Joint Venture Acquires 278-unit Class A High-Rise Apartment Building in South Loop

By Gabriel Circiog, Associate Editor

American Realty Advisors, in a joint venture with Naperville, Ill.-based Marquette Companies and Hunt Companies Inc., has acquired a 278-unit Class A high-rise apartment building in Chicago’s South Loop submarket. Located at 1401 South St., the urban-style complex was built in 2008 and features studios, one- and two-bedroom apartments ranging in size from 567 square feet to 1,651 square feet.

The complex also features various amenities including a fitness center, sky garden with fire pit, dog run, private residential park, wireless internet lounge, barbeque grills and on-site dry cleaning.

The property is situated just two blocks south of the Roosevelt Road Retail Corridor, offering residents access to nearby amenities such as Trader Joe’s, Target and numerous dining options. The property is also in close proximity to an efficient transportation infrastructure that includes CTA’s Red, Green and Orange lines, two major airports and various bus lines.

With regard to the South Loop submarket, Kirk Helgeson, American Realty Advisors’ EVP and executive managing director, said: “As a result of Chicago’s strong diversified economy and deep labor pool, South Loop continues to rank as one of the nation’s top performing multifamily submarkets.”

American Realty Advisors currently has over $4.5 billion in assets under management. The firm’s portfolio includes office, industrial, multifamily, retail and other properties nationwide. Kirk Helgeson, talking about the joint venture, said: “American is pleased to partner with companies such as Marquette and Hunt, who share American’s vision and commitment to excellence and demonstrate an ability to maximize property value potential.”

Image Courtesy of: www.1401southapartments.com

HDR Architecture Selected as Architect of Chicago’s Mixed-Use Focal Point Community Campus

By Gabriel Circiog, Associate Editor

Omaha, Neb.-based HDR Architecture Inc. has been selected as the architect for Chicago’s mixed-use Focal Point community campus. Abbie Clary, HDR project principal, said: “This is an incredibly meaningful project, one that most architecture firms get few opportunities to design.”

Located on an 11-acre lot at 31st and Kedzie, the former site of the Washburne Trade School, the Focal Point community campus will offer a combination of retail wellness, education, arts and recreation elements to the southwest side of Chicago.

Conceptualized by the Chicago Southwest Development Corporation, the financially self-sustaining campus project is set to become the first of its kind. Guy A. Medaglia, president and chief executive officer of Chicago Southwest Development Corporation and Saint Anthony Hospital, said: “It is a model that has never been done before and has the potential to transform disadvantaged communities all across our country.”

Saint Anthony Hospital will relocate to the nearly one million-square-foot complex to serve as a tenant. The rental income, which comes from revenue-generating tenants such as retail outlets, a hospitality center, a daycare center, an outpatient and specialty clinic and the newly built Saint Anthony Hospital, will be reinvested into programs and services provided across the campus.

A formal study was conducted by HDR Architecture, the University of Nebraska Medical Center College of Public Health and the University of Nebraska-Lincoln College of Architecture to research the needs of the community.

“The research project identified the physical and socio-economic barriers that prevent members of a community from seeking opportunities to health and wellness,” said Sheila Elijah-Barnwell, director of healthcare consulting, research and university education for HDR Architecture and principal investigator for the research project. “It will be our challenge to design a campus that removes all those barriers, where transparency and accessibility is abundant, where members of the community of all ages, from youth to senior citizens, are welcomed and empowered to improve their lives.”

Rendering Courtesy of: www.hdrinc.com

330 N. Wabash Gets New Tenant; Suburban Baker Hill Center Acquired by REIT

By Gabriel Circiog, Associate Editor

The landmark 330 N. Wabash is welcoming a new tenant, as Creative Circle LLC has signed a lease for 7,128 square feet on the 14th floor of Prime Group Realty Trust’s office building. The staffing firm has agreed to a five and a half-year lease beginning on March 1, 2013.

“We are pleased to announce the relocation of our Chicago office to 330 North Wabash Avenue,” said Kevin Yoshimoto, chief financial officer of Creative Circle. “The quality of the office space and the amenities that the building is providing pursuant to its current ongoing redevelopment, as well as its convenient River North location on the Chicago River, made it the top choice for our relocation.”

Designed by famed architect Mies van der Rohe and finalized in 1971, 330 North Wabash Avenue is owned by a joint venture between Chicago-based Prime Group Realty Trust and Connecticut-based Five Mile Capital Partners LLC.

PGRT is the property and redevelopment manager and leasing agent for the building. Allen Rogoway of Cresa Partners Chicago LLC and Carlo Brignardello of Cresa Partners Los Angeles represented Creative Circle LLC in its search. PGRT was represented by its executive vice president of leasing, Steven R. Baron.

A new five-star 316-room Langham Chicago Hotel is scheduled to open in the second quarter of 2013 on floors 2 through 13 of 330 North Wabash. A 5,000-square-foot state-of-the-art fitness center, food service café and conference center are also under construction for the benefit of all tenants, in addition to other ongoing renovations.

In other local real estate news, Phillips Edison-ARC Shopping Center REIT Inc. announced it has closed on the purchase of Baker Hill Center, a grocery-anchored shopping center in Glen Ellyn, Ill. Situated in the western suburb of Chicago, the 135,355-square-foot shopping center is 98.2 percent occupied and anchored by a 72,397-square-foot Dominick’s grocery store. Dominick’s is the second-most highly ranked traditional grocer by market share in Chicago.

Photo Courtesy of: www.330northwabashavenue.com

Forest City Enterprises Plans to Sell Remaining Land Holding in Central Station Development

By Gabriel Circiog, Associate Editor

Cleveland-based Forest City Enterprises Inc. has signed a letter of intent to sell its remaining land holdings in the Central Station development, ChicagoRealEstateDaily.com reports. Located in the South Loop, the large-scale residential project has managed to transform the neighborhood before being hit by the condo crash. The developer has decided to sell its interest in Central Station land for around $30 million to an unnamed buyer.

According to a recent filing with the Securities and Exchange Commission, Forest City owns 30 acres at the south end of Grant Park. A Forest City spokesman said the company made a strategic decision to exit the land-development business and to focus on the company’s rental properties. The spokesman also said the company owns the land in a 50/50 joint venture with Chicago-based Fogelson Properties Inc.

The decision comes just two months after Forest City, Fogelson and Chicago-based Enterprise Cos. gave up around 500 unsold condominiums in three towers at the same Central Station development. The action was taken after failing to pay back construction loans utilized to finance the buildings.

The 80-acre project was launched over twenty years ago, and it remains one of the largest unfinished residential developments in Chicago. Stretching all the way to McCormick Place, it generated hefty profits during the condo boom. Yet as the condo market crashed, sales stalled.

Towards the end of 2010, Forest City wrote down the value of its Central Station investment by $18.3 million and later took another $17 million impairment charge on the investment, according to the SEC filing.

Photo Courtesy of: www.forestcity.net

Hamilton Partners to Buy 57-Acre Kraft Foods Office Campus

By Gabriel Circiog, Associate Editor

Itasca-based developer Hamilton Partners has signed a contract to purchase Kraft Foods Inc.’s office campus in north Glenview and Morton Grove, ChicagoRealEstateDaily.com reports. The 57-acre suburban property, located at Gold and Waukegan roads, includes two buildings with around 500,000 square feet of office space.

Hamilton Partners plans to redevelop the property, and it could in the future include office, retail and medical space, as well as senior housing. Kraft Foods Inc., as part of its planned split into two separate companies, sold the property and will relocate its employees to its Northfield headquarters next year.

Paul Sheridan, partner at Hamilton Partners, described the acquisition as a rare opportunity and the site, due to its size, a bit of a puzzle—but nevertheless great real estate. The terms of the deal were not released, but the developer does not expect to close the purchase until the fourth quarter of 2013. The company has plenty of time to market the site, come up with a detailed plan and obtain the required zoning changes.

Senior-living developers have shown their interest but Hamilton Partners, whilst open to the idea, prefers to concentrate on office and retail.

The 57-acre redevelopment is not the company’s first North Shore development. The most recent large-scale development by the company in the region was Willow Festival, a 400,000-square-foot shopping center anchored by a Whole Foods. The property was sold by Hamilton in 2010 to Jacksonville, Fla.-based Regency Centers Corp. for $64 million.

Paul Sheridon admits the project will face strong competition from existing nearby malls, such as the Glen Town Center and the Westfield Old Orchard Mall. Regency is also planning to build a shopping center on the site of a discontinued Avon Products distribution center southeast of the Kraft property.

Logo Courtesy of: www.hamiltonpartners.com

Chesapeake Lodging Trust Acquires W Chicago-Lakeshore Hotel

By Gabriel Circiog, Associate Editor

Chesapeake Lodging Trust announced that it has purchased the W Chicago-Lakeshore hotel from Starwood Hotels & Resorts Worldwide Inc. The Annapolis-based real estate investment trust paid $126 million, or around $242,000 per key, for the 32-story hotel.

Located at 644 North Lake Shore Dr. overlooking Lake Michigan, the luxury property features 520 rooms, including 42 suites. The full-service hotel also includes a three-meal restaurant, two full-service bars—including the rooftop Whiskey Sky, a 9,600-square-foot spa, over 12,000 square feet of meeting space and a state-of-the-art fitness center.

James L. Francis, president and chief executive officer of the trust said: “This is a unique opportunity for Chesapeake to expand its Chicago footprint with the only lakefront, luxury-branded hotel in Chicago.”

The W Chicago-Lakeshore hotel is the second acquisition of the investment trust from Starwood in the Chicago market after the purchase of the W City Center last year in May. James L. Francis said the recent purchase “further complements and creates operational and sales synergies with our W City Center property.”

Chesapeake Lodging Trust is planning to invest around $38 million in a comprehensive renovation of the property, which is scheduled to start in the fourth quarter of 2013. The W Chicago-Lakeshore, just like the W City Center, will continue to be operated by Starwood under the W flag following a long-term management agreement with the Stamford-based hotel company. Chesapeake Lodging Trust now owns 13 hotels with a total of 4,036 rooms in six states and the District of Columbia.

Photo Courtesy of: www.starwoodhotels.com

Tishman Speyer Plans to Sell 31-Story Office Tower in Downtown Chicago

By Gabriel Circiog, Associate Editor

Tishman Speyer Properties LP is planning to take advantage of Chicago’s strong downtown office investment market and has decided to put up for sale a West Loop office tower, ChicagoRealEstateDaily.com reports. The 31-story office building, located at 125 South Wacker Dr., was acquired by Tishman in December 2004 for $44 million.

The New York-based real estate investment firm has since invested around $33 million in building upgrades. Tishman has hired Eastdil Secured LLC to market the building and it is estimated that the company is seeking around $120 million for it.

It is not the first time that the investment firm has tried to offload the building. Back in 2007, before the real estate crash, Tishman was close to selling the tower for $116 million to New York-based Angelo Gordon & Co. and Barrington-based Fulcrum Asset Advisors LLC.

Built in 1974, 125 South Wacker Dr. was designed by Perkins & Will and features a total rentable area of 566,454 square feet. The Wacker Drive tower is currently 90 percent leased, with the average size of floor plates being 18,000 square feet and the majority of the tenants occupying less than one full floor.

According to Chicago-based Jones Lang LaSalle Inc., during the first six months of this year, 11 office towers had sold for a total value of $1.45 billion in downtown Chicago, already making it a better year than 2011 and the strongest since the real estate crash.

Photo Courtesy of: www.tishmanspeyer.com

Advocate Health Care Plans Two Hospital Projects Totaling $455 Million

By Gabriel Circiog, Associate Editor

Advocate Health Care plans to take advantage of record-low interest rates and is moving forward with two hospital projects totaling $455 million in the Chicago area, Crain’s Chicago Business reports. According to documents filed with the Illinois Health Facilities and Services Review Board—the entity that regulates medical construction to avoid the duplication of services, Advocate plans to build a nine-story patient tower in south suburban Oak Lawn. Located at 4440 W. 95th St. on the campus of Advocate Christ Medical Center, the development would also feature a 1,000-car parking garage.

Meanwhile, in Chicago’s Lakeview neighborhood at the Illinois Masonic Medical Center located at 836 W. Wellington Ave., Advocate is planning a 140,000-square-foot Center for Advanced Care. The three-story building would offer outpatient services for those suffering from various ailments, including digestive diseases and cancer. Around 61 percent of the combined cost of the two projects would be financed with debt accounting, while the remaining amount would be paid in cash and securities.

The patient tower at Christ Medical Center is part of a $600 million, five-year capital campus plan that includes a future expansion of the emergency room and a nine-story outpatient pavilion that is already under construction.

The new tower is estimated to cost $345.8 million and will add 134 beds—taking the total number of hospital beds to 824. The project will also add around 340,000 square feet and modernize an additional 84,000 square feet. The proposed building is expected to be completed by October 2016, if approved by the facilities board.

The Center for Advanced Care at Illinois Masonic is planned to be built on the vacant site of a former elementary school at Nelson Street and Wilton Avenue. The new construction, connected to the existing hospital, would be designed to accommodate more floors and is estimated to cost around $109.2 million. Upon approval, construction is scheduled to start in the first quarter of 2013 and is expected to be finalized in fall 2015.

Photo Courtesy of: www.msichicago.org

Prudential Acquires Retail and Restaurant Space in John Hancock’s Center for Almost $142 Million

By Gabriel Circiog, Associate Editor

John Hancock Center’s retail and restaurant space has been acquired by Prudential Real Estate Investors for close to $142 million, ChicagoRealEstateDaily.com reports. As previously reported by Commercial Property Executive, a joint venture including Deutsche Bank A.G. and NorthStar Realty Finance Corp. seized the property earlier this year after a joint venture between Goldman Sachs Group Inc.’s Whitehall Fund and Golub & Co. defaulted on a $400 million loan.

Deutsche Bank and NorthStar took over the commercial space in the building, 897,000 square feet of Class A office space and 172,000 square feet of retail space, along with the parking garage and the broadcast tower. The tower’s 700 luxury residential condominiums are privately owned.

The John Hancock Center, completed in 1970 after a design by Skidmore Owings and Merrill, is the fourth-tallest building in Chicago and the sixth-tallest in the United States. The new owners of the 100-story high-rise are now selling it in pieces—a strategy that aims to offer a higher profit than selling it to a single buyer.

According to county property records, a Prudential affiliate acquired the retail space of the tower in late June. Prudential, the real estate investment trust of New Jersey-based life insurer Prudential Financial Inc., borrowed $74.1 million from JP Morgan Chase Bank N.A. to finance the deal. Around the same time, Paris-based Montparnasse 56 Group acquired the Hancock’s observatory for nearly $45 million. The deal was financed through a $36 million loan from a venture affiliated with Missouri-based REIT Entertainment Properties Trust.

Photo Courtesy of: www.johnhancockcenterchicago.com

Foreign Investors Sought for New Proposed Multi-Hotel Complex and Convention Center

By Gabriel Circiog, Associate Editor

The Intercontinental Regional Center Trust of Chicago (IRCTC) and Chicago developer Anshoo Sethi are hoping to attract foreign investors via the EB-5 program for their proposed multi-hotel complex and convention center near O’Hare International Airport. The proposed development is projected to have a total economic impact of $2.6 billion over the two-year construction period and the first 10 years of operation, according to IRCTC.

Around $1.1 billion of this sum is expected to benefit local workers in the form of wages, with the new development expected to create more than 4,000 construction jobs and 1,000 permanent jobs.

According to an investment analysis carried out by Integra Realty Resources and published on www.eb5info.com, the proposed development would be located on three contiguous sites at 8161, 8171 and 8211 West Higgins Road. The total land area of the three sites is 122,091 square feet—which has been zoned for hotel use—with a maximum of 995 units approved.

According to the analyzed plan, the development would feature five up-scale hotel brands in three towers with a total of 995 rooms, out of which 786 would be suites. The property would feature four floors of convention space that would connect the lower levels of the three towers and total 290,000 square feet. Around 55,000 square feet would be allocated for restaurants and bars across the complex, while a 1,720-space valet parking lot would be located below the complex.

The ambitious plan aims to make the complex the first Zero Carbon Platinum LEED-accredited and 100 percent allergen-free convention center complex in the world. According to plans, the development would also include the largest guest-accessible hotel green-roof complex in the country.

The project will be partially financed through the U.S. Immigrant Investor Program, “EB-5,” created by Congress in 1990. The estimated cost of the development is $735 million.

Illustration Courtesy of: www.eb5info.com

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Capital One Financial Corp. Closes on 150,000-Sq.-Ft. Lease

By Gabriel Circiog, Associate Editor

In the second-largest office lease of 2012 for Chicago’s suburbs, Capital One Financial Corp. has closed on a lease of 150,000 square feet in the Atrium Corporate Center, Chicagorealestatedaily.com reports. This deal brings the office building’s occupancy rate close to 100 percent.

Located at 3800 Golf Rd. in Rolling Meadows on 40 acres next to Woodfield Mall, the 477,000-square-foot office building is owned by San Francisco-based Spear Street Capital. The real estate investment firm acquired the three-story building for $36.4 million in 2003 and, according to property records, sold it to a joint venture between Parsippany, N.J.-based Prudential Real Estate Investors and Dallas-based Lincoln Property Co. for $62.1 million in 2006. Four years later, Spear Street Capital repurchased the property for $29.5 million.

Capital One entered the Chicago office market in May, when the McLean, Va.-based company purchased the U.S. credit card business, HSBC Holdings PLC, in a deal worth $31.1 billion. Around 450 employees from HSBC’s facility in Elmhurst will relocate to the Atrium Corporate Center in the first quarter of 2013.

A spokeswoman for Capital One said the company is in the process of integrating the two new acquisitions completed this year—ING Direct and HSBC’s U.S. card portfolio—and are evaluating growth projections for the site.

ActiveHealth Management Inc.—a subsidiary of Hartford, Conn.-based Aetna Inc.—will move to the third floor of the Atrium Corporate Center and keep around 17,000 square feet as part of the deal, this according to Scott Ohlander—a vice president at Jones Lang LaSalle Inc.—who represented ActiveHealth.

Photo Courtesy of: www.spearstreetcapital.com

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Windfall Group Plans New Commercial Building in Chicago’s Chinatown; New Restaurant Announced for Hard Rock Hotel Chicago

By Gabriel Circiog, Associate Editor

Windfall Group USA is under contract to acquire one of the most coveted pieces of property in Chicago’s Chinatown and plans to build a 100,000-square-foot commercial building, Crain’s Cleveland Business reports.

The Cleveland-based developer plans to construct the six-story commercial building on the southwest corner of Archer Street and Wentworth Avenue. President of Windfall Group USA, Eddie Ni, said he is under contract to buy the property for $5 million and is currently negotiating with lenders to arrange financing for the construction of the $18 million building.

According to the plans presented by Mr. Ni, the development would feature a supermarket and a food court on the ground floor and between 200 and 1,500 square feet of retail condominiums on the second and third floors. The development could also feature a new Chicago Public Library branch, which would occupy the fourth and part of the fifth floor. The top level would be filled out with offices.

Chicago residents and visitors can also look forward to a new dining venue, as Chicagorealestatedaily.com reports that a Chuck’s Manufacturing will open in August on the ground floor of the Hard Rock Hotel Chicago on 230 North Michigan Ave. The new restaurant will replace the China Grill that closed in January after the owner of the hotel, Grosse Pointe-based Becker Ventures LLC, bought out the lease.

Becker Ventures will own and operate Chuck’s Manufacturing, and Executive Vice President Carrie Meghie said the name honors the automotive-industry background of her father, Charles “Chuck” Becker.

Rendering Courtesy of: windfallusa.com

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Chicago Lakeside Development Recognized as a Top Sustainable Solution at Rio+20

By Gabriel Circiog, Associate Editor

The United Nations launched its newest worldwide initiative “Sustainia100” at the Rio+20 conference in Rio de Janeiro. The initiative, which focuses on sustainability solutions and sustainable cities, was celebrated by nominating 100 world leading projects and undertakings.

In the presence of international sustainability icon Gro Harlem Brundtland, media personality and philanthropist Ted Turner and EU Commissioner for Climate Action Connie Hedegaard, the Chicago Lakeside development was named among the winners of the global award.

Located on 600 acres on the southeast side of Chicago, the Chicago Lakeside project is led by Chicago development firm McCaffery Interests Inc. The development aims to be the catalyst for the rebuilding of the southeast lakefront of Chicago. The former site of the U.S. Steel Southworks, due to its size and proximity to downtown (around 10 miles), is one of the most coveted pieces of undeveloped real estate in the city of Chicago.

McCaffery Interests, in partnership with U.S. Steel and in cooperation with Skidmore, Owings and Merrill LLP and Sasaki Associates Inc., has come up with a master plan that integrates solutions for advanced clean energy technologies, compact neighborhoods and innovations in water stewardship, distributed through an intelligent ICT network.

According to plans, the new community will include more than 15,000 residential units and over 15 million square feet of retail, restaurants, commercial, institutional and research and development facilities.

Upon hearing news of the recognition from Sustainia, Chicago Mayor Rahm Emanuel said: “Creating a sustainable, multi-use community on the southeast lakefront of Chicago will provide huge economic impact in the area, creating important jobs and opportunity on the South Side. I commend all involved in the Lakeside project for their long-term commitment to this effort and the growth of Chicago.”

Photo Courtesy of: www.chicagolakesidedevelopment.com

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Sunstone Hotel Investors to Purchase Hilton Garden Inn Chicago Downtown

By Gabriel Circiog, Associate Editor

Sunstone Hotel Investors Inc. has entered into a purchase and sale agreement to acquire the Hilton Garden Inn Chicago Downtown/Magnificent Mile for a gross purchase price of $91.75 million. The 357-room hotel, located at 10 E. Grand Ave. in downtown Chicago, is expected to generate around $4.1 million of EBITDA and $3.7 million of net operating income.

The acquisition will be funded entirely with cash and, upon closing the purchase, Sunstone will own 14 unencumbered hotels.

Situated across the street from another Sunstone hotel—the Embassy Suites Chicago—the company plans to apply a similar management strategy to the Doubletree Guest Suites Times Square and the Hilton Times Square. Sunstone aims to capitalize on market complexing opportunities and significantly improve revenue management.

The 23-story hotel, which features around 5,700 square feet of combined meeting space, is just one block from Chicago’s Magnificent Mile and within walking distance of over 30 million square feet of high-end office space.

According to a market study carried out by PKF Hospitality Research, Chicago is expected to have an above-average performance out of the Top 25 U.S. Lodging Markets in future RevPAR growth.

The increased number of city-wide events already reported by Chicago’s McCormick Place foretells stronger convention years compared to prior peaks and is expected to take RevPAR growth from the forecasted 8.3 percent in 2012 to 10.3 percent in 2014.

With the acquisition of The Hilton Garden Inn Chicago Downtown/Magnificent Mile, the REIT will have interest in 33 hotels—taking the total investment portfolio to 13,698 rooms.

Photo Courtesy of: www.hiltongardeninn3.hilton.com

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Waterton Residential Acquires Boutique Seneca Hotel; Two Affordable Housing Projects Receive $11M Support

By Gabriel Circiog, Associate Editor

Chicago’s Seneca Hotel has been acquired by Waterton Residential, a subsidiary of Waterton Associates LLC. The boutique hotel, located in the Gold Coast neighborhood, will be restored to a select apartment community, with renovated apartments available for occupancy beginning in mid-June.

The 260 newly restored luxury rental residences will be comprised of 159 one-bedroom units, 10 two-bedroom units and 91 studios. Situated near the lakefront and just one block from Michigan Avenue’s Magnificent Mile shopping district, the boutique apartment complex will offer onsite service and management, including 24-hour door attendants.

Featured amenities will include a new fitness center, sundeck and onsite dry cleaning. The residents will also be able to dine at onsite restaurants like Francesca’s Restaurant, Davanti Enoteca, Saloon Steakhouse and Chesnut Street Cafe.

In other local news, the AFL-CIO Housing Investment Trust has announced it is providing $11 million for the rehabilitation of two affordable housing developments: the Hazel Winthrop Apartments and the Bronzeville Senior Apartments.

The four-building Hazel Winthrop Apartments, situated in Chicago’s uptown community on the North Side, will receive $2.3 million for renovation work and refinancing in order to be able to keep units affordable for existing residents. The 30-unit property is part of a Section 8 rental assistance program, which is administered by the Chicago Housing Authority. The residents earn under 60 percent of the area median income.

Over in the South Lakefront area, the Bronzeville Senior Apartments will receive around $8.7 million for rehabilitation work through the purchase of tax-exempt bonds and notes issued by the city of Chicago. The 11-story high-rise received around $6.2 million for two other phases of rehabilitation in the past from the HIT.

Photo Courtesy of: www.senecahotel.com

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MB Real Estate Expands Leasing Portfolio in Downtown Chicago

By Gabriel Circiog, Associate Editor

MB Real Estate has announced the expansion of its leasing portfolio to over 14.4 million square feet. The Chicago-based company, founded in 1982, has been awarded five new leasing assignments in downtown Chicago.

The new additions include 300 E. Randolph—a 57-story tower owned and anchored by Health Care Service Corporation. Built in 1997, the office building has 1.8 million rentable square feet and is 98 percent leased. MB Real Estate will take over the leasing activity of the tower, designed by Goeetsch Partners, from Grubb & Ellis Co.

Another particularly sizable addition is Three First National Plaza. The 1.4 million-square-foot tower, located at 70 W. Madison St., was designed by Skidmore, Owings & Merrill and has an occupancy rate of 89 percent.

The other three additions to the MB Real Estate leasing assignments are:

• 30 W. Monroe, a 256,000-square-foot building with a 52 percent occupancy. The 19-story tower was the first skyscraper built in Chicago’s Loop after the Great Depression;
• 333 N. Michigan Avenue, a 303,000-square-foot property with an 88 percent occupancy. Finalized in 1928, the 35-story art deco building was designed by Holabird & Root;
• 525 W. Van Buren, a 522,000-square-foot office tower that is currently 74 percent occupied.

MB Real Estate will also manage the office towers located at 30 W. Monroe and 333 N. Michigan Ave., bringing the total square footage of properties under management to over 18 million square feet.

In order to support the increased inventory, the firm has added Sara Spicklemire, a vice president, and Jesse Slack, an associate vice president, from Grubb & Ellis to the leasing services team.

Photo Courtesy of: www.300eastrandolph.com

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Chicago Plan Commission Approves Two New Projects

By Gabriel Circiog, Associate Editor

The Chicago Plan Commission has given the green light for two new projects: the 3750 North Halsted and the 454 N. Park Drive developments, ChicagoRealEstateDaily.com reports. The 3750 North Halsted is a joint venture between Chicago-based JDL Development Corp. and Norridge-based Harlem Irving Cos. The 296-unit up-scale apartment project calls for the development of a 15-story tower and a 12-story tower at the northwest corner of Bradley Place and Halsted Street, half a mile away from Wrigley Field.

The $73.4 million project was scaled down from 17 stories and 347 units, but some community groups still prefer a lower height and around half the number of units as they fear, at one point, the rentals will be transformed into condominiums. This would create an increased supply of condominiums, making it harder for existing owners to sell.

The development plans to replace the parking lot owned by Open Arms United Worship Center and to include 11,000 square feet of retail space as well as 276 parking spaces. According to the JDL Development Corp. website, the initial plan also called for a 35,000 square foot rooftop park located on the fifth floor that would feature an outdoor pool, hot tub, dining area and landscaped dog run.

The Plan Commission also approved the sale of a city-owned parcel located at 4711 W. Madison St. The Evanston developer who acquired the site plans to construct a 15,000-square-foot Sav-A-Lot grocery store.

The other development project to get the go-ahead from the Plan Commission is located at 454 N. Park Drive in the Streeterville neighborhood. Real estate investor Donald Wilson plans to construct a 398-unit high-rise, as well as a 400-room hotel with 230 parking spaces.

Illustration Courtesy of: www.jdlcorp.com

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Ivanhoe and Hines to Build $300M Chicago Office Tower

By Gabriel Circiog, Associate Editor

Ivanhoe Cambridge and Hines have partnered to develop a 45-story office tower in the West Loop in downtown Chicago. The announcement came from Mayor Rahm Emanuel, who said the $300 million project is “a vote of confidence for our city, welcome news for the local economy and a signal that Chicago is leading the nation in job creation and economic development.”

The office tower, River Point, will be developed by Hines at 444 West Lake Street on land co-owned by local investor Larry Levy. Architectural firm Pickard Chilton designed the high-rise, which will feature approximately 900,000 square feet of leasable class AA space and is LEED Gold pre-certified. The project also calls for the construction of a 1.5-acre public park that will be built, in part, using TIF resources from the city of Chicago.

Construction of the project is expected to begin before year’s end, whilst tenant occupancy will start in early 2016. The project will create 1,000 construction jobs and ultimately house 3,400 permanent office jobs. River Point will be Chicago’s biggest real estate project launched in the past five years and the first in over a decade to be built without an anchor tenant already secured.

Greg Van Schaack, managing director with Hines, told Commercial Property Executive: “We had been planning this since 2005. It was two-thirds leased to two major companies in 2008 but, when Lehman [Brothers] collapsed and things got dicey, we terminated the two leases and the project sat on the shelf.”

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Chicago and Aeroterm LLC Reach Agreement for $200M Project at O’Hare

By Gabriel Circiog, Associate Editor

The City of Chicago has reached an agreement with Aeroterm LLC to start construction of the Chicago O’Hare International Airport Northeast Cargo Center. Mayor Rahm Emanuel announced the development project, which will expand and enhance the efficiency of O’Hare’s airport cargo operations, as well as create around 1,200 construction jobs, 1,200 permanent on-site and 10,000 regional jobs related to the development.

The $200 million project will provide approximately $600 million in economic benefits to the airport over the life of the agreement, at no cost to Chicago taxpayers. Funding for the project will be ensured through a $130 million investment by Aeroterm and over $62 million of airport funds.

“The extensive progress we’ve been able to make on the O’Hare Modernization Program (OMP) has paved the way for this project to commence, with new, larger runways and taxiways that allow the airport to handle the larger, newest generation of B747-8 cargo planes,” said CDA Commissioner Rosemarie S. Andolino. “Because of our successful efforts, Chicago and O’Hare are able to better serve existing cargo carriers and attract new cargo service, which will boost Chicago’s position as an international air freight hub.”

The Northeast Cargo Center will be constructed in three phases on around 65 acres of undeveloped property on the northeast quadrant of O’Hare International Airport. Green planning, design and construction practices will be incorporated in all aspects of the development. The buildings are designed to achieve LEED certification and will feature green roof space.

A lease agreement between the city and Aeroterm will be submitted for approval to the city council in June.

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Lowe Enterprises Investors Acquire Affinia Chicago Hotel

By Gabriel Circiog, Associate Editor

The 28-story Affinia Chicago Hotel has been acquired by Lowe Enterprises Investors on behalf of an investment client. The seller, Denihan Hospitality Group, was represented by Eastdil Secured. Lowe Enterprises Investors represented itself in the transaction.

Hotel management will be taken over by Destination Hotels & Resorts—an affiliate of Lowe Enterprises Investors—and will be rebranded as MileNorth, a Chicago Hotel.

Located at 166 E. Superior Street in the heart of downtown Chicago, the 213-room hotel is steps away from the Magnificent Mile shopping district and three miles from the convention center.

Bleecker Seaman, co-CEO of Lowe Enterprises Investors, said MileNorth was recently completely renovated—permitting the company to concentrate its resources on “enhancing the property’s value by repositioning it as an independent boutique hotel.” MileNorth features 213 guestrooms, around 3,000 square feet of meeting space, a rooftop bar and a ground floor restaurant.

Lowe Enterprises Investors has been responsible for the investment of $6 billion in real estate assets since its inception in the late 1980s. In the Chicago area, the firm currently operates Orrington Office Plaza in Evanston, 8501 West Higgins in Chicago and the Embassy Suites Chicago-North Shore Deerfield on behalf of pension fund clients. As far as Illinois hotel properties go, the firm has acquired and sold on behalf of its clients the Doubletree Rosemont O’Hare, the Rosemont Suites Hotel, the Oakbrook Hills Hotel and the Crowne Plaza Springfield.

Senior vice president of acquisitions for Lowe Hospitality Group, Mike Everett, said the team has focused on the Downtown Chicago submarket and is expecting significant growth in the area in the coming years.

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