Home » MHN City Pages  »  Chicago  

WP HTTP Error: A valid URL was not provided.


Brennan Investment Group and Westminster Capital Sell Ogden Corporate Center

21 May 2014, 10:25 pm

By Gabriel Circiog, Associate Editor

Chicago-based Brennan Investment Group LLC and its joint venture partner Lake Forest, Ill.-based Westminster Capital recently announced the sale of Ogden Corporate Center to a private investor.

“This was our first investment with Brennan Investment Group,” says Mark Mazur, managing principal of Westminster Capital. “The Brennan and Westminster teams were aligned in our investment approach on this asset, identifying opportunities with a value proposition and leveraging our experienced platforms to create value and maximize returns. Westminster looks forward to more investments with Brennan.”

Located at 801-815 Ogden Avenue in Lisle, Ill., Ogden Corporate Center consist of two, single story, Class A office buildings. The property is fully leased to three tenants with the majority of space being occupied by an affiliate of DuPage Medical Group under a long-term lease. When the buildings were acquired by Brennan Investment Group in 2012 they had significant vacancy and occupancy was raised to 100 percent shortly after the acquisition.

“Although not an industrial asset, the purchase and sale of Ogden Corporate Center represents one of Brennan Investment Group’s strategies, of acquiring special circumstance properties, and adding value by leasing and improving the property, and selling upon stabilization, maximizing investor returns,” says Scott McKibben, managing principal and co-founder of Brennan Investment Group.

Brennan Investment Group acquires, develops and operates primarily industrial properties in select major metropolitan markets across the U.S. The company’s current portfolio spans 21 states and features over 15 million square feet.

Logo Courtesy of: www.brennaninvestmentgroup.com



Historic 850 Lake Shore Drive Earns Recognition from Chicago Association of Realtors

14 May 2014, 3:29 pm

By Gabriel Circiog, Associate Editor

The conversion of the historic Lake Shore Athletic Club building into luxury apartments has won the 2014 Chicago Association of Realtors Good Neighbor Award. The distinction honors groundbreaking new and newly rehabbed or redeveloped properties in the Chicago metropolitan region that have augmented economic vibrancy in their neighborhood and boosted local pride.

“Good Neighbor Awards demonstrate how real estate works to build stronger, vibrant communities,” says Matt Farrell, president of the Chicago Association of REALTORS® and managing partner at Urban Real Estate. “This is one of our association’s most important programs because it recognizes properties that exemplify how real estate can positively impact neighborhoods by fulfilling a need, helping the economy and boosting civic pride.”

The 850 Lake Shore Drive transformation project was developed by locally-based Integrated Development Group LLC in partnership with the National Electrical Benefit Fund. Originally built in 1927, 850 Lake Shore Drive opened as the exclusive Lake Shore Athletic Club. Integrated Development Group unveiled plans to convert the vacant building to luxury apartments in 2013 and, under the direction of architects Booth Hansen and general contractors Lend Lease and Valenti Builders, undertook the thorough renovation.

The recently reopened structure features 198 modern residences and upscale amenities such as a fitness center, indoor pool, business center, rooftop deck and a 3,500-square-foot “White Room” which includes a bar, flat screen TVs and billiards table. Residents can choose from over 60 floor plans ranging from studios to three-bedroom duplexes. Rents range from $2,190 to $12,000 per month.

“We’re honored to be recognized for this prestigious award,” says  Matthew Phillips, CEO and President of Integrated Development Group. 850 Lake Shore Drive was a unique opportunity to save a building that was significant to the community, and we’re grateful that the real estate industry recognizes the building’s historic value and has been receptive to its new life as luxury rentals in Chicago.”

850 Lake Shore Drive is managed by Seneca Real Estate Advisors, with leasing and marketing being provided by @properties.



Luxury Boutique Hotel Announces Opening in Chicago’s Andersonville Neighborhood

7 May 2014, 8:53 pm

By Gabriel Circiog, Associate Editor

The Andersonville Guesthouse is set to expand and upon reopening, in the summer of 2014, will be rebranded into The Guesthouse Hotel.

Located at 4866 North Clark Street, in Chicago’s Andersonville neighborhood, the former 10-unit boutique hotel will expand into a 25-unit luxury accommodation through the construction of a new building next to the existing hotel.

The Guesthouse Hotel aims to be the first luxury boutique hotel on Chicago’s Northside that allows guests to “live like a local” within a home-like setting. “Our guests have the opportunity to live like a local and take advantage of our proximity to Wrigley Field and downtown Chicago, wonderful restaurants, and shopping in the surrounding Andersonville, Uptown, and Lincoln Square neighborhoods,” said co-owner Simona Krug.

The hotel will feature one- and two-bedroom suites which will offer numerous comforts found in the hotel’s current two- and three-bedroom units, such as spa-like master bathrooms, gourmet kitchens and private outdoor area. The boutique hotel will also include penthouse units with private rooftop garden access. The new construction will have a spacious lobby with a reception area and retail space, library, club room, and exercise room.

“We want to create a different experience for travelers coming to Chicago – one that focuses on local neighborhood culture, offers comfort and independence, like that of your own home, and provides luxury accommodations at an affordable cost,” says Dave Krug, co-owner of The Guesthouse Hotel. “Our vision is to create a perfect hotel option for small groups or families where they have all of the home amenities in a popular Chicago neighborhood.”



$79 Million TIFIA Loan for the Reconstruction of the CTA’s 95th Street Red Line Station Secured

1 May 2014, 2:48 am

By Gabriel Circiog, Associate Editor

Chicago Mayor Rahm Emanuel and U.S. Sen. Dick Durbin (D-Ill.) recently announced that $79 million in federal funding has been secured to finalize the funding of the new 95th Street Terminal on the Chicago Transit Authority’s Red Line.

“The Red Line is the backbone of our transportation network system and one of our City’s key economic engines,” Emanuel says. ”By utilizing innovative federal financing, we are ensuring that we build the infrastructure Chicago needs to succeed economically in the 21st Century and take advantage of a once-in-a-generation opportunity to make a significant investment in the South Side.”

The new $240 million station is the first CTA terminal project in 30 years and one of the largest single station projects in the CTA’s history. The 95th Street station reconstruction project will completely rebuilt the station, which has become outdated. Located at the south end of the Red Line, the CTA’s busiest rail line, the new construction will expand customer areas, relieve congestion and generally improve the experience of the close to 4 million riders who pass through the station each year.

“The federally funded TIGER grant program is the largest and most competitive transportation grant programs in the nation,” Durban says. “We all worked together to bring this funding right back to the South Side, where construction on a new multimodal station will help bring new development, spur the local economy and give commuters a safe, modern station for decades to come. This announcement is an example of how the federal investments we are making today – and the additional funding that they help leverage – are putting us in the best position to provide world-class mass transit services in the future.”

The new terminal will feature two buildings, one situated north and one south of 95th Street, as well as reconfigured pedestrian areas and bus bays. The CTA has partnered with Chicago-based artist Theaster Gates to create artworks for the station. The $79 million in funding comes through the Transportation Infrastructure Finance and Innovation Act which provides assistance for qualified infrastructure projects across the country.

Preliminary work is expected to start in late spring and major construction is expected to begin by this fall. The terminal is scheduled for completion in 2016.

Rendering Courtesy of: 95th/Dan Ryan via CTA/Flickr.



Amata Opens New Shared Office Center at 150 South Wacker Drive

23 Apr 2014, 6:50 pm

By Gabriel Circiog, Associate Editor

Amata Office Centers has recently announced it is opening its sixth shared office center in Chicago featuring 16,950 square feet of space. Occupying the entire 24th floor of the building located at 150 South Wacker Drive in the West Loop neighborhood, the shared office center is scheduled to open May 1.

Amata’s 150 South Wacker Drive shared office center will feature over 50 private office suites, seven open workstations, six large team rooms, three state-of-the-art conference rooms, a café and lounge and Amata’s signature Cognac room.

“It seemed natural that our next location would be in the West Loop as it has quickly become one of the hottest areas for startups, especially those launching tech firms,” says Ron Bockstahler, Amata’s CEO and co-founder. ”We even took that into account in designing the shared office space at 150 South Wacker, as it will include an open loft concept, gigabit Ethernet connection and video games in the lounge. The building is also easily accessible from I-90 and I-94 as well as close to the Union and Ogilvy Metra Stations, making it a convenient location for commuters.”

Amata has been involved in the shared office movement for over ten years, connecting small, entrepreneurial businesses, as well as national and international companies that have been searching to set up offices in Chicago.

“Because of the increase in firms flocking to Chicago, we’ve seen an increasing demand for our cost-effective and flexible office solutions, so we’re excited to offer a new Amata location to companies,” Bockstahler says.

Certain Amata locations also provide special services that cater to specific industries. For example Amata’s “aLawCenter” locations at 161 North Clark Street and 180 North LaSalle Street cater to the company’s legal clients and offers private deposition rooms, paralegal support and docket services.

Photo Courtesy of: www.amatacorp.com



HOK-Designed Clark and Grand Hotel Complex Achieves LEED-NC Silver Certification

16 Apr 2014, 5:11 pm

By Gabriel Circiog, Associate Editor

HOK recently announced that The Clark and Grand Hotel Complex has achieved Leadership in Energy and Environmental (LEED) Design for New Construction (NC) Silver certification from the U.S. Green Building Council.

Designed by HOK and developed by Friedman Properties, The Clark and Grand Hotel Complex is the first high-rise select service hotel in Chicago made up of three distinct hotel offerings under the same roof.

Located in the River North neighborhood, the complex is on a block bounded by Clark Street, Grand Avenue, Dearborn Street and Illinois Street. In order to offer each hotel its own identity, HOK’s design has provided three separate entrances. The three hotels united under the same roof are: Aloft Chicago City Center – 272 guestrooms; Hyatt Place – 212 guestrooms; and Fairfield Inn & Suites – 180 guestrooms. Each hotel benefits from numerous efficiencies which are being achieved by sharing amenity and basement public spaces. All three properties are managed by White Lodging.

The Clark and Grand Hotel Complex is just the third new construction LEED-certified hotel project in Chicago. The energy performance of the hotels is 38 percent better than a typical hotel in the city. The building has numerous sustainable design features and strategies including the combination of a high-performance envelope with efficient mechanical systems and controls; and efficient heating and cooling systems. The complex achieved a 28 percent water use reduction by using low flow plumbing and also thanks to its landscape design that only uses non-potable water for irrigation.

“As the third new construction LEED-certified hotel project in Chicago, the energy performance of this complex is 38 percent better than a typical hotel in the city,” says Colin Rohlfing, Chicago-based HOK sustainable design leader. ”The success of this unique hospitality project was achieved by combining a high-performance envelope with efficient mechanical systems and controls, which both respond to the increase in perimeter thermal performance.”

Photo Courtesy of: www.hok.com



Sumitomo Corporation of Americas Acquires Chicago’s Trophy 203 North LaSalle

11 Apr 2014, 8:55 pm

By Gabriel Circiog, Associate Editor

Commercial real estate services firm Avison Young announced that it has completed an office property acquisition on behalf of Sumitomo Corporation of Americas within a trophy-class building in downtown Chicago.

The acquisition comprises 581,107 square feet of office space within the 27-story class A mixed-use building located at 203 North LaSalle in Chicago’s Central Loop. The transaction refers solely to office space, which comprises the building’s 13th through 27th floors, and does not include the retail space on the first and second floor, nor the 10 levels of parking. Sumitomo Corporation of Americas has named Avison Young as the exclusive leasing agent for the acquired office space.

The office space was acquired from a joint-venture partnership consisting of M&J Wilkow, which has held ownership in the building since its completion in 1985, and HCI Capital AG, which has shared in ownership since 2005. 203 North LaSalle will continue to be managed by M&J Wilkow.

“Sumitomo has been active on the coasts for years, and has always viewed Chicago as a world-class city,” says Tomonori Wada, senior vice-president, Living Related Business Group, Sumitomo Corporation of Americas. “We have been looking for the right opportunity to invest in Chicago and hope to increase our presence here.”

Avison Young Principal Suzanne Martinez, who led the brokerage team that represented Sumitomo Corporation of Americas in the sale transaction says: “This was a complex deal not only due to the multi-tiered ownership of the building, but also because Sumitomo was seeking a 1031 Exchange opportunity whereby capital-gains taxes are deferred until a future date in accordance with federal law. We identified the property at 203 North LaSalle as a great asset to satisfy Sumitomo’s 1031, but also it gives Sumitomo the opportunity to acquire office space in a building that can be repositioned for today’s market.”

The 29-year-old building was designed by Skidmore, Owings & Merrill and has achieved LEED Gold certification and an Energy Star label. The building offers direct access to the Clark and Lake Chicago Transit Authority station and the Loop-spanning underground pedestrian walkway.

Sumitomo plans to make improvements to the lobby and elevators and install amenities such as a fitness center for tenants. Tenants at 203 North LaSalle include the University of Phoenix, Masuda Funai and DLA Piper.

Photo Courtesy of: www.wilkow.com



Governor Quinn Announces New “Welcome Home Illinois” Home Loan Program for First-Time Buyers

3 Apr 2014, 6:09 pm

By Gabriel Circiog, Associate Editor

Illinois Governor Pat Quinn recently announced the new Welcome Home Illinois program which aims to help Illinois’ first-time home buyers. The program provides $7,500 in down-payment assistance with an interest rate as low as 3.99 percent for a secure, 30-year fixed rate mortgage.

“Welcome Home Illinois will provide more opportunities for everyday people across Illinois to have their chance at homeownership,” Quinn says. “Homeownership and home-buying are essential to our economy. That’s why we are rolling out the welcome mat for families and hardworking men and women by giving them the resources they need to pack up and move into a new home.”

The program is funded through Illinois Jobs Now! and the Illinois Affordable Housing Trust Fund. The program is open to first-time buyers or anyone who hasn’t owned a home in the last three years in Illinois. Borrower income limits are up to 140 percent of the area median income, or $106,120 for a family of three or more in Cook County and $82,915 for a family of three or more in Springfield. The home buyer is required to have a credit score of at least 640.

Through the program home buyers can receive a forgivable loan of $7,500 that is secured by a second mortgage to help with closing costs or down payment. The borrowers are required to contribute the greater of one percent of the overall purchase price or $1,000 toward the down payment.

Apart from creating new ownership opportunities the Welcome Home Illinois loan will also stimulate statewide economic activity. It is estimated that the program will generate 1,500 full-time jobs, $50 million from real estate-related industries, $40 million in economic activity for the state and an extra $16 million in other statewide spending.

“Governor Quinn understands there’s never been a better time to buy a home in Illinois, so he created Welcome Home Illinois to help more buyers take advantage of historically low-interest rates,” says IHDA Executive Director Mary R. Kenney. “Now that Illinois’ economic recovery is gaining momentum, housing prices are trending up and buying a home will enable families and individuals to build wealth for their future.”



Governer Pat Quinn Praises 111 West Wacker Drive Development and Workers

28 Mar 2014, 12:02 am

By Gabriel Circiog, Associate Editor

As the long awaited 111 West Wacker Drive project gets closer to completion, which is scheduled for this summer, Governor Pat Quinn recently saluted the developers and workers.

As previously reported by Commercial Property Executive, the long-stalled Chicago project was acquired by Related Midwest in 2011. The project had been stagnant since 2008 but Related Midwest secured $115 million in construction financing from U.S. Bank in 2012 and re-launched the development.

Originally envisioned as a 90-story tower featuring upscale for-sale residences and a Shangri-La hotel by its previous owner, Waterview L.L.C., 111 West Wacker Drive has been reimagined by Related Midwest as a LEED Silver 60-story ultra-luxury residential tower. The architect of the project is New York-based Handel & Associates LLP and the interior designer is Chicago-based Kara Mann Design.

“This development is further proof that Illinois is making a comeback,” Quinn says. “After stalling during the worst recession since the Great Depression, today this monumental project is back on track and has employed more than 1,000 skilled workers. This is what happens when the state’s business climate encourages private investment and creates good jobs for Illinois’ hardworking men and women.”

Situated on the corner of Wacker Drive and Clark Street, the 950,000-square-foot development will feature 504 rental units, 440 parking spaces and street-level restaurant and retail offerings. The project has employed over 1,000 skilled construction workers for a total of 510,000 hours to date, twenty-five will be permanently employed upon completion of the building and another 100 service providers will service the building.

“The transformation of this site into one of Chicago’s finest, new apartment buildings has been a long but very rewarding journey,” says Related Midwest President Curt Bailey. “I could not be more proud of the dedicated and extremely talented workers who have helped us create a best-in-class building for a world-class city. We are very excited to unveil 111 West Wacker to Chicago and help establish the Loop as one of the most desirable residential neighborhoods in the city.”

Rendering Courtesy of: www.relatedmidwest.com



New Luxury Boutique Nobu Hotel and Restaurant Chicago to Open in 2016

24 Mar 2014, 5:22 am

By Gabriel Circiog, Associate Editor

Nobu Hospitality LLC recently announced plans for a new development in the West Loop of Chicago. The new luxury boutique Nobu Hotel and Restaurant Chicago will be located on the corner of Randolph and Peoria Streets and is scheduled to open early 2016.

“Chicago’s tourism industry continues to see record growth because renowned venues like Nobu are investing in expanding options for Chicagoans and tourists,” says Mayor Rahm Emanuel “This hotel and restaurant builds on the city’s great hospitality and culinary offerings to further cement Chicago’s role as a world-class city.”

The development is inspired by the world-renowned Japanese Chef Nobu and championed by Academy award-winning actor Robert De Niro and Hollywood producer Meir Teper. Nobu Hotel will feature 155 luxury rooms, the Nobu Restaurant, an indoor and outdoor bar, a rooftop lounge and venue and exclusive guest room retreats. The designer of the project is Shaw Sullivan, partner and studio leader at the Rockwell Group, a company that has designed numerous Nobu projects on a global scale over the past twenty years.

“The City of Chicago is an extremely important destination for Nobu Hospitality and our shareholders Chef Nobu, Robert De Niro and Meir Teper. As one of the key global cities of the world, Chicago is already a magnet for business and leisure travellers offering unique venues for dining, entertainment and enjoyment, and we look forward to embracing the values, the traditions and desires of the people of Chicago,” says Trevor Horwell, chief executive of Nobu Hospitality. “We also look forward to be working with the City of Chicago to deliver a unique and special destination for Chicago which reflects our overall growth strategy of expanding with other properties to 24-hour gateway cities, both in the U.S. and internationally.”

Logo Courtesy of: www.nobuhotels.com



The University of Chicago Lists Harper Court Complex for Sale with CBRE Group

24 Mar 2014, 5:13 am

By Gabriel Circiog, Associate Editor

The University of Chicago recently announced that it has listed the 12-story Harper Court complex for sale with commercial real estate firm CBRE Group.

Over the past years, the university has undertaken a project in partnership with the City of Chicago which aims to help revitalize the 53rd Street corridor in Hyde Park. As part of this project, after a multi-year redevelopment project, Harper Court opened in 2013 with a new design which aimed to bring new amenities to Hyde Park and create economic opportunities for the surrounding area.

The concept of Harper Court grew out of community visioning workshops which took place in 2008. The University of Chicago and the City of Chicago contributed land and other resources to redevelop a former shopping center. In order to attract developers to bid on the project, the university committed to a 20-year lease of the office tower.

Up to now, the university has invested over $30 million in Harper Court and provided a $21.5 million loan guarantee for the construction of the new Hyatt Place hotel, adjacent to the office tower.

The university initially announced its plans to sell the property in November, shortly after purchasing it from the developer, CJUF III Harper Court LLC, for $98 million. UChicago, after finding a buyer, intends to lease back all of the office and retail space.

Harper Court features 224,000 square feet of office, retail and parking space. The university intends, as part of a purchase deal, to sign a 20-year master lease for the office and retail portion and plans to continue to work with its leasing agent in order to identify retail tenants for the remaining spaces in the building.

Associate Vice President for Commercial Real Estate Operations for the University of Chicago, James Hennessy, in a statement says: “This project is the result of many years of planning and input from members of the community about the kinds of retail they wanted to see in the neighborhood, and we are looking for a new owner that will be committed to Harper Court for the long-term.”

The university, as owner of the project, is currently paying property taxes which contribute to the 53rd Street TIF district and will continue to contribute to tax revenues as anchor tenant after the building is sold.

“From the beginning, Harper Court helped boost interest from prospective tenants and is now providing increased foot traffic to support the surrounding businesses,” Hennessy says. “We’re confident that it will be a good investment for the right buyer and continue to be an important center for the community.”

Photo Courtesy of: Harper Court via Facebook (www.facebook.com/HarperCourt).



Forsythe Technology to Build 221K SF “Retail Plus” Data Center Colocation Facility in Elk Grove Village

7 Mar 2014, 1:17 am

By Gabriel Circiog, Associate Editor

IT infrastructure Forsythe Technology recently announced it plans to design and build a state-of-the-art data center facility in Elk Grove Village, Illinois. The new 221,000-square-foot data center aims to address the needs of enterprises that are seeking for the best of both the retail and wholesale colocation data center markets. The development will feature higher-density, private data center suites with dedicated power and cooling infrastructure, customizable physical security and operational efficiency options. The facility is being designed to comply with U.S. Green Building Council LEED certification standards for data centers and to obtain Tier III certification from the Uptime Institute.

The company also announced that upon completion of the new facility, it will be moving its independent, multi-vendor Technology Evaluation Center, its Executive Briefing Center and its Integration and Configuration Center from its Skokie, Illinois corporate headquarters.

“After many years of listening to the needs of our clients and helping them build data centers and find colocation data center space, we made sure this data center facility has everything they have been asking us for,” says Steve Harris, Forsythe vice president of data center development.

The new Elk Grove Village facility will feature amenities such as client workspaces, conference rooms and will offer its tenants the possibility to rapidly expand their private data center suite through its modular suite design. Thanks to its denser environment, tenants will be able to optimize their IT configurations and reduce their facility footprint and associated operational costs.

A new subsidiary, called Forsythe Data Centers Inc., will manage the center and will be led by Albert Weiss and Steve Harris.

“Forsythe’s facility offers the flexibility and agility of the retail data center market, in terms of size and shorter contract length, with the privacy, control and density of large-scale, wholesale data centers,” says Albert Weiss, president of Forsythe Data Centers Inc.

The facility is being designed, engineered, powered and constructed with the help of Environmental Systems Design Inc., Turner Construction, Duke Realty, Emerson Network Power, ComEd and Anixter.

Photo Courtesy of: www.forsythe.com



BYTEGRID Holdings LLC Acquires 70,000 SF Data Center in Aurora

24 Jan 2014, 8:44 pm

By Gabriel Circiog, Associate Editor

BYTEGRID Holdings LLC recently announced the acquisition of a 70,000-square-foot, Tier III data center in Aurora, Ill.

Located on 5.25 acres of land about 30 miles west of downtown Chicago, the data center was acquired from Continental Casualty Company, an affiliate of Chicago-based commercial insurance writer CNA Financial Corporation. CNA will continue to occupy approximately 30 percent of the facility and will remain the primary tenant under a newly created long-term lease agreement.

Built in 2007 by CNA, the facility features 34,000 square feet of raised floor and BYTEGRID announced that it plans to immediately convert it into a multi-tenant data center. The data center company intends to begin leasing approximately 25,000 square feet of enterprise-class, Tier III data center space featuring 6 megawatts of power capacity available to serve enterprise, government and service providers that are looking for premier multi-tenant data center space in suburban Chicago.

“We are extremely pleased that CNA selected us to not only be their partner, but also to participate in helping them solve some of their key business challenges,” says Kenneth Parent, BYTEGRID’s CEO. “Our blueprint for converting single tenant data centers to multi-tenant data centers is proven as a complimentary strategy for large organizations seeking to optimize IT performance and operating costs in a way that is completely transparent.”

Talking about the local market Parent added: “The Chicago market continues to show strong demand and represents a natural next step in our national expansion strategy. The Aurora facility is world-class and well suited for large organizations with the demanding requirements for security and reliability. We are committed to the market and will continue to evaluate additional expansion opportunities here.”

Following this acquisition, BYTEGRID now operates five data centers in four geographically diverse markets totaling over 705,000 square feet of superior multi-tenant data center space.

Photo Courtesy of: www.bytegrid.com



Server Farm Realty LLC Adds Second Data Center in Chicago to Portfolio

13 Jan 2014, 7:58 pm

By Gabriel Circiog, Associate Editor

Server Farm Realty LLC has expanded its presence in the Chicagoland market with the acquisition of a data center facility. The Los Angeles-based company has acquired the data center facility located at 800 and 810 Jorie Boulevard in Oak Brook, Ill. for $16,250,000. The Oak Brook facility becomes the company’s second Chicagoland data center project after it revealed its 450,000-square-foot data center at 840 South Canal Street in Chicago in June last year.

Previously known as the Oak Brook Technology Center, the property is located on 13.49 acres of land and features two mid-rise office buildings with a total of 193,688 square feet of rentable space. The facility features expansive floor plates of contiguous, open space, optimal power capability, cutting-edge fiber cabling and direct access to numerous communications and network providers. The Oak Brook facility is designed to support tenants that are looking for first-class data center, colocation, call center, disaster recovery and Network Operations Center space.

Currently 66 percent leased, the facility accommodates numerous leading fiber optic carriers and communications providers and is also home to the headquarters of several global leaders such as McDonald’s and Ace Hardware.

“In addition to being one of the best connected facilities in the Chicago market thanks to its expansive ecosystem of existing technology tenants, the Oak Brook data center features close proximity to robust underground telecoms fiber, as well as optimal power and electrical service,” says Avner Papouchado, president of Server Farm Realty. “Backed by SFR’s deep technical capabilities, the region’s dense fiber optic network, and solid infrastructure, the facility provides tenants with the expertise, connectivity and framework necessary to succeed in today’s saturated technology market.”

The SFR Oak Brook facility sale was brokered by Transwestern Managing Directors Gary Nussbaum and Thomas Gorman, as well as Senior Associate David Matheis.

“Oak Brook Technology Center drew very strong interest from data center investors,” says Nussbaum. “The property offers access to an enormous quantity of fiber, communications providers and electrical service which meet the demands of a first class data center facility.”

Photo Courtesy of: Transwestern.



John Hancock Acquires Iconic 200 South Wacker Tower

28 Dec 2013, 12:05 am

By Gabriel Circiog, Associate Editor

After KBS REIT III acquired the 1.5 million-square-foot tower located at 500 West Madison Street in downtown Chicago earlier this month, another skyscraper has changed owners in Chicago. The 40-story 200 South Wacker has been acquired by John Hancock for $214.5 million. The property was marketed by HFF on behalf of the seller, a joint venture composed of Equity Group Investments, Pearlmark Real Estate Partners and TIER REIT. The HFF team representing the seller was led by senior managing directors Jaime Fink and Jeff Bramson and managing director Mark Katz.

The iconic tower was designed by architect Harry Weese & Associates and built in 1981. Situated in Chicago’s West Loop, the 754,750-square-foot office building is close to numerous public transit options at the Union, Ogilvie and Rock Island commuter rail stations. The EGI/Pearlmark/TIER REIT joint venture had purchased the building in June 2011 and invested approximately $10 million in a capital improvement program. With the help of leasing agent J.F. McKinney & Associates, the team brought the property from 63 percent occupancy to 96 percent. Apart from the recent capital improvements, amenities at the tower include the tenant-only Club 200 Fitness Center, conference facilities, a heated executive parking garage and a news and sundries shop.

John Hancock, the U.S. division of Manulife Financial Corporation, announced the purchase of 200 South Wacker together with the purchase of another two high-profile buildings 100 William Street in New York City and Wellesley Office Park in Greater Metropolitan Boston.

“These properties represent the type of high quality assets we acquire in key markets as a priority for our strategic plan. The strong tenant rosters and superb locations make these excellent additions to our investment portfolio,” says Ted Willcocks, global head of asset management for Manulife Real Estate.

Photo Credits: Mike Oropeza via Wikimedia Commons.



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







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

Leave a Reply