DETROIT—Newmark Knight Frank just released its fourth quarter 2017 office trends data for the Detroit region this week. According to the reports, the metro area's vacancy rate fell 70 bps to 16.3% during the fourth quarter of 2017 as just over 607,000 square feet was absorbed. Beaumont Health System's move in Southfield and Hewlett Packard Enterprise's move in Auburn Hills both accounted for the lion's share of absorption in the suburban markets. Meanwhile, the CBD has experienced unprecedented growth in the office, commercial and residential markets over the past five years. Vacancy for class A office space during the fourth quarter was just 7.1%, compared to near 30% in 2012.

NEWS & NOTABLES

CHICAGO—Christine Battist has just joined the fast-growing Avison Young as a principal and chief financial officer. Effective immediately, Battist will lead the company's finance and accounting organization. Based in the firm's Chicago office, she will also serve on Avison Young's corporate leadership team and participate in the development and execution of the company's long-term growth strategy and profit goals. She brings more than 25 years of financial management experience to Avison Young, most recently as chief financial officer of Silver Bay Realty Trust and, previously, Two Harbors Investment Corp. – two public REITs associated with Pine River Capital Management. “Her appointment reflects Avison Young's continuing effort to build the most talented and diverse management team in the industry,” says Mark E. Rose, chair and chief executive officer. Battist succeeds Gary Hubbard, who, after leading the completion of certain ongoing projects, intends to retire later this year after a 37-year career as a financial executive with global corporations. Over the past nine years, Avison Young has grown from 11 to 82 offices and from 300 to more than 2,600 real estate professionals across Canada, the US, Mexico and Europe.

OAK BROOK, IL—The investment group of The Inland Real Estate Group of Cos., Inc. says that its investment group collectively raised more than $800 million of capital in 2017. Additionally, Inland's purchasing arm was responsible for the purchase of more than $1.4 billion of commercial real estate, including retail, multifamily, self-storage and medical office buildings during 2017. Since its inception, Inland has raised more than $22 billion. “Last year, we were pleased that Inland continued to grow its businesses,” says Daniel L. Goodwin, chairman and chief executive officer of Inland. “Additionally, we were proud to have received the 2017 Torch Award for Marketplace Ethics for the third time from the Better Business Bureau. This year, 2018, is very special as it commemorates Inland's 50^th Anniversary, during which we will continue to position our businesses for the next 50 years.”

OMAHA, NE—Josh Larsen, vice president of NorthMarq Capital's Omaha regional office, negotiated refinancing of $31 million for Park 120, a 282-unit multifamily property located in Omaha, NE. This transaction was structured by a 12-year term on a 30-year amortization schedule, with the first year being interest-only. NorthMarq arranged financing for the borrower through its relationship with a correspondent life company. “This execution allowed the borrower to lock in best in market pricing and remove interest rate risk while the asset is still in lease-up,” says Larsen.

BLOOMFIELD HILLS, MI—Income Property Organization reported another recording breaking year in 2017. The company brokered the sale of 70 multi-family communities in MI and OH, representing $150 million in sales volume. “Many of our transactions were acquired by international and out-of-state investors, demonstrating the depth of our marketing reach,” says Greg Coulter, managing member. After several years of consistent growth in the multi-family housing industry, however, Coulter says his firm has observed a decline, albeit a minor one. IPO notes that year-over-year rent growth declined nationally in 2017, after peaking in 2015-16. But Coulter pointed to supply/demand measurements that indicate a bullish outlook for apartment fundamentals over the long term. “When balancing data and trends while considering the strength of both operating and sales fundamentals, it is safe to say there is good money to be made as either a buyer or seller of apartments in the current marketplace,” says Coulter.

DEALTRACKER

ITASCA, IL—ML Realty Partners has signed a long-term lease with Illinois Tool Works Inc. for 102,390 square feet at Heritage Crossing in Lockport, IL. ITW, a global manufacturer of engineered fasteners and components, equipment and consumable systems, and specialty products, chose Heritage Crossing for this location due to its many amenities including an excellent access to the workforce. “We're excited to welcome ITW to the park and to continually see instances of economic growth like this in the I-355/I-55 submarket,” says Patrick Shannon, vice president at ML Realty Partners. The class-A, 293,872 square foot industrial facility is located within Heritage Crossing, a 228-acre business park situated at the I-355 and 143^rd St. interchange. H. Charles Osweiler of Nicolson Porter & List represented ITW and Dan Leahy, Mark Moran, and John Whitehead of NAI Hiffman represented ML Realty Partners in the transaction.

LISLE, DOWNERS GROVE, and LOMBARD, IL—NAI Hiffman has completed three office transactions in Chicago's East-West corridor. In the first deal, NAI Hiffman represented ownership in Joseph T. Ryerson & Son Inc.'s lease extension at 1050 Warrenville Rd. in Lisle. The Chicago-based metal processor and distributor occupies the entire 53,982-square-foot building. Dan O'Neill, NAI Hiffman executive vice president, and Adam Johnson, vice president, represented ownership. CBRE's Jon Springer represented Ryerson. In a separate transaction, Art Burrows, NAI Hiffman senior vice president, along with Johnson, represented RCM 22nd St., LLC, in the sale of 55 W. 22^nd St. in Lombard. The 50,963-square-foot multi-tenant office building was 99% occupied at the time of sale. USA Realty Group's Farhan Hanif represented the buyer, Lombard Investment Group, LLC. Finally, LexRay signed a new lease at 3041 Woodcreek Dr. in Downers Grove. Johnson represented the landlord, American Community Management, and John Kinsella, senior managing director with Newmark Knight Frank, represented LexRay.