Month: March 2016

Construction crews have been busy around Wrigley Field during the offseason. But the Ricketts family isn’t the only developer planning for the future at Clark and Addison. A JV of M&R Development and Bucksbaum Retail Properties acquired 2.3 acres across from the Friendly Confines. It’s the next step in redeveloping the property into Addison & Clark, an ambitious mixed-use TOD.

Scheduled for completion in 2018, Addison & Clark will include 148 luxury apartments and 150k SF of retail. Demolition of the site’s existing structures will begin in the next 60 to 90 days, with construction to follow soon after. The project will also include a parking garage with 405 indoor spaces, which will help ease the shortage of parking in the neighborhood.

SALES

Trilogy Real Estate Group bought Optima Old Orchard Woods (pictured), a 172-unit rental condo development at 9725 Woods Dr in Skokie, for $44.2M. The building was 100% leased at closing.

Quantum Real Estate Advisors’ Chad Firsel repped both parties in the $5.6M sale of a 42k SF retail center at 1501-1527 W North Ave in Melrose Park. The seller was an entity controlled by Ken Lebovic of North Shore Holdings.

NAI Hiffman’s Kelly Disser and Chris Gary repped seller Weiss Entities in the sale of eight acres in Valparaiso, IN, to Garmong Construction Services. Garmong plans to develop an 80k SF spec industrial facility.

CHICAGO 06.21.2016 CHICAGO 6TH ANNUAL STATE OF OFFICE Leasing, Investment, and Development Downtown Interra Realty’s Joe Smazal repped both parties in the $1.75M sale of 3054 N Kolmar, a 20-unit apartment building in Kelvyn Park.

Avison Young’s Brett Kroner and Keith Puritz repped Molto Properties in the sale of 3411 Woodhead, a 117k SF industrial property in Northbrook. Darwin Realty’s Dan Prendergast repped the buyer, Matrix Financial Partnership. LEASES Avison Young’s Brett Kroner, Keith Puritz and Eric Fischer repped Handi-foil in its 213k SF lease at 5650 CenterPoint Court in Gurnee. The landlord, CenterPoint Properties, was repped by CBRE’s Ryan Bain and Zach Graham.

JBS Commercial Real Estate’s Jason Shibata and Brian Silverman and ICON Commercial Interests’ Eric Ramer repped RF Ideas in its 34k SF lease expansion at 4020 Winnetka Ave in Rolling Meadows. Ownership was repped by Colliers’ Kelly Joyce.

Cushman & Wakefield’s Joe Gatto repped MSM Solutions in its new 13k SF lease of flex space at 650 W Grand Ave in Elmhurst (pictured). FINANCING Aries Capital’s Rushi Shah secured an $8.1M non-recourse loan for borrower Alpha Hospitality for a Holiday Inn Express outside of Nashville. This was the first loan in Aries Capital’s new partnership with the Asian American Hotel Owners Association (AAHOA). Under the agreement, AAHOA members receive money back at closing when they secure commercial real estate financing through Aries Capital. In addition, for every loan closed through the program, Aries shares a portion of its revenue with AAHOA.

HIRES/PROMOTIONS

Dermody Properties appointed Michael Dolan as a partner and Timothy Walsh as chief acquisitions officer. Michael will be tasked with expanding the firm’s Midwest presence, while Timothy will be responsible for Dermody’s national acquisitions and investment opportunities. *** Ridgeline Property Group hired John Dunneback as VP of development. John will identify and oversee the development of projects across the Midwest. A 19-year real estate veteran, he was most recently director of development at Ryan Cos.

Colliers appointed Steve Disse and Jeff Devine as executive managing directors to oversee industrial and office investment sales for the Central region. The pair closed on $1.4B in sales over the past two years.

HFF hired Jeff Bucaro as director to focus on debt and equity placement for hotel transactions in the Chicagoland area. He was most recently EVP of business development at Aries Capital.

JLL brought back Geno Coradini as EVP of its retail integrated portfolio services, where he’ll work with JLL’s retail tenant rep brokers nationally to support the firm’s retailer client base. Geno spent the past two years as VP of real estate and market optimization for Advance Auto Parts.

Golub expanded its residential portfolio management team with the hirings of Mark Segal as SVP of residential portfolio management and Kristin Nason as residential portfolio manager. Mark joins Golub from The Habitat Co, where he served as president and CEO for nearly six years. Kristin was most recently part of the residential portfolio management team at Lincoln Property Co, where she served for several years in positions of increasing responsibility in property management, overseeing the financial operations of close to 1,000 apartments.

KUDOS The Missner Group was named Property Management Company of the Year by IREM’s Chicago chapter. The award, recognizing excellence and outstanding contributions in property management, was presented at the 12th Annual IREM Chicago Premier Awards Gala held at the Drake Hotel.

Kensington Realty Advisors co-founder and senior principal Jim Lee was named 2016 chair of The Counselors of Real Estate, the global, invitational professional association for high-level real estate advisers.

Link: This Week’s Chicago Deal Sheet

Chicago-based developer Golub, which once owned the city’s fourth tallest building (John Hancock Center), has jumped into West Palm Beach as lead developer of the Bristol.

The project is West Palm’s most expensive condo development, at 1100 South Flagler Drive, with units starting at $4 million. Golub hopes to break ground on the 25-story, 69-unit building this spring and to finish construction about 24 months later.

The entitlement process took a few years thanks to the opposition of some West Palm residents, but Golub CEO Michael Newman told The Real Deal the company is pleased with the result. “There’s not a lot of comparable product in the market. We think it will serve a real niche,” he said.

Golub has been around since 1960 and in addition to developing acts as an investor and manager. Its main focus is residential (condos and rentals), office and mixed-use projects. About 65-75 percent of its activity is in the Chicago area. The firm is “opportunistic and entrepreneurial,” Newman said. “We choose projects where we can add value.”

Those projects typically arise from Golub’s extensive network of relationships in the industry rather than from top-down research. “We’ll hear about something and inquire, or we’ll get called,” Newman said. Those relationships lead the firm to many different places. “We’re open to doing things anywhere,” he said. Golub is currently in the construction phase of a 400-unit apartment building in San Francisco. An architectural firm that the company works with in Chicago brought Golub to the project.

In 1989, the firm began development activity in Poland, becoming one of the first U.S. real estate firms to work there, with a small office building. That came about through Golub’s connection with a Chicago architecture and engineering firm that had operations in Poland. Golub’s work has since spread elsewhere in Central and Eastern Europe, including Russia. “Wherever we go, it’s important for us to be a long-term presence,” Newman said.

As for West Palm Beach, Golub’s foray into the Bristol stemmed from another relationship. One of Newman’s friends hooked him up with Elion Partners, a real estate investment firm based in Aventura, relating to a possible deal in Chicago. While nothing happened on that deal, Newman hit it off with Elion executives, who told him about the site where the Bristol will be located. “It really got my attention, because it’s a rare opportunity to develop a unique parcel of Palm Beach waterfront property,’” Newman said.

Golub founder and Chairman Eugene Golub lives part-time in Palm Beach County and has a developer friend Al Adelson who also was interested in the idea and has played a significant role since then. So the three developers joined forces to execute the project. About 25 percent of the units have been put under contract for about $175 million. Newman hopes the rest can be sold by the time the building is finished or shortly thereafter.

And would Golub have interest in more projects in Palm Beach County? “Certainly,” Newman said. “There’s nothing imminent, but we have looked at other opportunities and will continue to do so.”

Link: Chicago Developer Golub Enters WPB With Luxury Condos At Bristol