 40- by 40-foot column spacing, as well as a 120-foot truck court and 187 parking spaces.

Located in Mokena, Elgin, Willowbrook, Ill., and Northbrook, the facilities are within an average of 31 miles from downtown Chicago, as well as some 27 and 35 miles from the Chicago O’Hare International Airport and the Illinois International Port District, respectively.

Venture One’s industrial acquisition funds

Venture One utilizes discretionary funds to source, acquire and operate industrial assets. It mainly targets the Chicago metro, the Northeast U.S. and Florida regions. The investment vehicle closes transactions with cash and no financing contingencies.

The company completed another Chicago-area purchase earlier this year, acquiring a 785,181-square-foot industrial portfolio in St. Charles, Ill., for $50.2 million. Venture One utilized funds from VK Industrial VI and secured a $30.4 million loan from Lake Forest Bank & Trust.

Chicago’s industrial pipeline drops year-over-year

Year-to-date through June, investors traded 10.8 million square feet throughout metro Chicago, according to a report by Cushman & Wakefield. This was a 2.4 percent decrease year-over-year.

Industrial completions in The Windy City dropped 34.3 percent year-over-year, to 7.5 million square feet year-to-date through June. The metro had 12 million square feet under construction, down 54.5 percent year-over-year, the same source shows.

Of Chicago’s industrial deliveries this year, 4.8 million square feet—63.8 percent—were in speculative projects with only a 6.7 percent prelease rate, Cushman & Wakefield’s report reveals. This contributed to a higher vacancy rate in June, which clocked in at 4.5 percent—a 90-basis point increase year-over-year.

The post Venture One Buys 422 KSF Metro Chicago Industrial Portfolio appeared first on Commercial Property Executive.

As part of the agreement, Sixth Street will assume a 65 percent stake in Plymouth’s Chicago-area industrial portfolio, which totals roughly 5.9 million square feet across a 34-building mix of warehouses, distribution centers, light manufacturing and small bay facilities. Plymouth will retain a 35 percent stake.

“Plymouth is active in markets such as Memphis, Columbus, Atlanta and Jacksonville,” Jeff Witherell, Plymouth’s chairman & CEO, told Commercial Property Executive. “We will pursue additional acquisitions in these markets as we believe they will be major beneficiaries of the reshoring and onshoring initiatives of manufacturers.” 

In addition to acquisitions, Plymouth intends to use the capital to de-risk obsolete industrial assets, pay borrowing costs from the recent $100 million purchase of a Memphis-area industrial portfolio, and retire $67 million of existing debt.

Sixth Street cited the strong performance and demand for Plymouth industrial properties that clock in below 250,000 square feet, which have seen elevated demand from local warehouse occupiers and manufacturers. Sixth Street intends to partner with Plymouth on future joint ventures.

Plymouth’s payouts

Sixth Street’s initial $250 million contribution to the portfolio will come in two parts. The first $116 million is 65 percent of the required equity for the joint venture and asset ownership. An additional $140 million consists of a non-convertible Series C investment in Plymouth’s preferred equity. The initial preferred equity investment was seeded with $61 million, while the remaining $79 million will be paid within nine months of the partnership’s closing.

The financing for the industrial portfolio will consist of $178 million worth of secured mortgages, which will amount to $294 million worth of gross proceeds for Plymouth. After assuming the mortgage debt and paying for transaction costs, the REIT will have access to $212 million worth of investable capital.

Currently, the Chicago portfolio is valued at $356 million, with a 6.2 percent cap rate. The properties have a net operating income of $22 million.

Sixth Street’s returns

Sixth Street’s payout will come at a 7 percent return per year, with 4 percent in cash and the remaining 3 as payments in kind. The total returns will increase in the fifth and seventh years following the investment.

READ ALSO: First-Half Investor Darlings

Sixth Street’s payout will come at a 7 percent return per year, with 4 percent in cash and the remaining 3 as payments in kind. The total returns will increase in the fifth and seventh years following the investment.In addition to the new industrial assets, Sixth Street will receive 11.76 million warrants to purchase Plymouth’s common stock units.

Windy City windfall

Chicago’s industrial market continues to show sound fundamentals, with a supply pipeline and transaction volume that lead the nation. CommercialEdge’s latest national industrial report found that the market has 10.6 million square feet of space in the works, and a sale price of $98 per square foot, tops in the Midwest and fourth highest in the nation.

The city is also attracting steady interest from the tech sector, with PsiQuantum signing on as the anchor tenant at a $500 million,128-acre research and development campus that will be the site of the nation’s first utility-scale quantum computer.

The post Plymouth, Sixth Street Launch $500M Partnership appeared first on Commercial Property Executive.

Sperry Equities has acquired Northwest Indiana Logistics Portfolio, measuring 639,829 square feet across two buildings in Portage, Ind. Investcorp was the previous owner, according to CommercialEdge information.

JLL brokered the deal on behalf of the seller. Additionally, the company arranged a five-year, fixed-rate loan through New York Life Real Estate Investors.

At the time of sale, the portfolio boasted a 97 percent occupancy rate with eight tenants, including Tosca Services, MCP USA and Green Sense Farms Holdings, CommercialEdge data shows.

READ ALSO: Chicago Industrial Market Outshines the Rest of the Midwest

Building 1 is a 122,829-square-foot facility featuring 25-foot clear heights, 13 dock-high loading doors and six drive-in doors with dock levelers and bumpers. Additionally, the distribution center has 305-foot truck courts and about 115 parking spaces.

Completed in 2000, the more than 8-acre property is at 6525 Daniel Burnham Drive and provides easy access to Interstate 94. Downtown Chicago is some 41 miles away and the Port of Chicago is within 28 miles.

The 2003-completed Building 2 is a 517,000-square-foot warehouse that has 30-foot clear heights, 60 dock-high loading doors and four drive-in doors with levelers and bumpers, as well as 140-foot truck courts and 384 parking spaces. The 31-acre property is at 6750 Daniel Burnham Drive, less than 1 mile from Building 1.

The distribution centers are also part of AmeriPlex at the Port, a 387-acre, mixed-use business park that broke ground in 2000 and is still under construction.

JLL Investment Sales and Advisory Senior Managing Director John Huguenard, alongside Managing Directors Ed Halaburt and Kurt Sarbaugh brokered the deal. The JLL Debt Advisory team was led by Senior Director Brian Walsh.

Larger deals are still happening in Chicago

Metro Chicago registered the largest industrial sales volume in the region year-to-date through June, clocking in at more than $1.3 billion, according to the latest CommercialEdge industrial report. However, assets traded at an average of $98 per square foot, well below the $139 national figure.

In April, Stonepeak acquired a three-building, 1.7 million-square-foot logistics portfolio in the Chicago market. CenterPoint Properties sold the fully leased properties for $125 million.

At the beginning of the year, an acquisition fund managed by Venture One Real Estate and Kovitz Investment Group purchased a 785,181-square-foot portfolio totaling two buildings in St. Charles, Ill. The buyer financed the purchase with a $30.4 million acquisition loan.

The post Investcorp Sells 640 KSF Chicago Industrial Portfolio appeared first on Commercial Property Executive.

CRG and Related Midwest will develop the 128-acre Illinois Quantum & Microelectronics Park for anchor tenant PsiQuantum. The campus is just the initial phase of a broader 400-acre master-planned development at the site of the former U.S. Steel South Works.

The State of Illinois committed $500 million to the development of the park, including $200 million for the construction of a cryogenic plant to serve the cooling needs for PsiQuantum and other potential users. In addition, the newly announced Quantum Proving Ground program, a partnership between the state and Defense Advanced Research Projects Agency, will provide another $280 million.

Designed by Lamar Johnson Collaborative, IQMP’s first phase will occupy about 30 acres and is scheduled for completion in 2027. Clayco will be the general contractor for this initial phase.

Future home of the first U.S.-based utility scale quantum computer

PsiQuantum, of Palo Alto, Calif., plans to build the nation’s first commercially useful “utility-scale” quantum computer at the IQMP. Its Quantum Computer Operations Center will span more than 300,000 square feet, with additional acreage for future expansion.

IQMP’s 128 acres are at the southern end of the overall site. Besides the PsiQuantum facility, the park will include equipment labs, as well as research and office spaces for private companies and universities. DARPA will also have a presence at the campus.

READ ALSO: Industrial Property Values on the Upswing

The location, bearing the street address of 8080 S. DuSable Lake Shore Drive, is in the South Chicago neighborhood, near the mouth of the Calumet River, which provides access to the Port of Chicago. The site reportedly is one of the nation’s largest contiguous infill waterfront properties.

It’s about 10 miles from downtown Chicago and is accessible from the Metra Electric 87th Street station, served by CTA bus routes and close to the Chicago Skyway and other major thoroughfares. The site is also within the Illinois International Port District, which provides access to intermodal transportation and offers high power and water capacity for quantum and other advanced-technology industries.

Brown to green

The U.S. Steel South Works once produced 1 million tons of steel every year, but after decades of declining production and a contracting labor force, it closed down in 1992.

The former steel mill site has been the target of various redevelopment proposals since then, including overtures from Solo Cup to build a manufacturing facility there.

Now that the site appears ready to finally be on the path to redevelopment, the City of Chicago has estimated the IQMP’s economic impact over the next decade as in excess of $20 billion.

Interestingly for such a stereotypical brownfield setting—much of the acreage is landfill made from steelmaking slag—16.5 acres of the site was acquired by the Chicago Park District in 2002. One of the distinctive features of Steelworkers Park is a 30-foot climbing wall built on massive concrete walls remaining from the mill.  

The post Related Midwest, CRG to Develop Quantum Innovation Hub in Chicago appeared first on Commercial Property Executive.

The properties are strategically located in key submarkets, ensuring robust market presence and high tenant demand. The portfolio is fully leased to seven tenants.

The assets include Asbury Drive, a 157,500-square-foot building located at 850 Asbury Drive in Buffalo Grove in the Lake County submarket, which sold for $20 million; Rockwell Logistics Center, a 174,262-square-foot building located at 2545 W. 24th Street in Chicago in the City South submarket, which sold for $33.5 million; and Mokena Logistics I and II, 268,226 square feet across two buildings located at 8965 and 8905 W. 187th Street in Mokena in the Joliet submarket, which sold for a combined $30 million.

Chicago’s strong industrial market

Alex Olshansky, principal & head of Investments, Zenith IOS, told Commercial Property Executive that institutional industrial investors continue to be drawn by the unique factors driving demand in the Chicagoland market, such as its strategic central location, a strong and diversified manufacturing and population base, and most importantly its irreplaceable position as the most rail and freight-advantaged logistics market in the country.

“Given its position as one of the largest and most dynamic industrial markets in the country, Chicago is well-positioned to continue to attract interest from both corporate users and value-oriented investors,” Olshansky said.

READ ALSO: Industrial Property Values on the Upswing

Stream Executive Managing Director and Partner Patrick Russo, Portfolio Manager Mustafa Ali and Associate Ben Harrison facilitated the acquisition.

CBRE’s Capital Markets Advisors, which include Ryan Bain, Michael Caprile, Zach Graham, Judd Welliver, Bentley Smith, Joe Horrigan, and Victoria Gomez, along with local brokers Whit Heitman, Sam Badger, Larry Goldwasser and Terry Grapenthin, also assisted in the transaction.

Stream currently manages a portfolio of 41 investments totaling 23.2 million square feet and approximately $2 billion of equity across five commingled funds, several joint venture vehicles and wholly owned assets.

The post Stream Realty Buys Industrial Portfolio for $84M appeared first on Commercial Property Executive.

General contractor Skender has topped out 919 West Fulton, a 409,000-square-foot office building in Chicago, on behalf of Fulton Street Cos. Completion is anticipated next year.

The developer secured $233 million in equity and debt for this project in October. The building was already underway at the time.

Other project partners on the $300 million development include JDL Development, lead designer Shanna Khan and Morris Adjmi Architects, along with Thornton Tomasetti as structural engineer and Eriksson as civil engineer. Additionally, Madison Rose is handling leasing.

READ ALSO: Chicago Office Prices Lowest Among Gateway Markets

Designed by FitzGerald Associates Architects according to WELL and LEED Silver standards, the 11-story building will be the tallest in the Fulton Market Historic District. The office property will feature floorplates ranging between 25,000 and 40,000 square feet, as well as 40,000 square feet of ground-floor retail space.

Amenities are to include multiple outdoor terraces, a rooftop lounge and bar, several conference centers and coworking spaces, along with a fitness center and two main lobbies. Harrison Street Real Estate Capital is set to be the anchor tenant after having committed to 112,000 square feet in 2022.

The transit-oriented building is taking shape at 919 W. Fulton Market, but will change its address to 217 N. Sangamon St. The property is less than 2 miles from downtown Chicago, close to a host of retail options. Chicago O’Hare International Airport is some 15 miles away.

The project also comprises an adjacent residential building at 910 W. Lake St., according to Chicago YIMBY. That six-story property will include street-level retail space as well.

Chicago’s modest office pipeline

With construction costs rising, Chicago’s office pipeline as of June stood at 1 million square feet, representing only 0.3 percent of total stock, according to a recent CommercialEdge report. During the same month, the metro’s vacancy rate clocked in at 19.1 percent, 20 basis points higher year-over-year.

One of the current developments is a 302,388-square-foot life science project rising in in Chicago’s South Side neighborhood. Trammell Crow Co. and Beacon Capital Partners topped it out in February and the first tenants are expected to move in by early 2025.

More recently, Ann & Robert H. Lurie Children’s Hospital of Chicago started construction on a 75,000-square-foot outpatient facility in Schaumburg, Ill. Skender serves as general contractor for this project as well.

The post Fulton Street Tops Out $300M Chicago Office Project appeared first on Commercial Property Executive.

Venture One will construct a build-to-suit, 1.2 million-square-foot warehouse and distribution facility for John Deere in Lowell, Ind.

The Fortune 100 company purchased the 234-acre site from Hallmark Construction Co. for $7 million. Coldwell Banker Commercial Realty represented the seller.

Lake County Planning and Building Administrator Steve Nigro claimed that the rezoning was approved, and the board is currently awaiting the site development plan, according to The Times of Northwest Indiana.

John Deere intends to invest up to $125 million in the project, dubbed Tempo, the same source reveals. These funds include $100 million for construction, $15 million for equipment and $10 million in miscellaneous costs.

READ ALSO: It’s Time for Investors to Get Off the Sidelines

Attorney James L. Wieser, who represented the developer, stated that there are plans to further expand the project by roughly 500,000 to 700,000 square feet. Tempo will generate roughly 1,200 union construction jobs and an estimated 500 permanent positions will be available upon the facility’s completion.

Located at 2105 W. 181st Ave., the development site has direct frontage on Interstate 65 South and Indiana Route 2. Downtown Chicago is some 59 miles northwest.  

Coldwell Banker Realty Brokers Nancy Frigo and Nicholas Smith represented Hallmark Construction Co. in the transaction proceedings.

Chicago’s industrial pipeline grows

Chicago ranked third nationwide for industrial development in May, with 10.8 million square feet of space under construction, according to a recent CommercialEdge report. The figure represented 1.0 percent of total stock, nearly half the national 1.9 percent figure.

Last month, Dermody Properties broke ground on a $140 million, 2.4 million-square-foot logistics park in Pleasant Prairie, Wis. Completion is estimated in 2025.

Earlier this year, a joint venture of Avgeris and Associates, The Missner Group and Wylie Capital unveiled plans to redevelop a 459,927-square-foot, two-building property into an industrial campus measuring upward of 1.1 million square feet.

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Due to several challenges in the office sector, including reduced demand and high interest rates, office sales nationwide have been driven by institutions selling high-quality assets. This strategy helped them balance their portfolios, reduce their office exposure and mitigate risk on their balance sheets.

Despite the market’s tame metrics, year-to-date through April, Chicago logged $223 million in office sales at an average price of $81 per square foot, according to CommercialEdge data.

A halt in new construction starts

In April, Chicago had 1.0 million square feet of office space underway, which represented 0.3 percent of existing stock. Meanwhile, the national figure stood at 1.5 percent. Among peer markets, Chicago was on par with Washington, D.C. (0.9 percent), while other metros such as Seattle (3.6 percent) recorded above-average figures.

The second largest project underway is 919 West Fulton, a 360,000-square-foot development in Chicago’s downtown. The developer, Fulton Street Cos., has secured $233 million in both equity and debt financing for the 11-story office building.

Trammell Crow Co. and Beacon Capital Partners have recently topped out another major project, a 302,388-square-foot life science development in Chicago’s South Side neighborhood. Hyde Park Labs is scheduled to be fully delivered in the fourth quarter of this year, with first tenants expected to move in by early 2025.

Approximately 875,000 square feet of office space across seven properties was delivered in the metro year-to-date, accounting for 0.5 percent of the total stock. A few gateway markets stood out in terms of office space coming online in this period, including Seattle (2.5 million square feet), Boston (1.4 million square feet) and San Francisco (1.4 million square feet). 

Lowest sales price among gateway markets

Year-to-date through May, some $223 million in office sales were recorded, as Chicago office prices stood at $81 per square foot. That’s lower than the national average of $151.29 per square foot. A total of 21 properties exchanged hands, totaling 7 million square feet.

Coming up next, the Twin Cities saw $177 million in closed office deals at an average of $163 per square foot, while Detroit recorded a small volume of $43 million, with properties trading at $76 per square foot.

Sixth-lowest asking rent

Meanwhile, the market’s vacancy rate stood at 19.1 percent, up 30 basis points year-over-year in April, while the rents contracted by 20 basis points, coming in at $27.85 per square foot: the sixth-lowest asking rent across the top 25 U.S. office markets.

Boston (12.4 percent), Miami (13.0 percent), Washington, D.C. (16.8 percent) and Los Angeles (16.5 percent) all fared better than Manhattan in terms of vacancy. On the other side of the spectrum, Seattle (23 percent) and San Francisco (25.9 percent) saw even larger rates.

A small number of leases closed in Chicago’s office sector through April. Heitman has landed a 10-year lease extension at its office tower in Chicago’s River North area. Financial services firm Mesirow will continue to occupy more than 100,000 square feet at 353 N. Clark St. through 2036. 

Ivanhoé Cambridge and Hines have signed a lease agreement with Pinterest at 10 and 120 S. Riverside Plaza, a two-building office complex in Chicago’s West Loop. The company committed to 24,000 square feet at the 1.4 million-square-foot Class A campus.

Coworking maintains stability

As of April, the Windy City’s coworking sector included more than 6.2 million square feet of coworking space, representing 1.9 percent of all leasable office space—on par with the 1.8 percent national average.

Among peer markets, Manhattan was the forefront with almost 12.7 million square feet, followed by Los Angeles (6.6 million square feet) and Washington, D.C. (6.3 million square feet).

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Dermody Properties has broken ground on LogistiCenter at Pleasant Prairie, a 2.4 million-square-foot logistics park in Pleasant Prairie, Wis., as it secured the property’s first tenant. WestRock signed a build-to-suit lease for a more than 580,000-square-foot facility at the site, with delivery expected in 2025.

Westrock, a sustainable packaging manufacturer, announced plans for the estimated $140 million development early this year. The company intends to shut down its current plant in North Chicago upon the new facility’s completion.

READ ALSO: Boost in US Manufacturing Spurs Construction Boom

Dermody purchased the park’s 232-acre site, previously home to a We Energies power plant, in September 2023. The acquisition also included the property’s redevelopment plans, which initially comprised three buildings of 593,565 square feet, 675,200 square feet and 1.1 million square feet, respectively.

Standing as Wisconsin’s only rail-served logistics park, LogistiCenter at Pleasant Prairie will be able to accommodate build-to-suits from 250,000 square feet to 1.8 million square feet and will feature flexible clear heights, trailer parking, fresh water service from Lake Michigan and a 345 KV transmission line available for direct connectivity.

Dermody Properties has invested more than $10 billion of total capital across all platforms nationwide, having acquired and developed approximately 110 million square feet of logistics and industrial facilities. The company currently has multiple properties available in the Midwest region totaling 3.6 million square feet.

Chicago’s industrial market stands out

Located at 8000 95th St., the site is near Interstate 94, which allows easy access across the downtown Milwaukee and Chicago. The property is also adjacent to the 1,496-acre LakeView Corporate Park.

Chicago ranked fourth among leading U.S. industrial markets with 10.8 million square feet of space under construction in May, according to a recent CommercialEdge report. The Windy City also stood out for industrial transactions, registering the largest sales volume in the Midwest year-to-date as of May, at $910 million. 

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The loan had originally closed in April, and the expansion now covers recent acquisitions by MDH in Phoenix and Chicago. Called Frontier Loan, the financing now supports more than 2.2 million square feet of MDH’s recent acquisitions and developments in Phoenix; Streamwood, Ill.; Savannah, Ga.; Indianapolis; El Paso, Texas; and Ocala, Fla.

MDH CFO Arun Singh and Michael Loffredo, capital markets associate, secured the loan, which was originated by Capital One’s Senior Vice President Mary Lucy Lester.

MDH did not reply to Commercial Property Executive’s request for additional information.

The Frontier Loan is MDH’s second term financing deal with Capital One in the past 12 months. The first was the $59.5 million Gemini Loan that closed in July 2023. The Frontier Loan supports acquisitions and developments from MDH’s Fund II, a discretionary fund equating to $750 million of equity, with $2 billion in buying power.

READ ALSO: Top 5 Industrial Properties Under Construction in Phoenix

The loan expansion includes 800 Phoenix Lake Ave. in Streamwood, Ill., just west of Chicago’s O’Hare International Airport. The 152,000-square-foot Class A facility is fully leased to two users.

The other property in the expansion is Freeport Distribution Center in Phoenix, a fully leased 245,000-square-foot Class A industrial facility.

Watery woes

Last December, MDH scored a big win when it leased the entirety of the Ocala Logistics Center in Ocala, Fla., to BroadRange Logistics. Avison Young Principal & Managing Director Clay Witherspoon represented ownership, and Strategic Real Estate Partners Principal John Gosnell represented the tenant.

Although industrial real estate investment cooled across the globe during the first quarter, a recovery in demand is expected in the second half of this year, according to a JLL report released at the end of May. Rental growth, though slowing, remains positive.

The report notes that “… climate-related disruptions were evident in the Panama Canal. East Coast port markets in the U.S. are also dealing with the aftermath of the bridge collapse in Baltimore, which will shift sea cargo volumes to nearby ports in the short term while wreckage is cleared, and a temporary shipping lane is created.”

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The new owner paid $9.4 million for the neighborhood center and used a $9.9 million loan from Inland Mortgage Capital for the acquisition, according to CommercialEdge data. DRA Advisors had purchased the retail center for $11.9 million back in 1998.

Iroquois Center came online in 1981. Its tenant roster includes a diverse mix of national and regional retailers such as Planet Fitness, Duly Health and Care, Illiana Financial Credit Union, Cookies by Design, Spa Oasis, Travel Leaders and DPC Computer, among others.

READ ALSO: Retail Always Comes Back—and With New Twists: An Attorney’s Insights

Situated on some 12 acres at 1163 Ogden Ave., Iroquois Center is near Route 34 and Interstate 88, which allow easy access to downtown Chicago.

Mid-America Principals Joe Girardi, Rick Drogosz and Ben Wineman from the Investment Sales Group brokered the deal on behalf of the seller.

DRA’s strong activity in Chicagoland

Iroquois Center is just one of the many Chicagoland assets that DRA traded since the beginning of the year. Last month, the firm sold Townes Crossing, a 105,731-square-foot grocery-anchored retail center in Oswego, Ill. Other transactions involved the Marketplace at Six Corners, a 116,941-square-foot grocery-anchored shopping center in Chicago, and Oak Forest Commons, a 115,754-square-foot value-add retail asset in Oak Forest, Ill. 

According to a first-quarter Lee & Associates report, Chicago’s retail market is experiencing its highest demand for retail space since 2017, up by 1.9 million square feet year-over-year. Meanwhile, leasing activity marked another consecutive quarter of positive absorption since Q3 2021, leading to an availability rate below 6 percent, a record low.

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Stream Realty Partners has acquired Halsted Pershing Business Center, a 104,008-square-foot industrial facility in Chicago. Sagard Real Estate sold the asset for $19 million, according to CommercialEdge data.

An in-house team represented the buyer, while JLL Capital Markets worked on behalf of the seller. The property previously traded in 2014, when Dayton Street Partners sold it for $10.7 million, the same source shows.

The warehouse came online in 2009 and was fully leased to three tenants at the time of sale, including U.S. General Services Administration and Goodman, with a weighted average lease term of four years. The property has a recently renewed 6b tax classification.

READ ALSO: I.CON East Special Report: Industrial Opportunity Snapshot

The Class A facility features 10 dock-high loading doors and four drive-in doors with dock levelers and bumpers, as well as 30-foot clear heights. Additionally, the building has a 5 percent office build-out, refrigerated storage and 85 parking spaces.

The property sits on almost 7 acres at 815 W. Pershing Road, close to interstates 90 and 55. Chicago Midway International Airport and downtown Chicago are within 6 miles, while the O’Hare International Airport is 23 miles northwest.

Stream Executive Managing Director Patrick Russo, Manager Mustafa Ali and Associate Ben Harrison facilitated the acquisition. JLL Managing Directors Ed Halaburt and Kurt Sarbaugh, Senior Managing Directors Sean Devaney and John Huguenard, along with Director Will McCormack and Senior Vice President Michael Conway, represented the seller.

Chicago leads the Midwest in industrial sales

Chicago led the Midwest in terms of industrial transaction volume, registering $834 million in sales year-to-date through April, according to a CommercialEdge report. The metro also ranked fourth nationally, being surpassed by Dallas-Fort Worth ($1 billion), Los Angeles ($1.4 billion) and the Bay Area ($2.2 billion). Assets in the Windy City traded for $97 per square foot on average.

In April, Stonepeak acquired a 1.7 million-square-foot logistics portfolio for $125 million. CenterPoint Properties sold the three properties located in Elwood, Ill.

Other notable deals in the area include VK Industrial VI LP purchase of a 785,181-square-foot, two-building industrial portfolio in St. Charles, Ill. RR Donnelley sold the assets for $50.2 million, or about $63.9 per square foot.

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Venture One Real Estate has secured a 444,600-square-foot lease with John B. Sanfilippo & Son Inc. at Venture Park 47, an industrial building spanning 729,823 square feet in Huntley, Ill.

Lee & Associates brokered the deal, securing the long-term lease on behalf of the new tenant. Colliers represented the landlord.

This transaction marks the largest industrial lease of the second quarter in Chicago’s North Kane County submarket, and the fourth largest in the Chicago metropolitan area, according to Lee & Associates.

READ ALSO: The Case for Last-Mile Facilities

Venture Park 47 came online just last year, featuring 40-foot clear heights, a ESFR fire sprinkler system and 72 docks, expandable to 124, as well as 130 trailer parking spaces and approximately 448 car parking spaces. The developer broke ground on the $71.3 million speculative development at the 40-acre greenfield land site back in 2022.

Located at 12300 Jim Dhamer Drive, Venture Park 47 is within Chicago’s Golden Corridor submarket. The property is near Interstate 90, which allows easy access across the Chicago metropolitan area. The industrial asset is also roughly 30 miles west of Chicago’s O’Hare International Airport.

Lee & Associates’ Principals Frank Griffin and John Sharpe represented the tenant in the deal, while Colliers Vice Chair Brian Kling and Vice President Reed Adler worked on behalf of the owner.

Chicago leads the Midwest industrial market

As of April, the average industrial rent in Chicago clocked in at $6.09, a 5 percent increase over the past 12 months, according to a recent CommercialEdge report. Vacancy was at 5 percent, slightly below the 5.2 percent national rate.

In addition, the Windy City recorded the largest sales volume in the Midwest and the fourth-largest nationally, with industrial deals totaling $834 million in 2024’s first four months. During this period, the average sale price clocked in at $97 per square foot.

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Compass Datacenters, of Dallas, has begun work on a hyperscale data center campus in Hoffman Estates, Ill. The project is taking shape on the nearly 200-acre former Sears headquarters site.

The Chicago-area campus will include five hyperscale data centers and will be Compass’ first hyperscale campus in Illinois. The firm estimates the project’s value on completion at about $10 billion in local investment.

Commonwealth Edison, Northern Illinois’s largest electric utility, will provide infrastructure upgrades for the project, which will include a new onsite substation that will be energized in mid-2026.

READ ALSO: Prologis, Blackstone Double Down on Data Centers, but Hurdles Remain

The fate of Sears’ seven-building campus had been up in the air ever since the once-giant retailer filed for bankruptcy in 2018. Plummeting demand for office space during and since the pandemic didn’t help, making finding a new future for the site difficult.

Compass acquired the property in September 2023. The site is now being prepared for structural demolition, which will begin this summer. Construction is scheduled to start next year.

Compass CEO Chris Crosby said, in a prepared statement, the company is taking a methodical approach to demolition, so this work will take more than a year to complete. As the existing buildings come down, concrete, stone blocks and asphalt from the site will be repurposed as fill and as aggregate in concrete production. Compass uses an AI application to help optimize these types of locally available materials for concrete production to reduce greenhouse gas emissions.

A central hub

A JLL report on data centers in the U. S. highlighted metropolitan Chicago as a market that can anticipate substantial data center growth over the next five years.

In February, Edged Energy announced that its U.S. debut would consist of four data centers totaling more than 300 MW. One of the four will be a three-building, 96 MW facility in Aurora, Ill.

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Core Acquisitions has purchased Rice Lake Square, a 251,584-square-foot shopping center in Wheaton, Ill. The company purchased the asset for $34.2 million, with the help of a $24 million loan provided by Old National Bank, according to public records.

Grosvenor previously owned the value-add, grocery-anchored shopping center, CommercialEdge data shows. The firm had purchased Rice Lake Square two decades ago for $43.9 million.

Mid-America Real Estate Corp. brokered the transaction, with Principals Rick Drogosz and Stan Nitzberg from the Investment Sales Group working on behalf of the seller.

READ ALSO: How Retail Properties Are Getting Greener

At the time of the sale, Rice Lake Square was 76.2 percent leased. The tenant roster includes a diverse mix of retailers such as Pete’s Market, Studio Movie Grill, PetSmart, Orange Theory Fitness, Pure Barre, Potbelly Sandwich Shop, Honey Jam, Taco Bell, State Farm and Massage Envy, among others.

Located at 1 Rice Lake Square, the retail center is within Chicago’s Western East-West Corridor submarket. It is also situated off Butterfield Road and roughly 27 miles from Chicago.

Chicago retail demand surges

Mid-America has also arranged the largest transaction in Chicago’s retail market in the first quarter of this year. The brokerage company represented DRA Advisors in the $74.6 million acquisition of a 649,668-square-foot, open-air regional center in Orland Park, Ill.

Chicago’s retail market is experiencing its highest level of demand since 2017, according to a recent Lee & Associates report. Over the past year, demand for retail space in the metro increased by 1.9 million square feet. In the first quarter of 2024, the availability rate in Chicago decreased further to under 6 percent, reaching a record low.

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Like the online iteration of Wayfair, the physical store will offer furniture, home decor, housewares, appliances and home improvement products. Unlike the online store, there will be human beings on hand at the two-story physical store to provide home decor and improvement advice and in-person events organized for shoppers.

Some items will be available to takeaway immediately, as at a standard physical retail store, while the physical Wayfair will also function as a place where customers examine products in person for an online order and subsequent delivery. The store also includes a small cafe with simple meals, the better to keep shoppers on site longer.

The Wayfair company’s flagship brand is Wayfair, but there are other brands under its aegis, such as Allmodern, Birch Lane, Joss & Main and Perigold, each emphasizing different design aspirations for home-dwellers.

READ ALSO: Reimagining Retail

The roll out of physical locations will be a deliberative process, according to Wayfair Co-Founder & CEO Niraj Shah on the company’s most recent earnings call early in May. This will include some of the company’s other brands in the fullness of time.

“We’re only launching a couple stores for each of our brands and then iterating to make sure that we really dial it in before we then scale [to] make sure that the unit economics work the way we expect,” Shah said on the call. “We don’t necessarily expect that you get that right out the gate.”

The company’s roll out comes at a time of higher levels of e-commerce activity, but not high enough to replace the urge to shop in physical stores, according to a study by PYMNTS and Amazon Web Services. More than half of shoppers surveyed—53 percent—said they prefer to buy home goods in stores, the study notes.

Retail headwinds still strong

As a sector, retail real estate has faced a decade or more of sluggish demand for some categories, though it did see some rebound after pandemic-era restrictions were lifted. More recently, retail sales have turned in some sluggish numbers, with sales flat month-over-month in April 2024 and up 2.7 percent compared with a year ago, which doesn’t quite meet the rate of inflation for the same period (3.4 percent), according to the Census Bureau.

Home furnishing and furniture stores have been particularly hard-hit by consumers pulling back lately, with that category’s sales off 0.5 percent for the month in April 2024, and down 8.4 percent compared with a year ago, the bureau reports.

Wayfair is facing some of the same headwinds, with the company reporting a net loss of $248 million during the first quarter of 2024, though that was a year-over-year improvement compared with the net loss of $347 million during the first quarter of 2023.

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Janko Group has signed a full-building, 10-year lease at its Bristol Business Park in Bristol, Wis. ERMCO will fully occupy the 157,043-square-foot Building 4, set to move from its suburban Chicago location this summer. Cushman & Wakefield negotiated on behalf of both parties.

Janko Group obtained a $13.5 million construction loan for Building 4 from Central Bank Illinois and completed it in 2023, according to CommercialEdge.

Building 4 is a rear-load industrial facility at 10200 136th Ave. and features 32-foot clear heights, 4,000 amps of power, 30 exterior dock doors, two drive-in doors, and 215 vehicle parking spots.

READ ALSO: NAIOP Sentiment Index Points to Rising Optimism

The 11-acre industrial building is near Interstate 94, providing access to several transport hubs. It is 6 miles from Kenosha Regional Airport, 9 miles from Salem, Wis., 16 miles from Lindenhurst, Ill., 32 miles from Northbrook, Ill. and within 41 miles of Chicago O’Hare International Airport.

Bristol Business Park is a 250-acre master-planned property, designed to include nine industrial buildings at full build-out, encompassing 3 million square feet. These are set to range from 115,200 to 1.1 million square feet, with some in pre-development stages. The development team includes Peak Construction Corp. as general contractor, Harris Architects as architect of record and Manhard Consulting as civil engineer.

Cushman & Wakefield Executive Director Sean Kropke and Vice Chairman Keith Puritz worked on behalf of the tenant, while Vice Chairman Brett Kroner and Director Marc Samuels, together with Puritz, represented the landlord.

Earlier this month, Cushman & Wakefield brokered another industrial deal in the region—W.P. Carey signed a 1.6 million-square-foot lease in University Park, Ill. The tenant is a global tech company that will occupy the entire building at 701 Central Ave.

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First National Realty Partners has acquired Townes Crossing, a 105,731-square-foot grocery-anchored retail center in Oswego, Ill., in the Chicago area.

DRA Advisors sold the asset for $13.7 million, public records show. Furthermore, the buyer financed the purchase with a $7.5 million loan from WoodmenLife, due to mature in June 2030.

Cushman & Wakefield Executive Director Evan Halkias represented the seller in the off-market transaction. The property previously traded for $10.9 million in 2002.

READ ALSO: Street Retail Surges Toward Full Recovery

Jewel-Osco, an Albertsons subsidiary, has been anchoring Townes Crossing for more than 30 years with a 65,000-square-foot store. Other tenants include Phenix, Salon Suites, Oswego Dental, The Ups Store and Subway. The average tenure at the property exceeds 25 years, FNRP Vice President of Acquisitions Matt Annibale said in prepared remarks.

Townes Crossing came online in 1994 at the intersection of Douglas Road and Highway 30, some 43 miles from downtown Chicago and adjacent to the Settlers Landing shopping mall. Within a 5-mile radius of the retail center live more than 220,000 individuals with average household incomes exceeding $124,000, according to FNRP.

FNRP bullish on grocery-anchored retail

The Townes Crossing buy was the fourth off-market transaction for FNRP this year so far, CIO Mike Hazinski added. The company currently owns more than 60 properties across various commercial real estate sectors, having more than $2 billion in assets under management and operating in 26 states.

Last year, FNRP entered the Delaware market with the acquisition of Christina Crossing, a 119,446-square-foot grocery-anchored shopping center in Wilmington. The seller was also DRA Advisors.

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W. P. Carey has inked a 1.6 million-square-foot industrial lease at 701 Central Ave. in University Park, Ill., a Chicago submarket. A global tech and logistics company will occupy the entire building, marking the largest deal year-to-date in the market. This transaction closed in spite of a slowdown in larger industrial leases across the U.S.

Two Cushman & Wakefield teams brokered the agreement on behalf of the parties. The ownership executed several tenant buildout requirements before closing the deal. The property was previously leased to Dart Container Corp., a Mason subsidiary.

W. P. Carey acquired the asset in February 2014 for $80.7 million—or $51.96 per square foot—from Fulcrum Asset Advisors, according to CommercialEdge information. Since then, the company made multiple improvements at the 90-acre property, while also reducing the overall carbon footprint of the building.

READ ALSO: Chicago Industrial Market Outshines the Rest of the Midwest

The tenant will consolidate all its real estate footprint into this facility. The distribution center, completed in two phases between 2003 and 2005, features 32-foot clear heights, 120 dock-high loading doors and three drive-in doors with dock levelers and bumpers. Additionally, the cross-dock warehouse is climate controlled and has about 155 parking spaces.

The building provides easy access to Interstate 57 and Highway 50, while downtown Chicago is some 35 miles away. Port of Chicago is within 28 miles and Chicago O’Hare International Airport is less than 50 miles northwest.

Cushman & Wakefield Vice Chair Sean Henrick and Managing Director Ryan Klink represented the landlord, while Executive Vice Chair Jason West, Vice Chair Lou D’Avanzo and International Partner Adam Cooke worked for the tenant.

Larger industrial leases are still happening in Chicago

Chicago’s industrial vacancy rate as of March clocked in at 6.1 percent, 90 basis points higher than the national average, according to the latest CommercialEdge industrial report. The metro’s average rent during the same month stood at $6.06, representing a 4.7 percent year-over-year increase.

Crow Holdings recently leased its more than 1 million-square-foot facility in Merrillville, Ind. A major e-commerce company will fully occupy the building. Another notable deal in the area was Norkol Converting Corp.’s leasing agreement at CenterPoint Properties’ 88 Industrial Center in Montgomery, Ill. The firm committed to 330,694 square feet, a third of the building’s capacity.

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Benefiting from its central location, robust rail and airport systems, Chicago is becoming an ideal hub for freight consolidation, distribution and cross-docking services.  

The metro recorded industrial sales amounting to $435.2 million in the first two months of 2024. Additionally, Chicago had the largest under-construction pipeline in the Midwest, with approximately 11.4 million square feet of industrial space underway.

A leader in industrial sales

Chicago registered the largest sales volume in the Midwest and the second-largest nationwide, with industrial sales amounting to $435.2 million in February, according to CommercialEdge data. A total of 50 properties changed hands within the metro, totaling 6.4 million square feet. By comparison, Chicago saw roughly $111.2 million in industrial sales in the same period of last year.

When it comes to the average price per square foot in February, Chicago’s $97 lagged other peer markets, while Los Angeles ($320), the Bay Area ($274), Seattle ($256) and New Jersey ($249) were the priciest metros.

At the beginning of this year, VK Industrial VI LP—an acquisition fund managed by Venture One Real Estate and Kovitz Investment Group— expanded its footprint in the metro with the $50.2 million acquisition of a 785,181-square-foot, two-building industrial portfolio located at 609 S. Kirk Road and 1750 Wallace Ave. in St. Charles, Ill.

In 2023, the metro’s sales volume amounted to $2.1 billion, with 241 properties trading at the average price per square foot of $89.21. Among peer markets, New Jersey ($2.6 billion) and the Inland Empire ($3.8 billion) recorded higher total sales volumes.

Largest pipeline in the Midwest

Chicago also had the largest under-construction pipeline in the Midwest as of February, CommercialEdge data shows. Approximately 11.4 million square feet of industrial space across 32 properties was under construction within the market—representing 1.1 percent of total stock, below the national average of 2 percent. This is a major increase when compared to the same period last year, when 1.2 million square feet were underway.

Among peer markets, New Jersey (1.3 percent), Indianapolis (1 percent) and The Inland Empire (1.4 percent) had similar pipelines, while Phoenix (10.9 percent) reported the highest figure.

In the first two months of this year, only three properties amounting to 440,400 square feet of industrial space broke ground.

Logistics Property Co. is expected to deliver soon the first multi-story industrial project in Chicago. After the acquisition of land for the logistics campus and the city council’s approval for the approximately 600,000-square-foot facility, the developer secured $150 million in construction financing for the development of 1237 West Division.

Maintaining a consistent delivery pace

Year-to-date through February, 12 facilities totaling around 5.6 million square feet—0.5 percent of total stock—were completed. The numbers are similar with the ones recorded in the same period last year, when approximately 5.3 million square feet of industrial space was delivered across 18 properties (0.5 percent of total stock).

In 2023, a total of 78 properties comprising more than 28.9 million of square feet came online within the Chicago market, accounting for 2.7 percent of total stock—lower than the national average of 3.1 percent.

Bridge Industrial has recently completed the 669,914-square-foot Building and the 707,953-square-foot Building 3 of Bridge Point Melrose Park, a cutting-edge industrial campus that will exceed 1.5 million square feet in the coveted O’Hare submarket in Melrose Park, Ill.

Vacancy rates exceed national average

As of February, 5.2 percent of industrial space was vacant within the metro, 20 basis points higher than the national average. However, Chicago was second on the largest vacancy rate list, following the Inland Empire (6 percent). Other markets recorded lower vacancy rates, such as Indianapolis (3.1) and Phoenix (3.2). In the same period last year, Chicago’s vacancy rate was at 4.4 percent, still higher than the national average of 3.9 percent.

February’s average asking rate in Chicago stood at $6.00 per square foot, nearly $1.7 lower than the U.S. average. All Midwestern markets recorded asking rents below the national average of $7.68 per square foot, with Detroit ($6.79) and the Twin Cities ($6.77) coming the closest to the national figure. Chicago and St. Louis ($6.06 per square foot) were the only other Midwestern markets to hit or exceed the $6 per-square-foot average.

In one of the largest recent industrial deals in Greater Chicago, Crow Holdings signed a full-building lease with a major e-commerce company at 9850 Mississippi St. in Merrillville, Ind. The more than 1 million-square-foot industrial facility came online last September as part of the 195-acre Silos at Sanders Farm master plan.

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Ann & Robert H. Lurie Children’s Hospital of Chicago has broken ground on a 75,000-square-foot outpatient facility in Schaumburg, Ill. The Lurie Children’s Schaumburg Outpatient, Primary Care and Infusion Center will expand the medical provider’s footprint in Chicago’s northwestern suburbs.

The development team includes Skender as general contractor, HKS as architect, IMEG Corp. as structural and mechanical engineer and V3 Cos. as civil engineer. The medical office building is slated for completion in the summer of 2025 and will receive patients that same year in August.

Upon delivery, the property will host 40 exam and treatment rooms and will offer primary care, ancillary and diagnostic services, orthotics and prosthetics, laboratory and pharmacy services, as well as an ambulatory infusion center with the capacity to expand services. Lurie’s new clinic will replace other smaller Illinois locations in Arlington Heights, Hoffman Estates and Huntley.

Project approval timeline

The Lurie Children’s Hospital first proposed the development back in September 2022, with the Illinois Health Facilities & Services Review Board scheduling a public hearing for later that year. Over the next few months, progress was made, as the Schaumburg trustees were considering the approval of the three-story building in October 2023, according to the Daily Herald. According to the filed proposal, the investment would have amounted to more than $60 million and the future facility could have received 60,000 patient visits in the first year.

The outpatient facility is taking shape on 5.7 acres at 1895 Arbor Glen Blvd., at the northwest corner of Roselle Road and Hillcrest Boulevard. The location has access to Interstate 90, with downtown Chicago some 30 miles away. Other medical providers in the surrounding area include MedCoa Clinic, NCH Medical Group Primary and Specialty Care and Rapid Immediate Care, among others.

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The sale price for the fully leased portfolio was $125 million, according to IPE Real Assets.

The properties are located in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave. and 26634 Mississippi Ave.

The portfolio is situated in the CenterPoint Intermodal Center–Joliet/Elwood, the largest inland port in North America. It is anchored by BNSF and Union Pacific Class I rail intermodal terminals. The 6,400-acre intermodal port and industrial park is adjacent to Interstate 55 and about 40 miles southwest of Chicago.

READ ALSO: Getting in the Heads of Industrial Tenants

All six Class I railroads converge in Chicago, with 25 percent of U.S. freight trains and half of all intermodal trains passing through. The Midwest Chicago market is a strategic transportation hub with a one-day delivery window to nearly 55 million households in the U.S.

Infrastructure, supply chain focus

Stonepeak specializes in infrastructure and real assets with approximately $65.1 billion of assets under management. The Chicago market portfolio investment represents the team’s continued focus on supply chain real estate anchored by essential inland and coastal port infrastructure.

In October, Stonepeak sold the Omni Industrial Campus, a 1.3 million-square-foot logistics portfolio located in Summerville, S.C., near the Port of Charleston to Rockpoint. Stonepeak made its initial investment in the 100-acre campus in December 2021.

The team targets mission-critical opportunities supported by strong macro tailwinds that have durable cash flow profiles, embedded demand drivers, high barriers to entry and inflation protection. Stonepeak sponsors investment vehicles focused on private equity and credit, while providing capital, operational support and partnership in its target sectors. The firm is also seeking to raise about $1 billion for its first real estate fund, which will focus on acquisitions in U.S. industrial, residential, health-care and technology-based real estate, according to IPE Real Assets. As of August, Stonepeak was halfway to its goal, the publication reported.

In April 2022, Stonepeak closed an equity recapitalization of hyperscale provider Cologix, valued at $3 billion. The transaction was structured as a sale by Stonepeak Infrastructure Fund II LP and co-investors to Stonepeak-managed vehicles.

The post Stonepeak Wraps $125M Portfolio Acquisition appeared first on Commercial Property Executive.

In collaboration with its national strategic development partner, Saxum Real Estate, the Atlanta-based Arcadia intends to build a combined 600,000 square feet of space, providing support for more than 80,000 pallet positions of frozen and refrigerated capacity. Arcadia states that this space will be used for its “current client base and to satisfy demand from regional and national food manufacturers, retailers and foodservice providers….”

An Arcadia Cold spokesperson was unable to provide any additional information on either of the projects, including their dollar values or exact locations.

READ ALSO: Getting in the Heads of Industrial Tenants

The company’s website, however, does state that the first facility will be 294,000 square feet and handle 40,000 pallet positions, suggesting that the two buildings will be similar in size.

According to a company statement, the demand for cold storage facilities in the Chicago area is driven by the city’s strategic position as a major transportation hub and its status as a key player in the food distribution industry.

Established in April 2021, Arcadia Cold specializes in providing third-party handling, storage, distribution and value-added services to the food industry.

Heated expansion

Especially considering the cost and complexity of developing cold storage facilities, Arcadia’s expansion since its founding has been aggressive. The company recently announced plans to build a facility in Charleston, S.C., which is in addition to multiple other projects.

•  In March of last year, Arcadia preleased a 293,000-square-foot asset in metro Phoenix, then under development by Ti Cold and BentallGreenOak.

•  The following month, Arcadia began construction of a 216,297-square-foot facility in Jacksonville, Fla. The 30,254-pallet asset will come online later this year.

•  And in December, the company opened a 250,000-square-foot facility in Sparks, Nev. Reportedly the first cold storage facility in metro Reno, Nev., the 37,000-pallet property was designed and built by Ti Cold.

Nationally, at least a net 3.2 million square feet of cold storage space was absorbed in each of the past four years, an amount that exceeded the 2007–19 yearly average by more than 11 percent, according to a brand-new report from Marcus & Millichap.

Further, Arcadia’s three locations just above are consistent with U.S. population shifts, which have seen Arizona, Florida and Nevada grow, at the expense of California and the Northeast, Marcus & Millichap noted.

The post Arcadia Cold Eyes Chicago Growth Spurt appeared first on Commercial Property Executive.

DRA Advisors has sold Marketplace at Six Corners, a 116,941-square-foot grocery-anchored urban shopping center in Chicago.

NewMark Merrill acquired the asset for $22.4 million and financed the purchase with a $14.9 million loan from United Omaha Life Insurance Co., public records show.

Mid-America Real Estate Corp. Principal Rick Drogosz represented the seller. The retail center was managed by Pine Tree at the time of closing.

Anchored by Jewel-Osco, Marshalls, PetSmart and Famous Footwear, Marketplace at Six Corners has a desirable mix of credit tenancy and near-term value-add opportunities.

Marketplace at Six Corners came online in 1997 encompassing 340,000 square feet—a 220,000-square-foot renovated Sears dating back to the 1930s, a 70,000-square-foot Jewel-Osco and 50,000 square feet of additional retail. The Sears store closed in 2018 and later on became subject to adaptive reuse, being redeveloped into a six-story residential building.

Located on 10 acres at 4660 W. Irving Park Road in the historic shopping district of Six Corners, the retail center serves a population of approximately 1.1 million within a 5-mile radius, according to Pine Tree. The property is adjacent to the heavily trafficked intersection of three major thoroughfares—Irving Park Road, Cicero Avenue and North Milwaukee Avenue—where the daily traffic count reaches around 90,000 vehicles.

One more Chicago sale for DRA Advisors

Marketplace at Six Corners is just one of several retail assets DRA Advisors has recently transacted in the Chicago market. Mid-America brokers represented the company in all deals.

Last month, the company sold a 115,754-square-foot value-add shopping center in Oak Forest, Ill., to First Tek. The buyer had previously acquired a 172,697-square-foot retail center in Darien, Ill., from DRA.

Also in March, DRA sold a 649,668-square-foot open-air regional center in Orland Park, Ill., after nearly 20 years of ownership. PMAT purchased the asset for $74.6 million.

The post NewMark Merrill Buys Chicago Shopping Center appeared first on Commercial Property Executive.

In one of the largest recent industrial deals in Greater Chicago, Crow Holdings has signed a full-building lease at 9850 Mississippi St. in Merrillville, Ind. The more than 1 million-square-foot industrial facility is part of the 195-acre Silos at Sanders Farm master plan.

KBC Advisors Partner Ryan O’Leary advised the tenant, a major e-commerce company, while Avison Young Principals Adam Haefner, Marty Mikaitis and Zeke Rowan represented the landlord.

The Class A warehouse came online last September. In 2022, the developer took out a $58.8 million construction loan originated by First National Bank of Omaha, according to CommercialEdge data. That note matures in 2026.

READ ALSO: Getting in the Heads of Industrial Tenants

The distribution center rises on 79 acres and features 134 dock-high loading doors, four drive-in doors, 40-foot clear heights, 250 trailer stalls and almost 440 parking spaces. Located close to Interstate 65, the facility is some 47 miles from downtown Chicago, while the Port of Chicago is 31 miles away.

The building is part of Silos at Sanders Farm’s Phase One, that also includes a 263,846-square-foot building with 35 dock loading doors and 60 trailer parking spaces. When complete, the $500 million master-planned campus will comprise more than 2 million square feet of industrial space.

Chicago’s industrial sector remains steady

Even though Chicago’s vacancy rate as of February clocked in at 5.2 percent, 20 basis point higher than the national average, the metro is still performing well, according to a recent CommercialEdge industrial report. The average asking rate was $6.00, nearly $1.7 lower than the U.S. average. Meanwhile, the market registered the second-largest sales volume nationwide, standing at $373 million.

In February, Tru Vue signed a full-building, 299,200-square-foot lease extension at High Street Logistics Properties’ facility in McCook, Ill. The manufacturer had sold the asset to the current landlord in 2020.

Other notable deals included Norkol Converting Corp.’s commitment to 330,694 square feet at CenterPoint Properties’ 88 Industrial Center in Montgomery, Ill. The firm will relocate from Northlake, Ill., after 37 years.

The post Crow Holdings Inks 1 MSF Chicago-Area Lease appeared first on Commercial Property Executive.

First Tek has purchased Oak Forest Commons, a 115,754-square-foot value-add shopping center in Oak Forest, Ill. DRA Advisors sold the asset with the assistance of Mid-America Real Estate Corp.

Oak Forest Commons’s tenant roster includes a diverse mix of national retailers such as Great Clips, Dotty’s, Anytime Fitness, Forever Grace, Munchy Flames and Drippy Smoke. Pine Tree was the asset’s property manager at the time of its sale.

Located at the corner of 159th Street and Central Avenue, Oak Forest Commons serves more than 81,000 individuals within a 3-mile radius, with an average household income of approximately $94,000, according to Mid-America. The firm’s Principals Rick Drogosz, Ben Wineman and Joe Girardi represented DRA Advisors.

A long history of Chicago retail transactions

In fact, Oak Forest Commons was not the first retail asset acquired by First Tek from DRA Advisors. At the end of last year, the firm purchased a 172,697-square-foot retail center in Darien, Ill., in a transaction arranged by the same Mid-America brokers.

On the other hand, DRA has sold several Chicago-area assets in recent months. One of them was Orland Park Place, a 649,668-square-foot open-air regional center in Orland Park, Ill., that changed hands for $74.6 million. Once again, Mid-America brokered the deal on behalf of the seller.

According to a recent Lee & Associates report, one of the metro’s largest sale transactions by square foot in the fourth quarter of last year also involved a DRA Advisors property. In November, PMAT acquired the 317,006-square-foot shopping center in Crystal Lake, Ill., for $32.4 million or $102.2 per square foot.

The post DRA Advisors Sells Chicago Value-Add Shopping Center appeared first on Commercial Property Executive.

The tenant roster at Orland Park Place features a diverse mix of national retailers including Nordstrom Rack, Dick’s Sporting Goods, Marshalls, Ross Dress for Less, Hobby Lobby, Old Navy, Barnes & Noble, DSW and Ashley Furniture. Steinhafels will fill a former Bed Bath & Beyond store. At the time of the sale, the shopping center was 87 percent occupied.

Mid-America Real Estate Corp. brokered the transaction, with Principals Ben Wineman, Rick Drogosz and Joe Girardi from the Investment Sales Group working on behalf of the seller. Pine Tree managed the shopping center.

READ ALSO: As Grocers Grow Faster, Investor Interest Heats Up

DRA Advisors sold the open-air regional center as part of its strategy to offload a $2.3 billion portfolio it acquired in 2016, The Real Deal reported. The company purchased Orland Park Place almost two decades ago for $76.9 million, Yardi Matrix data shows.  

Chicago’s retail rebound

Located on some 45 acres, the retail center is within Chicago’s Southwest Cook County submarket. Orland Park Place serves more than 160,000 residents within a 5-mile radius, with an average household income exceeding $133,000, according to Mid-America.

At the end of last year, DRA sold a 172,697-square-foot retail center in Darien, Ill., in a transaction arranged by Mid-America. PMAT has also recently sold a 124,005-square-foot shopping center in Downers Grove, Ill. Broder & Sachse Real Estate purchased the property, while Mid-America brokered the deal.

Chicago’s overall retail vacancy rate stood at its lowest year-end point on record in 2023, according to Marcus & Millichap. In a recent report, CBRE also noted that the market’s availability will continue to decline. Absorption is expected to remain strong, as retailers expand into prime space, following in-city migration trends to emerging districts, .

The post PMAT Pays $75M for Suburban Chicago Shopping Center appeared first on Commercial Property Executive.

Mid-America Real Estate Corp. brokered the transaction, with Principal Ben Wineman and Vice President Emily Gadomski working on behalf of the seller. At the time of the sale, the retail center was 94 percent leased.

PMAT purchased Downers Park Plaza back in 2018 for $25 million, according to CommercialEdge data. Protective Life Insurance Co. provided the acquisition loan, the same source shows.

Shop & Save Market anchors the shopping center, along with Dollar Tree, Phenix Salon Suites, Super CDA, Quilters Quest, CosmoProf, AAA and Hallmark. TJ Maxx/HomeGoods, Best Buy and Old Navy, among others, shadow-anchor the property. 

The 21-acre Downers Park Plaza is at 7241 Lemont Road, within DuPage County. The retail center serves several nearby suburbs such as Darien, Westmont and Woodridge. The property is part of the 75th Street retail corridor, where the daily traffic count reaches approximately 61,000 vehicles, according to PMAT.

Downers Park Plaza serves around 231,000 individuals within a five-mile radius, with the average income of approximately $112,000. Downers Park Plaza is near Interstate 355, which allows easy access across the Chicago metropolitan area.

In the fourth quarter of last year, PMAT purchased a 317,006-square-foot grocery-anchored shopping center in Crystal Lake, Ill. Mid-America brokered the transaction.

The post PMAT Sells Chicago-Area Shopping Center appeared first on Commercial Property Executive.

Ivanhoé Cambridge and Hines have signed a lease agreement with Pinterest at 10 and 120 S. Riverside Plaza, a two-building office complex in Chicago’s West Loop. The company committed to 24,000 square feet at the 1.4 million-square-foot Class A campus.

JLL negotiated the deal on behalf of Pinterest. The tenant plans to invest $750,000 in building out the new space at 120 S. Riverside. The move is scheduled for March 2024, according to Inteligence360.

The Pinterest lease is one of the three new deals, totaling 75,000 square feet, that were signed at the property in recent months. The other two tenants were Attorneys’ Liability Assurance Society, which leased 37,000 square feet, and Syska Hennessy Group, which committed to 14,000 square feet. The office campus has seen approximately 156,000 square feet of new leases and renewals over the last 12 months.

Redevelopment plans underway

Ivanhoé Cambridge has owned the office campus since 2013, when it purchased the property for $361 million from TIER REIT Inc., according to CommercialEdge information. Hines manages the property, while CBRE serves as exclusive leasing broker.

The 22-story building at 10 S. Riverside Plaza came online in 1965 and underwent renovations in 1999 and 2015, CommercialEdge data shows. The 705,406-square-foot mid-rise features 32,071-square-foot floorplates, 30,277 square feet of first floor retail space, 12 passenger elevators and a fitness center. Current tenants at the LEED Gold-certified property include Vestor Capital, National Equity Fund, Regus and Adage Technologies, among others.

120 S. Riverside Plaza encompasses 705,574 square feet of space across 21 floors and includes floorplates between 32,071 square feet and 37,549 square feet, 39,905 square feet of first floor retail space and access to its twin building. The tenant roster features DialogTech, Goldberg Law Group, PMCF Investment Banking and Mediaocean, among others, the same source reveals.

The two-building office complex is currently undergoing a $75 million redevelopment plan, expected to be completed in the last quarter of 2024. The redevelopment consists of the lobby’s expansion, the addition of monument signage, an upgraded plaza with open ample seating, an indoor and outdoor lounge, a conference center with the capacity to accommodate 200 guests, an upgraded fitness center, adjacent pickleball court and river-facing balconies.

The two-building property is across Chicago River, close to multiple bus, subway and train stations, while being 10 miles from Chicago Midway International Airport, 17 miles from O’Hare International Airport, 32 miles from Naperville, Ill., and within 40 miles of Aurora, Ill.

JLL’s Executive Managing Directors Travis James and Hugh Scott, together with Executive Vice President Scott Becker, Managing Director Rob Schmidt and Associate Eddie Viliunas represented Pinterest in the transaction.

Chicago’s office leasing activity in January

Office markets in the Midwest region continue to post some of the most affordable asking rental rates in the U.S., a recent CommercialEdge report shows. Chicago’s average asking rent of $27.35 per square foot ranked as the sixth-lowest in the country, while being the most expensive in the Midwest.

Recent leases signed since the beginning of the year include Heitman’s 100,000-square-foot extension at 353 N. Clark St. in Chicago’s River North area. Financial services company Mesirow will continue to use more than 100,000 square feet at the 1.2 million-square-foot office tower.

AmTrust Realty also secured two lease renewals totaling 20,000 square feet at its office building in Chicago’s Central Loop. Advocate Commercial Real Estate Advisors negotiated on behalf of the tenants, law firm Heyl, Royster, Voelker & Allen, P.C. and non-profit organization KIPP Foundation.

The post Ivanhoé, Hines Welcome Pinterest at Chicago Campus appeared first on Commercial Property Executive.

A joint venture between Trammell Crow Co. and Beacon Capital Partners has topped out Hyde Park Labs, a 302,388-square-foot life science development in Chicago’s South Side neighborhood. Base completion is scheduled for the fourth quarter of this year, with first tenants expected to move in by early 2025.

The developer started vertical construction on the project last February. Earlier this month, CalSTRS provided a $136 million loan maturing in July 2025, public records show.

Development partners include general contractors Power Construction and Ujamaa Construction, along with architecture firms Elkus Manfredi Architects and Interactive Design Architects. CBRE Executive Vice President Dan Lyne and Advisor Brandon Green are spearheading the leasing efforts.

READ ALSO: Attracting Life Science Tenants in Core Markets

The University of Chicago has already preleased 55,000 square feet at the 13-story tower. UChicago partnered with CIC for the creation of a lab incubator supporting start-up companies and early-stage science research.

According to an Avison Young report, the Chicago market had 509,360 square feet of lab/R&D space under development in the fourth quarter of last year. A total of 54.7 percent of the approximately 1.9 million-square-foot existing inventory was vacant at the time.

Hyde Park Labs, up close

Part of the second phase of a mixed-use development dubbed Harper Court, Hyde Park Labs will consist of nine full floors of lab and office space atop four levels of parking, one of which will be below-grade. The mid-rise averages 34,450-square-foot floorplates and will have 14.5- and 15.5-foot floor-to-ceiling windows, three passenger elevators and about 4,200 square feet of chemical storage space.

Other features at the Class A building are set to include a lobby, first-floor retail space and 40,000 square feet of amenity space, comprising private terraces on every level, an indoor bar and lounge, an executive boardroom, a STEM engagement center for students on the ground floor and a fifth-floor terrace—dubbed The Lawn—with grills and firepits. The facility was designed according to LEED and WELL standards.

The transit-oriented building is at 5207 Harper Court, close to a host of dining and retail opportunities and 7 miles from downtown Chicago. Chicago Midway International Airport is 13 miles away.

The 650,000-square-foot first phase of the Harper Court mixed-use development came online in 2013. Already-completed buildings within the master plan include a 12-story office tower that houses UChicago’s administrative offices, a 131-key hotel and more than 80,000 square feet of retail space.

Trammell Crow’s life science expansion

Over the last decade, Trammell Crow has developed more than $5.2 billion worth of laboratories, health-care real estate and life science assets, totaling about 6 million square feet, across the U.S.

In July, a partnership between TCC and CBRE Investment Management broke ground on a 234,000-square-foot life science development in Redwood City, Calif. The five-floor building is expected to come online by the end of the year.

A few months earlier, the firm announced the redevelopment of a 1 million-square-foot, mixed-use campus in Boston. The two-phase project is set to feature 771,000 square feet of life science, office and retail space, along with a residential component.

The post Trammell Crow JV Tops Out Chicago Life Science Project appeared first on Commercial Property Executive.

High Street Logistics Properties has signed a 299,200-square-foot industrial lease extension in McCook, Ill. The tenant is Tru Vue, a manufacturer of glazing products and technical glass which fully occupies the building. Fischer and Co. represented the tenant, while Lee & Associates negotiated on behalf of the landlord.

High Street picked up the property in 2020 from Tru Vue for $25.1 million, according to Cook County public records. United of Omaha Life Insurance Co. provided a $13.4 million acquisition loan, with the maturity date set in 2027.

The one-story Class A industrial building is at 9400 W. 55th St. and includes 30-foot clear heights, HVAC climate control systems, ESFR sprinklers, 24 loading docks, three drive-in doors, 20 trailer parking spots and 245 vehicle parking spots.

The 11-acre property allows easy access to interstates 55 and 294, while being 8 miles from Chicago Midway International Airport, 15 miles from downtown Chicago, 16 miles from Naperville, Ill., and within 33 miles of Aurora, Ill.

Lee & Associates Principals Terry Grapenthin and Ryan Earley represented High Street. Fischer and Co., with the assistance of Lee & Associates Principal Tom Condon, worked on behalf of Tru Vue.

Industrial leasing in Chicagoland

According to a recent CommercialEdge report, rent growth was the slowest in the U.S. across Midwestern markets, with Chicago seeing 3.8 percent growth of in-place rents in the last 12 months. The vacancy rate clocked in at 4 percent as of December, fourth in the region but below the national 4.6 percent.

Significant leasing deals included CenterPoint Properties’ 330,694-square-foot commitment at CenterPoint 88 Industrial Center in Montgomery, Ill. NAI Hiffman negotiated the long-term lease on behalf of the tenant, which will relocate its headquarters at the 992,462-square-foot property.

In late 2023, LaSalle Investment Management signed a 106,100-square-foot renewal at 2551-2561 Allan Drive in Elk Grove, Ill. Colliers represented the tenant.

The post High Street Logistics Inks 230 KSF Chicago-Area Lease appeared first on Commercial Property Executive.

Seefried Properties has sold a 144,414-square-foot facility in Elgin, Ill., a Chicago submarket. Plastic molded parts manufacturer Component Plastics Inc. purchased the asset for $19.4 million, public records show. Cushman & Wakefield represented the seller, while Core Industrial Realty worked on behalf of the buyer.

The recently completed warehouse is part of a two-building campus totaling 465,360 square feet that broke ground last July. Partners on the development included general contractor FCL Builder, civil engineer Spaceco and Harris Architects as the architect of record.

The rear-load facility features 32-foot clear heights, 19 dock-high loading doors and two drive-in doors, along with 205 car parking stalls. The other building, scheduled for shell completion this March, will have 36-foot clear heights, 42 dock-high loading doors, two drive-in doors and 259 parking spots.

The property is at 1705 Madeline Lane, 43 miles from downtown Chicago and 29 miles from O’Hare International Airport. The Port of Chicago is within 56 miles southeast. The warehouse is also some 15 miles from a 785,181-square-foot portfolio that recently traded for $50.2 million.

Core Industrial Realty Managing Broker Noel Liston represented the buyer, while Cushman & Wakefield Executive Vice Chair Jason West and Executive Director Doug Pilcher represented Seefried. Last year, West was part of the team tapped to lease Oak Forest Logistics Center, a 664,453-square-foot building in a Chicago submarket.

The Windy City’s steady industrial sector

According to the latest CommercialEdge industrial report, Chicago saw almost $2.3 billion in assets change hands last year, ranking in the top 10 markets across the country. Los Angeles ($4 billion), the Inland Empire ($3.9 billion) and Dallas ($3.4 billion) are some of the metros that surpassed the Windy City. Properties in the metro traded at an average of $92 per square feet, considerably lower than the $129 national figure.

In November, Hines acquired Chicago Prime Portfolio, a 1.1 million-square-foot industrial campus. The two-building property was fully leased at the time of sale.

A few months earlier, Venture One Real Estate acquired a 404,953-square-foot industrial portfolio from The Visual Pak Cos. The asset traded in a sale-leaseback deal.

The post Seefried Sells 144 KSF Chicago-Area Facility appeared first on Commercial Property Executive.

A joint venture between Remedy Medical Properties and Kayne Anderson Real Estate has acquired a four-building medical office portfolio for $86 million.

Flagler Healthcare Investments sold the 181,000-square-foot property collection, which is spread over the areas of Phoenix, Chicago and South Florida. JLL Capital Markets represented the seller and procured the buyers.

Remedy Medical and Kayne Anderson have recently acquired another MOB asset in Chicago. In November, the longtime partners picked up RUSH Oak Brook Medical Center for $71 million.

The JLL team overseeing the most recent transaction was led by Senior Managing Director Mindy Berman, Director Matt DiCesare and Associate Liam Sorensen.

Diverse buildings, diverse practices

The four properties now under the joint venture’s ownership are located in Boynton Beach, Fla., Elgin, Ill., and Phoenix. 

The Boynton properties are Health City I & II, two buildings that were completed in 2016. Located at 10275 and 10383 Hagen Road, the properties total nearly 35,000 square feet, according to CommercialEdge information. The same source shows that Health City I is primarily devoted to orthopedics, while Health City II, called the Boynton Pediatric & Dermatology Center, is leased to local practices of the same name. Flagler purchased both buildings in 2019.

READ ALSO: Medical Office Real Estate Trends to Watch in 2024

The buildings sit at the rim of Baptist Health City, a 133,000-square foot medical office complex owned by Invesco. Other neighbors include dermatology and rehabilitation facilities, located along Florida’s Turnpike, as well as Boynton Beach Boulevard.

The Elgin Professional Plaza, located at 750 Fletcher Drive in the Chicago submarket of the same name, is a 52,157-square-foot property that Flagler bought for $13.3 million in 2019, according to CommercialEdge information. Built in 2003, the property is currently leased to tenants with specialties in family practice; ophthalmology; ear, nose & throat; urology and medical imaging, in addition to housing dental and physical therapy practices. Also located in a small medical corridor, the Plaza is neighbored by another office building, as well as an outpatient care center.

The joint venture’s Phoenix purchase is Oasis Surgical Hospital, a facility devoted to orthopedic surgery and sports medicine. The property sits adjacent to Loop 202, giving it highway access to much of Maricopa County.

Medical offices stay good health

Like their relatives in life science, medical offices continue to perform strongly relative to an otherwise struggling office sector. Nevertheless, the sector is feeling the pain from high interest rates. In October 2023, a market update from Institutional Property Advisors indicated that transaction volumes nationwide fell by an average of 30 percent year-over-year through June, while sale prices slumped by 3 percent.

Adaptive reuse for medical offices has enjoyed a recent surge in popularity. Last month, NYU Langone Health opened a 260,000-square-foot ambulatory center in Garden City, N.Y., previously home to two department stores. That same week, EverGreen Health expanded to a 26,000-square-foot lease at the Woodlands Medical Plaza in Bothell, Wash, which was formerly an office building.

The post Remedy Medical, Kayne Anderson Pay $86M for MOB Portfolio appeared first on Commercial Property Executive.

Norkol Converting Corp. has signed a 330,694-square-foot lease at CenterPoint Properties‘ 88 Industrial Center in Montgomery, Ill. The commercial printing paper and packaging provider will relocate its headquarters within the 992,462-square-foot property.

NAI Hiffman negotiated the long-term agreement on behalf of the tenant, while DarwinPW Realty represented the landlord.

Norkol will move its manufacturing operation this spring from its current location at 11650 W. Grand Ave. in Northlake, Ill., which served as its headquarters for 37 years.

CenterPoint 88 Industrial Center is at 900 Knell Road and includes 30-foot clear heights, nine drive-in doors, 47 exterior dock doors, 32 interior docks, a 2,000-square-foot office space, 618 vehicle and 184 trailer parking spots. The property was built in 1960 and renovated in 2000. CenterPoint 88 Industrial Center is also rail-served by BNSF Railway. Another major tenant is DSV Solution, which occupies 456,817 square feet, CommercialEdge data shows.

The 49-acre property has access to rail via BNSF, which was an essential feature for the new tenant, according to NAI Hiffman’s Executive Vice President, Dan Leahy. It is also close to Interstate 88, 12 miles from Naperville, Ill., 40 miles from O’Hare International Airport and within 45 miles of Chicago Midway International Airport.

Leahy worked on behalf of Norkol, while DarwinPW Realty’s team representing the owner included President Rick Daly and Managing Broker George Cibula.

Future improvements

Norkol is planning significant improvements to the space, including upgrades to the truck courts, power capacity, sprinkler systems and lighting, while also looking to demolish an existing 30,000-square-foot mezzanine. Plans also include the enclosure of 10 interior docks and reactivation of the rail spur.

Recent significant lease deals across metro Chicago included LaSalle Investment Management’s 106,100-square-foot renewal at 2551-2561 Allan Drive in Elk Grove Village, Ill. Colliers negotiated on behalf of the tenant, Logisteed America Inc.

In August last year, PrimeSource subsidiary Wolf Home Products announced the opening of its 1 million-square-foot warehouse and distribution center at Elion Logistics Park 55, the 2,500-acre master-planned project in Wilmington, Ill. The company will fully occupy Building VI, with plans to commence full operations in early 2024,

The post CenterPoint Signs 330 KSF Chicago-Area Industrial Lease appeared first on Commercial Property Executive.

Avgeris and Associates, Inc. has acquired International Corporate Park, a 459,927-square foot two-building asset in Vernon Hills, Ill. The company partnered with The Missner Group and Wylie Capital for the redevelopment of the former American Hotel Register property. The project is expected to commence later this year, with The Missner Group as general contractor.

The new ownership paid approximately $30 million for the property, TheRealDeal reported. The same source reveals that the redevelopment project is financed by a $22 million construction loan.

American Hotel Register Co. sold the asset and was its sole tenant, according to CommercialEdge. The company is owned and operated by Consolidated Hospitality Supplies.

International Corporate Park is at 100 S. Milwaukee Ave. and currently includes a 257,927-square-foot industrial building with 34-foot clear heights. That building will remain as part of the redevelopment strategy. The new owners will also demolish an existing 202,000-square-foot office building to make way for a 900,000-square-foot industrial campus comprising four new buildings.

This would bring the property to more than 1.1 million square feet of industrial space. Together with its location, close to Interstate 94, the redevelopment is expected to attract logistics, transportation and manufacturing users, said Avgeris President Stewart Mill in prepared remarks.

The 70.4-acre site allows easy access to the area’s major transportation routes and is 21 miles from O’Hare International Airport, 35 miles from Chicago and within 43 miles Chicago Midway International Airport. This was the largest industrial site available in the area and it already produced interest from brokers and end users, said Wylie Capital’s Founder, Jason Simon, in prepared statements.

Chicago industrial sales leading the Midwest

Recent industrial acquisitions in the metro include Venture One Real Estate’s purchase of a 785,181-square-foot, two-building industrial portfolio in St. Charles, Ill. The company, in partnership with Kovitz Investment Group, paid $50.2 million for the property.

In November 2023, Hines acquired the Chicago Prime Portfolio, a 1.1 million-square-foot industrial campus in Chicago’s suburb of Melrose Park, Ill. The portfolio consists of two industrial facilities that are fully occupied by three logistics tenants, with Hines to also serve as property manager.

Industrial sales in Chicago amounted to just under $2 billion on a year-to-date basis through November, a recent CommercialEdge report shows. The metro remained the leader in sales volume across Midwestern markets, while ranking fifth among gateway metros. Properties traded on average for $89 per square foot.

The post Avgeris JV to Build 900 KSF Chicago-Area Industrial Facility appeared first on Commercial Property Executive.

The transaction marks a downsizing from Mesirow’s current footprint of 165,000 square feet, according to Crain’s Chicago Business. The firm co-developed the tower and has been anchoring it since its completion in 2009. Heitman purchased the Class A asset for $715 million in 2014.

The high-rise totals 1.2 million square feet across 46 stories. The LEED Platinum-certified building features 29,000-square-foot floorplates and a host of amenities including on-site dining options, a health club, a conference center and bike lockers.

READ ALSO: Getting Into the Heads of Office Tenants

The property’s largest tenant, law firm Jenner & Block, also downsized its lease from 416,000 to 225,000 square feet following a legal dispute over unpaid rents. Alliant, The Mather Group, RWE, Insight Global, WHI Real Estate Partners, RCP Advisors, Blue Vista, Bickley, Delta Capital Partners and Ventas, among others, are also on the roster.

Downtown Chicago is approximately 1 mile from the office tower. Multiple subway stations are within walking distance of the property, providing transportation access throughout the area.

Cushman & Wakefield Vice Chairmen Ari Klein and Scott Shelbourne negotiated the leasing transaction on behalf of Mesirow.

Chicago office space lags

Among the leading national office markets, Chicago’s average asking rent of $27.73 per square foot was one of the lowest as of November, according to a recent CommercialEdge report. The market’s vacancy rate clocked in at 18.3 percent, down 110 basis points over the year.

In one of last year’s more prominent deals, Molson Coors Beverage Co. signed a 83,848-square-foot lease at a 1.5 million-square-foot Class A office building in Chicago’s CBD. BMO Harris Bank anchors the property.

With prices on a downward trend and a significant development pipeline underway, the area is giving off some mixed signals. Still, transaction and leasing activity continues to take place.

Earlier this month, AmTrust Realty secured two lease renewals at its office tower in Chicago’s Central Loop. A law firm and a non-profit organization will continue to occupy space totaling 20,000 square feet.

The post Heitman Signs 100 KSF Lease Extension at Chicago Tower appeared first on Commercial Property Executive.

AmTrust Realty has signed two lease renewals totaling 20,000 square feet at 33 N. Dearborn St., a 330,000-square-foot office building in Chicago’s Central Loop. The two tenants are law firm Heyl, Royster, Voelker & Allen, P.C. and non-profit organization KIPP Foundation, that renewed their agreements for 13,383 square feet and 6,617 square feet, respectively. Advocate Commercial Real Estate Advisors negotiated on behalf of the tenants.

The mid-rise property’s roster also includes The Economic Club of Chicago, Bank of America, Krieg DeVault LLP, Synexus and Chicago Volunteer Legal Services, according to CommercialEdge. In addition to the two renewals, recent leasing deals at the office building include a 30,000-square-foot renewal by Corboy & Demetrio, the property’s anchor tenant, said AmTrust’s Chicago Managing Director, Patrick Kearney, in prepared remarks.

The current ownership picked up the asset in 2015 for $62 million from seller Fulcrum Asset Advisors, the same source reveals. Built in 1966, the 24-story office building features four passenger elevators, conference rooms, a fitness center and street-level retail spaces. The owner announced last September that it plans to implement a $50 million capital improvement strategy at the property. The renovation program also includes One East Wacker, a 540,000-square-foot office tower overlooking the Chicago Riverwalk.

READ ALSO: Mixed Signals From Chicago’s Office Market

Construction is currently underway, with improvements at 33 N. Dearborn St. including the addition of an outdoor tenant roof deck, new ground-floor retail spaces, an expanded bike room, improvements to the building’s entrance, signage and elevators. The overhaul will also comprise new spec office suites, updated corridors and restrooms, as well as the renovation of the fourth-floor conference center. The project is the initial stage of AmTrust’s $100 million capital improvement program for its entire Chicago portfolio.

Last September the owner tapped Stream Realty Partners as exclusive leasing agent in charge of its Chicago office portfolio. The brokerage team includes Executive Vice Presidents Mark Gunderson and Wendy Katz, together with Vice President Erica Marshall. Advocate Commercial Real Estate Advisors’ team of Managing Principal David Knight, Associate Broker Ethan Braham and Client Relationship Manager Luke Wuchenich assisted the tenants during renewal negotiations.

Chicago: one of the most affordable markets in the U.S.

Leading office markets in the Midwest continue to post some of the most affordable asking rents across the U.S., a recent CommercialEdge report shows. Chicago’s $27.73 per square foot was the highest among these, followed by Twin Cities’ $26.34 and Detroit’s $21.32 per square foot.

Recent deals in metro Chicago include Trammell Crow Co.’s 35,021-square-foot lease at its 1375 West Fulton, a 301,260-square-foot life science building. MonoSol, a division of Tokyo-based Kuraray Group, will use the new location as an innovation and technical center.

In November 2023, Irvine Co. signed a 29,839-square-foot agreement with law firm Gordon Rees Scully Masukhani at the 1.4 million-square-foot One North Wacker tower. The property’s amenity floor will be renovated, with completion scheduled for late 2024.

The post AmTrust Secures 2 Renewals at Chicago Office Building appeared first on Commercial Property Executive.

VK Industrial VI LP, an acquisition fund managed by Venture One Real Estate and Kovitz Investment Group, has purchased a 785,181-square-foot, two-building industrial portfolio in St. Charles, Ill., for $50.2 million, according to public records. The buyer took out a $30.4 million acquisition loan from Lake Forest Bank & Trust.

Cushman & Wakefield represented the seller, identified by CommercialEdge information as RR Donnelley.

Last year, Venture One acquired a two-building portfolio in Waukegan, Ill., through the same industrial fund. These properties are some 40 miles from the newly acquired facilities.

The newest additions to Venture One’s portfolio

The 504,152-square-foot warehouse at 609 S. Kirk Road changed hands for $31.7 million. Constructed in 1988, the partially air-conditioned facility features 30-foot clear heights, 45 dock-high loading doors and three drive-in doors. The 24-acre property is less than 2 miles from DuPage Regional Airport and 44 miles from downtown Chicago.

The 281,029-square-foot building at 1750 Wallace Ave. sold for $18.5 million. The warehouse came online in 1990 featuring 15 dock loading doors, one drive-in door and clear heights ranging from 21 to 31 feet. Some 80,000 square feet are air-conditioned. The distribution center is 1 mile from the other facility.

Cushman & Wakefield Vice Chairs Mike Tenteris, Jim Carpenter and Adam Tyler, together with Executive Managing Director Scott Goldman and Executive Director David Friedland, negotiated on behalf of the seller. Carpenter was recently part of the team that brokered the transaction of three industrial parks in Phoenix and Silicon Valley.

The Windy City’s mixed signals

Industrial sales in Chicago totaled $2 billion through the first eleven months of last year, the latest CommercialEdge industrial report shows. However, the $89 average price per square foot, while being 3.7 percent higher year-over-year, was also considerably lower than the $130 national average.

In one of these transactions, Hines acquired a 1.1 million-square-foot industrial campus in Melrose Park, Ill. AEW Capital Management sold the two-building asset.

The post Venture One Buys Chicago-Area Industrial Portfolio appeared first on Commercial Property Executive.

Ross Dress for Less is one of Chestnut Court’s anchor tenants. Image courtesy of Mid-America Real Estate

First Tek Inc. has purchased Chestnut Court, a 172,697-square-foot retail center in Darien, Ill. DRA Advisors sold the asset in a transaction arranged by Mid-America Real Estate Corp., with Principals Rick Drogosz, Ben Wineman and Joe Girardi working on behalf of the seller.

DRA Advisors had acquired Chestnut Court back in 1998 for $16.1 million, according to CommercialEdge data. The property was part of a multi-asset portfolio that was refinanced through a $835 million loan from Wells Fargo Bank. Pine Tree served as property manager at the time.

Completed in 1986, Chestnut Court comprises two buildings on a 16.5-acre site. Ross Dress for Less and Jo-Ann Fabric anchor the shopping center; the tenant roster also includes a diverse mix of retailers such as The Salvation Army Family Store, T-Mobile, Home Run Inn Pizzeria and Kumon, among others.

Situated at the intersection of Lemont Road and 75th Street in the heart of the “4 corners” retail trade area, Chestnut Court has more than 860,000 annual visits. The center serves more than 566,000 people within a 3-mile radius; the average household income is more than $130,000 in the area.

DRA Advisors has recently sold another suburban Chicago property, a 326,084-square-foot retail center in Niles, Ill. Mid-America’s Ben Wineman and Rick Drogosz brokered the $20.5 million transaction.

The post DRA Advisors Sells Chicago-Area Shopping Center appeared first on Commercial Property Executive.

Other tenants at 1375 West Fulton include Portal Innovations and Xeris Pharmaceuticals. Image courtesy of Trammell Crow Co.

Trammell Crow Co. has signed a 35,021-square-foot lease at 1375 West Fulton, a 301,260-square-foot life science building in Chicago. Colliers represented the tenant, MonoSol—a division of Tokyo-based Kuraray Group—, while CBRE advised the landlord.

MonoSol will occupy the last full floor of the property by the second half of 2024. The firm plans to open an innovation and technical center focused on its water-soluble film and material science technologies.

The life science asset is now roughly 98 percent leased. Other tenants include Portal Innovations and Xeris Pharmaceuticals, CommercialEdge data shows, but also Chan Zuckerberg Biohub Chicago.

The 14-story property is part of Fulton Labs, a life science campus measuring 725,000 square feet spread across two buildings. 1375 West Fulton features column-free lab spaces, floorplates ranging between 25,916 and 35,004 square feet, a roof deck and a café, along with some 13,060 square feet of first-floor retail space. The LEED Gold-certified property also comprises a community garden.

Located at 1375 W. Fulton Market, the asset is close to several dining and retail options. Downtown Chicago is 2.7 miles southeast, while Chicago Midway International Airport is some 11 miles away. O’Hare International Airport is 16 miles northwest.

The CBRE brokers for the transaction included Executive Vice President Dan Lyne and Senior Vice President Kelsey Scheive. The Colliers team that represented the tenant comprised Principal and Executive Vice President David Burden and Senior Vice President Andrew Urban.

Chicago doubles office pipeline

According to CommercialEdge research, Chicago had 3.6 million square feet of office space under construction at the end of the third quarter. Year-to-date through the first nine months of the year, construction started on approximately 1.7 million square feet, more than double compared to the square footage that broke ground during the same period of last year.

Trammell Crow’s Chicago footprint also includes a 302,388-square-foot life science building. Slated for completion in late 2024, the property represents the second phase of a 1.1 million-square-foot mixed-use redevelopment.

The post Trammell Crow Inks 35 KSF Lease at Chicago Life Science Campus appeared first on Commercial Property Executive.

The warehouse at 2551-2561 Allan Drive came online in 1985. Image courtesy of Lee & Associates

LaSalle Investment Management has signed a 106,100-square-foot lease renewal at 2551-2561 Allan Drive, a 198,196-square-foot industrial building in Elk Grove Village, Ill., a Chicago suburb. Lee & Associates represented the tenant, Logisteed America Inc., while Colliers negotiated on behalf of the landlord.

LaSalle purchased the 8.9-acre property for $17.8 million in 2015 from the Florida State Board of Administration, CommercialEdge data shows. Dating back to 1985, the two-story, cross-dock industrial facility features 24-foot clear heights, five drive-in doors and 43 dock-high loading doors, as well as 130-foot truck courts and approximately 100 parking spaces.

The Allan Drive warehouse provides easy access to interstates 290 and 90. O’Hare International Airport is some 11 miles away, while downtown Chicago and Chicago Midway International Airport are within 26 miles.

Lee & Associates Principals Kenneth Franzese and John Cassidy led the team that represented the tenant. Colliers Principals and Executive Vice Presidents Jonathan Kohn and Christopher Volkert worked on behalf of the landlord.

Strong fundamentals for Chicago’s industrial sector

The industrial vacancy rate in Chicagoland was 4.9 percent as of October, 30 basis points higher than the national average, according to a recently published CommercialEdge report. However, the metro had the largest sales volume in the Midwest year-to-date through the first ten months of the year, totaling $1.63 billion.

In October, the market had roughly 18 million square feet under construction, the same source shows. Notable projects in the area include Seefried Properties’ 465,360-square-foot speculative industrial development in Elgin, Ill., that broke ground in July. The two-building campus is slated for completion in the third quarter of next year.

The post Logistics Company Renews Chicago-Area Industrial Lease appeared first on Commercial Property Executive.

DRA Advisors acquired Aurora Commons back in 2002, according to CommercialEdge data. Image courtesy of JLL Capital Markets

Sperry Equities has purchased Aurora Commons, a 125,826-square-foot open-air retail center in Aurora, Ill. IRC Retail Centers, a privately held real estate company owned by funds managed by DRA Advisors LLC, sold the asset for $9 million, according to public records. Farm Bureau Life Insurance Company of Michigan provided a $7 million acquisition loan, the same sources show.

JLL Capital Markets brokered the transaction, with Director Michael Nieder, Managing Director Keely Polczynski and Analyst Caity Tirakian leading the Investment Sales and Advisory team working on behalf of the seller. At the time of the sale, the shopping center was 75 percent leased.

READ ALSO: CPE Asks: When Will It Be a Good Time to Invest in Retail?

Anchored by Ross Dress for Less, DD’s Discounts and Cermak Fresh Market, Aurora Commons also includes a diverse mix of local and national tenants such as Five Below, Dollar Tree, T-Mobile, H&R Block, Pizza Now and BMO Harris Bank.

Located at 1272 N. Lake St., Aurora Commons is close to the intersection of Route 31 and Interstate 88, which provide easy access across the Chicago metropolitan area. The three-building retail center serves around 108,848 people within a 3-mile radius, with an overall buying power of $3.4 billion and the average income of approximately $87,717. Aurora Commons is within walking distance of Ascension Mercy Hospital, Advocate Health Care and Cool Acres Park.

DRA Advisors has recently sold a 326,084-square-foot retail center in Niles, Ill. Nassimi Realty purchased the asset located within the Chicago MSA for $20.5 million.

The post Sperry Equities Buys Chicago-Area Shopping Center appeared first on Commercial Property Executive.

The two buildings were part of an off-market transaction. Image courtesy of Stage Equity Partners

An affiliate of Stage Equity Partners has purchased the two-building Hollister Medical Office Portfolio in Libertyville, Ill. Hollister Inc. sold the properties in an off-market transaction. The assets were 80 percent leased at the time. Cushman & Wakefield Executive Director Gino Lollio represented the seller, while Wintrust Bank provided acquisition financing for the sale of the 91,818-square-foot portfolio.

The first building, dubbed Grand Oaks Health Center, is a three-story, 57,585-square-foot office property. Completed in 1999, the asset sits on 7.9 acres and features two passenger elevators, as well as parking spaces on the first floor. The tenant roster includes Advocate Health Care, Northwest Neurology and Lake Forest Internal Medicine.

Completed in 1980 and redeveloped in 2019, the second medical office building is known as Hawthorn Health Center and comprises 34,233 square feet. The three-story building features 11,666-square-foot floorplates and one passenger elevator. Tenants at the 5.1-acre property include Weil Foot & Ankle Institute, North Shore Primary Care and Suburban Periodontics. The two properties encompass a total of 411 parking spaces.

Located at 1800 and 1900 Hollister Drive within the Hollister Grove medical campus, the properties are less than a mile from Rivertree Court, Hawthorn Hills Square and Hawthorn Mall, which offer a host of dining and retail options. Downtown Chicago is roughly 37 miles southeast, while O’Hare International Airport is 23.5 miles away. Additionally, the portfolio is 2 miles from a medical office building that was acquired earlier this year by Hammes Partners in a six-building transaction.

The post Chicago-Area MOB Portfolio Changes Hands appeared first on Commercial Property Executive.

Hines has acquired a two-building, 1.1 million-square-foot industrial campus at 4700/4800 and 5000 Proviso Drive in the Chicago suburb of Melrose Park, Ill. Image courtesy of Hines

Hines has acquired the Chicago Prime Portfolio, a two-building, 1.1 million-square-foot industrial campus at 4700/4800 and 5000 Proviso Drive in the Chicago suburb of Melrose Park, Ill. The seller was AEW Capital Management, according to CommercialEdge data.

The Chicago Prime Portfolio consists of two industrial facilities with 32- and 35-foot clear ceilings, one dock per 5,000 square feet, 159 trailer parking positions, and dual rail loading.

The portfolio is 100 percent leased to three logistics tenants that have all occupied their spaces for about 20 years.

READ ALSO: Are Suburban Office-to-Industrial Conversions Feasible?

The campus is close to the Union Pacific Global 2 intermodal terminal in Northlake, the I-294 / I-290 interchange, the I-294/I-290/I-88 interchange, the future I-490/I-294 interchange and Chicago O’Hare International airport.

Hines will serve as the portfolio’s property manager and intends to implement “a strategic value-add capital improvement plan” there.

CBRE represented AEW Capital Management in the transaction.

Tight market

In a prepared statement, Will Renner, senior managing director at Hines, described the portfolio as “a compelling opportunity given its strategic infill location in the densely populated O’Hare submarket.”

The statement added that this submarket has “attractive fundamentals, limited supply and robust demand. Bulk industrial sites in particular are scarce and challenging to develop in this submarket.”

Industrial leasing in Chicagoland this year has been characterized by slower activity and a sharp rise in renewals, according to a third-quarter report from Avison Young, which commented that the leasing slowdown “is particularly significant as it marks the first time, we have observed such a notable drop.”

Still, a nearly 21 percent year-over-year decrease in deliveries has helped to hold overall vacancy at 4.5 percent and bolster rents, which have risen by 24.7 percent since 2019.

The O’Hare submarket is seeing a stable vacancy of just over 4 percent, with about 1.3 million square feet of deliveries year-to-date and just 230,000 square feet in the pipeline, on an inventory of 111.8 million square feet, Avison Young reported.

In September, Trammell Crow Co. secured equity financing from Standard Real Estate Investments for its 217,000-square-foot, 17-acre Woodridge Industrial Center in Woodridge, Ill.

The post Hines Acquires 1.1 MSF Industrial Campus appeared first on Commercial Property Executive.

Hyde Park Labs expects completion by late 2024. Image courtesy of Trammell Crow Co.

Chicago’s office market has continued to give off mixed signals, as investors and developers try to navigate ongoing struggles within the sector. While in the case of some metrics the metro performed relatively on par with national trends, it fell significantly behind others, according to fresh CommercialEdge data.

The amount of office space that broke ground during the first nine months of 2023 was more than double the square footage registered during the same period last year. However, prices in the Windy City plummeted, down more than 32 percent year-over-year as of September and significantly behind all gateway markets.

Chicago’s office pipeline grows

At the end of the third quarter, Chicago had 3.6 million square feet of office space under construction across 15 properties, amounting to 1 percent of existing inventory—below the national average of 1.8 percent. The metro’s relative-to-total-stock pipeline was smaller than those of Manhattan (2.2 percent), Boston (5.6 percent), San Francisco (3.9 percent) and Washington, D.C. (1.2 percent).

In the year’s first nine months, construction or redevelopment started at six properties for a total of nearly 1.7 million square feet, or 0.5 percent of stock, 20 basis points above the national average and considerably surpassing the 942,803 square feet that broke ground during the same period in 2022. One of the buildings that commenced construction this year was Hyde Park Labs, a 302,388-square-foot life science project developed by Trammell Crow Co. and Beacon Capital Partners.

Six properties came online in the first three quarters of 2023, totaling 2.1 million square feet and representing 0.6 percent of stock, on par with the national average. Last year in the same timeframe, a slightly larger inventory was delivered, at 2.3 million square feet. The largest property that was completed this year is Salesforce Tower, a 1.2 million-square-foot high-rise developed by Hines and Salesforce in Chicago’s downtown.

Chicago office sale prices lag comparable markets

230 W. Monroe is within walking distance of the Art Institute of Chicago. Image courtesy of Menashe Properties

Roughly 10.3 million square feet of office space changed hands in the Chicago office market year-to-date through September, for a total volume of $830 million, well above markets such as San Francisco ($571 million) and Seattle ($120 million).

The average price per square foot clocked in at $110, down 32.7 percent year-over-year and significantly below the national average of $197.1. The metro registered the smallest average price among its gateway peers including Manhattan ($567.4 per square foot), Boston ($321.8), San Francisco ($321.5) and Seattle ($279).

Burr Ridge Healthcare Facility changed hands for $60 million. Image courtesy of CommercialEdge

One of the largest office deals in the metro this year was Menashe Properties’ $45 million purchase of 230 W. Monroe, a 707,000-square-foot tower in the West Loop neighborhood. The price represented less than half of the $122 million paid by the previous owner, Accesso Partners, in 2014.

Another noteworthy transaction was Sila Realty Trust’s recent acquisition of Burr Ridge Healthcare Facility, for $60 million. The property features various services including primary care, ophthalmology, transplant, neurology, radiology and women’s health.

Chicago’s office market has one of the highest exposures to credit in the nation, a recent CommercialEdge market bulletin shows. The metro ranks sixth for percentage of office loans maturing through 2024, with 26.4 percent of loans set to mature by the end of next year.

Vacancy on par with national rates

As of September, Chicago’s office market registered a 17.9 percent vacancy rate, just 10 basis points below the national average. It was slightly above Manhattan’s rate (17.7 percent) and exceeded that of Los Angeles (16.5 percent). The metro did however fare better than other gateway markets on the West Coast, including San Francisco (24.2 percent) and Seattle (22.3 percent).

Raymond James took 74,000 square feet at 120 S. Riverside Plaza. The building spans 705,000 square feet across 21 stories. Image courtesy of CommercialEdge

Recent large office leases in Chicago included Raymond James‘ relocation to 120 S. Riverside Plaza. The company signed an agreement for 74,000 square feet across nearly two floors at the Ivanhoe Cambridge-owned building, bringing the property to 72 percent occupancy.

Bradford Allen also secured two leases totaling 35,000 square feet at 570 Lake Cook Road, an office property in suburban Chicago. The two tenants were flexible office space provider Venture X and design consulting firm Kimley-Horn, taking 19,000 and 16,000 square feet, respectively. The five-story building spans 138,000 square feet and underwent renovations last year.

Coworking maintains its hold

As of September, Chicago’s office market included 6 million square feet of shared space, accounting for 1.9 percent of total stock. Compared to other gateway markets, the metro was on par with San Francisco’s inventory and above that of Boston (1.7 percent) and Seattle (1.8 percent), but below Los Angeles (2.2 percent), Manhattan (2.6 percent) and Miami (3.3 percent).

Regus is one of the largest flexible space operators in the metro, its footprint comprising more than 945,000 square feet across 43 locations. WeWork also commands a sizeable portfolio in Chicago at 685,576 square feet in nine locations.

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The Oakbrook Terrace Tower rises 31 stories. Image courtesy of Hiffman National

Hiffman National has been selected by BLK IL Tower LLC to manage a 31-story office building in Oakbrook Terrace, Ill. The Oakbrook Terrace Tower totals 792,000 square feet and is the tallest standing asset in the state outside the city of Chicago.

Located at 1 Tower Lane, the building features a fitness center, pool, conference center, deli and a Starbucks. An underground parking garage, EV charging stations and a car wash are also available at the property.

Completed in 1986 and designed by Helmut Jahn, the office tower is on an approximately 15-acre site, according to CommercialEdge data. The building was acquired by EQ Office in 2015 for $119 million.

READ ALSO: Staying Ahead of the Curve in Property Management

Oakbrook Terrace Tower is situated at the intersection of Route 83 and Roosevelt Road, providing tenants with easy transportation access into Chicago and throughout the surrounding area. Downtown Chicago is 19 miles east, providing a variety of dining, entertainment and retail options. Oakbrook Center mall, featuring more than 160 storefronts, is within walking distance, while the O’Hare International Airport is 15 miles north of the property.

The LEED-certified asset is 75 percent occupied. Tenants include Bosch, IMG Technologies, ECC Insurance Brokers, LifeStart, RMKC and Nordic Energy, the same data shows.

Along with six of the property’s past management team members, Hiffman National’s Carrie Szarzynski, senior vice president, and Heather Battaglia, portfolio manager, will lead management operations for the building.

Chicago office landscape

As of October, Chicago asking rents for office assets came in at $27.78 per square foot, lower than the national average by $9.93, according to a recent CommercialEdge report. Meanwhile, the city clocked in the largest sales volume in the Midwest year-to-date, with $858 million in office deals completed.

Recently, a 46-story office tower in Northbrook, Ill., landed a new 40,000-square-foot lease signed by UL Solutions. The downtown building spans approximately 1.2 million square feet and includes 11,000 square feet of retail space.

The post Hiffman National to Manage Illinois Office High-Rise appeared first on Commercial Property Executive.

One North Wacker is a 1.4 million-square-foot skyscraper. Image courtesy of Colliers

Irvine Co. has signed a 29,839-square-foot lease at One North Wacker, a 1.4 million-square-foot Class A office tower in Chicago’s West Loop submarket. Colliers represented the tenant, law firm Gordon Rees Scully Masukhani, that currently occupies a 24,182-square-foot space at the One North Franklin. The landlord was represented in-house.

With the company growing from 10 to more than 100 employees in the past decade, the relocation was necessary, said Co-Managing Partners of the law firm’s Chicago office Stephanie Jones and Brian Roth, in prepared remarks. The company will move to its new location in August 2024. Other tenants at the property include Magnolia Capital, Barnes & Thornburg, Northwestern Mutual, UBS Financial Services, Inc. and Adams Street Partners, according to CommercialEdge.

One North Wacker is a 51-story Class A office building that features 37,005-square-foot column-free floor plates, 24 passenger elevators, an on-site café, 12,300 square feet of retail space, a conference room, a fitness center and 220 vehicle parking spots, according to the same source.

The current ownership picked up the property in two different transactions, with the last one being from 2015, when it purchased the remaining 51 percent ownership stake in the property from seller Hines, CommercialEdge shows.

The landlord was represented by Senior Director Maggie Brophy, while Colliers’ Executive Vice President Dougal Jeppe worked on behalf of the tenant.

Future improvements

Irvine Co. plans to launch a capital improvement program at the building’s amenity floor, that will result in an expanded lounge, equipped with private work areas, an upgraded fitness center, a new craft coffee bar, as well as new meetings and events spaces, among others. The renovations will commence in December, with completion scheduled for the summer of 2024.

Completed in 2002, the property is close to multiple subway and bus stations, as well as to the Ogilvie Transportation Center, 2 miles from Old Town, 10 miles from Chicago Midway International Airport and within 33 miles of Naperville, Ill.

Other notable recent leases in Chicago include financial services firm Raymond James signing of a 74,000-square-foot commitment at Ivanhoé Cambridge’s 120 S. Riverside Plaza. The 705,000-square-foot property is part of an office campus totaling 1.4 million square feet.

In May, Riverside Investment & Development inked a 83,848-square-foot deal at 320 South Canal, a 1.5 million-square-foot office building in Chicago’s CBD. Molson Coors Beverage Co. will relocate its Americas headquarters in the summer of 2024.

The post Irvine Co. Inks 30 KSF Lease at Chicago High-Rise appeared first on Commercial Property Executive.

RUSH Oak Brook Medical Center came online in 2018 as a build-to-suit. Image courtesy of Remedy Medical Properties

Remedy Medical Properties, in a joint venture with Kayne Anderson Real Estate, has acquired RUSH Oak Brook Medical Center, a 93,386-square-foot medical office building in Chicago. The asset traded for $71 million, according to Crain’s Chicago Business. Rush Health sold the LEED Gold-certified property in a sale-leaseback transaction.

RUSH Oak Brook came online in 2018 on 3.5 acres. The three-story building features a two-story atrium main lobby, a seating lounge, two passenger elevators, a fitness center and controlled access. The medical facility comprises a multi-specialty surgery center with six operating rooms, two procedure rooms, 28 patient bays, 65 exam rooms, outpatient surgical suites, an imaging center and in-house lab services.

READ ALSO: MOB Sector Remains Stable, Attractive

Boasting a 99 percent occupancy, the property is leased long-term to RUSH University System for Health and Midwest Orthopaedics at RUSH, a division of OrthoMidwest. Medical services provided include physical therapy and rehabilitation, neurosurgery, OB/GYN, dermatology, pain management, gastroenterology and primary care, among others.

The medical center is at 2011 York Road, less than 20 miles from downtown Chicago and has access to interstates 88 and 294. The surrounding area includes several other health-care providers, such as Elmhurst Hospital, Hines VA Medical Center, Cardio Medical Center and Loyola University Medical Center.

Partnership deals in 2023

The partnership between Remedy Medical and Kayne Anderson kicked off 2023 with the acquisition of a collection of 13 medical office assets totaling 300,328 square feet. Montecito Medical sold the portfolio for $131 million.

More recently, the joint venture purchased two medical office buildings in Fayetteville, Ga. The facilities were acquired from Piedmont Healthcare through a 70-year ground lease with a 15-year extension option.

The post Remedy, Kayne Anderson Pay $71M for Chicago MOB appeared first on Commercial Property Executive.

Crystal Point Shopping Center had a leasing rate of 87 percent at the time of the sale. Image courtesy of Mid-America Real Estate Corp.

PMAT Real Estate Investments has purchased Crystal Point Shopping Center, a 317,006-square-foot grocery-anchored shopping center in Crystal Lake, Ill. DRA Advisors sold the asset for $32.4 million and b1Bank provided a $20 million acquisition loan, according to public records.

Mid-America Real Estate Corp.’s Investment Sales Group brokered the deal, with Principals Ben Wineman, Rick Drogosz and Joe Girardi working on behalf of the seller.

The asset was 87 percent leased at the time of sale. The tenant roster includes TJ Maxx, Best Buy, Ross Dress for Less, The Fresh Market, Ulta, Steinhafels Furniture and Cost Plus World Market. The center also features outlot users, including Starbucks, Panera, Potbelly, Jamba Juice, Five Guys and Helzberg Diamonds, along with a vacant Bed Bath & Beyond box.

Completed in 1974, Crystal Point Shopping Center comprises four buildings at 5764 Northwest Highway, a route that provides direct access to downtown Chicago. The 30.6-acre property serves approximately 123,000 individuals within a 5-mile radius, with an average household income of $134,000.

DRA Advisors recently sold Four Flaggs, a 326,084-square-foot grocery-anchored shopping center in Niles, Ill., for $20.5 million. Mid-America Real Estate Corp. brokered the transaction on behalf of the seller, while Nassimi Realty purchased the asset.

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Fresh Farms International Market anchors this Niles, Ill. retail center. Image courtesy of Mid-America Real Estate Corp.

Nassimi Realty has purchased Four Flaggs, a 326,084-square-foot retail center in Niles, Ill. DRA Advisors sold the property for $20.5 million, according to public records.

Mid-America Real Estate Corp. brokered the transaction, with Principals Ben Wineman and Rick Drogosz working on behalf of the seller.

Anchored by Fresh Farms International Market, the property is home to local and national tenants such as Marshalls, PetSmart, Old Navy, JoAnn, Wendy’s, AutoZone, McAlister’s Deli, Starbucks, CosmoProf, Five Below, Tang Korean Restaurant and Ashley Furniture. At the time of the sale, Four Flaggs was 75 percent leased and managed by Pine Tree.

Completed in 1973, the grocery-anchored shopping center comprises four one-story buildings spread on a 22.5-acre site at 8305 W. Golf Road, within Chicago’s North Shore. Having major street exposure, Four Flaggs is close to North Milwaukee Avenue and Route 14, which provide access across the Chicago metropolitan area.

DRA Advisors has recently sold another Chicagoland property, a 226,029-square-foot shopping mall in Geneva, Ill., with the assistance of Mid-America Real Estate Corp.’s Investment Sales Group. The firm had acquired the asset in 1999 for $24.2 million.

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Randall Square previously traded in 1999. Image courtesy of Mid-America Real Estate Corp.

Viking Partners has purchased the 226,029-square-foot Randall Square shopping mall in Geneva, Ill., for $31.1 million, according to Kane County records. The Huntington National Bank helped finance the acquisition with a line of credit totaling $65 million, of which $21.8 million were used for the purchase.

Mid-America Real Estate Corp.’s Investment Sales Group brokered the transaction on behalf of the seller, DRA Advisors. The firm had acquired the asset in 1999 for $24.2 million, according to CommercialEdge data.

Marshalls, Michaels, Ulta Beauty, Old Navy, PetSmart and Ross Dress for Less are some of the retail center’s anchor tenants. The roster features a mix of national and local retailers including Men’s Wearhouse and Rally House, among others.

Located at 1560 S. Randall Road, the property is half a mile west of the Eagle Brook Country Club and 1 mile east of Peck Farm Park, in a dense retail corridor totaling more than 2 million square feet of space. More than 113,000 people live within a 5-mile radius.

Principals Joe Girardi, Rick Drogosz and Ben Wineman of Mid-America Real Estate Corp. were the brokers which represented DRA Advisors in the transaction. The firm recently sold another retail property, a 119,446-square-foot grocery-anchored shopping center in Wilmington, Del.

The post Viking Partners Buys Chicagoland Retail Asset for $31M appeared first on Commercial Property Executive.

155 N. Wacker Drive rises 46 stories. Image courtesy of CommercialEdge

Safety testing and certification group UL Solutions has opened a new office at 155 N. Wacker Drive in Chicago, where it will occupy 40,000 square feet. The firm is expanding from its 766,000-square-foot corporate headquarters at 333 Pfingsten Road in Northbrook, Ill.

The John Buck Co. is the owner of the 46-story tower in downtown Chicago, with Newmark providing leasing services at the property, according to CommercialEdge information.

The LEED Platinum certified building spans roughly 1.2 million square feet, featuring 27,500-square-foot floorplates, an on-site conference center, as well as more than 11,000 square feet of retail space. Other tenants at the property include Marsh USA, Ryan Specialty Group, American Hospital Association and WP Global Partners, the same data provider shows.

Located in Chicago’s CBD, 155 N. Wacker Drive is within walking distance of the Willis Tower and the Art Institute of Chicago. The asset is also near multiple public transit options such as the Washington subway station and the Ogilvie Transportation Center train station, as well as less than a mile from Union Station.

As of September, Chicago’s vacancy rate was 17.9 percent, only 10 basis points above the national average, according to a recent CommercialEdge report. The average listing rate stood at $28.11, marking a 2.2 percent increase over 12 months and clocking in at $9.67 below the national average.

The post Safety Science Group Opens 40 KSF Downtown Chicago Office appeared first on Commercial Property Executive.

Burr Ridge Healthcare Facility is less than 20 miles from downtown Chicago. Image courtesy of CommercialEdge

Sila Realty Trust Inc. has acquired Burr Ridge Healthcare Facility, a 104,912-square-foot medical office building in Burr Ridge, Ill., for $60 million. The previous owner was Healthcare Realty, according to CommercialEdge data, which had acquired it in 2017 from Duke Realty in a portfolio transaction.

Completed in 2011 on nearly 7 acres, the three-story building features two passenger elevators, a fitness center and 1,000 square feet of retail space. The property has a parking ratio of 4 spaces per 1,000 square feet.

READ ALSO: Checkup on Health-Care, Life Science Opportunities

The property came online as a build-to suit for Loyola University Medical Center, an academic subsidiary of Trinity Health. The facility offers a variety of services, including primary care, ophthalmology, transplant, neurology, radiology and women’s health, as well as physical, occupational, speech and cardiac rehabilitation.

Burr Ridge Healthcare Facility is near Interstate 55 at 6800 N. Frontage Road, less than 20 miles from downtown Chicago. The outpatient clinic is in proximity of three LUMC hospitals, including the 547-bed Loyola University Medical Center. Other medical facilities in the surrounding area include Village Center Drive, MetroSouth, Willowbrook Medical Center and Midwest Express Clinic, among others.

As of June, Sila Realty Trust owned 132 health-care properties across the U.S., of which 90 were medical office buildings. The company has invested $2.4 billion in a portfolio encompassing 5.4 million rentable square feet.

Chicago’s medical office market activity

Some 517,750 square feet of medical office space changed hands in Chicagoland year-to-date as of October, according to CommercialEdge data. The properties traded for a total of $65 million.

In one of the deals, Hammes Partners acquired a six-building medical office portfolio for $21 million. Twin Building Management sold the assets, encompassing more than 120,000 square feet, that were spread across northern suburbs of the city.

The post Sila Realty Trust Pays $60M for Chicago-Area MOB appeared first on Commercial Property Executive.

A new office building rises at 919 W. Fulton Market. Image by Neoscape, courtesy of Fulton Street Cos. 

Fulton Street Cos. has landed financial backing for its 919 West Fulton office project in Chicago’s downtown area. The company secured $233 million in both equity and debt for the 360,000-square-foot development. SNK Capital provided an undisclosed amount of equity, while Bank of the Ozarks and Manulife provided financing.

FSC is developing the 11-story office building along with JDL Development, and has tapped Skender Construction as general contractor and Shanna Khan as lead designer; Morris Adjmi Architects provided architecture services. The $300 million project also known as 919 on Fulton has already broken ground, with completion expected in the first quarter of 2025.

READ ALSO: Return-to-Office Push Meets Hybrid Work Era

The office building will be the tallest in the Fulton Market Historic District, with floorplates between 25,000 and 40,000 square feet. Amenities are to include a conference center, 24/7 fitness center, tenant lounge, 40,000 square feet of ground-floor retail and outdoor terraces on each floor. Once complete, Colliers will be tasked with property management of 919 West Fulton.

Madison Rose’s Matt Pistorio is handling leasing at the property. The development has already landed an anchor tenant through a 112,000-square-foot lease with investment management firm Harrison Street.

Located at the corner of Fulton Market and Sangamon Streets, the property has nearby access to Fulton Market District’s many retail and restaurant offerings.

Building out Fulton Street

The Chicago-based FSC has specialized itself in developing commercial and residential projects in the Fulton Market District. The company’s current projects on Fulton Street include 1045 West Fulton, a 160,000-square-foot office building with ground-floor retail, and 1100 West Fulton, the redevelopment of a 15,000-square-foot former meatpacking facility.

Once home to warehouses and meatpacking facilities, Fulton Market District is now an area with luxury apartments and high-end retail destinations. The neighborhood has attracted other developers such as CRG and Shapack Partners, which acquired a former food processing facility for $60 million with plans to redevelop it into a $441 million mixed-use development.

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Palatine 90 Logistics Center features 36-foot clear heights. Image courtesy of PGIM Real Estate

Logistics Property Co. has secured $66 million in refinancing for Palatine 90 Logistics Center in Palatine, Ill., and 2800 W. Diehl Road in Aurora, Ill. PGIM Real Estate provided the fixed-rate loan that will pay off construction debt and closing costs on the assets, as well as return capital to LPC for the cross-collateralized and cross-defaulted portfolio.

According to CommercialEdge information, LPC took out a $30.7 million loan from Texas Capital Bank in May 2022, for the construction of Palatine 90 Logistics Center. The 2800 W. Diehl Road property became subject to a $24.4 million loan provided by Old National Bank in March 2022, the same source shows.

“Chicago’s industrial market is over 1 billion square feet, so owners need to differentiate their buildings by offering superior quality or a superior location,” Craig Foreman, executive director at PGIM Real Estate, told Commercial Property Executive. “As brand new, best-in-class developments with excellent proximity to labor and major transportation nodes, these assets do both.”

Two Chicago-area facilities

Palatine 90 Logistics Center is a 367,696-square-foot development approaching completion, with 36-foot clear heights, 36 exterior docks and 363 parking spaces. Situated in the Interstate 90 Golden Corridor at 975 Algonquin Road, the property is fully leased by AIT Worldwide Logistics. It will soon be home to the company’s sales, operations and warehousing teams from three different suburban offices. 

The recently completed 2800 W. Diehl Road is a 392,933-square-foot building featuring 36-foot clear heights and 56 docks. LPC broke ground on the facility in 2022, on a 30.7-acre site located directly by a four-way interchange. Ryder Integrated Logistics leased the entire property in January, according to CommercialEdge.

Industrial activity in Chicagoland

“[The Chicago market] has not experienced the outsized rent growth and in turn oversupply that some other markets have and it is performing well as a result,” Foreman explained. “Chicago’s central location within the U.S. and its access to rail, air and highways, as well as a strong labor pool, are competitive advantages that will continue to attract tenants to the market through future cycles.”

As of August, Chicago led in industrial development in the Midwest for pipeline size, with 23.4 million square feet of space under construction, a CommercialEdge report shows. The metro also led the industrial sales activity in the Midwestern territories, with investors closing $1.16 billion through August.

Also in the Chicago area, LPC recently broke ground on a 664,453-square-foot industrial development in Oak Forest, Ill. Marking the developer’s 11th project in the metro, the building is anticipated to come online in the fourth quarter of this year.

The post Logistics Property Co. Lands $66M for Chicago Portfolio appeared first on Commercial Property Executive.

230 West Monroe last traded in 2014 for $122 million. Image courtesy of Menashe Properties

Menashe Properties has entered the Chicago market, acquiring 230 West Monroe, a 707,000-square-foot office tower, for $45 million. The seller was Accesso Partners, which acquired the building in 2014 for $122 million, according to CommercialEdge data.

In 2019, the property became subject to an $87.7 million loan from Morgan Stanley, the same source shows. Eastdil Secured served as advisor to the seller. The transaction represents the biggest commercial real estate deal in the metro in the past year, according to Menashe.

Completed in 1971, the building rises 29 stories and features 24,000-square-foot floorplates and 10,000 square feet of retail space. It includes a fitness center, conference centers and an upgraded amenity lounge. The tower was completely renovated in 2004 and underwent an additional cosmetic renovation in 2013. Tenants at the property include Maxim Healthcare, One Medical, Realogic Analytics and Aprimo.

READ ALSO: Where the Smart Money Is Investing in CRE

Located at 230 W. Monroe, in Chicago’s West Loop neighborhood, the building is within walking distance of the Art Institute of Chicago. The property is also a block away from the Willis Tower, which comprises 300,000 square feet of retail. In its vicinity, there are numerous public transit options.

Chicago’s office market performance

Menashe Properties CEO Jordan Menashe said in prepared remarks that he believes office usage will eventually align with traditional averages. Following Labor Day, occupancy in office buildings across 10 major metros surpassed 50 percent nationwide for the first time since July, according to a recent Kastle report. Chicago reached an occupancy of 53.6 percent, up 3 percent over the previous week, according to the same source.

During the first four months of the year, office sales in the Chicago market have slowed down significantly, to an overall transaction volume of $354 million. The figure represents 25.3 percent of the $1.4 billion recorded in the same period of 2022, according to a recent CommercialEdge market update. As of April, the vacancy rate in the city was one of the highest in the U.S., at 18.8 percent, 2.1 percent above the national average.

The post Menashe Properties Pays $45M for Chicago Tower appeared first on Commercial Property Executive.

Woodridge Industrial Center will come online in late 2024. Image courtesy of Trammell Crow Co.

Trammell Crow Co. has secured equity financing for Woodridge Industrial Center, a 217,000-square-foot logistics project in the Village of Woodridge, Ill. Standard Real Estate Investments provided the financing through its new $150 million investment fund.

The development team also includes Harris Architects as architect in charge, SpaceCo as civil engineer and FCL Builders as general contractor. Completion is expected in late 2024.

Woodridge Industrial Center will rise on 17 acres at 8100 Lemont Road, in the I-55 Corridor. Upon delivery, the single-load warehouse will feature 22 dock doors, a 291-foot depth, 130-foot truck courts and 270 vehicle parking spots.

The development site is an infill parcel that will allow future tenants to reach a population of more than 4 million people within a 20-mile radius, TCC Senior Vice President Josh Udelhofen said in prepared remarks.

Chicago’s industrial projects

In terms of industrial development, Chicago led the Midwest on a square footage basis, a recent CommercialEdge report shows. The metro had 24.2 million square feet in its pipeline as of July, followed by Indianapolis (10.4 million square feet) and Columbus, Ohio (10.3 million square feet). Recent Chicago projects include a 465,360-square-foot speculative industrial development in Elgin, Ill., and a 664,453-square-foot industrial building in Oak Forest, Ill., among others.

As for deliveries, a 1 million-square-foot warehouse and distribution center in Wilmington, Ill., recently entered the metro’s inventory. Since the beginning of 2021, Chicago’s stock has grown by 6.6 percent, the same research reveals.

The post Trammell Crow Lands Equity for Chicagoland Logistics Project appeared first on Commercial Property Executive.

The 10 & 120 South Riverside Plaza campus is currently renovated, with anticipated completion next summer. Image courtesy of CommercialEdge

Financial services firm Raymond James has signed a leasing agreement with Ivanhoé Cambridge to occupy nearly two full floors at 120 S. Riverside Plaza in downtown Chicago. The agreement was for 74,000 square feet, as reported by the Chicago Business Journal, bringing the property to 72 percent occupancy.

Cushman & Wakefield represented the tenant, while CBRE worked on behalf of the landlord. Hines is the building’s asset and property manager.

Raymond James will relocate its regional offices from 550 W. Washington Blvd. and 222 S. Riverside Plaza. The tenant is slated to start operations at the new location in April 2024.

The building is part of the 10 & 120 South Riverside Plaza, an office campus totaling 1.4 million square feet. The 705,000-square-foot property rises 21 stories and has 37,000-square-foot floorplates, according to CommercialEdge data. Amenities include bicycle storage, a fitness center, conference rooms and on-site restaurants. Other tenants include Pinterest, McGraw Hill, TradeStation and PMCF, the same source shows.

The campus is currently undergoing a capital improvement plan, with planned completion next summer. Upgrades will comprise larger lobbies, a tenant lounge, a pickleball court, additionally to landscaped public plazas.

In the heart of Chicago

The office campus is in Chicago’s West Loop submarket, within walking distance of Ogilvie Transportation Center train station. The location is also near many of the city’s landmarks, including the Willis Tower and the Art Institute of Chicago.

Cushman & Wakefield Vice Chairman Steve Schneider and Vice Chair Todd Brandon, along with Senior Associates Chip Evans and Presley Norby, represented Raymond James. CBRE Senior Vice President Kelsey Scheive and Senior Associate Kelsey Morgan facilitated the deal representing the landlord.

In April, Hines, Ivanhoé Cambridge and McCaffrey topped off a 235,000-square-foot, mass timber office building in Denver. The partners plan to deliver one of the most sustainable buildings in the metro.

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PrimeSource leased the building at 30350 S. Graaskamp Blvd. Image courtesy of Wolf Home Products

PrimeSource subsidiary Wolf Home Products has opened a 1 million-square-foot warehouse and distribution center at Elion Logistics Park 55, the 2,500-acre master-planned development in Wilmington, Ill. The facility will be fully operational in January of 2024.

Wolf fully occupies the park’s Building VI, the latest delivery in the second phase of the industrial campus that will include 20 million square feet of logistics and distribution facilities at full build-out. The development is a joint venture between Elion Partners and Brookfield Asset Management, which recapitalized the project in 2021 as part of a $1 billion investment.

The master plan also calls for the construction of an additional 60 acres of dining, retail and hospitality space. Presently, 12 buildings ranging from 50,000 to 1.7 million square feet have been completed within the park, alongside a travel plaza that includes dining, shopping and vehicle services. Current tenants at Elion Logistics Park 55 also include Amazon, Post, Lineage, Michelin and General Mills.

READ ALSO: Manufacturing Thrives Amid Construction Surges

PrimeSource leased Building VI last October; CBRE Executive Vice President Jeffrey Kapcheck and Senior Vice President Jason Lev represented the landlord in the deal. Elion had tapped the brokerage firm to oversee leasing at the property in 2019.

Completed in 2022 at 30350 S. Graaskamp Blvd., Building VI is less than a mile west of Interstate 55 and 56 miles from downtown Chicago. The larger Elion Logistics Park 55 features 3 miles of direct frontage along the same highway and is 8 miles away from a BNSF railway that ends at the Port of Los Angeles.

Chicago’s industrial market

Chicago’s position at the nation’s midpoint has made it a prime leasing and investment target. As of the second quarter of 2023, warehousing and distribution assets were the metro’s top industrial subtypes by nearly every metric. According to a JLL report from the same period, Greater Chicago had 33.7 million square feet of such space under construction as of June, with 9.8 million coming online year-to-date. The vacancy rate was at 3.8 percent, while the area has seen 3.5 million square feet of quarterly net absorption.

Recent Chicagoland industrial headlines include Seefried Properties’ groundbreaking on a two-building, 465,360-square-foot speculative project in Elgin, Ill., alongside Logistics Property Co. beginning construction on a 664,453-square-foot building in Oak Forest, Ill.

The post PrimeSource Opens 1 MSF Chicago Warehouse appeared first on Commercial Property Executive.

The building at 450 East 22nd St. in Lombard, Ill., changed hands in a sale-leaseback deal. Image courtesy of CommercialEdge

Civitas Capital Group has acquired the 67,119-square-foot Credit Union 1’s Lombard, Ill., headquarters in a sale-leaseback deal. The transaction included a 15-year triple net lease agreement and involved the seller master leasing a 43,556-square-foot office building in Henderson, Nev., owned by Civitas since 2021.

Completed in 1984, the two-story building in Lombard last traded in 2021 for $6.5 million, according to CommercialEdge data. Other tenants at the property include Werner Enterprises, Madrigal Consulting & Counseling and Synergy Recruiting, as well as several medical tenants, the same data provider shows. Located at 450 East 22nd Street, the asset is close to Interstate 355, while being roughly 27 miles west of Chicago and some 14 miles from Naperville.

Civitas Capital Group acquired the Henderson for $13.5 million, backed by a $9.5 million loan from Western Alliance Bank, CommercialEdge information shows. The two-story building was completed in 2007 and comprises 17,251 square feet of ground-floor retail. Located at 2651 Paseo Verde Parkway, it is just off Highway 146 and close to Interstate 215, while being roughly 16 miles south of Las Vegas and 8 miles from central Henderson.

Seeking opportunities in the office sector

Civitas Capital Group Vice President of Investments Jorge Adler stated in prepared remarks that the company used the price dislocation in the office sector in its advantage, adding that the deal’s structure ought to keep cash flow resistant to short-term economic fluctuations.

A recent Boulder Group report shows that single-tenant net-lease cap rates have been on an upward trend for the past five consecutive quarters. Specifically within the office sector, cap rates reached 7.3 percent in the second quarter, marking a 27-basis-point increase since the end of March.

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Rendering of the Elgin, Ill., project. Image courtesy of Seefried Properties and Harris Architects

Seefried Properties has broken ground on a 465,360-square-foot speculative industrial project in Elgin, Ill., in the Chicago area. The architect of record is Harris Architects, with FCL Builders acting as general contractor and Spaceco providing civil engineering services.

Plans call for two separate buildings spanning 320,946 and 144,414 square feet, respectively. Both are slated to feature clear heights between 32 and 36 feet, 185-foot deep truck courts, 236 trailer spaces, as well as ESFR sprinkler systems. The facilities will be able to accommodate tenants needing between 25,000 and 465,000 square feet. Completion of the Class A campus is expected in the third quarter of next year.

READ ALSO: Construction Spending Booms Across the Board

Located at the intersection of Madeline Road and Alft Lane, the development site is near Interstate 90 and roughly 42 miles from Chicago, as well as 33 miles north of Naperville, Ill.

Cushman & Wakefield Executive Vice Chair Jason West along with Executive Director Doug Pilcher are marketing the project for sale or lease.

As of May, there were 618.9 million square feet of industrial space under construction nationally representing 3.4 percent of total stock, a recent CommercialEdge report shows. In the Midwest, Chicago’s supply pipeline is leading in terms of square footage with 23.3 million square feet under development, according to the same source. Recently, Logistics Property Co. broke ground on a 665,000-square-foot project in the metro area.

The post Seefried Properties Kicks Off Chicago-Area Spec Project appeared first on Commercial Property Executive.

Highland Grove. Image courtesy of Mid-America Real Estate Corp.

Bridge33 Capital has purchased Highland Grove, a 312,406-square-foot retail center in Highland, Ind. Madison International Realty was the seller, according to CommercialEdge data. Mid-America Real Estate Corp.’s Investment Sales Group brokered the transaction.

Completed in 1956, Highland Grove encompasses six buildings on a 29-acre site. Anchored by Kohl’s, Burlington, Macy’s, Michaels, Petco, Ulta and shadow-anchored by Target, Best Buy and Ashley Furniture, the retail center was 100 percent leased at the time of sale. The property’s tenant roster also includes Five Below, Famous Footwear, Potbelly, Yankee Candle, GameStop, Wingstop, Torrid and Olive Garden.

Situated in Chicago’s Outlying Lake County submarket at 10300 Indianapolis Blvd., Highland Grove is right off Route 41, in an area with a high traffic count. Hoosier Prairie State Nature Preserve and Sky Zone Trampoline Park are within a 2-mile radius.

Mid-America Real Estate Principals Ben Wineman and Joe Girardi, along Principal Rick Drogosz, worked on behalf of the seller. Girardi and Drogosz were also instrumental in the $23.5 million sale of a 175,369-square-foot grocery-anchored retail property in Bourbonnais, Ill.

The post Bridge33 Capital Buys Chicago-Area Retail Center appeared first on Commercial Property Executive.

Image by JaySi/iStockphoto.com

Chicago’s office market, like all major U.S. metros, continued to be defined by users and owners looking for solutions to the sector’s crisis. During the first four months of the year, vacancy remained elevated across the board, new construction starts hinted that some developers are still positive on office properties, while transaction activity slowed down to a quarter of what it was last year.

The life science sector is gaining traction in Chicago as well, providing a potential exit ramp to traditional office users. Another potential factor to watch out for is conversion of office properties, such as the recently announced project by Brennan Investment Group in the I-90 Corridor submarket.

Dive in our latest Chicago office market breakdown for the first four months of the year, with data provided by CommercialEdge.

Construction starts grew year-over-year

In April, Chicago had 3.7 million square feet of office space under construction, which represented 1.2 percent of existing stock. The metro’s pipeline remained 60 basis points below the national construction rate. Some of the largest properties underway are projects initiated before the remote work shift, leaving owners and developers to look for solutions in how to best utilize the space.

Development activity was concentrated in the metro’s CBD, which had 2.3 million square feet of office space underway. Other submarkets with notable amounts of space under construction included West Loop (560,000 square feet), South Chicago (410,000 square feet) and Eastern East-West Corridor (328,000 square feet).

Two office properties were completed during the first four months of the year, totaling 765,000 square feet—less than half of the almost 2 million square feet delivered during the same period last year. The largest property that came online during this time was the owner-occupied Joan & Paul Rubschlager Building at Rush, a 480,000-square-foot medical office building in the West Loop submarket. The $450 million medical facility opened in February, and it serves as a center for neuroscience and cancer care.

A Chicago mega-development, Lincoln Yards was approved by the city in 2019. The mixed-use community, to be developed on former industrial land along the North Branch of the Chicago River, will span 53 acres. Image courtesy of Sterling Bay

The other building that was completed is situated within Sterling Bay’s Lincoln Yards project—a 53-acre mixed-use development. The developer finished a 285,000-square-foot office building at 1229 W. Concord Place, which is aimed at tenants in the growing life science sector.

During the first four months of the year, construction or redevelopment activity began across four properties totaling 1.5 million square feet—a far cry from the 78,000 square feet that broke ground last year during the same period. More than half of this space was within a single building—Onni Group started redevelopment work at its 848,500-square-foot property in the metro’s CBD, at 225 W. Randolph St. The revamped building is slated to come online in 2024.

The largest property underway in April was Hines Interests’ Salesforce Tower, measuring 1.2 million square feet. Hines is developing the property in partnership with Salesforce, which was originally set to occupy 500,000 square feet at 333 Wolf Point Plaza. Reportedly, the company is currently looking to sublease 125,000 square feet of that space, considering current economic headwinds. Hines topped out the property last year, and expects to bring it online in June.

Traditional office vacancy not improving

Although the metro recorded some significant leasing activity during the first four months of the year, vacancy remained one of the highest in the nation, at 18.8 percent as of April. The figure was 210 basis points higher than the national rate.  Chicago’s rate has improved by 60 basis points since January.

Compared to other gateway markets, Chicago had the second-highest office vacancy rate, exceeded only by San Francisco (19.4 percent). Manhattan took the third spot (16.8 percent), followed by Los Angeles (14.4 percent) and Miami (12.1 percent).

The average full-service equivalent listing rate was $27.9, significantly below the national average of $38.2 and up 2.4 percent year-over-year.

10 S. Wacker at CME Center. Image courtesy of Transwestern

Office leasing mostly consisted of companies relocating and re-assessing their need for space. Additionally, office users are following the flight-to-quality trend in Chicago as well. In March, for example, law firm Hanley Flight & Zimmerman signed a 13,943-square-foot lease at Tishman Speyer’s CME Center in Chicago’s CBD, relocating to a Class A office.

Molson Coors Beverage Co. carried out another relocation, to Riverside Investment & Development’s 320 South Canal property, also in the CBD. The company signed an 83,848-square-foot lease, and is set to move its headquarters to floors 34 through 36 starting in the summer of 2024.

A biomedical research institute signed a 25,698-square-foot lease at Trammell Crow Co.’s 1375 W. Fulton office properties located in the West Loop submarket. The Chan Zuckerberg Biohub Chicago joined several other life science companies at the 725,000-square-foot campus.

Chicago office investment downshifted

Year-to-date through April, Chicago office transactions totaled $354 million, representing only 25.3 percent of the $1.4 billion recorded over the same period last year. The average price per square foot stood at $91, down 55 percent year-over-year and significantly below the national figure of $196.

The largest sale during this period was Agave Holdings’ $96.5 million purchase in the metro’s CBD. The company acquired the 512,354-square-foot property at 300 S. Wacker Drive at roughly $188 per square foot from Golub & Co. The LEED Gold-certified building received a cosmetic renovation in 2018.

Coworking remains a good opportunity

Meanwhile, coworking providers in Chicago are looking to capitalize on opportunities provided by the market’s state. Chicago’s massive office inventory allows for a large percentage to be dedicated to hybrid work environments, and likely more providers will enter the market this year. In April, the market had roughly 3.5 million square feet of shared space, representing 1.9 percent of the total office space available.

Compared to other gateway markets, Chicago remained on the third spot, with Los Angeles (2.2 percent) and Manhattan (2.8 percent) being the only metros that exceeded its offering of shared space.

The post Chicago’s Office Market Slow to Adapt appeared first on Commercial Property Executive.

525 W. Van Buren. Image courtesy of Stream Realty Partners

AEW Capital Management has appointed Stream Realty Partners as exclusive leasing agent and property manager for 525 W. Van Buren St., a 521,604-square-foot Class A office building in Chicago’s West Loop. The current ownership picked up the office asset in 2015, when it paid Northwood Investors $135 million, CommercialEdge data shows.

Stream Realty Partners’ Executive Vice Presidents Andrea Saewitz and Matt Lerner will be the leasing brokers in charge, while the company’s Leader of Industrial Property Management & Partner Victoria Knudson, together with Vice President of Office Property Management Tim Gilbertsen, will serve as property managers.

READ ALSO: As Hybrid Work Expands, Coworking is No Longer the Exception

Tenants present at the property include the Chicago Immigration Court; Upwork; New Horizons Computer Learning Center; HR consultancy Insperity; Risk Placement Services; and Chicago’s Bureau of Alcohol, Tobacco, Firearms and Explosives, among others, according to CommercialEdge.

Situated in Chicago’s central business district, close to interstates 90 and 290 and to multiple train and subway stations, such as Union and LaSalle Street, the office property is 10 miles from Chicago Midway International Airport and 17 miles from O’Hare international.

Completed in 2000, the 16-story office building includes 12 passenger elevators, 33,865-square-foot floorplates, 1,100 square feet of retail, an on-site conference center, a tenant lounge, bike storage facilities and 1,740 parking spots, according to the same data provider. Additionally, the property includes a glass lobby with 25-foot ceilings, a column-free floor infrastructure, as well as a new fitness center.

The tower offers an attractive amenity package, on par with today’s flight-to-quality trends, good connectivity throughout the city and a sought-after downtown location, noted Stream Realty Partners’ Lerner in prepared remarks.

Chicago office vacancy rate drops, close to other large cities

According to a recent CommercialEdge report, Chicago’s office vacancy rate of 18.8 percent is still relatively high, above the 16.7 percent national figure, despite dropping 180 basis points year-over-year as of April. The rate also remained in line with other major office markets, including San Francisco (19.4 percent), Brooklyn (19.4 percent) and Seattle (19.0 percent).

Earlier this month, Stream Realty Partners expanded its office leasing portfolio with more than 800,000 square feet across three Chicago buildings, located in the West Loop and Fulton submarkets. The company was tapped as leasing agent for Macquarie’s 550 W. Adams, the RMR Group’s 400 S. Jefferson and Aberdeen Development’s 315 N. Racine.

The post Stream Realty Tapped to Lease 522 KSF Chicago Office Building appeared first on Commercial Property Executive.

3450 West Touhy Ave. Image courtesy of JLL Capital Markets

Bernard Capital Investment Partners has closed on the acquisition of 3450 West Touhy Ave., a 123,519-square-foot flex retail and industrial property Skokie, Ill. CenterPoint Properties Trust sold the asset for $11.5 million.

Constructed in 1976 and revamped in 2013, the property is anchored by XSport Fitness. Serving as the busiest fitness facility within a 5-mile perimeter, it has welcomed around 866,000 visitors over the past year, according to JLL.

READ ALSO: When Will CRE Deals Rebound?

The property also accommodates two industrial tenants, Skokie Cash & Carry and Howard Packaging. These tenants occupy spaces featuring three interior docks and four drive-in doors. Moreover, the building offers an 84-spot parking garage.

Located 4 miles from Interstate 94, the property has an average daily traffic count of 20,000 vehicles, according to JLL. Chicago and O’Hare International Airport are roughly 10 miles away.

JLL Director Michael Nieder brokered the sale on behalf of the seller. At the beginning of the year, Nieder also represented Kimco Realty Corp. in the $20.5 million transaction of Wind Point Shopping Center, a 274,282-square-foot, grocery-anchored retail asset in Batavia, Ill.

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315 N. Racine. Image courtesy of Stream Realty Partners

Despite a sluggish commercial real estate market, Stream Realty Partners has expanded its leasing portfolio with the addition of more than 800,000 square feet of office space spanning three Chicago buildings. The properties belong to three separate ownership groups.

The national commercial real estate firm was tapped to handle leasing assignments at 550 W. Adams, 400 S. Jefferson and 315 N. Racine. Two of the buildings are in the West Loop and one is in the Fulton Market neighborhood. They are all located near Interstates 90, 94 and 290 and have easy access to Chicago’s CTA “L” line.

READ ALSO: How Coworking Is No Longer the Exception

Patrick Russo, Stream Chicago executive managing director & partner, said in a prepared statement there is a flight to quality trend in the office market and ready-to-go or built-out space is still leasing in Chicago. He said all three of the assets either have ready-to-go space or the owners are planning to invest capital to build speculative suites in the future.

The Stream Chicago leasing team also includes Managing Director Mark Bâby, Associates Brittany Hughes and Katie Hull. Bâby, Hughes and Hull are the leasing brokers for 550 W. Adams. Russo and Bâby are handling leasing efforts at 400 S. Jefferson and Hughes and Hull are the leasing agents for 315 N. Racine.

550 W. Adams

The 18-story tower in the West Loop submarket is owned by Australian global financial services group Macquarie and has 469,729 square feet of Class A office space and 7,760 square feet of retail space. Built in 2006, the tower was renovated in 2021. Macquarie acquired the property in February 2015. A sales price was not available but the owner secured a $92.5 million loan in February 2022, according to CommercialEdge data.

Amenities include Quincy’s tenant lounge and bar, a fitness center, conferencing facility and bicycle storage. The building is Energy Star labeled and LEED Gold certified and features a green roofing system with rainwater management that helps control costs. There is on-site parking, and the building has easy access to Union Station.

550 W. Adams is currently 87 percent leased and offers office space from 2,465 square feet to 27,560 square feet. Tenants include USG, Optimal Design, Class Computing, QST Industries, Lewis Brisbois law firm, Chase and Inteliquent and Dylan’s Tavern & Grill, CommercialEdge reported.

400 S. Jefferson

400 S. Jefferson. Image courtesy of Stream Realty Partners

Located in the West Loop, the eight-story, 247,000-square-foot office building is managed by The RMR Group, an alternative asset management firm with a national portfolio. The property has a multi-story town hall and event space, outdoor roof deck and tenant lounge, 60 interior and 18 exterior parking space and a bike room.

Built in 2013, 400 S. Jefferson was acquired in January 2015 by Cole Chicago LLC for $90.5 million, according to CommercialEdge data. The LEED Gold-certified building currently has one tenant listed, Tyson, CommercialEdge reported.

315 N. Racine

The 92,200-square-foot, five-story brick-and-timber property was built in 1912 and redeveloped in 2013. Aberdeen Development of Chicago owns the building near Fulton Market Street. The acquisition price and date were not disclosed but the owner obtained an $18 million,10-year loan in February 2020, according to CommercialEdge. The historic property has 13-foot ceilings, a lobby and on-site reception area. Tenants include CH Robinson and TMC, CommercialEdge reports.

Stream assignments

Headquartered in Dallas, Stream has an integrated platform of services including leasing, property management and tenant and landlord representation. The company has 15 offices in core markets across the country.

In late May, Fortis Property Group revealed plans for a multimillion-dollar renovation of the 55-story, Class A Chase Tower in downtown Dallas that will be rebranded as the Dallas Arts Tower. Fortis chose the new name in collaboration with Stream, which is the leasing broker for the 1.3 million-square-foot office tower.

In November, David Z. Mafrige Interests appointed Stream to provide leasing services for World Houston Place, a 216,889-square-foot Class A office building in Houston.

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Oak Forest Logistics Center. Image courtesy of Logistics Property Co.

Logistics Property Co. has broken ground on Oak Forest Logistics Center, a 664,453-square-foot industrial building located at 16799 Cicero Ave. in Oak Forest, Ill.

The developer has tapped Architects Plus Design Studio, PLLC to design the facility, SPACECO, Inc. for the property’s civil engineering. FCL Builders will serve as the project’s general contractor, and Cushman & Wakefield will manage leasing at the completed facility. The complex is scheduled for completion in the fourth quarter.

Oak Forest Logistics Center marks the developer’s 11th project in metro Chicago, following its closing of Venture Two LP, a $1.8 billion fund that targets developments in fast-growing U.S. markets. Prior to the closing, the firm began construction on Butterfield Distribution Center and 2800 W. Diehl Road, two projects in Aurora that total 663,867 square feet.

Oak Forest’s features

At full build-out, Oak Forest Logistics Center will include 117 exterior loading docks with four drive-in doors, which will be flanked by 625 parking spaces. Inside, the building will feature 40-foot clear heights housing 54-foot by 52-foot column spacing, as well as 54-foot by 71-foot speed bays, with the option to add build-to-suit office space. The facility is slated for LEED certification.

READ ALSO: How Debt Costs Will Affect Industrial Demand This Year

The facility will be situated adjacent to a cluster of highways that leads to Interstates 57 and 80. Oak Forest has direct access to State Route 57, which connects to U.S. Routes 5 and 6. Industrial properties operated by Amazon and CJ Logistics are a half-mile southeast. Downtown Chicago is 20 miles to the north, and the facility is within a day’s drive of many of the Midwest’s largest markets.

Cushman & Wakefield Executive Vice Chair Jason West, Vice Chair Sean Henrick and Managing Director Ryan Klink will serve as the property’s leasing brokers.

Industrial upswing

As of May 2023, Chicago had the nation’s fourth-largest industrial pipeline, with 24.49 million square feet of projects, according to a CommercialEdge report. The market’s year-to-date transaction volume of $414 million is the region’s largest and seventh in the U.S.

These fundamentals contribute to the market’s 4.2 percent vacancy rate, 30 basis points above the national average.

On the investment front, Venture One Real Estate has completed its purchase of the Amhurst Lake Business Park, a 404,953-square-foot complex in Waukegan. Two months prior, a joint venture between PCCP and Stotan Industrial added to the area’s development starts with the groundbreaking of a 100,400-square foot project in Mount Prospect.

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570 Lake Cook Road. Image courtesy of Bradford Allen

Bradford Allen has completed two lease agreements totaling 35,000 square feet at 570 Lake Cook Road, a 138,000-square-foot office building in Deerfield, Ill., a northern suburb of Chicago. The landlord handled the lease signing in-house, while Bespoke Commercial Real Estate and Savills provided tenant representation.

Coworking firm Venture X signed a 19,000-square-foot lease, to operate a new flex office location on the third floor of the property. Set to open later this year, the space will be the firm’s second location within metro Chicago.

READ ALSO: Designing the Suburbs of the Future

Venture X’s expansion represents a response to the growing need for coworking space in suburban areas. Bradford Senior Managing Director Joel Berger negotiated the deal on behalf of the landlord, while Bespoke Commercial Real Estate Co-Founder Vic Sanmiguel acted on behalf of the flex office provider.

Planning and design consulting firm Kimley-Horn signed a long-term extension and expanded its office space to 16,000 square feet. Berger negotiated the lease on behalf of the ownership, while Savills Senior Director Hayden Rasmussen and Senior Managing Director Jon Azulay brokered the agreement on behalf of the tenant.

The property’s existing tenant roster comprises Ferris & Thompson, Coast To Coast Logistics, Banner Real Estate Group, The Pinnacle Financial Group and Newman Insurance Services, according to CommercialEdge.

The five-story 570 Lake Cook Road underwent renovations last year and features heated underground parking, a solarium on the top floor, conference facilities and on-site property management services. The building is in close proximity to the Lake Cook Road Metra station, while Chicago Executive Airport-PWK is some 6 miles away.

Office rents increase in suburban areas

According to the latest CommercialEdge report, suburban office properties took the lead in terms of rent increase, with a 4.2 percent growth year-over-year through April, bringing the rate to $31.0 per square foot. CBD office rents followed closely behind, up 3.7 percent, to reach an average of $51.1 per square foot. Urban office rents remained on a downward trend, with a year-over-year decrease of 3.2 percent, averaging at $44.0 per square foot.

At $27.9 per square foot, Chicago asking rents were $10.3 lower than the national average, which hit $38.2 per square foot in April. That same month, the metro’s vacancy rate clocked in at 18.8 percent, higher than the national average of 16.7 percent.

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The Fields. Image courtesy of Knickpoint Ventures

Knickpoint Ventures has topped out The Fields Studio, the first purpose-built film studio in Chicago. Encompassing a total of 482,000 square feet, the studio is part of the 1.5 million-square-foot redevelopment of the former Marshall Field & Co. warehouse. The project is expected to come online in the first quarter of 2024.

The Fields is set to include nine sounds stages totaling 132,000 square feet, as well as more than 350,000 square feet of creative office, mill and support space. Eight sound stages are NC-30 rated and range between 12,000 and 18,000 square feet, while the ninth is a 5,000-square-foot space dedicated to small scale productions. The 150,000-square-foot mill and support area will include dedicated space for production vehicles and departments, dressing rooms and a site for future back lot construction.

The studio is taking shape at 4000 W. Diversey Ave., 8 miles from downtown Chicago. The property will benefit from access to public transportation options, as well as to dining and retail venues.

In March, Illinois Governor J.B. Pritzker signed a 10-year extension of the production tax credit for the film industry. The program was first approved in 2008 to support the local economy and the growth of the film business in the state.

From warehouse to mixed-use redevelopment

The Fields Studio is the latest iteration of a property that went through several stages of transformation throughout almost an entire century. Originally built in 1928 as an Olson Rug factory, the 22-acre site included six buildings that changed hands in 1965 when the property turned into a Marshall Field’s warehouse. After being under Macy’s ownership from 2006 until 2008 and then vacant for a few years, Merit Partners acquired the warehouse in 2014 for $8 million and embarked on a $60 million redevelopment project.

In 2018, New York-based Knickpoint Ventures purchased the asset from Merit Partners. The transaction was a portfolio sale in which Knickpoint acquired a 78.3 percent ownership stake of The Fields facility for almost $35 million and 100 percent ownership stake in 182,000 square feet of industrial space at 4029 W. George St., according to CommercialEdge data. Lock Up Self Storage acquired the rest of the 21.7 percent ownership in The Fields back in 2016 for $1.6 million. The same data provider shows that the property is currently subject to a bridge loan of $150 million provided by Prime Finance Partners and has a 2024 maturity date.

Knickpoint is currently planning on bringing additional retail users on the site, apart from Cermak Fresh Market—which became part of the mixed-use redevelopment project back in 2016. The roster also includes SIX4 Creative and The Federal Savings Bank, which signed a long-term lease for 50,000 square feet in 2020.

The intersection of film and commercial development

Since the beginning of 2023, several development projects that catered to the film and entertainment industry have been either brought to completion or started the planning process. in February, Worldwide Stages LLC opened a 320,000-square-foot complex in Nashville, Tenn., comprising 38 acres of production space.

The same month, Innovo Property Group topped out a 900,000-square-foot mixed-use development in Long Island City, N.Y. that will include Borden Studios, a 194,000-square-foot film and television production facility.

In Los Angeles, Fox Corp. announced that its Studio Lot in Century City will undergo an expansion totaling 1.6 million square feet. The project will reportedly garner a $1.5 billion investment.

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1909 Waukegan Road. Image courtesy of CommercialEdge

Venture One Real Estate has acquired a two-building industrial portfolio in the Amhurst Lake Business Park in Waukegan, Ill., totaling 404,953 square feet. The assets were last owned by The Visual Pak Cos., according to CommercialEdge data. CBRE brokered the sale-leaseback on behalf of the seller. The acquisition was completed through the buyer’s VK Industrial VI fund, which is co-sponsored by Kovitz Investment Group.

The building at 1909 Waukegan Road comprises 271,476 square feet of warehouse and manufacturing space, along with 14,497 square feet of office space on a 12.3-acre site. Completed in 2003, it features 31-foot clear heights, 20 exterior docks, two drive-in doors and an ESFR sprinkler system. It is situated between Interstate 94 and Highway 41, and is roughly 30 miles north of Chicago.

The second asset incorporates 133,477 square feet of warehouse and 5,004 square feet of office space on a 6.7-acre site. It is situated at 1585 Lakeside Drive, off Highway 41, about 1 mile from the other asset. Completed in 2005, the building has 35-foot clear heights, 21 exterior docks and two drive-in doors.

CBRE Vice Chairmen Ryan Bain, Michael Caprile and Zach Graham, along with Senior Vice President Whit Heitman, represented the seller. Recently, Venture One sold a 54-property industrial portfolio for $369 million, which represented the last transaction in the firm’s VK Industrial V Fund.

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320 South Canal. Image courtesy of CommercialEdge

Riverside Investment & Development has signed an 83,848-square-foot lease at 320 South Canal, a 1.5 million-square-foot Class A office building in Chicago’s CBD. Molson Coors Beverage Co. will relocate its Americas headquarters to floors 34 through 36 of the 52-story tower, with move-in planned for the summer of 2024.

Cushman & Wakefield’s team of Executive Managing Directors Matt Gautreau, Dan Maslauski and Michael Sessa, together with Vice Chairman Nick Pavlakovich worked on behalf of the tenant. Riverside Executive Vice President Drew Nieman and Senior Vice President Christy Domin represented the landlord in-house.

READ ALSO: Office Amenities With Tenant Appeal

The property’s anchor tenant is BMO Harris Bank. Recently added tenants at the tower include Antares Capital, National Futures Association, Skadden Arps, along with law firms Faegre Drinker and Chapman & Cutler.

Designed by Goettsch Partners, the recently completed West Loop property includes 12,000 square feet of retail space, 29,000- to 32,000-square-foot floorplates and 324 covered parking spots, CommercialEdge data shows. Molson Coors’ future offices will allow for more employee engagement, collaboration and space for outdoor meetings. The firm will relocate from 250 S. Wacker Drive, also in the CBD.

Attracting today’s office users

The trophy tower comprises a fitness and wellness center, conference facility, pub, outdoor private patio, café and 1.5-acre outdoor park. The building received LEED Gold, WELL Platinum and WiredScore Platinum certifications.

The property sits on a 2-acre lot, close to Union Station and multiple bus and subway stations, as well as interstates 290 and 90. The tower is located 10 miles from Chicago Midway International Airport and 17 miles from O’Hare International Airport.

Recent high-profile deals in the area include insurance giant Chubb’s and law firm Katten Muchin Rosenman signing lease extensions at Tishman Speyer’s 525 W. Monroe St. The 900,000-square-foot Class A office building is currently undergoing a series of improvements.

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