Apartments Contribute $6B to Chicago Economy: The Deal Sheet
The $1.1 trillion apartment industry contributes $3B/day to our nation's economy, according to a recent report by the NAA and NMHC. Zero in on Chicago and we find 666k apartment homes contributing $6B to the local economy (for a comparison to last week's billionaires, that's twice J.B. Prizker's net worth). Looking at those staggering stats, we've decided to hold our Chicago Multifamily Summit this Thursday.
Chicago's 1.1M-renter multifamily industry supports more than 53,000 jobs, 88% on the management side. Building permits are down 77% over the past five years, but this year's pipeline is "robust," especially across Chicago's urban core, the report says. On a state level, Illinois' 1.4 million renters have a mind-boggling $16.4B in spending power (that's a lot of Blackhawks tickets). We think we may have figured out whose superhuman spending can stimulate our state economy--but let's see if the experts agree later this week.
SALES
MACK Cos. sold 93 single-family rentals to American Residential Properties (ARP) for more than $12M. Both companies reached an agreement to supply ARP with 30 to 50 rented homes per month over the next 24 to 36 months. These transactions could total up to 1,000 MACK properties bought by ARP.
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CSJ Investments paid $2.8M for a five-building, 74k SF industrial package of buildings in Elk Grove Village and Rolling Meadows. The Elk Grove Village buildings include 1610-20 Jarvis Ave and 1630-40 Jarvis Ave. The Rolling Meadows buildings include 1225 Carnegie St, 3620 Edison Place, and 1051 Rohlwing Rd.
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HSA Commercial repped Blue Vista Capital Management in the sale of a 98k SF, fully-leased retail and warehouse property in Carol Stream (320 Army Trail Rd) to Tinley Park-based MSR Carol Stream LLC. HSA's Tim Thompson, Michael Havdala, Paul Broderick, and Brenton Schrader repped Blue Vista; Lee & Associates SVP Joe Herron and Mid-America Real Estate principal/VP Kevin McLoughlin repped MSR Carol Stream.
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The Boulder Group brokered the $1.6M sale of a net-leased Advance Auto Parts at 1135 E Division St in Diamond. The 6k SF property was built in 2012. Boulder's Randy Blankstein and Jimmy Goodman repped the buyer, an Ohio-based 1031 exchange investor, and the seller, a Midwest-based partnership.
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Inland Bank sold an 8k SF foreclosed restaurant building located at 800 N Route 59 in Bartlett to a private party for $1.1M. Adelphia Properties' George and Simeon Spirrison repped both sides of the transaction.
LEASING
Transwestern was named leasing agent for 525 W Van Buren, a 522k SF West Loop office building, by its new ownership group, an affiliate of American Recovery Property Trust and Northwood Investors. The building is 74% leased and net rents range from $20 to $23/SF. Transwestern's Michael Lirtzman, Tamara Kos, and Kristen Baker will be exclusive leasing agents for the property.
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Jones Lang LaSalle's Kurt Sarbaugh, Robin Stolberg, and Kris Bjorson repped Midland Paper Co. in a 156k SF expansion and renewal at 363 N Third Ave in Des Plaines.
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Adelphia Properties completed three leases totaling more than 40k SF at West Park Plaza in Charleston: Simeon and George Spirrison repped the landlord in Kroger Grocery's 10-year lease for 30k SF; Simeon repped the landlord in H&R Block's five-year lease for 3k SF; and Simeon and George repped the landlord in HD Gaming's five-year lease for 8k SF.
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Miyanga American Corp. signed a 7k SF flex/warehouse lease in Addison. JBS Commercial Real Estate partners Brian Silverman and Jason Shibata repped ownership, Norhbrook-based Rothbart Realty. White Cube's Tak O'Haru and NAI Hiffman's Dan O'Neill repped Miyanga.
FINANCING
SomerCor 504 VP Bill Kornit completed a financing agreement for Grand Appliance & TV; the SBA portion of the financing exceeded $8.3M. The package included purchase, refinance, and construction lending initiatives for five properties in Illinois and Wisconsin: a 6k SF building purchase in Kenosha, a 10k SF building acquisition and renovation in Forest Park, a 22k SF building refinance in Crystal Lake, a 55k SF building refinance in Zion, and a 10k SF building refinance in Sturtevant.
CONSTRUCTION & DEVELOPMENT
Meridian Design Build began construction on an 88k SF expansion to a 215k SF ground distribution and package sorting center in Grayslake. Precept Design is providing architectural services and Spaceco is providing civil engineering work.
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JC Anderson was selected to complete a 50k SF build-out for DePaul's College of Education at 2247 N Halsted. JC Anderson's Steve Boulukos is project executive and Vasilko & Architects Associates is providing architectural services. The project is slated for completion in June.
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Meridian Design Build completed a 39k SF office renovation for NOW Foods at 244 Knollwood Dr in Bloomingdale. Meridian senior project manager Bob Kolcz and superintendent Greg Suthers led construction efforts and Heitman Architects provided architectural services.
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ARCO/Murray completed more than 37k SF of interior improvements for Catalina Marketing last year. Work was completed at 161 N Clark St, 20 N Martingale Rd in Schaumburg, and in Catalina's downtown Boston office (pictured). ARCO/Murray's Mike Magee was project manager in Schaumburg and Chicago and Chris Niedhammer was project executive on all three projects.
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Fitzgerald Earles Architects and Associates began design and construction planning for Sterling Bay Cos.' 15k SF HQ at 1040 W Randolph St, a two-story, 56k SF building. Construction is scheduled for completion this summer.
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Fitzgerald Earles Architects and Associates is finishing construction oversight on Apple's office expansion to 15k SF (for its iAD division) at 225 W Wacker Dr. Studio Architecture designed the space and Executive Construction is general contractor. The project is schedule for completion in late March.
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Principle Construction Corp was selected by Veneziano Enterprises for an 8k SF build-to-suit for its tenant, H&H Electric Co., at 2830 Commerce St in Franklin Park. Principle's Craig Slinker will serve as senior project manager, Tom Sterbens will serve as superintendent, and Timothy Morgan & Associates will serve as project architect.
EXECUTIVE MOVES
NAI Hiffman promoted six senior associates to VP. Kelly Disser, David Haigh, Michael Robbins, and John Whitehead received promotions to VP of the industrial services group. Adam Johnson and Aubrey Van Reken received promotions to VP of the office services group.
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Rebecca Fetter joined ML Realty Partners as marketing coordinator. She was previously with Landmark Development in Rockford and received her undergraduate degree from Rockford College.
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Reed Construction hired Brendan O'Carroll as project engineer. Brendan previously worked as project manager for Icon Identity Solutions and received his undergraduate degree from Illinois State University.
Yawn. Are you missing that lost hour as much as we are? Send ideas and suggestions to [email protected].
