Monthly Archives: January 2015

Chicago Commercial Real Estate – In the News

Published January 30, 2015

Tom’s Recommended Reading for the Week

  1. 2015 Healthcare Outlook – The market for medical office real estate (MOB) has changed dramatically during the last few years. Once a fringe product type, MOB is inching towards the spotlight as a main-stream real estate investment. The space, once dominated by a handful of healthcare REIT’s, has expanded… RE Journals
  2. Chicago’s Civic Opera Building for sale, could fetch $210 million – A venture of Nanuet, N.Y.-based Berkley Properties has hired the Chicago office of HFF to find a buyer for the 44-story, 915,164-square-foot tower at 20 N. Wacker Drive. People familiar with the building estimate it could sell for more than $210 million, or more than $230 per square foot… Crain’s Chicago
  3. The Rise of the 18-Hour City – One of the biggest findings of the 2014 PWC Real Estate Investor Survey has been the rise of “18-hour” cities, or second-tier cities, as opposed to the 24-hour gateways. NREI spoke with Mitchell Roschelle, the U.S. national practice leader for PwC’s real estate advisory practice and the publisher of the survey, about the implications of this trend… NREI
  4. Union Station Rehab Project To Get $12 Million from Amtrak – Amtrak will contribute $12 million for major renovations at Union Station, the city announced Thursday morning. The contribution is the first step in the Chicago Department of Transportation’s ambitious Union Station Master Plan, which calls for roughly $500 million to completely overhaul the 90-year-old station at South Riverside Plaza and has been in development for more than three years. Union Station’s last major renovation was in 1989… DNA Info
  5. With debt woes over, Loop office tower selling for $65 million – After surviving the real estate crash and a legal skirmish with a lender, the owners of a 1960s Loop office tower are poised to cash in with a nearly $65 million sale. A venture of Chicago-based real estate investors Fulcrum Asset Advisors and Diversified Real Estate, whose founders include restaurateur Larry Levy, have an agreement to sell the 24-story tower at 33 N. Dearborn St. for almost $65 million, according to people familiar with the deal… Crain’s Chicago
 

Bradford Allen Adds Four New Chicago Properties To Leasing Portfolio

Published January 26, 2015

CHICAGO, IL – Bradford Allen is pleased to announce the firm has been hired as the exclusive leasing agent for four additional properties in Chicago, expanding the portfolio of their growing downtown agency practice. The buildings added to the portfolio include 1 East Erie Street; 120 West Madison Street; 520 West Erie Street; and 405 West Superior Street.

“We are excited to expand our downtown portfolio with these four well-positioned properties,” said Bradford Allen’s Principal and Co-Founder Jeffrey A. Bernstein. “With our aggressive leasing and marketing efforts, we have proven our ability to produce significant results for our clients whether in the city or suburbs.”

 

  • 1 East Erie – Bradford Allen was selected by the owner, Winthrop Realty Trust, to lease the Class B property in River North. The 126,266 square foot property features a soaring sky-lit atrium, a fitness center, high ceilings as well as an abundance of natural light throughout.  The property is centrally located with access to a plethora of shops, restaurants and public transportation. Available suites range from 1,703 square feet up to 11,553 square feet. Managing Director Steve Fitzgerald, and Associate Max Malec, will be leasing the property.

 

  • 120 West Madison – The firm has been hired to lease this property by the owner, 120 Building LLC. The 111,323 square foot Central Loop building offers a newly renovated lobby and elevators, brand new spec suites and a building conference center. Managing Director Andrew DeMoss, and Associate Reisha Vanterpool, will be leasing the property with available suites ranging from 400 square feet to 7,157 square feet.

 

  • 520 West Erie – Gamla Cedron hired the firm to lease the 40,300 square foot brick and timber loft building in River North. The property offers high ceilings, large windows and customizable suites.  It is located across from a park and offers several shops, restaurants and public transportation options nearby. Available suites range from 1,897 square feet up to 6,900 square feet. Senior Managing Director Craig A. Nadborne, and Associate Cathriona McGuire, will be leasing the property.

 

  • 405 West Superior – Micro Office Solutions, owner of the Class B, River North property, has selected Bradford Allen as the exclusive leasing agent. The 50,400 square foot building offers an efficient floor plate, modern concrete loft as well as garage parking.  It is located near public transportation, shops and restaurants. Managing Director Sameena Basit, and Associate Christopher Rucker, will be leasing the property with available suites ranging up to 14,400 square feet.

 

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.

 

Craig Nadborne Inducted to 2014 Midwest Real Estate Commercial Real Estate Hall of Fame

Published January 23, 2015

CHICAGO, IL — H. Ross Ford III, President and CEO of TCN Worldwide, joins with Jeffrey A. Bernstein and Laurence Elbaum, Principals and Co-founders of Bradford Allen/TCN Worldwide, to announce that Craig A. Nadborne, Senior Managing Director of Bradford Allen Realty Services/TCN Worldwide, has been inducted into Midwest Real Estate News’ Commercial Real Estate Hall of Fame.

Craig A. Nadborne joined Bradford Allen in 2007, bringing more than 30 years of experience to his leadership role. A seasoned professional, Craig has vast experience assisting clients with relocations, expansions, renegotiations, and dispositions of excess space for a wide variety of not-for-profit clients, as well as entrepreneurial, and mid-size businesses. He is proud to have represented clients such as Ajinomoto Heartland, Inc., MainStreet Advisors, Thresholds, Lambda Legal Defense and Education Fund, and Aids Legal Counsel of Chicago among others. Throughout his career, Craig has successfully closed over 600 transactions valued in excess of $36 million.

 Craig has been awarded several distinguished honors throughout his career including Board Member of Chicago House and Social Service Agency, President of the Chicago Business Network and President of Chicago Networking Group.

 “We are honored to announce that Craig Nadborne has been inducted into Midwest Real Estate News’ Commercial Real Estate Hall of Fame,” said Ross Ford, president and CEO of TCN Worldwide. “Craig’s commitment to underrepresented organizations and over three decades of success as a real estate professional have set him apart as one of the industry’s most impressive leaders. TCN Worldwide is honored to count him among the most esteemed representatives of our membership. Congratulations, Craig!”

 

About Bradford Allen Realty Services

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

 

About TCN Worldwide

TCN Worldwide, a consortium of independent commercial real estate firms, provides complete integrated real estate solutions locally and internationally. With approximately $38.8 billion in annual transactions and over 80 million square feet of space under management, the organization ranks as one of the largest service providers in the industry. An extensive range of real estate services coupled with a personal commitment to exceed client expectations is what allows TCN Worldwide to be a leader within the commercial real estate industry. Formed in 1989, TCN Worldwide is comprised of over 800 commercial real estate professionals serving more than 200 primary and secondary markets worldwide.

 

Chicago Commercial Real Estate – In the News

Published January 23, 2015

Tom’s Recommended Reading for the Week

  1. Coworking 2.0: Collaboration meets privacy in the workplace – Last year marked the 50th anniversary of the cubicle, and while few people dispute the impact this workplace wonder has had on office design and culture, most agree that cubicles have come to symbolize the old way of doing business. Today, companies have transitioned to more open floor plans designed to foster creativity and collaboration among employees. In fact, open offices accounted for 70 percent of workplaces in a 2010 survey conducted by the International Management Facility Association… RE Journals
  2. JLL snares tech-focused broker Cassata from CBRE – Office leasing broker Chris Cassata, who has signed some of the technology sector’s biggest names to leases in Chicago, joined Jones Lang LaSalle after 14 years at rival CBRE. Cassata, 38, who has represented Chicago developer Sterling Bay in leases with tenants including Google and Twitter, will focus on adding new assignments outside the realm of traditional glass-and-steel skyscrapers… Crain’s Chicago
  3. Millennials Prefer Single-Family Homes in the Suburbs – One of the hottest debates among housing economists these days isn’t the trajectory of home sales, but whether millennials, those born in the 1980s and 1990s, want to remain urbanites or eventually relocate to the suburbs. Some demographers and economists argue that the preference of millennials, also called Generation Y, for city living will remain long lasting. And surveys of these young urban residents have tended to show that they don’t mind small living quarters as long as they have access to mass transit and are close to entertainment… Wall Street Journal
  4. Should Core Investors Chase Yield Into Slower Growth Markets? – Commercial real estate investors are flocking to secondary and even tertiary markets in search of yield. This is due to a variety of factors, including an overall low yield environment and risk complacency. In addition, similar to the Federal Reserve “crowding” investors out of Treasuries into higher yielding investments, foreign buyers of U.S. commercial real estate are “crowding” domestic investors out of gateway office markets into higher yielding secondary and tertiary markets… NREI
  5. Top 5 Predictions for Medical Office Real Estate in 2015 – The “retailization” of healthcare will continue to increase this year, according to executives at Revista, an Annapolis, Md.-based research firm that focuses on the medical real estate industry. Revista was founded in 2013 by seniors housing industry veterans Elisa Infante Freeman, Mike Hargrave and Hilda Flower Martin. The company tracks investment sales and construction statistics in the medical office sector, as well as publishing the Top 50 Owners report for the industry. … NREI
 

Year-End 2014 Chicago Suburban Office Market Report

Published January 22, 2015

Suburban Office Market Sees Vacancy and Availability Decrease and a Bifurcation Taking Place

The suburban office market saw multiple statistical improvements to end the year. The overall vacancy rate decreased from 18.9% Mid-Year to 17.5%. Availability also decreased from 24.4% at Mid-Year to 23.2%. Even though a large tenant migration to the CBD occurred earlier in 2014, the suburban office market was able to record 929,540 SF of positive absorption for the year. These statistical improvements have led to a healthier suburban office market.

Read Full Market Report Here

 

Fourth Quarter 2014 Chicago Downtown Office Market Report

Published January 21, 2015

Chicago Office Market Continues to Heat Up

The Chicago economy continues to show signs of improvement as the unemployment rate in the metropolitan area decreased from 8.7% to 6.3% year over year. This translated into a healthier downtown office market with the vacancy rate decreasing from 14.1% to 13.1% year over year. Attributing to this was net absorption for the year of 1,141,848 SF. Vacancy however did increase slightly from 13.0% last quarter due to the former Chicago Public Schools (CPS) office building being added to the downtown inventory.

Read Full Market Report Here

 

Chicago Commercial Real Estate – In the News

Published January 16, 2015

Tom’s Recommended Reading for the Week

  1. Commercial Mortgage-Backed Securities Make Comeback – A hunt for yield and a gradually improving property market are bolstering a key engine of U.S. commercial property lending, helping borrowers to refinance but also reigniting fears the market is getting overheated. In all, lenders made $94 billion in loans bundled together and sold off as bonds to investors in 2014, the most since 2007 for the product known as commercial mortgage-backed securities, according to trade publication Commercial Mortgage Alert… Wall Street Journal
  2. Cyber sleuths move HQ to Chicago – Take that, all you evil-minded hackers! A fast-growing global cybersecurity company is moving its headquarters here. Prescient Edge, which has the likes of ex-Green Berets and federal intelligence agents in its executive suite, is setting up shop at One Prudential Plaza, where it is leasing about 24,000 square feet of space, according to the city and the company. Prescient Edge now is based in McLean, Va., not too far from Washington… Crain’s Chicago
  3. Jewel Osco HQ sold to Hamilton Partners – Feeling more optimistic about the suburban office market, Hamilton Partners added Jewel-Osco’s headquarters to its shopping cart for almost $24 million. The Itasca-based developer and investor bought the 185,020-square-foot office building at 150 Pierce Road in west suburban Itasca on Dec. 30 for $23.7 million, or about $128 per square foot, according to DuPage County records. The seller was Bethesda, Md.-based pension fund adviser ASB Capital Management… Crain’s Chicago
  4. Mezzanine Financing on the Upswing as Industry Sees More Construction – Borrowers have a growing appetite for mezzanine loans that is fueled by redevelopment and refinancing activity, as well as the return of new construction. Terra Capital Partners, a New York-based fund manager, has seen its mezzanine lending volume double over the past year and the firm expects that volume to double again in 2015. Although Terra Capital Partners does not disclose its total lending volume, it provided mezzanine or bridge financing on about 40 different projects last year. Mezzanine capital typically goes higher on the “capital stack” of project financing, layering on top of a first mortgage to provide a borrower with higher leverage… NREI
  5. Prices for Office Assets in CBDs Are on a Tear – Stronger job growth over the past year is beginning to have an impact on office building valuations, as Moody’s/RCA Commercial Property Price Indices (CPPI) registered an 8.6 percent increase in prices for office assets in Central Building Districts (CBD) in the three months ending in November 2014. The sector was the best performing of all core commercial property types at a time when commercial prices as a whole continued to go up. CBD office buildings have now recovered 145.6 percent of their losses peak-to-trough. All commercial properties taken together have recovered 105.8 percent of their losses… NREI
 

Bradford Allen Represents Blue Star Properties and Baderbrau Brewing at 2515 S. Wabash

Published January 12, 2015

CHICAGO, IL – Bradford Allen is pleased to announce that Senior Managing Director Ben Azulay and Director Justin Kessler have completed the 25,810 square foot building sale of 2515 S. Wabash in Chicago. The sale is valued at $1,250,000.

 Azulay and Kessler represented both the property buyer, Blue Star Properties and the lessee, Baderbrau Brewing. The property is located immediately off of I-55 in close proximity to McCormick Place and downtown. The South Loop property is situated a few blocks south of the soon-to-open Cermak station on the Green Line and features a bow truss ceiling, two drive-in doors as well as an old water tower visible in either direction on I-55.

 Baderbrau Brewing has leased the entire property on a long-term lease and plan to open the brewery along with a 4,000 square foot taproom later this year. Homebrewer Rob Sama revived Baderbrau in 2012, bringing back the original Chicago Pilsener popular in the 1990s, and has since created seasonal varietals such as Red Velvet, Oktoberfest, Lawnmower Lager and Naked Selfie, a Black India Pale Lager.

“We surveyed several neighborhoods outlining downtown, as it was important for Baderbrau to have a Chicago address,” Kessler said. “2515 S. Wabash was ultimately selected due to the building’s size and layout being ideal for Baderbrau’s vision, as well as the proximity to McCormick Place and the redevelopment of Motor Row.  However, with the building only for sale we had to bring in a developer to purchase the building and felt straight away that Blue Star was the right group for this project – it turned out to be a win/win for everyone.”

“The Bradford Allen team was fantastic to work with. Ben and Justin understood our requirements and worked tirelessly to find us a property that fit the bill for a brewery in terms of size, location as well as type of building,” said Sama. “Not only did they find us a great property, but they also found a buyer for the property, which was necessary to get the deal done.”

The brewery is projected to open late Summer 2015.

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

Published January 9, 2015

Tom’s Recommended Reading for the Week

  1. Office Market Sees Tepid Recovery – U.S. companies are adding employees at the fastest rate in years. But those workers aren’t filling up office buildings like they used to. While the labor force finally has pushed past its prerecession peak, readings on office-space usage have barely budged. The vacancy rate stood at 16.7% in the fourth quarter, down only a hair from the 16.9% registered a year earlier and compared with the postrecession peak of 17.6% reached in 2010, according to data from real-estate research firm Reis Inc… Wall Street Journal
  2. Offices to Become More Like Home in 2015 – In the past several years, office users across the nation began transforming their spaces from old-style cubicle designs into more collaborative arrangements. In addition, many sought to shrink their footprints by using space in a more efficient manner. And as office users look to the year ahead, experts say that other changes are underway… Globe St.
  3. Rising tide lifts DuPage office market – The effects of the improving economy are being felt in the suburban Chicago office market, where conditions are tightening and shifting the landscape for companies that do business here. A microcosm of this dynamic can be found in DuPage County’s sprawling East-West Office Corridor, which runs along a 20-mile stretch of Interstate-88 from Westchester to western Naperville… Daily Herald
  4. Suburban Chicago office vacancy rate drops to six-year low – Suburban office landlords entered 2015 with a burst of leasing momentum rarely seen since the recession. Office vacancy in suburban Chicago fell to 22.6 percent in fourth-quarter 2014, down from 23.4 percent in the previous quarter and from 24.3 percent a year earlier, according to Chicago-based Jones Lang LaSalle. The vacancy rate is at its lowest level in more than six years… Crain’s Chicago
  5. VisaNow moving HQ to Chicago’s Loop amid quick growth – With a $16 million cash infusion and plans to more than double its workforce within 18 months, visa processing firm VisaNow is moving its Chicago headquarters. VisaNow signed a lease for about 30,000 square feet at 230 W. Monroe St., with an option to add another 20,000 square feet in the Loop tower, CEO Bob Meltzer said. VisaNow helps companies secure visas for their workers… Crain’s Chicago