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KBS REIT III Acquires 500 West Madison and Names Transwestern Exclusive Leasing & Management Agent

20 Dec 2013, 10:10 pm

By Gabriel Circiog, Associate Editor

Transwestern recently announced it has been named the exclusive leasing agent and property manager for Citigroup Center. Located at 500 West Madison Street in downtown Chicago, the 1.5 million-square-foot Class A mixed-use tower was purchased by KBS Real Estate Investment Trust III for about $425 million plus closing costs.

Newport Beach, Calif.-based KBS REIT III, a public non-traded real estate investment trust has chosen Transwestern to lease and manage the 40-story skyscraper. Situated in Chicago’s West Loop, the property is currently 93 percent leased. KBS REIT III has a vast portfolio under management which currently features 135 million square feet. The company also owns another trophy-class office tower in the Chicago central business district: 300 North LaSalle, a 1.3 million-square-foot office tower.

“500 West Madison is another recent, prominent acquisition KBS REIT III has made in the office arena,” says Ken Robertson, KBS Central Regional President. “We feel the West Loop has become the epicenter of new development, adaptive re-use and urban renewal in Chicago’s CBD, and we believe this is an iconic asset that is literally connected to the transit grid of the entire region.”

Situated atop the Ogilvie Transportation Center, 500 West Madison is ideal for commuters. The LEED Gold certified building is home to important office tenants such as Citigroup Inc. and W.W. Grainger and is the headquarters for Orbitz Worldwide Inc.

Designed by Helmut Jahn and constructed in 1987, the building features 64,000 square feet of retail on the first two floors, including over 45 stores and restaurants. Office floor sizes range from 31,000 to 47,000 square feet.

“We are honored to have been chosen by KBS as the leasing and management agent for 500 West Madison,” says Michael Lirtzman, executive vice president of Transwestern. “This building’s appeal to office users will only be enhanced by the strategic improvements KBS intends to implement as it takes ownership and makes a great building even better. Chicago’s West Loop is a sought-after location, and we are thrilled to have the opportunity to offer tenants a home in this iconic building.”

The exclusive leasing agents for the property will be the Transwestern leasing team of Lirtzman and Courtney Baratz.

Photo Courtesy of: Jarred Trost via Wikimedia Commons.

Liberty Property Trust Renews Leases with Five Tenants in Recently Acquired Industrial Buildings

13 Dec 2013, 9:03 pm

By Gabriel Circiog, Associate Editor

Liberty Property Trust recently announced it has renewed leases with five tenants, totaling 277,495 square feet of industrial space.

All the tenants are located in buildings acquired when Liberty purchased a major industrial portfolio earlier this fall. As previously reported by Commercial Property Executive, Liberty Property Trust entered into a definitive agreement to acquire the operating partnership of Cabot Industrial Value Fund III in August.

“When we completed the purchase of Cabot Industrial Value Fund III in October, 3.2 million of the 23 million-square-foot portfolio was located in the greater Chicago market,” says Don Schoenheider, vice president and city manager for Liberty’s Illinois region. “This provided us with a terrific opportunity to expand our footprint. It’s been an exciting couple of months as we have gotten to know our newest tenants. Their renewals are very encouraging and we look forward to working with each for many years to come.”

Out of the five agreements the largest was with MSC Industrial Direct for 181,635 square feet in Hanover Park. The property is located close to the other two buildings Liberty purchased last month in DuPage County, 135-195 East Elk Trail and 515 Kehoe Boulevard.

“Part of our strategy has been to reach greater depth in DuPage County, as it is an excellent logistics market,” Schoenheider says. “With recent acquisitions we now have more than a dozen buildings there that broaden our property mix; a fact we see as an extremely important differentiator heading into 2014.”

The other four new leases renewed this month by Liberty include agreements with EZ Mailing Services Inc. in Bensenville; Tactical Lighting Systems in Addison; Tri-Fin LLC in Itasca, and Perfection Servo Hydraulics in Batavia.

Logo Courtesy of: www.libertyproperty.com

Zurich North America Reveals Team to Develop and Design New North American Headquarters in Schaumburg

5 Dec 2013, 12:06 am

By Gabriel Circiog, Associate Editor

Zurich North America recently announced it has entered into agreements with Clayco, Goettsch Partners and CannonDesign for the development and design of their North American headquarters in Schaumburg.

“We want our new, state-of-the-art campus in Schaumburg to be a source of pride for both the community and our employees,” says Mike Foley, CEO of Zurich North America Commercial. “We look forward to working with this elite team of designers, architects and builders who will help bring our vision to life.”

As previously reported by Commercial Property Executive, Zurich North America signed a letter of intent with Motorola Solutions in September to acquire 40 acres of land for its new world-class North American headquarters at Meacham Road and I-90. The company will relocate from its current offices on American Lane to the new headquarters by the fall of 2016.

The new 735,000-square-foot complex is designed to reinforce an image of reliability and success through its bold simplicity in form, and to underline its commitment to sustainability. The structure will be composed of three primary “bars” that are offset and stacked. The arrangement aims to open views of the surrounding landscape and optimize solar orientation for amenities while creating unique spaces that offer programmatic flexibility not found in typical office buildings. The top “bar” of the complex soars 11 stories and cantilevers toward downtown Chicago.

Clayco, as developer and design-builder will lead the development, design and construction of the complex. The headquarters’ core and shell, along with the parking facility, will be designed by Goettsch Partners. CannonDesign is designing the interior of the headquarters.

Zurich employs about 2,500 people in Schaumburg, and about 60,000 worldwide. It also has an office in downtown Chicago, which it intends to relocate within the Loop.

Zurich North America estimates the project will create up to 700 construction jobs.

Rendering Courtesy of: www.claycorp.com

Ivanhoé Cambridge Adds 1.4 MSF of Office Space to West Loop Portfolio

2 Dec 2013, 8:42 pm

By Gabriel Circiog, Associate Editor

Ivanhoé Cambridge recently announced that it has expanded its Chicago office portfolio by acquiring twin office buildings 10 and 120 South Riverside Plaza, in partnership with Callahan Capital Properties.

Located in the West Loop submarket of Chicago’s business district, the property adds 1.4 million square feet of office space to the company’s portfolio. The investment of more than $360 million in 100-percent ownership of the properties strengthens the company’s position in the West Loop.

“Chicago is one of the key U.S. cities we’ve set our sights on in order to build a solid national high-quality office building platform,” says Adam Adamakakis, executive vice president, U.S. investments, Ivanhoé Cambridge. “This successful transaction proves one more time how effective our partnership with Callahan Capital Properties can be in one of the most competitive real estate markets in the United States.”

Situated on the west bank of the Chicago River, a short distance away from the two busiest commuter rail hubs in the city’s business district, the 21-story 10 and 120 South Riverside Plaza towers have both received LEED Gold EB certification. The twin buildings occupy two full city blocks.

The new investment in Chicago comes 18 months after the real estate company announced the start of construction on the River Point Tower. Also located in the West Loop, River Point Tower is the largest property development project of the past five years in Chicago. The enthusiasm for the submarket was confirmed just days later when a major law firm was announced as an anchor-tenant, leasing over 225,000 square feet of space in the new tower.

Brennan Investment Group and DLJ Real Estate Capital Partners Announce Industrial Development Project

20 Nov 2013, 11:34 pm

By Gabriel Circiog, Associate Editor

Brennan Investment Group LLC and DLJ Real Estate Capital Partners LLC recently announced the acquisition of about 8 acres of land in Des Plaines, Ill.

Located at 1780 Birchwood Avenue, close to I-90 and I-294, the site has been purchased for a development project in Chicago’s O’Hare Industrial submarket. The partnership plans to build the Northeast O’Hare Industrial Center, a state-of-the-art warehouse and distribution building. The 140,000-square-foot building will feature a 32-foot clearance height, ample loading, trailer parking, and auto parking.

“The Chicago industrial market – one of the most diverse in the nation – has seen resurgent tenant demand evidenced by three consecutive years of positive net absorption,” says Scott McKibben, co-founder and managing principal of Brennan Investment Group. “For this development, we were particularly attracted to the market fundamentals of the O’Hare area, where vacancy has declined five full percentage points in the past two years and now stands at 8.10 percent. We are confident that with year-to-date net absorption of 1.3 million square feet, the O’Hare market is ready for development projects.”

Jonathan D. Kohn and Thomas C. Rodeno of the Colliers International team have been retained to market the property on behalf of DLJ Real Estate Capital Partners and Brennan Investment Group.

Designed to serve the increased demand for warehouse, assembly and distribution spaces, the property will be built to a LEED standard.

“The property will be attractive to future tenants due to its proximity to the interstate system and its central location, one mile from Chicago’s O’Hare International Airport,” McKibben says.

Logo Courtesy of: www.brennaninvestmentgroup.com

The Opus Group and USAA Real Estate Co. Start Construction on 604,565 SF Speculative Industrial Building

14 Nov 2013, 12:47 am

By Gabriel Circiog, Associate Editor

The Opus Group and USAA Real Estate Company recently held a ceremonial groundbreaking ceremony and announced the start of construction on a new 604,565-square-foot speculative industrial building in North Aurora, Ill.

Dubbed the I-88 Gateway Logistics Center, the industrial building will be owned by an investment affiliate of USAA Real Estate Company.

“We are excited about the opportunity to commence this new development venture with Opus Development Company, L.L.C. and are confident that, with the design and expandability of this building, we will successfully meet the pent-up demand for larger users who currently have limited options to start up new operations or expand existing ones in the I-88 corridor,” says David Reahl, executive director with USAA Real Estate Company.

Located at 1200 Orchard Gateway Boulevard, the building will have direct access to I-88 and offer a stable labor pool and highly educated workforce from DuPage and Kane counties.

“We are very pleased to get this project started in North Aurora,” says Mike Yungerman, vice president of real estate development at Opus Development Company, L.L.C. “We are beginning to see good market activity and believe that our delivery in June will be well-timed to the expanding market.”

Dale Berman, president of the North Aurora Village Board, also attended the groundbreaking and said that “the North Aurora Village Board is excited to begin this planned growth project.  He added that his organization is welcoming of Opus and USAA Real Estate Company and “look forward to expanded employment and business success” in the area.

The developer of the project is Opus Development Company LLC, Opus Design Build LLC is constructing the building and Opus AE Group LLC is serving as project architect. The building will include a number of features such as 32-foot clear height, 60 docks (expandable), ESFR sprinkler system, T5 lighting and 103 trailer parking spaces (expandable). It will also offer office space to suit future tenant requirements and offers possibilities for future expansion to 1 million square feet. The project is scheduled to be completed in June 2014.

LifeStorage Opens New Facility in Chicago’s West Loop

30 Oct 2013, 11:06 pm

By Gabriel Circiog, Associate Editor

LifeStorage has recently announced the opening of its new self-storage venue in the rapidly growing, historic Chicago West Loop neighborhood. The Chicago-based self-storage provider for residential and commercial clientele, LifeStorage, was founded in 2002 with a single storage facility and has since then grown to 49 locations in eight states.

Located at 1205 West Jackson Boulevard, the new facility aims to cater to the needs for high-quality self-storage options in a continuously expanding neighborhood. Chicago’s West Loop, due to recent urbanization and revitalization efforts, is one of the fastest growing neighborhoods in the city and is home to successful restaurants, shops, galleries and spacious residential lofts and apartments.

LifeStorage of West Loop features units ranging in size from 25 square feet to 300 square feet. Clients can also choose the contractor storage option which features distributor-size units with tall ceilings and equipped with phone lines, electrical outlets, overhead lighting and loading dock access.

Director of Operations for LifeStorage, Michelle Wight Sands said in a statement that the “area is experiencing tremendous growth and LifeStorage is delighted to be able to help people cope with that growth by providing a safe, secure place to house their excess belongings.

“Industries such as fashion and the arts, as well as numerous design outlets and boutiques have settled in this area, making storage space an essential component to growth,” she says. “We’re intent on meeting the need for storage by providing a solution that’s far and above the expectations of the people now living and working in West Loop.”

Reed Construction to Renovate Aon Corp. Headquarters at The Aon Center; Urban Innovations Announces Signing of Five New Leases

23 Oct 2013, 10:31 pm

By Gabriel Circiog, Associate Editor

Reed Construction, a full-service general contractor, recently announced it has been chosen to complete a 375,000-square-foot renovation for Aon Corporation at The Aon Center in Chicago.

The contractor was selected to complete 13 floors of renovations at the office building located at 200 East Randolph, and the work is scheduled to be completed by February 2014.

Heading-up the renovation is Reed Construction project manager Steve Sandquist, while Bryan Krueger is the principal involved. Architectural services are provided by IA Interiro Architects.

The project calls for the updating of the conference rooms with new aluminum and glass office fronts, the renovation of the break rooms on 12 floors and a new reception desk in the lobby of the building. Reed Construction will also renovate 19 private meeting rooms, four pantries and 13 private offices on the third floor executive suite and conferencing center. Upon completion, the third floor will also feature millwork door frames, sidelights and marble tile in the elevator lobby and reception area.

In other local news, Urban Innovations has recently announced the signing of a number of leases. Urban Innovations’ Aaron Zaretsky is the executive leasing agent for the 60,000-square foot office building located at 833 West Jackson Boulevard and the 90,000-square-foot office building at 322 South Green Street in Chicago’s West Loop. The company signed three leases at 833 West Jackson, increasing its occupancy by 20 percent, and two leases at 322 South Green, raising its occupancy by 17 percent.

Currently both properties are undergoing renovations with improvements including newly expanded restrooms, corridor and lobby upgrades, bicycle storage rooms and fully built-out office suites.

“These high-end loft office buildings offer floor plans totaling up to 17,000 square feet of contiguous space,” says Zaretsky. “Chicago’s West Loop and River North locations for loft office space seem to be in high-demand right now. We are excited to welcome these new tenants and look forward to supporting other companies looking for new facilities outside of the Loop.”

Photo Courtesy of: Mike from Chicago via Flickr.com


Berkadia Arranges $46.4 Million for Two MF Properties

3 Oct 2013, 4:35 am

By Gabriel Circiog, Associate Editor

The Chicago office of Berkadia Commercial Mortgage LLC recently announced that it has closed a total of $46.4 million through the U.S. Department of Housing and Urban Development’s 223(f) program for two apartment communities.

The Berkadia team, comprised of Senior Vice President Len Deering CCIM, Vice President Paul Matusiak and Senior Vice President Tom Sigrist, originated the loans. Both are 35-year, fixed-rate loans, which are fully amortizing and feature 80 percent loan-to-value ratios.

Berkadia teamed up with borrower Foxboro Apartments LLC to originate a $26 million loan to refinance an existing mortgage on Foxboro Apartments. Located at 470 Foxboro Drive in Wheeling, a northwest suburb of Chicago, the apartment community is near five major shopping malls, Chicago Executive Airport and O’Hare International Airport. The community features one- and two-bedroom apartments and is currently 97.5 percent occupied.

Berkadia also helped arrange $20.4 million for borrower Abbey Capital Partners. The loan was used to refinance an existing mortgage for Abbey Apartments at Four Lakes in Lisle, Illinois. Situated 25 miles west of Chicago, the resort style multifamily facility features numerous amenities including unlimited skiing, boating, four pools and wooded nature trails. The property, located at 5550 Abbey Drive, is 99 percent occupied and offers studio, one-, two-, and three-bedroom layouts.

“Our experience working with HUD and extensive knowledge of the real estate market in Chicago and its surrounding areas were attractive to both borrowers,” Deering says. “The suburban Chicago apartment market has been accelerating and more borrowers are looking to lock in favorable, long-term loan rates, which we were able to deliver for both properties.”

Photo Courtesy of: www.foxboroapartments.com

Hyatt Place Chicago-South/University Medical Center Officialy Opens in Hyde Park

26 Sep 2013, 5:34 am

By Gabriel Circiog, Associate Editor

Hyatt Hotels Corporation and SMART Hotels/Olympia Chicago LLC, a joint venture of The Olympia Companies and SMART Hotels LLC, recently announced the opening of Hyatt Place Chicago-South/University Medical Center. After the opening of Hyatt Place Chicago/River North in June, the new hotel marks the brand’s second location in Chicago and becomes the first newly built hotel to open in Hyde Park in 50 years.

“This project has enjoyed support from an amazing array of people and organizations,” says John Schultzel, vice president of hotel management at The Olympia Companies. “The sense of hospitality within our team is tremendous, and we’re looking forward to extending that hospitality to our guests.”

Located on Chicago’s East 53rd Street, the new hotel is conveniently located next to the University of Chicago campus, the University of Chicago Medical Center and the museum consortium, which includes the Dusable Museum of African-American History, the Oriental Institute, Museum of Science and Industry and the Smart Museum.

The hotel offers easy access to Chicago’s downtown through Lake Shore Drive and city public transportation. Hyatt Place Chicago South/University Medical Center also serves as the anchor to Hyde Park’s Harper Court, which features numerous restaurants, retail shopping destinations and a signature level LA Fitness.

“As a native of the South Side of Chicago, I am proud to have the honor of opening this hotel in historic Hyde Park,” says Anthony Breach, general manager for Hyatt Place Chicago-South/University Medical Center. “This beautiful neighborhood is enjoying re-development which will further enrich the area’s reputation as the cultural and economic hub of South Chicago.”

The Hyatt Place Chicago-South/University Medical Center features 131 guestrooms and numerous amenities including free Wi-Fi access throughout the hotel, 42-inch HDTVs in each room and complimentary continental breakfast. The hotel also features more than 1,200 square feet of flexible, high-tech meeting/function space, a fitness center and a coffee and wine bar.

“We are proud to open this beautiful and sustainable new hotel, and we look forward to welcoming visitors to Hyde Park, University of Chicago and UC Medical Center,” said Ed Small, president of SMART Hotels.

Image Courtesy of: www.chicagosouthuniversity.place.hyatt.com


One Response to Chicago Archive

  1. Joselyn Overley

    Sep. 26, 2011 at 12:58 pm

    I just think it’s too hard for small businesses to try to purchase a property, renting or leasing is their only real option

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