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Monthly Archives: November 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. Corporations Prepare for Upcoming Lease Accounting Changes – Corporations have resigned themselves to the fact that, at some point, new lease accounting standards will be in place that will effectively shift leases from off-balance sheet to on-balance sheet reporting. Although the big question still remains as to when those new rules will become effective, companies are already preparing for the new requirements… NREI 
  2. Golub/Alcion Launch Oak Brook Renovation – The suburban office market may suffer from an overall high vacancy rate, but some investors still see opportunities. As reported in GlobeSt.com yesterday, for example, Golub & Company and its partner Alcion Ventures just bought Oak Brook Executive Plaza, a 389,000-square-foot office complex on W. 22nd St. in west suburban Oak Brook… Globe St.
  3. New Office Conversion Planned for Goose Island Warehouse – Another developer is banking on the Goose Island tech renaissance with a new renovation of the 42,744 square foot Burhop Box & Packaging warehouse at 1071 W. Division Street to create new office space. Design and development outfit Summit Design + Build is leading the effort to transform the aging structure into an office complex, joining several other adaptive reuse projects currently underway on the man-made island… Curbed Chicago
  4. Once Again, Office Vacancy Rate Doesn’t Budge – The national vacancy rate for the office sector remained unchanged at 16.8 percent in the third quarter. The vacancy has not budged all year, wedged at a level that is only 80 basis points below the cyclical high observed four years ago. On a year-over-year basis, vacancy has fallen just 10 basis points, with the only decline coming in the fourth quarter of 2013… NREI
  5. To Sell or Refinance? In a CRE Market Flush With Capital, Owners Enjoy Luxury of Choice – One can forgive commercial property owners if they seem a bit giddy lately. Just four short years ago, their property values had been cut in half in the wake of the crippling global economic recession. No lender would return their calls and those unfortunate enough to have loans come due often lost their properties to the dreaded special servicers… CoStar Group
 

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. Lawrence House developer lands financing, buys near Google project – Cedar Street Cos. landed financing for an ambitious Uptown redevelopment and on the other side of town bought a loft building near Google Inc.’s future offices. A venture of Chicago-based Cedar Street borrowed $18 million from PrivateBank & Trust Co. and secured a $7 million equity investment to remake the former Lawrence House, 1020 W. Lawrence Ave., said Cedar Street Managing Partner Alex Samoylovich… Crain’s Chicago
  2. Has co-working jumped the shark in Chicago? – Cubicles are overrated. That’s the philosophy at Space, a three-month-old co-working venue in the shadow of Trump Tower. The 25,000-square-foot warehouse on the top floor of a River North loft gives off a warm industrial feel with its wood beams, open rafters and exposed-brick walls. Clean white desks and Herman Miller chairs dot the room, and about half are occupied by silently working 20- and 30-somethings. The whole setup looks more like a stylish loft than an industrial hub… Crain’s Chicago
  3. Foreign investors pay $40.5 million for Deer Park offices – An investor group with ties to London, Dubai and Kuwait paid $40.5 million for a Deer Park office building, illustrating the Chicago-area real estate market’s increasing international connections. A venture of London-based 90 North Real Estate Partners LLP and Dubai-based Arzan Wealth Ltd. on Sept. 22 bought the seven-story Reserve at Deer Park building at 21440 W. Lake Cook Road, according to 90 North and Lake County records. Investors in the deal include Kuwait-based real estate investment and development firm Al-Tijaria… Crain’s Chicago
  4. Heitman paying $700 million for River North office tower – Chicago-based real estate investment manager Heitman LLC has agreed to pay just over $700 million for a trophy tower in River North, in what would be one of the largest office deals in the city’s history. A Heitman fund has a preliminary deal to buy the 46-story tower at 353 N. Clark St. for nearly $600 per square foot, according to people familiar with the deal. If completed as expected, the sale of the nearly 1.2 million-square-foot tower will rank as the fourth-highest price paid for a Chicago office tower, and the second-highest per square foot… Crain’s Chicago
  5. Top 10 cities with the most construction – After two years atop the Forbes list of American cities with the most construction, New York has to settle for runner-up to a booming, oil rich Houston. The Texas city racked up over $25B in construction starts in the first three quarters, with a trio of $3B gas and energy sector developments leading the charge. Two healthcare projects—the Helen L. and Martin S. Kimmel Pavilion Clinical Medical Facility at NYU and David H. Koch Ambulatory Care Center at New York-Presbyterian—topped the development list in NYC… Bisnow
 

Bradford Allen Completes Long Term Sublease for MainStreet Advisors at 120 N. LaSalle

CHICAGO, IL – Bradford Allen Realty Services is pleased to announce that the firm’s Senior Managing Director Craig Nadborne has completed a sublease for 13,685 rentable square foot lease on behalf of MainStreet Advisors (MSA) at 120 N. LaSalle in Chicago.

MainStreet Advisors specializes in providing wealth management services for financial institutions. A client of Nadborne’s for more than a decade, the firm currently occupies 8,694 square feet at 120 N. LaSalle and required additional space to accommodate its operational growth. Bradford Allen’s Nadborne sourced a unique and strategic opportunity for the firm within the same property.

“The full floor sublease was available 4 floors below MainStreet’s existing offices and it was still in the high-rise portion of the building, which was a requirement of MSA’s” said Nadborne. “After working closely with Avison Young, the sub-lessor, and building ownership, we were able to arrange the relocation of MainStreet Advisors to the 13,685 square foot space thereby creating a convenient expansion within the same building.”

The newly leased space is currently occupied by Avison Young who will be relocating to another downtown property. MainStreet Advisors’ former space of 8,694 rentable square feet is now available for sublease. The investment firm will take occupancy of the expanded offices on the 33rd floor in November.

“Craig arranged our first lease for 775 square feet many years ago,” said John Crosson, managing director of MainStreet Advisors. “He understands our business and requirements and has seen us through multiple expansions. In this case, he created an opportunity for us to continue our growth with little disruption to our operations. It was a win-win for everyone involved.”

Nadborne represented MainStreet Advisors in the lease negotiations and Avison Young was self-represented by John Ziesmer, in the sublease.  120 N. LaSalle is owned by Lincoln Property Company.

 

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. For investment returns, retail landlords lead Chicago market – It’s a good time to be a landlord in the Chicago area, especially if you own a retail property. Shopping centers around the region delivered one-year total returns of 14 percent in the third quarter, the highest among all major property types here, according to data from the National Council of Real Estate Investment Fiduciaries, a Chicago-based trade association… Crain’s Chicago
  2. Hyatt, Polsinelli plan moves to 150 N Riverside – Hyatt Hotels Corp. and law firm Polsinelli PC are in advanced negotiations to move to a 53-story office tower under construction along the Chicago River, deals that would make the development about 60 percent pre-leased two years before it’s complete. Chicago-based Hyatt is finalizing a lease to move its headquarters to about 250,000 square feet in the building at 150 N. Riverside Plaza, according to people familiar with the project. Kansas City, Missouri-based Polsinelli also is close to shifting its Chicago office to about 110,000 square feet in the tower… Crain’s Chicago
  3. Millenials: Not as Different as You Think – Everything you’ve been told about the millennial generation and their desires for futuristic office design isn’t true, according to a recent CBRE study. Millennials are seen by society as tech-friendly, diverse, urban-minded and married to their smartphones. In the business setting, they’re seen as anti-authority, desiring more social links and drawn to collaborative spaces. Developers and business owners, mindful that 75 percent of the workforce will be made up of millennials by 2025, have tried to follow these trends in office construction, removing private offices and making social spaces a focal workspace plan… NREI
  4. Protein shakes maker Glanbia leasing former Sara Lee HQ space – Sports nutrition company Glanbia Performance Nutrition Inc. is bulking up its west suburban office with a deal to move into a large block of Sara Lee Corp.’s former headquarters space in Downers Grove. The subsidiary of Irish cheese and nutritional ingredients company Glanbia PLC, which makes protein drinks and other nutritional supplements under brands such as Optimum Nutrition and Isopure… Crain’s Chicago
  5. It’s official: The Chicago Spire is dead – Chicago developer Related Midwest LLC has taken control of the Chicago Spire development site, putting an end to a big bubble-era dream that stalled once the housing crisis hit. Chicago bankruptcy lawyer Joseph D. Frank, who represents Spire developer Garrett Kelleher, confirmed today that his client handed over the property at 400 N. Lake Shore Drive to its biggest creditor after failing to make a required payment late last month… Crain’s Chicago
 

Bradford Allen Expands Team With More New Hires

CHICAGO, IL – Jeffrey Bernstein and Laurence Elbaum, principals and co-founders of Bradford Allen are pleased to announce that the firm has hired three new team members. Heidi Roth has joined the firm as an office coordinator, and Matt Wright and Christopher Rucker have joined the firm as broker associates.

As an office coordinator, Roth will be responsible for fostering and maintaining a professional, efficient, productive and collaborative work environment. Roth’s responsibilities include office operations, human resources management and information technology. Prior to joining Bradford Allen, Roth worked at LaSalle Network, where she was also an office coordinator. She received her Bachelor of Science degree in Family and Child Studies from Northern Illinois University.

As broker associates with Bradford Allen, Wright and Rucker will work directly with senior brokers to build relationships with internal and external clients and to develop new business accounts. They will also be responsible for researching local, regional and national tenants and landlords, qualifying prospective companies as well as preparing and completing client tours for senior brokers and clients as needed.

Wright joins Bradford Allen from Echo Global Logistics in Chicago, where he was a senior account executive. He is a graduate of Southern Methodist University where he received his Bachelor of Art’s degree in Developing Markets and Culture.

Rucker comes back to Bradford Allen after recently graduating from the University of Missouri, where he received his Bachelor of Science degree in Financial Planning with an emphasis on Real Estate. While earning his degree, he completed an internship with Bradford Allen in the summer of 2013.

 

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.