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Monthly Archives: October 2014

Chicago Commercial Real Estate – In the News

Tom’s Recommended Reading for the Week

Check out the top Chicago commercial real estate news before heading into the weekend!

  1. Chicago 14th for real estate investors in survey – Real estate investors like Chicago, but it doesn’t set their hearts aflutter like Seattle, Boston and Houston. Real estate executives ranked Chicago 14th among 75 U.S. markets for investment attractiveness in 2015, according to the “Emerging Trends in Real Estate” report, an annual publication by the Urban Land Institute and PricewaterhouseCoopers LLP… Crain’s Chicago
  2. Most precious thing in downtown Chicago? Dirt – As high-rise developers keep stamping out more apartments and condominiums, they are paying up for a key—and scarce—raw material: dirt. In Chicago’s strongest neighborhoods, prices of development sites have eclipsed precrash levels, fueled by an apartment and hotel construction wave and a resurgent condo market… Crain’s Chicago
  3. River North development adds office space – Looking to capitalize on a tight River North office market, the developer of a retail building added an office component to its plans. Chicago-based Midwest Property Group Ltd. is seeking office or showroom tenants for 22,000 square feet in a three-story structure it plans for the corner of LaSalle and Hubbard streets. The developer previously disclosed plans for a two-story, 20,000-square-foot retail building on the site, where it has an 85-year ground lease… Crain’s Chicago
  4. Suburbs Still Appeal to Some Office Tenants – Suburban office markets have lately received a bad rap, but some supporters say that outside markets are now the places to find the best deals and locate new satellite offices. Suburbs across the country have been struggling to recover from the recession and the flight to urban CBDs that followed… NREI
  5. Venture Investors Splurge On Real Estate Tech – Investments in real estate tech are on the upswing in the wake of some billion dollar exits this year. Following Zillow’s acquisition of Trulia for $3.5 billion in July and News Corp’s $950 million purchase of Realtor.com-parent Move Inc. in September, venture investors are more eager than ever to get in on the market, putting up nearly $300 million in over 30 venture deals for real estate tech startups in the past quarter… TechCrunch
 

Chicago Commercial Real Estate – In the News

Tom’s Recommended Reading for the Week

Check out the top Chicago commercial real estate news before heading into the weekend!

  1. Chicago’s Coolest Office – We asked you to show us your office over social media, and hundreds of you did, along with sending some pretty enthusiastic notes about your favorite features. What’s trending in 2014? On-site art commissions are popular, for starters. So are coffee bars stocked with specialty roasts. Other of-the-moment features: sit-stand desks, themed nooks for brainstorming, industrial lighting and the eye-popping color duo of chartreuse and electric blue… Crain’s Chicago
  2. Foreign Investment in U.S. Markets to Top 2013 Levels – Foreign institutional investors are spending heavily on U.S. assets this year, revealed JLL’s global capital markets experts at the Urban Land Institute’s (ULI) fall meeting, currently underway at New York’s Javits Center. In fact, the inflow of foreign capital is so strong that JLL is raising its predictions on foreign investment into the United States for 2014, and is now forecasting nearly $50 billion, up from $38.7 billion in 2013. This latest prediction follows JLL’s having already raised its earlier prediction of total global direct investment transaction volumes from $650 billion to $700 billion by the close of this year… NREI
  3. New Partners try to kick-start office project near Old St. Pat’s – Tishman Speyer Properties L.P.’s former Chicago leader and real estate investor CA Ventures LLC want to kick-start a proposed West Loop office tower. Chicago-based CA Ventures and Casey Wold, who left New York-based Tishman Speyer in February after working there nearly a decade, confirmed they are part of a recently formed venture to develop a long-planned office tower at 625 W. Adams St., near Old St. Patrick’s Church and the Kennedy Expressway… Crain’s Chicago
  4. Law Firms Cut Back on Existing Space as They Lag Professional Services in Recovery – U.S. law firms are just not following the recovery trend experienced by the rest of the professional services industry, and are giving up occupancy in many major markets. A new report by real estate services firm Savills Studley points out that while the employment rate for the professional and business services sector is now 7.5 percent above its prior peak at the end of 2007, the number of law office employees has remained unchanged since 2009… NREI
  5. Suburban Office Holds Its Own – As reported in GlobeSt.com last week, the office market in the CBD has been putting up some good numbers, showing solid improvement in its vacancy rate, level of absorption and the ability to attract investors. But the suburban region, long regarded as anemic and still losing some companies to downtown buildings, at least held its own in the third quarter, and has shown some signs of life… Globe St.
 

Chicago Commercial Real Estate – In the News

Tom’s Recommended Reading for the Week

Check out the top Chicago commercial real estate news before heading into the weekend!

  1. CBRE and Bankers Life fight in court over headquarters move – CBRE Inc. is fighting in court with Bankers Life & Casualty Insurance Co., which accuses the brokerage of botching its headquarters move to the East Loop by failing to account for expenses it incurred as part of the shift. In a court filing in U.S. District Court in Chicago, Bankers Life asks a federal judge to overturn an arbitration panel’s decision to side with CBRE in the dispute. The main source of conflict is the insurer’s sublease of about 220,000 square feet at 600 W. Chicago Ave. to Groupon in 2011, space it vacated in its subsequent move to 111 E. Wacker Drive… Crain’s Chicago
  2. Deutsche Bank paying $300 million for West Loop office tower – Amid competitive bidding for downtown Chicago office towers, a unit of Deutsche Bank A.G. has made a pre-emptive strike to buy a West Loop office tower for about $300 million. The venture of Deutsche Asset & Wealth Management forged an unusual deal for Fifth Third Center, a 35-story tower at 222 S. Riverside Plaza, before Dallas-based owner TIER REIT Inc. formally put it on the market, according to a person familiar with the deal… Crain’s Chicago
  3. Foreign Investors Chase Yield, Saftey in U.S. Office Sector – Foreign buyers increased their investment in the U.S. commercial real estate markets in the first half of 2014, pouring in $85.4 billion in property purchases here compared to $76.7 billion in the first half of 2013. Almost half of foreign investment this year, about $37.8 billion, went into the office market, as buyers from countries including China, Russia and Canada fought over trophy properties in major markets. Sales volume was highest in New York City, at $9.4 billion, with $4.6 billion in sales in Los Angeles and just more than $3 billion each in Boston and Washington D.C., according to a recent report by real estate services firm Avison Young… NREI
  4. Golub ventures buying two suburban office properties – Ventures of Golub & Co. have deals to buy two office properties in the Chicago suburbs, an area some investors are scouring for higher returns than they can find downtown. Chicago-based Golub and Boston-based private-equity firm Alcion Ventures L.P. have agreed to pay about $57 million, or $150 per square foot, for the four-building Oak Brook Executive Plaza, according to real estate sources. Meanwhile, a venture of Golub and a Middle Eastern fund manager have a deal to buy the 11-story International Tower near O’Hare International Airport, sources said. That price could not be determined… Crain’s Chicago
  5. Space Shift: As Wealthiest Flock to Supertall Condos, Offices Go Horizontal – In Midtown Manhattan, the extra-slim 432 Park Ave. condo tower is scheduled Tuesday to reach its peak 1,396-foot height and become the tallest residential building in the western hemisphere, 146-feet taller than the roof of the Empire State Building. But the crowning of the 104-unit tower—which hosts a $95 million penthouse—marks more than just the latest of the super-tall condos for the ultra-rich… Wall Street Journal
 

Bradford Allen Welcomes New Financial Analyst to Team

CHICAGO, IL –  Jeffrey Bernstein and Laurence Elbaum, principals and co-founders of Bradford Allen are pleased to announce that Lauren Lambe has joined the firm as Financial Analyst.

“We are excited to welcome Lauren to our team,” said Elbaum . “Her extensive background in global real estate finance will be an asset to our team as we continue to grow our business.”

In her new role with Bradford Allen, Lambe will work closely with the acquisition, lending and leasing teams to provide Argus valuation modeling, underwriting and analyses. Her responsibilities will also include analyzing potential leases, overseeing investment performance, and performing detailed quarterly financial analysis. Prior to joining Bradford Allen, Lambe was employed as an associate with PricewaterhouseCoopers’ Real Estate Advisory Group in Chicago where she represented clients such as JP Morgan, Bank of America, PIMCO, Oak Tree and Prima Capital.

Lambe is a graduate of the Boston College Carroll School of Management, where she received her Bachelor’s degree in Accounting and Economics. She is also an active member of the Junior Council, a charitable organization comprised of young professionals which supports the Pediatric & Adolescent AIDS & HIV Programs of Ann & Robert H. Lurie Children’s Hospital of Chicago. Lambe currently resides in Chicago, Illinois.

About Bradford Allen Realty Services

Bradford Allen Realty Services, a Chicago-based commercial real estate firm, offers a full range of services and expertise to entrepreneurial and corporate business entities as well as not-for-profit organizations. The firm provides real estate strategy, advice, marketing, and transaction execution for occupiers, investors and owners of real estate.

 

Chicago Commercial Real Estate – In the News

Tom’s Recommended Reading for the Week

Check out the top Chicago commercial real estate news before heading into the weekend!

  1. Chicago’s real estate market is booming –  In 2017, for the first time in eight years, Chicago will see tenants move into two brand-new office buildings. The launches of these towers – located next to each other on a picturesque bend in the Chicago River – are seen as a major sign of economic recovery in the third-largest US city, of the resurgence of Chicago’s downtown area, and of the changing tastes of young workers across America. Their delivery in three years will, according to local developers, be the first in a string of new buildings welcoming tenants, as the Windy City’s commercial property market rebounds from the recession… Financial Times 
  2. Investors Snap Up Apts., Office Properties to Fuel Third Quarter Sales Volume – With vast amounts of investor capital allocated to chase after all types of commercial real estate, especially multifamily and office assets, sales of U.S. commercial property are projected to total about $415.1 billion for the four-quarter period ending with the third quarter of 2014. That represents an increase of about 8% over the previous four-quarter period, according to early CoStar COMPs sales transaction data… CoStar Group
  3. Old Post Office owner plots next move after breakup with Sterling Bay – The owner of the vacant Old Main Post Office may seek a sale of the sprawling West Loop property or a new development partner after a joint venture with Sterling Bay Cos. fizzled. Less than four months ago, British developer Bill Davies and Chicago-based Sterling Bay said they were forming a venture for a $500 million redevelopment of the 2.7 million-square-foot building that straddles Congress Parkway.The news brought hope that the property, empty since the post office close 18 years ago, finally would be transformed into a new use… Crain’s Chicago
  4. Sterling Bay puts West Loop building up for sale – A 101-year-old West Loop office building that has become one of the most desirable addresses in Chicago’s growing technology sector is for sale and could fetch $300 million or more. Sterling Bay Cos. hired Jones Lang LaSalle Inc. Managing Director Bruce Miller to seek a sale of the 16-story vintage building at 111 N. Canal St., Sterling Bay Managing Principal Andy Gloor confirmed. He declined to comment further… Crain’s Chicago
  5. Suburban Chicago office vacancy drops again, but market feels slow – For the first time since 2011 the office vacancy rate for suburban Chicago dropped for two quarters in a row, providing rare momentum in a long-stagnant market. Overall vacancy fell to 23.4 percent in the third quarter, down from 23.7 percent in the second quarter and 24.2 percent a year earlier, according to Chicago-based Jones Lang LaSalle Inc. The vacancy rate hasn’t been that low since fourth-quarter 2008… Crain’s Chicago