West Loop Stays Atop Office Market As Corporate Migration Continues

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Old Main Post Office

Courtesy of 601W Cos.

Rendering of renovated Main Post Office at 433 West Van Buren

Leasing activity throughout much of Chicago’s Central Business District remained high this year, with the West Loop submarket leading the way as corporations migrate from other downtown submarkets into its new trophy towers and huge new redevelopment projects like the Old Main Post Office.

“Demand for high-quality, Class-A assets has driven much of the absorption activity within the West Loop last year and is expected to continue,” according to a midyear report from Colliers International. “However, in doing so, the amount of lower-quality space which will become available as the aforementioned tenants leave will invariably increase vacancy rates across Chicago’s CBD.” 

Downtown’s overall vacancy rate sank another 30 basis points from last quarter to 12.2%, according to Colliers International.  On average over the past five years, the CBD’s vacancy rate fell 43 basis points per quarter.

The West Loop saw 554K SF of positive net absorption in the second quarter, the most of any downtown submarket, decreasing the vacancy rate 100 basis points from the first quarter to 12.3%. 

Although the West Loop’s vacancy rate is just above the overall CBD average, it has also been the focus of Chicago’s office construction boom.

Over the past five years, builders finished 3.5M SF of new Class-A office buildings, and 95% has already been leased or occupied. But developers and lenders will closely watch how the big projects opening in the next year or so fare with prospective tenants. 

West loop absorption numbers

Courtesy of Colliers International

West Loop absorption and vacancy rates

The prospects for eventually filling all that space seem solid. The West Loop saw more leasing activity in the second quarter than at any time since 2014. Twelve West Loop leases were signed in the second quarter, totaling just over 1M SF, or 68% of all CBD leases of more than 50K SF.

The focal points for all that activity were the Old Main Post Office; 110 North Wacker, the 1.5M SF tower by Howard Hughes Corp. and Riverside Investment & Development Co. that will open next year; and Sterling Bay’s 311 West Monroe, an older property that recently underwent a $20M renovation.

601W Cos. signed four deals for the Post Office, totaling roughly 387K SF, including a 130K SF lease for Cisco Systems and one with Federal Home Loan Bank of Chicago for 125K SF, according to Colliers. The developer has nearly completed its $500M renovation, and plans to open the building in the third quarter. To date, the project is roughly 32% pre-leased.

When the project delivers, developers will have added 6M SF of Class-A office space to the West Loop in the past 42 months, perhaps the submarket’s most active 42 months ever, according to Colliers.

110 North Wacker won’t open until the fourth quarter of 2020, but the developers have already pre-leased 1M SF, or 65% of the total.

And at 311 West Monroe, Sterling Bay in the second quarter signed IRI for 100K SF and Mayer Brown for 60K SF, which it will use for back office space.

The West Loop boom shows few signs of slowing down.

Riverside’s Union Station development, The BMO Tower at 310 South Canal, was approved by the city to begin construction later this year. The new tower will add another 1.4M SF of Class-A office space to the submarket, but with BMO as an anchor, it is already roughly 34% pre-leased.

Adaptive Reuse Requires Careful Choices And Flexibility

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The obsolescence of so many suburban office buildings, along with the tremendous demand for old industrial loft-style spaces, has made adaptive reuse a hot topic among commercial real estate professionals.

But it takes a lot more than tacking on amenities, especially with historic buildings that surrounding communities look upon as part of their heritage, panelists of Bisnow‘s Repositioning and Adaptive Reuse event Thursday said.

Bisnow adaptive reuse 1

Bisnow/Brian Rogal

Honigman Miller Schwartz and Cohn partner Larry Woodard, Somerset Development President Ralph Zucker and Hoffman Estates Village Manager Jim Norris

The Garver Feed Mill on the east side of Madison, Wisconsin, had sat derelict for nearly two decades when Chicago-based Baum Revision bought it several years ago. The firm reopened the 60K SF facility in July, but instead of simply cleaning it out and putting in more modern features, Baum also spent time carefully recruiting a tenant roster.

The company now has contracts with 11 local businesses, including a coffee roaster, florist, vegan café and others that that will preserve the former feed mill’s history as a center for food production, principal David Baum said.

“They make up the secret sauce of a great historic building.”

And not every building is appropriate for such a revival, he added.

“What I’m looking for in every project is natural light. If it doesn’t have it, I’m not interested.”

More than 300 traveled out to Somerset Development’s Bell Works Chicagoland complex in suburban Hoffman Estates, the former AT&T campus about 30 miles northwest of Chicago, for the event Thursday.

AT&T’s former home was uniquely suitable to host the event, according to Somerset President Ralph Zucker, as it illustrates the potential of the 1980s-era office campus, properties generally thought of as dead zones.

“We were told that all life is leaving the suburbs and going to the metropolis, and we know that’s not true,” he said. 

Somerset has already completed the transformation of a similar property in suburban New Jersey, the 2M SF former Bell Labs, into a mixed-use complex.

The developer found that many companies want suburban office spaces convenient for their employees, many with families, that choose suburban lifestyles. In addition, the developer packed it with amenities for daily users and the surrounding community, including cafes, spaces for public events such as farmers’ markets and a local public library.

That is the plan for Bell Works Chicagoland.

Instead of a relatively antiseptic campus devoted to one user and closed to the public, Somerset and its team plan to recreate in miniature the active street life people have become accustomed to in trendy city neighborhoods.

“It’s going to be a little bit of urbanity in the suburbs, an attractive place where you could spend the whole day,” architect Dirk Lohan said. The Wight & Co. principal designed the original structure, and Somerset brought him back to help reimagine the space.    

“We’re going to open this building to the public, and make it Main Street, U.S.A.,” Zucker said.

Bisnow adaptive reuse 2

Bisnow/Brian Rogal

Verros Berkshire partner Peter Verros, T-Mobile Senior Manager Luke Lucas, Huntsman Architectural Group Managing Director Andrew Volckens, Core Acquisitions managing principal Adam Firsel, Golub & Co. Senior Vice President Stephen Sise and James McHugh Construction Senior Vice President John Sheridan

One thing stressed by all of the panelists was that suitable buildings need qualities that set them apart, whether by location, or in their original design.

Lohan said Hoffman Estates’ old AT&T complex, first built for Ameritech, was unusual for a 1980s-era campus. Unlike most, the interior is lit by skylights, and wide, pedestrian walkways give it the feel of a small village.

At first, the innovative structure seemed unlikely to get built, after the initial meeting with Ameritech’s boss did not go well.

“I was waxing eloquently about the need for workers to have natural light, and he interrupted me to say, ‘Mr. Lohan we don’t believe in that.’”

“I thought I blew it, but a few days later, he called and gave me the job.”

The result is a space where employees or visitors on the interior have as much light as those along the perimeter. Without that feature, it probably would have remained empty or underutilized, and perhaps headed for demolition, Lohan said.       

Adaptive reuse 3

Bisnow/Brian Rogal

Wight & Co. principal Dirk Lohan, Baum Revision’s David Baum and Sonder Chicago head of real estate Liz Wawak

Adam Firsel, managing principal of Core Acquisitions, a firm that specializes in repositioning obsolete retail, also advises anyone interested in launching an adaptive reuse project to take great care in choosing a site. With brick-and-mortar stores getting eviscerated by e-commerce competition, there is no shortage of retail properties that need help. 

But Firsel said Core prefers well-located properties in affluent areas, especially if they have unique architectural features that make it easier to transform them into community gathering spaces, instead of isolated shopping centers.

Along with Edwards Realty Co., early this year the company purchased Burr Ridge Village Center in suburban Burr Ridge for just $15M, or $70M below the center’s original construction cost. Although the center had hit some rough patches, it also already had outdoor furniture, a water fountain and a village green with a performing arts stage. The partners say they aim to transform it into village center with a downtown atmosphere.  

“You’ve got to be cutting-edge on your design and your amenities,” Firsel said. 

Adaptive reuse 4

Bisnow/Brian Rogal

View Director Jacqueline Davis, Wright Heerema Architects managing principal Roger Heerema, Franklin Partners partner Raymond Warner, Edwards Realty Co.’s Ramzi Hassan and WiredScore head of Chicago Christine Torres

“You’ve got to stand out from the crowd,” Golub & Co. Senior Vice President Stephen Sise said. 

That is especially important when taking over properties that most people had started to see as bland. 

Golub & Co. bought Oak Brook Executive Plaza in 2014, a pair of identical 11-story office towers, alongside a smaller structure, with a total of 400K SF, and even though it looked like a typical 1970s-era complex, Sise said company officials saw something more. 

“We said, ‘this is one of the best-located offices in the suburbs, so of course we want to invest there.'”   

Golub renamed it Oak Brook 22 and added a Michael Jordan’s Restaurant, as well as a suite of amenities, including a new fitness center, conference facilities and a WiFi lounge.

All those features are becoming standard for any Class-A development, but Sise says today’s tenants now want more. Most want spaces that are lively beyond working hours, so the repositioning of Oak Brook 22 included the sponsoring of concerts, arts festivals and happy hours.

“The question people ask is, ‘what’s happening on Friday nights in the summer?'”  

Huntsman Architectural Group Managing Director Andrew Volckens said developers doing an adaptive reuse or repositioning need to be flexible as plans take shape.

He worked with Golub & Co. on the redevelopment of 300 South Wacker, a 36-story tower in the West Loop that Golub bought for $155M in 2017. Although some of the needed changes were obvious, such as giving the lobby more of a hotel-like feel and taking out its cold marble in favor of warmer materials such as wood and stone, 30 days of due diligence wasn’t enough to finalize a strategy.

Plans continued to evolve, and Golub eventually decided to change the offices occupied by a ground-floor tenant into a lounge, and use the newly refurbished lobby as a gateway to this space. 

“Whenever you visit that space today, it’s being occupied and used,” Volckens said. 

Bisnow Survey Shows No Consensus In Chicago's Controversial Reputation As An Investment Magnet

Bisnow Survey Shows No Consensus In Chicago's Controversial Reputation As An Investment Magnet

August 26, 2019

Bisnow Survey Shows No Consensus In Chicago’s Controversial Reputation As An Investment Magnet

The 78's Crescent Park.

Courtesy of Related Midwest

The 78’s Crescent Park looking north with contributions by architect ASGG

There is little agreement about Chicago’s current standing with the investment community, or whether its reputation will help attract enough equity to fuel developers’ massive plans to greatly expand the Central Business District, according to respondents in a recent Bisnow poll.

The poll revealed a split among respondents, 40% of whom felt Chicago’s reputation as a good investment had strengthened within the past few years, versus the 40% who thought its standing fell, and the 18% that saw no change.

That reputation will play a big role over the next few years, as Sterling Bay fully launches its Lincoln Yards mixed-use development on the North Side, and Related Midwest begins building The 78 community on the Near South Side, along with the many similar complexes planned by other developers.

Just over one-third of respondents felt Chicago has too many developers readying new large-scale projects all at once, and that one or more of these builders will fail to raise sufficient equity. And 45% felt that although this group will attract enough investment, it will take more time than originally planned.      

Beliefs about the impact of a recession on Chicago developers’ ambitious plans are also mixed. Almost half of the poll respondents had few worries. They believe the region’s commercial real estate sector rests on such a solid foundation that, even in a downturn, it would hold its own when competing for dollars against coastal markets like New York, Los Angeles and San Francisco. But 35% said smart money will always flow toward the coasts during a downturn.    

A major expansion of Chicago’s CBD is not the only profound change looming ahead.

Fritz Kaegi, the new Cook County assessor, has begun a top-to-bottom revamp of the property assessment system, and even though many fear that will eventually mean higher taxes, perhaps discouraging new investment, others think it will help bring in more outside investors by aligning the county’s methods with those in other major metro areas.

Higher taxes are by far the chief worry of investors considering putting their money to work in Chicago, according to poll respondents. Sixty-one percent said it was a bigger concern than state or city budget shortfalls, a possible recession or too much new supply hitting the market at the same time.

Almost half of poll respondents feel Kaegi’s reform efforts will weaken the city’s ability to attract U.S. equity to Chicago, though Kaegi does have his fans — 22% of respondents feel his reforms will make it easier.

Feelings about the assessor’s potential impact on foreign investors are even more mixed. Overseas investors would be less interested in Chicago if Kaegi successfully implements his plans, according to 55% of poll respondents, but 44% said that would strengthen Chicago’s reputation and desirability.

GlenStar Properties Spreading Its Wings Beyond Chicago As It Tinkers With After-Hours Appeal

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Matt ormundson

Courtesy of GlenStar Properties

GlenStar Properties’ Matt Omundson

Developer GlenStar Properties is best known for revamping older office properties that need an extra kick to compete for Class-A tenants, and it recently decided to bring that strategy to the Dallas metro area, its first operation outside the Chicago region.

Along with partner Singerman Real Estate, GlenStar just doubled its Dallas portfolio by acquiring an eight-building office campus, called The Terrace at Solana, in Westlake, Texas, a Dallas suburb.

Although GlenStar officials were impressed with the Dallas-Fort Worth economy, and the health of the local office market, assembling a portfolio down there happened almost by accident.

“About three years ago, Matt Omundson from our office was relocating down there, and he asked whether we would ever consider opening a Dallas office,” Managing Principal Michael Klein told Bisnow.    

The answer was a definite yes, and Omundson, one of the firm’s principals, starting looking for properties that fit the GlenStar approach.

In 2017, along with USAA Real Estate, the company purchased the 14-acre, 1M SF Energy Square campus in North Dallas, and began pouring $70M into a complete renovation, including the construction of a new boulevard linking its towers together. The company will complete that project later this year.

Klein added that GlenStar would never have considered acquisitions in a market so far from Chicago unless it had an established presence, as renovating older office properties such as Energy Square, built between the 1950s and the 1980s, typically requires a lot of care and attention.

“We’ve got a good feel for the market in Chicago, but now we also feel that Dallas is a second home,” he said.

Solana

Courtesy of GlenStar Properties

The Terrace at Solana in Westlake, Texas

The move to Dallas doesn’t mean the firm will stop expanding in Chicago. GlenStar still has a long list of projects underway in the Windy City, especially in the suburbs, where it has ownership stakes in a number of properties once considered moribund.

By the end of 2019, GlenStar will have invested more than $200M over five years repositioning and modernizing office spaces, including a $20M reboot of President’s Plaza in Chicago near O’Hare International Airport, which it will finish this summer, and the renovation of Continental Towers, a 911K SF complex in Rolling Meadows, Illinois, where occupancy rose from just over 50% to 93%.

It also recently purchased 10 acres near President’s Plaza, and launched a 150K SF build-to-suit on a portion of the site for an unnamed buyer. Klein said GlenStar could use the remainder for up to 600K SF of office if it finds the right tenants.

The company is known for adding modern amenities to bland properties, including new health clubs, yoga centers, glass-walled atriums and new restaurants.

Klein said it now wants to do more, both in Chicago and Dallas, and provide tenants and their employees with active communities that will attract people outside work hours. That means GlenStar properties will increasingly host book clubs, wine tastings, financial advice seminars and other events.  

“That’s what we’re spending a lot of our time on now,” Klein said.

The Old Main Post Office: A Historic Landmark Gets A High-Tech Facelift

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Almost 100 years after it was first constructed — and 20 years after the U.S. Postal Service suspended its operations there — Chicago’s Old Main Post Office is nearly ready to welcome its first office tenants.

The Old Main Post Office: A Historic Landmark Gets A High-Tech Facelift

Chicago’s Old Main Post Office, seen from the east, with the planned improvements along the Chicago River

The iconic building spans two full city blocks and an interstate highway and is the subject of an $800M renovation effort from 601W, a New York-based development firm. With floor plates 10 times larger than the bulk of Chicago’s downtown office buildings and structures that date as far back as 1921, the Old Post Office is set to capitalize on a growing demand for airy office space with an aura of history.

“As an offering in the Chicago market, it’s pretty incredible,” said Andy Halik, a senior project manager at Skender, a Chicago-based construction, design and advanced manufacturing firm. “With that volume of space, the opportunity is immense.”

Modern office tenants are embracing spaces with a historic patina and exposed structures, but they still demand modern amenities, including gyms, food and beverage, green space and high-speed internet. Chicago has become a crucible for this kind of construction — it boasts a family of mega-buildings, including the Old Post Office, the Merchandise Mart, the Macy’s building at 111 North State St., 600 West Chicago Ave. and 900 North Kingsbury St.

For Skender and other construction companies involved in the renovations, the Old Post Office has presented a thicket of challenges due to its former state of disrepair, its size and the preservation laws that protect its historic floors, walls and beams. However, it has also given them a massive, three-dimensional canvas where they can explore innovative design and construction ideas to create one-of-a-kind office spaces.

The Post Office landed its first tenant, Walgreens, in June 2018. The pharmacy chain chose Skender to represent its interests in the building. A handful of other tenants have inked leases, including advertising agency AbelsonTaylor and the Ferrara Candy Co.

The Old Main Post Office: A Historic Landmark Gets A High-Tech Facelift

A rendering of office space in the Post Office’s south building

The building is actually three buildings in one. The east building was constructed in 1921 with floor plates around 37K SF, not much bigger than the average office building in Chicago today. By the 1930s, Chicago had become the mail-sorting capital of the United States, thanks to Montgomery Ward and Sears, Roebuck & Co., two mail-order department stores based in the city that in their heyday accounted for millions of pieces of mail every week. 

All that demand necessitated a major expansion, so the city built the nine-story north and south buildings, which featured floor-to-floor heights as tall as 19 feet. These additions were then connected to the existing east building, which was only six stories tall, with 16-foot ceilings.

Those mismatched floor heights have created numerous logistical hurdles for Skender, but Halik said they have also opened up functional benefits for the building’s occupants.

“Tenants in the building may want an assembly space to gather all of their employees at once,” Halik said. “The location in between two buildings can provide that opportunity through stairs, stadium-style seating or balconies.”

The ability to house an entire company headquarters on a single contiguous floor is something Halik said will appeal to companies that prize collaboration. He said there is a particular energy to having all of a company’s employees housed on a single floor.

The lofty ceilings also present numerous design possibilities as tenants decide how to partition their space. 

“They can run walls all the way up to the deck, or leave them at a lower datum line,” Halik said. “There’s so much you can do with the height.”

Dealing with the endless possibilities of space is nothing new for Skender. In 2014, the company oversaw the construction of Motorola’s headquarters in the historic Merchandise Mart, where the telecommunications giant once occupied 600K SF between the four top floors and the roof.

The Old Main Post Office: A Historic Landmark Gets A High-Tech Facelift

A view of the Echo Global Logistics office at 600 West Chicago Ave., designed by CannonDesign and built by Skender

Halik said Motorola’s offices set off a wave of projects throughout Chicago that married history and modern design, transforming massive floor plates into top-tier office spaces. Skender has been at the center of the trend, building out flagship offices for ConAgra Brands in the Merchandise Mart, Echo Global Logistics at 600 West Chicago Ave. and, most recently, Google, whose 357K SF headquarters in a former cold-storage facility on North Morgan Street helped turn Fulton Market into the booming office center =it is today.

But along with the possibilities, the Skender team also faces a host of constraints, many in the form of historic preservation rules. The rules are intricate and vary wildly across the different parts of the building.

“Depending on the condition, what may be required in the north building might not be allowable at all in the south building,” Halik said. “One of the biggest challenges for tenants is understanding what the historic opportunities and limitations are and appreciating that they vary building by building.”

Much of Skender’s job in representing tenants’ interests in the building is anticipating the financial and design implications of the historic requirements, and applying resources thoughtfully. To that end, the company has invested in an extensive pre-construction process to avoid surprises during construction.

To Halik, though, all those logistical challenges sound less like constraints and more like a fascinating puzzle. 

“Being the first has been incredibly powerful for us and our clients,” Halik said. “As the first, not only do you gain a complete understanding of what is possible within the building, but you develop a deeper understanding of why each opportunity is possible. Rather than being given a very clean list of requirements from someone else, you were the one to figure it all out.”

This feature was produced in collaboration between Bisnow Branded Content and Skender. Bisnow news staff was not involved in the production of this content. 

This Week's Chicago Deal Sheet

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Chicago tied with Los Angeles for the fourth-most-active office construction market in the U.S, with 7.4M SF under construction, according to Avison Young’s Mid-Year 2019 Global Office Market Report. Nearly half of that space is pre-leased. New York ranked as the top market, with 14.6M SF underway, followed by Washington, D.C., with 10.9M SF, and Dallas with 7.8M SF.

110 North Wacker

Courtesy of Riverside Investment & Development

110 North Wacker Drive

“Chicago has seen a significant office construction boom in recent years, particularly in the West Loop and Fulton Market areas,” Avison Young principal Jeff Lindenmeyer said. “This continues to create opportunities for tenants, but also raises issues for landlords in competing submarkets, where many financial services firms and law firms have vacated to move into the new buildings. Many of those landlords are going to have to reposition their buildings to attract new tenants.”

But the growing fears about a possible recession are creating headwinds for all of these markets.

“There is a lot of uncertainty permeating the market, however, given the upcoming election and the inversion of the yield curve, which has raised concerns about a downturn,” Lindenmeyer said. “Certain tenant sectors are creating the absorption necessary to maintain positive momentum for new and redeveloped buildings as we head into 2020.”

According to Avison Young, developers have 16 Central Business District properties under construction, and the higher rents have not so far been a deterrence.

“What tenants are doing is rightsizing, adjusting their approach to workflow, and going into more efficient spaces,” Lindenmeyer said. “With a smaller footprint, they can afford the higher rents in the new buildings.”

EXECS

W.E. O’Neil hired Damian Eallonardo as its senior vice president of operations. Eallonardo joins the company after leading several large Chicago construction firms, and overseeing more than $1B in construction over the course of his career. The 33-year industry veteran has worked with clients such as Sterling Bay, Draper and Kramer and Convexity Properties.

***

CRG, Clayco’s real estate development and investment firm, hired former city of Chicago Planning and Development Commissioner David Reifman as partner and senior vice president for strategic development initiatives. He will help expand Clayco’s design and construction businesses in existing and new markets, and focus on long-term investments in opportunity zones. Prior to joining city government, Reifman practiced law at DLA Piper for more than 25 years.

***

Stuart Sziklas will join LaSalle Investment Management as Chicago-based head of U.S. custom accounts. He will lead a team that manages portfolios of office, retail, multifamily and industrial investments throughout the U.S. Sziklas most recently served as senior managing director, portfolio manager at CBRE Global Investors.

Scotland Yard Apartments

Courtesy of Avanath Capital Management

Scotland Yard Apartments, 4215-4261 North Broadway St. in Chicago’s Buena Park

SALES

Avanath Capital Management purchased two properties:

  • Scotland Yard Apartments, a 156-unit affordable housing community at 4215-4261 North Broadway St. in the Buena Park neighborhood, for $28.3M.
  • Renaissance North, a 59-unit, mixed-income community located between Lincoln Park and Old Town at 551 West North Ave., for $15.4M. This is Avanath’s first public-housing deal. Constructed in 2003, the property was one of the first developments built in conjunction with the Chicago Housing Authority’s reconstruction plan, and offers both market-rate and affordable units.

These acquisitions bring the company’s total holdings in Chicago to 1,063 units.  

***

IRON GATE GLEN ELLYN

Courtesy of Essex Realty Group

Iron Gate Condominiums

Essex Realty Group’s Brian Kochendorfer and Troy Beebe brokered the $18.5M sale of suburban Glen Ellyn’s Iron Gate Condominiums. The new owner plans to convert the 180-unit complex to rental apartments. The deal is the third suburban condominium complex sale that Essex brokered this year.

***

Greenstone Partners completed the $8.3M sale of Mount Prospect Center, a 192K SF multi-tenant shopping center on 16.8 acres at the corner of Dempster Street and Elmhurst Road in Mount Prospect, a northwest suburb of Chicago. Greenstone Asset Management has been engaged to manage the property for the out-of-state purchaser.

***

2122 York Rd.

Courtesy of Murphy Development Group

2122 York Road, Oak Brook, Ill.

Murphy Development Group closed on the purchase of 2122 York Road, a 131K SF office building in suburban Oak Brook. The building, located less than a mile east of Oakbrook Center, had not been on the market, and was bought from a joint venture of Lincoln Property and Foxford Communities. MDG’s pipeline includes several projects in the Chicago region, including the redevelopment of the Cook County Hospital campus and the development of 318 North Carpenter St., a 100K SF office building in Fulton Market.

***

Marcus & Millichap completed the $7.5M sale of Comfort Inn, a 125-room hospitality property at 2120 South Arlington Heights Road in suburban Arlington Heights. Ebrahim Valliani, Michael Klar, Allan Miller and Chris Gomes, in the company’s Chicago-Oak Brook, Dallas and Austin offices, exclusively marketed the property on behalf of the seller and represented the buyer.

LEASES

Blank Rome LLP will relocate its Chicago office to River Point, the 52-story, 1M SF tower at 444 West Lake St. that opened in 2017. Starting Sept. 3, the firm will occupy 12K SF on the 16th floor, enough to accommodate more than 30 attorneys and professional staff. Blank Rome entered the Chicago market in June.

Hub Group Office HQ Phase II rendering - MHC

Courtesy of Hub Group

Hub Group HQ, on Clearwater Drive, Oak Brook, Ill.

CONSTRUCTION AND DEVELOPMENT

Morgan/Harbour Construction broke ground on a 135K SF, four-story office build-to-suit for Hub Group. The new building on Clearwater Drive in suburban Oak Brook is Phase 2 for the headquarters of Hub Group, a supply chain solutions provider. Morgan/Harbour completed Phase 1 in 2014, and at the time it was Oak Brook’s first new office building since 2000. This first office building received LEED Gold certification from the U.S. Green Building Council, and features underground parking, natural habitat landscaping, ponds and walking trails. For Phase 2, Morgan/Harbour will construct a replica of the Phase 1 building.

***

Inland National Development Co. has completed approximately 70% of a mixed-use development located on 33 acres at 14100 West Rockland Road in Green Oaks, Illinois, according to company officials. INDC, the master developer, formed a public-private partnership with the Village of Green Oaks to develop the vacant parcel, located approximately 30 miles north of O’Hare International Airport. When completed, the project will include 35K SF of retail, a 160K SF light industrial/office warehouse developed by the Panattoni Development Co., a gas station convenience store, a restaurant and some small-scale retail shops. The first businesses should open in January.

***

BRIDGE Site Grading

Courtesy of Bridge Development

Bridge Point Itasca

Bridge Development broke ground on Bridge Point Itasca, a 741K SF speculative development of three industrial facilities. Lee & Associates’ Chris Nelson and Jeff Janda represent Bridge in the marketing of this project, which is set to deliver by mid-2020.

***

J.C. Anderson completed a headquarters build-out for Colliers International | Chicago at 71 South Wacker Drive in Chicago. The global real estate company is relocating its Chicago headquarters from 200 South Wacker Drive. J.C. Anderson’s Seth Erlich, Andrew Mott and David Panfil led the construction team, and Nelson Architects provided the architectural services.

THIS AND THAT

Los Angeles-based Stanton Road Capital awarded Colliers International Chicago the property management and engineering assignments for 200 South Michigan Ave., the former Borg-Warner building, which sits on the southwest corner of Michigan Avenue at Adams Street, overlooking Millennium Park and the Art Institute of Chicago. Colliers will also provide construction management oversight on select capital projects. SRC acquired 200 South Michigan in July.

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