BY THE NUMBERS

CHICAGO—The vacancy rate among industrial properties in the Chicago market just ticked up to 7.66%, according to a new third quarter report from JLL. And even though net absorption year-to-date has been a bit less than 8.8 million square feet, a slower pace than in the recent past, JLL researchers expect that by the end of the year tenants will have absorbed a healthy amount of around 12 to 14 million square feet. And with about 15 million square feet of new space under construction, that healthy demand will be needed to keep the market balanced throughout 2018.

NEWS & NOTABLES

CHICAGO—Chicago-based JDL Development recently celebrated the grand opening of SixForty North Wells, a new 250-unit luxury apartment tower located in Chicago's River North neighborhood on the site of the former Ed Debevic's restaurant at the corner of Ontario and Wells streets. The company hosted a reception on Oct. 5 at the 23-story building, where guests toured two decorated models, along with two floors of indoor and outdoor amenity space. “From its A-plus location and amenities to its proximity to downtown, the building is attracting a wide range of renters,” Yale Dieckmann, executive vice president and chief investment officer at JDL. Currently 41% leased and 37% occupied, SixForty North Wells offers 22 designer floor plans in studio, convertible, and one-, two- and three-bedroom configurations that range in size from 500 to 1,600 square feet. SixForty is one of four new high-rise residential projects JDL is developing this year across the city, and marks the second project for JDL and Chicago-based The Habitat Company, which manages the property. The two firms previously partnered on 1000 South Clark.

DEALTRACKER

CHICAGO—Holliday Fenoglio Fowler, L.P helped complete the recent sale of and acquisition financing for a 21-building industrial portfolio totaling 2.3 million square feet in eight different submarkets of the Chicago region. The HFF team represented the seller, CenterPoint Properties. A joint venture between Westmount Realty Capital, LLC and Partners Group, a global private markets investment manager acting on behalf of its clients, was the buyer. Additionally, working on behalf of the new owner, the HFF team placed the three-year, floating-rate loan with two one-year extension options with a banking and financial services corporation. A private investor purchased a 22nd property. Tenants occupy 95.6% of the portfolio, including those in the automotive, food packaging, landscaping, consumer goods, fitness and electronics industries. The buildings, which were constructed between 1954 and 1998, range from 15,000 to 530,000 square feet with clear heights ranging from 12 to 30 feet. HFF's investment sales team included senior directors Kurt Sarbaugh and Robin Stolberg along with executive managing director Matthew Lawton and senior managing directors John Merrill, Jeff Bramson, Jaime Fink and Rusty Tamlyn. The debt placement team consisted of managing director Stephen Skok and director Christopher Knight.

ROCKDALE, IL—Industrial Outdoor Ventures, the first national real estate investment company focused exclusively on the acquisition, development and re-development of industrial service facilities, has acquired a 10,200-square-foot equipment and maintenance shop/office at 2131 Maxim Dr. in Rockdale, IL from Byzantio, LLC, for an undisclosed price. Currently leased long-term by NPL Construction, North America's leading utility specialty contractor with facilities across the US and Canada, the property sits on 4.3 acres one mile from the full four-way interchange of Larkin Rd. and I-80. It offers convenient access to the entire Chicago region as all other regional transportation infrastructure including the BNSF and UP Intermodal yards. The property's large, improved storage yard, generic shop facility, and proximity to major transportation infrastructure will appeal to a broad range of construction and transportation users should future re-tenanting be required, says Tom Barbera, IOV's chief executive officer. “This is exactly the type of investment we are seeking across the US. The property is located in the heart of a high velocity submarket and serves a mission critical role for its tenant.”

BUILDING BLOCKS

CHICAGO—Loukas Development just began construction on The Van Buren, a 12-story boutique mixed-use development in Chicago's West Loop neighborhood. The company expects to complete the 148-unit building at 808 W. Van Buren Ave. in the historic Greektown neighborhood by late 2018, bringing one of the first new modern, multi-family buildings to the historically brick and timber loft area. “As the West Loop continues to evolve and attract global companies like Google, Hillshire Brands and McDonald's, we'll see ongoing demand for rental housing that can meet the needs of today's sophisticated, transit-focused employees,” says Aristithis Loukas, managing director of Loukas Development. “The Van Buren will bring a boutique hotel-like environment and anchor the southern gateway to Greektown, a section of the West Loop that is poised for additional expansion.” The developer's capital partner on the project is a limited liability company managed by Seattle-based Washington Capital Management, Inc. on behalf of its clients.