BY THE NUMBERS
CHICAGO—The vacancy rates in most Chicago office submarkets may be on the rise, but North Michigan Ave. is going in the opposite direction, according to CBRE. Direct vacancy in the class A sector is now just 8.2%, compared to 11.8% in the Chicago market as a whole. Since 1991, the submarket, the only one where supply has decreased, has lost four million square feet of space. “As a result, rents are on the rise,” says CBRE. “Investors have keyed into this trend and are actively targeting this tight market now for its healthy rent growth projections and strong mix of good, growing credit tenants.” With no new supply in the pipeline for North Michigan Ave., “this could be the most attractive Chicago office market to investors for years to come.”
NEWS & NOTABLES
MINNEAPOLIS—THOR Cos., a Twin Cities-based, development and construction company, has just hired Pat Cruikshank as vice president of business development and construction. Cruikshank has executive-level experience in developing and completing numerous significant commercial real estate and construction projects – with single family and multi-unit housing — in the Twin Cities and Upper Midwest. “Pat understands the process of putting together large, complex real estate development and construction projects, and then seeing them through to their successful conclusion,” says Ravi Norman, chief executive officer, THOR Cos. “He is a well-respected professional within the Twin Cities commercial development circles – and beyond – and his experience and expertise in both project development and new business development adds a critical new dimension to our executive team at THOR.” Among many other projects, Cruikshank will work on the delivery of the $36 million, mixed-use office-retail property that THOR has begun building in North Minneapolis and scheduled for completion in the Spring of 2018.
DEALTRACKER
DETROIT—NAI Farbman recently help complete the sale of 19 acres of commercial real estate to developer Cunningham-Limp. The property, located at Dutton and Bald Mountain in Auburn Hills, MI. represents one of the largest parcels zoned for research, technology and industrial in the metro area. Southfield, MI-based NAI Farbman will also serve as a leasing agent. The site has the flexibility to house single or multiple buildings, ranging from 85,000 to 200,000 square feet, and is in close proximity to Fiat Chrysler Automotive Headquarters, General Motors Lake Orion Assembly Plant and Oakland University. “In this current market, inventories of suitable industry space are at near all-time lows,” says Doug Fura, senior vice president, NAI Farbman. “To have a site of this size available, in a very desirable location and ready for new construction is rare.”
CHICAGO—Officials from M&R Development and Bucksbaum Retail Properties, the joint venture team developing Addison & Clark, the mixed-use project coming to Chicago’s Lakeview neighborhood, said last week that Chicago Harley-Davidson will join the list of high profile tenants at the retail and residential complex directly across from Wrigley Field. One of three Chicago-area Harley-Davidson stores owned by Grand Rapids, MI-based Fox Motors, Chicago Harley-Davidson will occupy 10,000 square feet of retail space, joining CMX Cinemas, a 32,000-square-foot luxury movie theater; a 30,000-square-foot Lucky Strike Social entertainment venue; and Shake Shack, Inc., which will occupy 3,500 square feet. Baseballism, a premium apparel store focusing on the class, tradition and history of baseball, will occupy 1,200 square feet of space while two 7-Eleven stores will occupy 2,200 square feet at Addison & Clark. “There are very few markets in the country that possess such a strong residential neighborhood and retail branding opportunity as Lakeview,” says John Bucksbaum, chief executive officer of Bucksbaum Retail Properties. “The combination is powerful.”
BUILDING BLOCKS
CHICAGO—Foxford Communities will hold a groundbreaking ceremony on Tuesday, July 25, at 4PM, for Foxford Station – a 28-unit luxury condominium building located in Western Springs. The new four-story building will include 3,600 square feet of first-floor commercial space with condominium residences on floors two through four. Foxford Station will offer flexible and open floor plans with two to three bedrooms and two to three bathrooms. All residences will have a large private outdoor balcony and/or terrace and select floor plans include a den. Homes measure approximately 1,770 to 3,060 square feet with current pre-construction prices ranging from $599,000 to $1,085,000. The official groundbreaking will take place at the corner of Wolf Rd. and Burlington Ave. Attendees are invited to nearby Solstice at 800 Hillgrove Ave. for cocktails and appetizers following the ceremony.