BY THE NUMBERS
CHICAGO—April retail sales rose 0.3% over the previous month and 4.7% over the previous year according to US Census Bureau figures. “The strong year-over-year retail sales momentum continued in April, including core retail sales, which is the closest measure of the consumer spending component of GDP,” says Naveen Jaggi, president, JLL Retail. “Clearly, consumers are continuing to do their part in driving the economy forward. This momentum is despite gasoline prices rising significantly over the first four months of the year. However, gas prices will be increasingly important to monitor for retailers as we progress throughout the year, as paying more at the pump will likely cut into consumers discretionary spending capability. But, consumers have proven resilient over the past few months and lower income taxes will hopefully also take some of the sting out of higher gas prices.”
CHICAGO—Following a strong quarter of activity, with three million square feet leased – quarterly activity decreased to 2.2 million square feet in the first quarter, according to a report from Savills Studley. Tenants have leased 11.5 million square feet in the four most recent quarters, exceeding the long-term market average by 26.2%. “Chicago is on the cusp of another wave of development activity, including projects in emerging micro-districts like Fulton Market and the Clybourn Corridor,” says Eric Feinberg, executive vice president. “Unless Chicago lands Amazon, it remains to be seen whether current demand is sustainable as more than seven million square feet delivers downtown in the next three years.” The market’s overall availability rate decreased by 50 bps from 16.2% to 15.7%. The class A availability rate fell by 40 bps to 16.4%.
NEWS & NOTABLES
CHICAGO—Peter Isaac has joined CA Ventures, a Chicago-based real estate investment company, as executive vice president of public-private partnerships. In his new role, Isaac will help source and execute P3s with leading academic institutions across the US, supporting them with CA’s extensive experience in the acquisition, development and management of on- and near-campus real estate developments, including student housing. “For years, Peter has been one of the go-to advisers in the P3 space, having consulted more than 70 universities throughout his career, so when we were looking to grow this portion of our business, we knew his longstanding relationships within the higher-education sector would supplement our own expertise,” says Tom Scott, chief executive officer of CA Ventures. Isaac joins CA Ventures from Washington, DC-based program management firm Brailsford & Dunlavey Inc., where he most recently served as vice president of public-private partnerships.
CHICAGO—Eyzenberg & Co. structured and placed a $28 million bridge loan for Woodland Ridge Apartments on behalf of the owner, SSIL II, LLC, a partnership comprising Auerbach Funds and Sinatra & Co. Real Estate. The 32.5-acre, 304-unit garden apartment community is located at 3421 Foxboro Dr. in Woodridge, IL, a southwestern suburb of Chicago. David Eyzenberg, the commercial real estate investment bank’s president, Jeff Conti, managing director, and Diana Davidson, associate, placed the loan with Hunt Mortgage Group, working with Marc Suarez, director. The financing enabled the partnership to pay off its initial acquisition loan and pay for the continued renovation of the class B property’s apartments and common areas. “As a result of ownership’s investment in renovations to date and improved operating results, Eyzenberg & Co. was able to secure an immediate partial cash-out, as well as a future funding earn-out structure,” says Eyzenberg.
CHICAGO— CBRE has promoted Tara Torbik to senior associate on its Oak Brook agency leasing team in Oak Brook, IL. A graduate of CBRE’s Wheel Program, Torbik joined the company in 2012. Based in Oak Brook, she works with some of the market’s largest office owners. She has handled leasing and marketing efforts for such marquee suburban properties as Oak Brook 22, Executive Plaza in Westmont and One Energy Center in Naperville. Torbik has been recognized for her accomplishments by several area organizations, most notably: Chicago Business Journal’s Women of Influence Award (2017), Connect Daily Next Generation National Award (2017) and the Daily Herald Business Ledger Top 20 Under 40 (2015).
CHICAGO–The Federal Savings Bank, one of the largest privately held, veteran-owned banks in the US focused on residential lending, and Union Bank & Trust, have just announced that they signed an agreement offer TFSB residential mortgages. With the agreement, The Federal Savings Bank will offer a wide range of residential mortgage products and services from Union locations. As a result of this arrangement between TFSB and Union, Union will begin winding-down the operations of Union Mortgage Group, its wholly owned subsidiary. “The arrangement with Union was particularly attractive given Union Bank & Trust’s solid reputation, commitment to excellence and geographic footprint on the East Coast,” says Steve Calk, chairman and chief executive officer, CEO of The Federal Savings Bank. “We look forward to leveraging our home lending experience to help more customers achieve the American Dream of home ownership.”
CHICAGO—Ald. Brendan Reilly, Chicago-based developers Hubbard Street Group and Centrum Realty and Development, and representatives of the Clement Meadmore Foundation and Rosenthal Fine Art on Monday, May 7 formally unveiled Upright (2000), a sculpture by the late Clement Meadmore, in the public plaza outside the new 412 N. Wells office building in Chicago’s River North neighborhood. Meadmore, who died in 2005, was an Australian-American artist known for creating massive outdoor steel sculptures – many incorporating elements of minimalism and abstract expressionism. The 11-foot-tall sculpture is a single, rectangular volume repeatedly twisting and turning upon itself before lunging to the sky, depicting exhilaration. Hubbard Street Group and Centrum, which co-developed both 412 N. Wells and the adjacent HUBBARD221 rental tower, worked with Ald. Brendan Reilly and the foundation to bring Upright (2000) to its new home in River North.
DEALTRACKER
CHANNAHON, IL—Industrial Outdoor Ventures, a real estate investment company specializing in industrial service facilities, has signed Direct Trucking to a long-term lease at its 18.9-acre truck and container yard located at 23264 Youngs Rd. in Channahon, IL. The international cargo firm will move from its current location at in Melrose Park when the new lease commences this month. The property is paved, lighted and fenced with electric security gates and state-of-the-art surveillance equipment. The deal will significantly increase Direct’s capacity to store and stage ocean containers, trucks and trailers. In addition, the company gains a new and larger on-site maintenance shop. “The rise of e-commerce is fueling our business and as a result, we needed significantly greater capacity,” says Ed Kim, Direct’s chief executive officer. Cawley Chicago’s Josh Hearne represented IOV in the transaction while CBRE’s Jason Lev and John Suerth worked on behalf of the tenant. IOV is currently seeking to acquire $100 million in assets over the next 12 to 24 months.
MINNEAPOLIS—NJ-based Cantel Medical just signed a new lease for the entire 160,000 square foot building at 9800 59th Ave. N. in Plymouth, MN, a Minneapolis suburb. Dave Paradise and Sydney Johnson of Cushman & Wakefield in Minneapolis, along with New York City-based David Itzkowitz, represented Cantel, a leading provider of infection prevention products and services. It will relocate from several sites throughout Plymouth to the four-story property. “This new building at 9800 59th Ave. N. creates the efficiency of having its employees under one roof, and also allows the client to occupy space in a corridor already popular with other medical companies,” says Paradise. The relocation will bring more than 500 employees to the building, will serve as the firm’s regional headquarters, and which sits on the northwest quadrant of Hwy. 169 and Bass Lake Rd. in Plymouth. Bob Revoir of Cushman & Wakefield represented the building owner in lease negotiations. Cushman & Wakefield also provides management services at the property.
CHICAGO—CBRE recently represented Bolke Miller Co. and the landlord, Bridge Development, in a 308,000-square-foot lease in a new facility at the 225-acre Bridge Point North development in Waukegan, IL. Whit Heitman of CBRE represented BMC in the transaction and Sam Badger, Brad Weiner and Jared Paff of CBRE represented the owner and its partners Banner Oak Capital Partners, Wanxiang America Real Estate Group and Globe Corp. BMC will anchor the new 544,000-square-foot development at 1350 Bridge Dr. Scheduled for completion in the first quarter of 2019, the property will offer 36’ clear heights, 42 exterior docks and 21 trailer positions. The move will increase its footprint in the area from 255,000 square feet to 440,000 square feet. Phase one of Bridge’s project delivered more than one million square feet in 2017, now occupied by firms such as Medline and Visual Pak. There is 262,424 square feet of phase one still available.