This Week's Chicago Deal Sheet
Rosemont, Illinois-based hotel management and developer First Hospitality and The Georgetown Co., a developer and owner of commercial, retail and mixed-use properties, formed a platform that will pour $1B into upscale hospitality properties nationwide.
Although hospitality remains hobbled by the absence of many business travelers, the companies’ officials say they believe the industry has significant long-term growth potential once the pandemic ebbs.
“We know that hospitality assets will inevitably see a strong rebound in the years following the pandemic, ultimately creating significant value for investors,” Georgetown CEO Adam Flatto said in a statement. “First Hospitality has a stellar reputation and we are honored to partner with them as we launch this venture.”
Flatto’s firm will also take an ownership interest in its new partner, alongside First Hospitality founder Stephen Schwartz and his family. Schwartz will continue as chairman and the family will stay in control of the 35-year-old company. First Hospitality’s existing leadership team, headed by CEO David Duncan, will also stay in place and handle day-to-day operations.
“We believe strongly in the long-term outlook for high-quality lodging assets, and Georgetown is an agile and highly successful investor who shares our values and strategic investment goals,” Duncan said in a release.
EXECS
General contractor J.C. Anderson promoted several of its executives. Chief Operating Officer Steve Boulukos expanded his role and, in addition to continuing as COO, is also now the firm’s president. He joined JCA in 1985. John Angelovich and Joe Maguire were both promoted to vice president. Angelovich joined JCA in 2014, and Maguire joined in 2005 as an intern.
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Kiser Group promoted Rick Ofman to director after five years with the company. He will continue to specialize in the sale of multifamily investment properties on Chicago’s North Side. Prior to joining the firm, Ofman taught U.S. history and mathematics in the northern suburbs and North Side of Chicago.
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Verus Title, a wholly owned subsidiary of Fathom Holdings, appointed Kathy Hulbert as vice president, Midwest Region. She will be responsible for increasing the company’s footprint throughout the region and assist with national compliance duties. Hulbert previously served as state agency manager for Indiana and Kentucky at North American Title Insurance Co.
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JLL hired Dennis Vicchiarelli as managing director of research and strategy. Before joining JLL, Vicchiarelli served as the executive vice president for business development at World Business Chicago.
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Developer Trammell Crow hired Joe Noon as a vice president focused on industrial development. Prior to joining Trammell Crow, Noon served as a director with Hines, where he oversaw acquisitions and developments in Chicago, Toronto, Indianapolis and Louisville.
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Cody Harper joined Mag Mile Capital as its Chicago-based vice president of originations. He previously had roles in structured finance at DBRS, where he rated CMBS transactions, and in business advisory at Huron, where he advised C-level executives from several industries.
SALES
Benchmark Developers sold a new mixed-use development with 31 apartments and two occupied retail spaces at 246 Green Bay Road in north suburban Highwood to Chicago-based HP Ventures Group for $11.3M. Interra Realty’s Craig Martin represented both the buyer and seller. Rolling Meadows, Illinois-based Benchmark built 246 Green Bay in 2021.
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CenterPoint Properties sold for an undisclosed amount 2200 Channahon Road in Joliet, a former Caterpillar site with 120K SF of industrial space on 15 acres, to TRT Intermodal. Cawley Chicago’s Joshua Hearne and Reinier Pranger represented the buyer in this off-market transaction.
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CA Health and Science Trust acquired the Northwest Indiana Medical Office Complex in Munster, Indiana. The transaction included three existing buildings totaling more than 113K SF as well as adjacent land. The property is directly across the street from the 458-bed Community Hospital, the flagship hospital of Community Healthcare System. Avison Young’s Mike Wilson, Erik Foster and Jim Kornick represented the seller, LBC Owner.
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Miami-based Exan Capital acquired the Tesla Service Center of Chicago at 3059-3057 North Elston Ave. for $13.1M. Cushman & Wakefield’s Michael Marks, Evan Halkias, David Matheis and Eric Cline represented ownership in the sale. Located 5 miles from Chicago’s downtown in the Avondale neighborhood, the property was built for Tesla and opened in 2019.
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The Sierra family sold a 37-unit, mixed-use building at 2315 North Milwaukee Ave. in Chicago’s Logan Square neighborhood for $9.4M. Ian Luscombe with Chicago Real Estate Resources represented both the seller and the buyer. Twenty-seven of the units are residences and the rest are retail.
LEASES
Headline Solar signed a lease with Somerset Development for 15K SF at Bell Works Chicagoland — the second long-term lease at the former AT&T campus in Hoffman Estates, which Somerset is redeveloping. Headline Solar, founded in 2019, will make the Bell Works location its national headquarters. It currently operates in Texas as well as Illinois and will expand to Virginia, Florida and the Carolinas by 2023. The company will officially move to its new office space in Q1 2022.
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The nonprofit International Fellowship of Christians and Jews signed a lease for 33K SF at 303 East Wacker Drive. The building underwent a $35M upgrade that wrapped up this year. That project included a renovation of the lobby and a transformation of the windowless penthouse mechanical floor into a tenant-amenity center. Jack O’Brien, Nikki Kern and Colton Riemenschneider of Telos represented ownership in the transaction. Robert Sevim and Jon Azulay at Savills represented the tenant.
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Ashley HomeStore signed a lease for 48K SF in Algonquin Commons, a 500K SF lifestyle center at 1500 South Randall Road in Algonquin, a northwest suburb of Chicago. Ashley HomeStore will move from 2451 South Randall Road, where it has operated for 12 years. Colliers International’s Brad Murchison, Chris Irwin and Brad Belden represented Ashley. Marget Graham of Mid-America Real Estate Group represented the owner, Red Mountain Retail Group Inc.
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Claro Healthcare signed a lease for 22K SF on the 28th floor at 200 South Wacker Drive in Chicago. Tony Karmin of Colliers International negotiated the long-term headquarters transaction. The healthcare consulting firm has been subleasing the space for the past four years. John Hancock Life Insurance owns the building.
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Hologram, a global cellular platform, will open new office space at 167 North Green St. in Chicago. The location will serve as Hologram's central meeting and training hub as the company continues to work from home. The firm scored $65M in financing and plans to triple its workforce. Austin Zimmerman of Avison Young, along with independent broker Nicole Weldon, represented Hologram in the deal. Paige O'Neill and Anne Aldrich of Shapack Partners negotiated for the landlord.
FINANCING
Associated Bank completed a $57M loan to Marquette Cos. for the construction of a 22-story, 279-unit multifamily apartment building at 513 South Damen Ave. in the Illinois Medical District. Marquette plans to complete the building by March 2023. Associated Bank was the lead arranger and administrative agent, working with Wheaton Bank and Trust. Elizabeth Hozian with Associated Bank’s commercial real estate division handled the loan arrangements and closing.
CONSTRUCTION AND DEVELOPMENT
McShane Construction Co. completed construction on the 259-unit Everton Flats in west suburban Warrenville on behalf of Atlantic Residential. The development consists of seven three-story walk-up buildings on more than 10 acres. HKM provided architectural services for Everton Flats.
McShane was also selected by Westbrook at Canterfield to build Woodlands at Canterfield, a senior living development in northwest suburban West Dundee. It will offer 91 assisted living units, 40 memory care beds and include nearly 16K SF of amenity space. McShane expects to complete Woodlands at Canterfield by April 2023. AG Architecture is the architect and RDG Planning and Design is the interior designer.
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The Opus Group started construction on Tollway Corporate Center, a pair of speculative industrial buildings, in west suburban North Aurora. The development is a joint venture with Principal Real Estate Investors. Located on Overland Drive, the first building will total 104K SF with a 32-foot clear height. The second building will total 543K SF and offer a 36-foot clear height. Opus plans to complete both buildings in June 2022. Opus is the developer, design-builder, and architect and engineer of record. Brian Kling of Colliers and Dan Leahy of NAI Hiffman are marketing the project for lease.
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General contractor Summit Design + Build completed construction of 1111 West Addison St. in Wrigleyville near the intersection with Clark Street. The four-story, ground-up commercial construction project includes retail on the ground floor and a fitness and bouldering center on the second through fourth floors. The 59K SF structure is steps from Wrigley Field on the former site of the Wrigleyville Taco Bell. The 41K SF climbing gym is home to Movement Wrigleyville, a climbing, yoga and fitness center. Hirsch/MPG Architecture + Planning and Clausen Management Services served as the project architect and owner’s representative, respectively.
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The Habitat Co. completed a two-year renovation of the amenities of Hubbard Place, a 43-story rental tower in Chicago’s River North neighborhood. Developed by Habitat in 2013, Hubbard Place features 450 residences. Executed by commercial interiors firm Loren Stanton, many of the updates took place in 2020 when amenity spaces were closed. The shutdown made transforming the building’s coworking spaces on the ninth floor into a top priority, as many residents were working remotely from their apartments. Hubbard Place now features booths where residents can work independently. The booths surround a conference table, and the space is equipped with USB ports, a big-screen television and phone chargers.
