Monthly Archives: April 2015

Bradford Allen Completes Lease Renewal and Restructure for Ex Libris in Des Plaines

Published April 29, 2015

CHICAGO, IL – Bradford Allen Realty Services is pleased to announce that the firm’s Senior Managing Directors Ben Azulay and Joel Berger have completed a lease renewal and restructure for 18,222 square feet on behalf of Ex Libris Group at 1350 E. Touhy Avenue in Des Plaines, Illinois.

1350 E. Touhy Avenue is a 244,049 square foot, office building located just north of the Allstate Arena, between I-90 and Mannheim Road. In 2009, the property’s developer, MR Properties LLC, filed for Chapter 11 bankruptcy protection, which set off a legal battle over the property between MR and the building’s owner at the time, Five Mile Capital Partners LLC, a Connecticut-based investment firm. Five Mile foreclosed on the property in December 2012 and in August 2014, 1350 East Touhy LLC purchased the property out of foreclosure. 1350 East Touhy LLC has since infused $3 million toward renovations and capital improvements at the property.

Ex Libris, a provider of library automation solutions, previously occupied space on the second floor of 1350 E. Touhy. As the firm neared the end of its current lease, Bradford Allen’s Azulay and Berger were selected to assist with site selection options and strategy. After reviewing multiple relocation options in the area, Ex Libris opted to stay at 1350 E. Touhy due to the recent renovations in the building. As a result, Azulay and Berger sourced a unique and strategic opportunity for the firm to restructure its current lease terms and relocate to another suite within the same property.

“When Ex Libris approached us, they had over two years remaining on their lease, but were not happy with the inefficiencies and dated finishes within their existing space,” said Azulay. “Knowing our client’s preference to remain at the Des Plaines location, Joel and I were able to restructure the rent for Ex Libris immediately to save them a considerable amount of money and move them into new, upgraded space in the building. It was a win-win for all parties.”

Azulay and Berger represented Ex Libris in the lease negotiations and Fred Ishler of Transwestern represented ownership.

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 April 24, 2015

Tom’s Recommended Reading for the Week

Avison Young acquires Chicago’s Mesa Development – A Chicago developer that built two condo towers at Millennium Park has been acquired by a Canadian firm. Toronto-based Avison Young announced the deal this morning for Mesa Development, founded in 2000 by Richard Hanson. He and James Hanson have joined Avison Young’s downtown office as principals... Crain’s Chicago
Chicago beats even Silicon Valley in tech-job growth – Chicago was one of the fastest-growing cities for tech jobs coming out of the recession. The number of tech jobs in the city rose 25.8 percent between 2010 and 2013, according to a report on the nation’s top tech markets by commercial real estate firm CBRE… Crain’s Chicago
CMBS lending to Chicago-area landlords drops after strong 2014 – After showering local landlords with $2.5 billion in debt last year, Wall Street lenders are off to a slow start here in 2015. Lenders that package real estate loans into commercial mortgage-backed securities (CMBS) originated and sold off $2.5 billion in loans on Chicago-area properties in 2015… Crain’s Chicago
Cushman & Wakefield buying McKinney brokerage – J.F. McKinney & Associates, a Chicago real estate brokerage that handles leasing at office buildings including the John Hancock Center and the Merchandise Mart, is being acquired by industry behemoth Cushman & Wakefield. The deal is expected to be completed by April 30, according to New York-based Cushman & Wakefield. Terms of the deal were not disclosed… Crain’s Chicago
Investors Turn to Big Real Estate Funds – Investors are pouring more money into real-estate funds than they have since the property bust, but a few giant fund firms are collecting the lion’s share of the spoils. Pension funds, endowments and other big institutional investors are putting more cash into private-equity firms with large real-estate funds and strong track records, leaving smaller firms to fight over the scraps… Wall Street Journal

Bradford Allen Welcomes Dan O’Neill as Managing Director of Investment Sales

Published April 20, 2015

CHICAGO, IL – Jeffrey Bernstein and Laurence Elbaum, principals and co-founders of Bradford Allen are pleased to announce that Dan O’Neill has joined the firm as Managing Director of Investment Sales.

“Dan brings over 25 years of investment sales experience to Bradford Allen,” said Elbaum. “He has a strong track record of achievement, understands the industry and will undoubtedly be an asset to our team.”

In his new role with Bradford Allen, O’Neill will concentrate on growing the investment sales platform in the Chicagoland Suburbs. His focus will be on the representation of Institutional and Entrepreneurial Owners of office, industrial and retail property. Prior to joining Bradford Allen, O’Neill was employed as Senior Vice President of Investment Sales with Cawley Chicago Real Estate. Throughout his career, O’Neill has been responsible for successfully negotiating over 400 lease agreements and sales contracts.

O’Neill is a graduate of the University of Iowa, where he received his Bachelor of Arts in Political Sciences and Economics.

About Bradford Allen Realty Services

Bradford Allen Represents Seller in 43,516 SF Sale of Flex/Industrial Property in Downers Grove

Published April 13, 2015

CHICAGO, IL – Bradford Allen is pleased to announce that Directors Ryan Moen and John Millner have completed the sale of a 43,516 square foot flex/industrial building at 5201-5241 Thatcher Road in Downers Grove, Illinois.

Moen and Millner represented the seller, Heartland Bank and Trust Company, in the transaction. 5201-5241 Thatcher Road is a 43,516 square foot multi-tenant, flex/industrial building. The property is ideally located within minutes of downtown Downers Grove, Lisle and Yorktown Shopping Center, offering an abundance of upscale shopping and dining destinations. It offers immediate access to Interstate I-355 and I-88 and is located within minutes from the Belmont Metra stop. Built in 1978, the 11-unit facility features suites with drive-in doors and/or docks, heavy power and ample on-site parking.

“This multi-tenant, flex property was a rare offering in the West Suburbs industrial market,” said Moen. “It presented an outstanding ‘value add’ opportunity that garnered a lot of investor interest, and we are pleased to have assisted Heartland Bank and Trust in this transaction.”

The buyer of 5201-5241 Thatcher Road is Midwest Industrial Funds, a Chicago-based, vertically integrated industrial real estate, development and asset management company. Midwest Industrial has been extremely active in the market acquiring several other industrial properties in metro Chicagoland in the last 12 months. The property is currently 32% occupied.

About Bradford Allen Realty Services

Chicago Commercial Real Estate – In the News

Published April 10, 2015

Tom’s Recommended Reading for the Week

Law Firms Looking to Downsize – The business model for most law firms is changing dramatically, and according to a new report from Colliers International, over the next few years many will seek to right-size their real estate portfolios. Except at the very top tier law firms.. Globe St.
Mizachi, Werner sell land beneath West Loop office building – After bids fell short of their target sale price, owners of a big West Loop office tower are trying a new approach: splitting it in two. A venture of Florida-based investor Joseph Mizrachi and New York-based David Werner sold the land beneath 300 S. Riverside Plaza for $220 million. Now they’ll try again to sell the nearly 1.1 million-square-foot office building on it… Crain’s Chicago
Morton Salt plans new West Loop HQ at River Point – Morton Salt’s headquarters and a satellite office for Allstate are ticketed for a West Loop development along the Chicago River, continuing a run of deals for the two office towers under construction downtown… Crain’s Chicago
Optimus moving HQ to a (very) high-profile address – Optimus President Tom Duff said today that his post production company, one of the largest in Chicago, will in late fall of this year move from its longtime home at 161 E. Grand Ave. in the city’s Streeterville neighborhood to the iconic Wrigley Building at 410 N. Michigan Ave… Chicago Business Journal
Suburban Chicago office vacancy falls, JLL reports – Vacancy in suburban Chicago office buildings fell to its lowest level in more than seven years during the first quarter, providing another positive sign for landlords battered during the recession… Crain’s Chicago

First Quarter 2015 Chicago Downtown Office Market Report

Published April 9, 2015

Downtown Market Experiences a Slight Uptick in Vacancy; Still an Overall Positive Tone

Chicago’s downtown office market saw the vacancy rate increase this quarter for the first time since 2013. The slight increase from 13.1% in Q4 2014 to 13.3% was attributable to the BMO Harris relocation/contraction and downsizing of showroom tenants at 311 W. Monroe and the Merchandise Mart, respectively. Please note however the vacancy rate of 13.3% is well below the 14.0% in Q1 2014.

Read Full Market Report Here

Alexander Joins Bradford Allen As Managing Director

Published April 8, 2015

CHICAGO, IL – Jeffrey Bernstein and Laurence Elbaum, principals and co-founders of Bradford Allen are pleased to announce that Matthew Alexander has joined the firm as Managing Director.

Joining Bradford Allen from DTZ, Mr. Alexander brings over 20 years of transactional experience in commercial real estate to his role. Matt has joined the firm’s tenant representation practice and will focus on expanding his portfolio of clients on a local, regional and national basis.

“Matt’s tenant representation background in national real estate along with his in-depth knowledge and expertise of Chicagoland are invaluable to his clients,” said Elbaum. “He understands the nuances of our industry and will be an important addition to the Bradford Allen team.”

Alexander did his undergraduate studies at the University of Illinois at Chicago. He is an active member of CoreNet Global and is a licensed real estate broker in the state of Illinois. He currently resides in Chicago, Illinois.

About Bradford Allen Realty Services