The Federal Reserve Bank of Chicago will lease the one-story building for 10 years. HSA Commercial Real Estate executive vice president and principal Mark Christensen represented building ownership while Randy Koch of Insignia/ESG dealt for the local Fed.

"They wanted to be close to Midway Airport," Koch explains. Checks are sent to the other 11 member banks out of Midway at night, Koch says. Previously, the checks had to be driven from the Fed's Loop office to the airport for delivery. "Now, they're a mile away" from the airport, Koch says. "That was really the driving force."

Net lease rates for comparable industrial properties are $3.50 per sf to $3.75 per sf, Koch says, but the the bank's deal is a modified gross lease with "several million dollars worth of improvements" and other incentives, he adds.

"Because they're dealing with personal checks, it was important that the roof was in excellent condition," Koch says. "We got a market deal on the building. They certainly did not overpay. We got a brand new roof, which will be maintained by ownership, and free rent."

Christensen says the building also will get improved electrical service to accommodate the local Fed. "The building will be going through a major transformation," Christensen says.