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September 20, 2022

This Week's Chicago Deal Sheet

Just Added: Project Profile Featuring Tishman Speyer & Krueck Sexton Partners Sept. 29

A big apartment building is in the works for the vacant property next to the planned $6B Lincoln Yards megaproject.

Sterling Bay, in a joint venture with Dallas-based Lone Star Funds, one of its partners in the Lincoln Yards project, plans to construct the 359-unit building on a vacant property at 2031-2033 North Kingsbury Ave. The investment and development firm acquired the building from steelmaker A. Finkl & Sons in 2016, according to a zoning application filed with the city, reported by Crain’s Chicago Business.

This Week's Chicago Deal Sheet

“The demand for multifamily housing across Chicago continues to grow, and 2031 N. Kingsbury sits at the cross section of several of Chicago’s most populated communities like Lincoln Park, Bucktown, Wicker Park, as well as the future site of Lincoln Yards,” a Sterling Bay spokeswoman wrote in an email. The horizontal…

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Cold Storage Feels The Chill Of Inflation, Power Costs

Cold storage is one of a few benefactors of the dramatic shift in consumer tendencies that resulted from the pandemic, but as the ebbing effects of the virus ripple and collide with other forces, this subsector of the red-hot industrial real estate market faces growing pains.

Like many sectors, rising inflation and interest rates, labor challenges and general economic uncertainty pose a challenge for owners and operators in this specialized real estate type, but a steady stream of demand keeps the industry at least partially insulated with cash flows tied to a universal activity: eating.

Cold Storage Feels The Chill Of Inflation, Power Costs

“Cold storage as a business is based on people consuming food and no matter what is consumed, where it is consumed, this food goes through the exact same cold storage supply chain,” CenterSquare Investment Senior Investment Strategy Analyst and Global ESG Lead Uma Moriarity said. Refrigerated storage options were already growing…

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Real Estate Industry Urges D.C. To Slow Down On Requiring All-Electric Buildings

Washington, D.C., has been recognized for several years as one of the most forward-looking cities for green building standards in the United States, but it’s also got a dirty secret: The gas lines that fuel D.C. buildings’ power and cooking elements are leaking more than any state in the nation.

Those conflicting realities have helped fuel a pair of moves by the D.C. Council and a behind-the-scenes agency to bring an end to the use of natural gas in new commercial buildings. But the real estate industry is encouraging the District to pump the brakes.

Real Estate Industry Urges D.C. To Slow Down On Requiring All-Electric Buildings

Organizations representing D.C. property owners and businesses are urging officials to work with them by carving out exemptions from a requirement mandating new buildings be developed with all-electric infrastructure. They argue the costs would be too burdensome and strict regulations would dissuade developers and tenants from doing business in the District."Our…

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Under-The-Radar Asset Class Drawing A 'Flurry Of Demand' From Investors In Baltimore

Under-The-Radar Asset Class Drawing A 'Flurry Of Demand' From Investors In Baltimore  

A property type attracting growing attention from investors and tenants in the Baltimore area isn’t glitzy waterfront office towers, amenity-laden apartments or massive Class-A distribution centers. 

An increasing number of investors are looking at oddly shaped plots of industrially zoned land with just enough improvements for trucks to come and go, an asset class known as industrial outdoor storage. 

“We are seeing a flurry of demand from investors,” Rob Maddux, vice president of brokerage at JLL in Baltimore, said of the asset class.

Essentially, outdoor industrial storage is a piece of land where businesses can securely store items, such as recently imported cars, a fleet of last-mile delivery vans or stacks of PVC piping. While they can be standalone lots, they are often unused land next to older industrial buildings.   Institutional capital >

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