Middle Market Digest-The Midwest

NEWS & NOTABLES

INDIANAPOLIS—CBRE officials say they will bring their Workplace360 initiative to the Indianapolis suburbs by opening a new, state-of-the-art, 21,420-square-foot office in Keystone, IN. The design features a variety of work settings and technologies that gives employees maximum flexibility during their work day. The move will also bring together all of CBRE’s employees based at the firm’s Downtown (101 W. Washington St.) and Keystone (8500 Keystone Crossing) offices. “Putting all of our employees under one roof is something we have been looking forward to for a number of years,” says David Funke, managing director. “Employees in our current Keystone office know firsthand what the area has to offer, and now we will all be able to share that in a highly collaborative environment. The new space will be a showcase to our clients where the modern workplace is heading, creating an urban feel in a suburban environment.” According to a CBRE research report, “urban-suburban” submarkets like Keystone have live-work-play dynamics, including abundant office, housing, and retail options, as well as transportation access and other amenities.

OAK BROOK, IL—Inland Mortgage Capital, LLC, a private lender specializing in intermediate-term mortgages for value-added commercial real estate, has just appointed Eugene Rutenberg as senior vice president of loan origination. In his new role, Rutenberg will handle all facets of the company’s commercial real estate bridge loan origination for the western US. Rutenberg has closed more than $300 million of complex debt and equity transactions in his career. Prior to joining Inland, he served as a director of Continental Partners, where he sourced and placed commercial real estate debt and equity for all property types with sources including life companies, CMBS conduits, banks and private lenders.

CLEVELAND—Institutional Property Advisors, a division of Marcus & Millichap, has been awarded the exclusive listing for a core-plus multifamily property and two value-add investment properties totaling 1,837 units in suburban Cleveland. The assets are being offered on an individual basis, free and clear of debt encumbrances. The price is open bid. Michael Barron, IPA senior managing director, IPA senior managing director Daniel Burkons, and IPA senior director Joshua Wintermute represent the seller, a Cleveland-based partnership. The properties are: Tamarac, a 642-unit property in Willoughby; The Hamptons, an iconic 633-unit mid-rise community in Beachwood; and Deer Run, a 562-unit asset in Twinsburg. Constructed between 1990 and 1996, Tamarac perennially has an occupancy rate above 97% and an average rent $400-$700 below that of its class A competitors. The Hamptons, a luxury community in the heart of the region’s highest rent suburban submarket, is one of the lowest-priced options in the area. Deer Run, built between 1987 and 1992, has an average monthly occupancy of 98.2%.

DEALTRACKER

BATAVIA, IL—Colliers International I Chicago’s Jeff Devine and Steve Disse represented DCT Industrial in its sale of a three building, 486,062-square-foot industrial portfolio in the Chicagoland area to Cabot Properties. Sale price was not disclosed. The facilities were built between 1972 and 1984 and are located in the Fox Valley and South Suburban industrial submarkets – long established industrial concentrations with good connectivity to the interstates. The buildings have been updated with truck docking, trailer parking and new T-5 warehouse lighting. The facilities are: a 212,728 square foot warehouse at 1030 E. Fabyan Pkwy. in Batavia; a 204,586 square foot warehouse/distribution facility at 12301 S. Laramie Ave. in Alsip; a 68,728 square foot warehouse/light industrial facility at 3575 Stern Ave. in St. Charles. The buildings are 100% leased to a mix of four tenants ranging in size from 20,000 to 215,000 square feet.

CANTON, OH—The Boulder Group, a net leased investment brokerage firm, has completed the sale of two single tenant net leased CVS property locations in OH for $5,207,500. The sale includes the following locations: 600 W. Maple St., Hartville, OH; 8001 W 130^th St., North Royalton, OH. The Hartville location is at the signalized intersection of Maple St. and Kent Ave., the primary retail corridor in the area. The North Royalton location is strategically positioned on the southeast corner of 130th St. and Sprague Rd., a signalized intersection and the two primary thoroughfares in a densely populated residential area. Randy Blankstein and Jimmy Goodman of Boulder represented the seller in the transaction; a Midwest based real estate investment company. The purchaser was a Southeast based real estate partnership. The leases have approximately five years remaining in the primary term and feature ten five-year renewal option periods. “Single tenant portfolios with solid real estate fundamentals continue to be in great demand,” says Blankstein.

CHICAGO—Colliers International I Chicago has arranged the sale of Crown Steel Sales’ 221,522-square-foot industrial building located at 3355 W. 31st St. in Chicago to Cinespace Chicago Film Studios. Colliers’ Steve Kohn and Mike Senner represented Crown in the disposition. 3355 W. 31st St. sits on 7.3 acres. The brick building features 32’ clear ceiling height, 5,000+ Amps and 14 crane bays. Its location, near the full interchange at I-55 and Kedzie Ave., provides convenient access to the city and surrounding areas. “My hats are off to our client who remained loyal and patient throughout the process,” says Kohn. “This was an older crane facility so it presented us with quite a challenge. We knew it would take a very unique user to fill the space. Cinespace had the necessary experience and desire – they are a perfect fit.” In 2011, Cinespace, which specializes in the development, management and operation of studio facilities, turned the old 70-acre former Ryerson Steel Co. into Chicago’s “biggest independent movie studio outside of Hollywood.” Paine Wetzel’s Ed Wabick represented Cinespace in the acquisition.

BUILDING BLOCKS

CHICAGO—Officials from Chicago-based Belgravia Group say construction and sales are progressing quickly at Three Sixty West, an 11-story condominium development in the city’s River North neighborhood. Located at 360 W. Erie St., the building will include 38 luxury condominiums, rising from the former site of Citizen Bar, which initially served as the development’s sales gallery. Belgravia is currently marketing the development, now more than 50% sold, from a model home at 39 N. Aberdeen St. in the firm’s CA on Washington condominium building in the West Loop. “We are seeing many buyers who want to live in this neighborhood for the urban lifestyle options it offers,” says Liz Brooks, vice president of sales and marketing for Belgravia. “The cultural experiences and entertainment options right outside Three Sixty’s front door are extremely attractive across the demographic spectrum. But, it’s the area’s green spaces such as Montgomery A. Ward Park, and highly rated schools like Ogden Elementary that are drawing a new generation of young families.”

CHICAGO—CRG, Clayco’s real estate development group, has just broken ground to develop a 12-story multi-family apartment building in Chicago’s historic Uptown neighborhood at the intersection of Sheridan Rd. and Wilson Ave. The transit-oriented development is located two blocks from the Red Line Wilson Stop at 4555 N. Sheridan Rd. Construction will proceed throughout the next year, with delivery of 149 apartments planned for July 2019. “The long neglected Uptown neighborhood is emerging from its shell,” says Jay Case, CRG principal. “New developments, including apartments and an urban Target, historically significant entertainment venues and the proximity to the lakefront make Uptown an exciting place to live.” Clayco will serve as the design-builder and its subsidiary BatesForum is the architect. Capital partners include POB Capital and Principal Real Estate Investors. This project will also extend CRG’s work with Chicago-based minority and women-owned firms and continue to build the pipeline of minorities and women in the trades, as CRG works with subcontracting partners to create and sustain jobs for those who live in the community.