BY THE NUMBERS
CHICAGO—Coworking has not been around very long, but the concept has already made a significant mark on the Chicago office market, according to the latest Market Beat report from MBRE Research. Providers such as WeWork, Spaces and MakeOffices currently operate or plan to soon open a total of 1.6 million square feet of coworking space in the city’s CBD and a total of approximately 2.4 million in the metropolitan area. The 1.6 million square feet of existing and planned coworking space in Chicago’s CBD accounts for only 1.2% of the total office market, MBRE says. But if the industry continues to expand by 20% each year, as many predict, it would reach a total of four million square feet in five years, comprising approximately 3% of the total office market, and 10 million square feet in ten years, comprising approximately 7% of the total market.
NEWS & NOTABLES
MINNEAPOLIS—The Building Owners and Managers Association International recently honored 16 commercial properties with its The Outstanding Building of the Year Award at its 2018 BOMA International Conference & Expo in San Antonio, and several winners were in the Midwest region. In the corporate facility category, the winner was Target Northern Campus in Brooklyn Park, MN, a suburb of Minneapolis. Target Corp. owns and manages the property. In the 250,000 to 499,999 Square Feet category, the winner was 8200 Tower in Bloomington, MN, another Minneapolis suburb. Cushman & Wakefield manages the property which ML-AI Normandale, LLC owns. In the 500,000 to One Million Square Feet category, the winner was 100 N. Riverside in Chicago. CBRE manages the property, which Boeing 100 N Riverside, LLC owns. All three properties are BOMA 360 Performance Program building.
CHICAGO—Pickard Chilton, an award-winning international architectural practice, was recently honored with an American Architecture Award for its design of River Point, a 52-story office tower in Chicago. The winners were announced by The Chicago Athenaeum and the European Center for Architecture Art Design and Urban Studies earlier this month and honored at a reception at The Institute of International Education in New York held on June 20th. Considered the nation’s highest public award for new architecture, the 2018 awards were presented to over 100 buildings selected from a shortlist of more than 300 buildings and urban planning projects. The jury was comprised of a select team of architects and designers from some of the nation’s top design firms. Located at the confluence of the main, north and south branches of the Chicago River, River Point includes a 1.5-acre, terraced public park on the riverfront. The LEED-NC Gold certified project also includes sustainable design features such as low-flow water fixtures, a 50% green roof, and native landscaping.
CHICAGO—Planet Granite Climbing, Yoga and Fitness says it will begin construction on two new climbing gyms in Chicago. One location, slated to open in late 2019 and located directly adjacent to Wrigley Field at 1111 W. Addison St., will feature three floors and 40,000 square feet of bouldering, yoga and fitness. The other gym, located at 1450 N. Dayton St. in the Lincoln Park neighborhood and expected to open in early 2020, will boast 40,000 square feet of roped climbing and bouldering terrain. “We think that people in Chicago, who love adventure and fitness, want a place where they can come together and share their passion for climbing,” says Robert Cohen, chief executive officer at Planet Granite and Earth Treks. “We are delighted to have a chance to open two facilities in Chicago and become a part of these iconic and vibrant neighborhoods.”
DEALTRACKER
CINCINNATI—Susan Branscome, senior vice president of NorthMarq Capital’s Cincinnati regional office, arranged construction financing of $31 million for Encore Apartments, a 133-unit multifamily property located at 716 Sycamore St., Cincinnati. The transaction was structured with a 10-year term on a 25-year amortization schedule. NorthMarq arranged financing for the borrower through its correspondent relationship with a life company. The property is within the CBD with direct highway access, a variety of retail establishments, restaurants, bars and world-class entertainment venues. The apartment offers amenities such as a heated salt water pool, observation lounge, outdoor kitchen, pet spa, club room, and fitness center. “This is one of the best multi-family properties in downtown Cincinnati,” says Branscome. “We were able to secure a forward loan funding with a life insurance company allowing the borrower to lock the interest rate early and fund when the property leased up.”
INDIANAPOLIS—HSA Commercial Real Estate recently signed a 49,977-square-foot lease with Pelican BioThermal at Gateway Business Park, 851 S. Columbia Rd. in Plainfield, IN. The Plymouth, MN-based firm provides thermal packaging solutions and will take occupancy in July. The 121,800-square-foot warehouse building, known as Gateway II, was developed by HSA Commercial in 2004 and is part of the 55-acre Gateway Business Park located just west of the Indianapolis International Airport. HSA has recently built five buildings totaling approximately 630,000 square feet at the park. The developer now plans to build the 262,758-square-foot Gateway V on a 19-acre land site at the southeast corner of Stafford Rd. and Airtech Pkwy. HSA plans to finish the 32’ clear facility by December. “The need for new class A warehouse facilities in Indianapolis is outpacing the amount of development in the market, and we’re excited to start construction on Gateway V to meet the velocity of demand,” says Robert Smietana, vice chairman and chief executive officer of HAS. Terry Busch and Jared Scaringe of CBRE represented ownership in the lease and Bryan Augustin of Alliance Commercial Group represented the tenant.
CHICAGO—After outgrowing its current floor plate at the Merchandise Mart, Origami Risk will make a move later this year to 222 N. LaSalle St. Origami Risk, a risk and insurance technology platform serving all members of the risk management community, and one of Inc. magazine’s “Best Workplaces 2018,” will more than double its 11,600 square feet of space to 24,500 square feet. Colliers International I Chicago’s Dougal Jeppe represented the firm in the transaction. With an average 39,000-square-foot floor plate, 222 N. LaSalle St. will allow Origami to keep its growing workforce on one floor. Further, the company wanted to have river views similar to what it had at the Merchandise Mart. “222 was a terrific fit for Origami and easily met the company’s site selection criteria,” says Jeppe. “Location-wise, it conveniently bridges the gap between the Loop and River North.”
CHICAGO—CBRE recently represented Strive Logistics in a 20,033-square-foot headquarters lease at 1457 N. Halsted in Chicago. The third-party logistics provider will move to its space in the NEWCITY development in November of 2018. Kevin McLennan and David Saad of CBRE represented Strive in the transaction. Jake Ehrenberg and Scott Brandwein of CBRE represented the landlord, Bucksbaum Retail Management. Relocating from 3008 N. Lincoln Ave., the move marks an expansion for Strive. The new location will allow the firm to increase its headcount in a new, state-of-the-art office. “The new space will allow for a much more effective and efficient workplace and the NEWCITY development will provide our employees with arguably the best location and amenities in the city,” says Jon Provus, president at Strive Logistics.
CLEVELAND—BGL Real Estate Advisors has just helped complete the formation of a joint venture between Iron Point Partners, LLC and Adams French Property, LLC. The venture was formed to invest in and develop self-storage facilities within the top 50 MSAs, with concentration in the Midwest. BGLREA served as the exclusive financial advisor to Indianapolis-based Adams French Property, LLC in the transaction. Extra Space Storage, a major self-storage public REIT, will manage the venture’s assets. It will commence with three facilities, currently under construction, in the IN cities of Fishers, Noblesville and Indianapolis, and one facility in Bloomington, MN. Adams French focuses on self-storage development and acquisitions in the Midwest. It was founded in 2005 by Phil French as French Property Management, LLC. It was later renamed when Jim Adams joined as the chief operating officer. “This partnership comes at a time when the self-storage industry has opportunities for development, acquisition, and new market growth,” says French.