CHICAGO—The decision of the University of Illinois to locate its $1.2 billion Discovery Partners Institute at Related Midwest's new The 78 project on the Near South Side (see below) is a good example of how our concept of mixed-use is changing. It used to be that developers would throw some retail, restaurants and perhaps office space into a residential community and call it mixed-use. Increasingly, however, developers have gotten more elaborate, stacking many uses into one huge community, such as Related's Hudson Yards in New York. That way, communities become true destinations for many people, each use fortifying the others. Hudson Yards will remake New York's West Side, and while Related's project in Chicago is not quite on that scale, it sounds like it has the potential to play a similar role for this long-ignored portion of the city.

BY THE NUMBERS

CHICAGO—Although leasing in the Chicago-area industrial market has slowed from the record-setting pace of 2016, investors and lenders remain confident in this key market. New construction, for example, continues to pop up throughout the market. Chicago boasts over 12.3 million square feet under construction and 18.1 million square feet delivered by the end of the third quarter, according to a new report from Cushman & Wakefield. Developers were also confident enough to launch a lot of speculative developments. Spec projects account for 58.7% of all new product, C&W finds. “Steady tenant demand has been encouraging to developers, but vacancy is anticipated to continue rising as new product hits the market.”

NEWS & NOTABLES

COLUMBUS—Paul E. Ping has joined CBRE as executive vice president of valuation and advisory services. Columbus-based Ping, who has been involved in the valuation profession since 1983, will also serve as the national director of alternative valuation services. “Having another national leader based out of our Columbus office continues to add to our broad scope of services,” says Mason Shelby, managing director of valuation and advisory services at CBRE in Columbus. Prior to joining CBRE, Ping served as the national director of the alternative valuation product group at Cushman & Wakefield. He was responsible for new business growth, supplying platforms, processes and procedures for quality control. Ping also brings 17 years of experience to CBRE as a chief appraiser for two large financial services institutions.

CHICAGO—Illinois Governor Bruce Rauner and University of Illinois President Tim Killeen yesterday unveiled plans for an interdisciplinary public-private research and innovation center known as the Discovery Partners Institute at The 78, a mixed-use, master-planned development by Related Midwest. The new facility will be developed on a donated portion of Related's 62-acre site bordered by Roosevelt Rd., Clark St., 16th St. and the Chicago River in downtown Chicago. The 78 will include residential, commercial, academic, civic, cultural and recreational uses. DPI is the inaugural step in the development of the Illinois Innovation Network, which will join businesses, public sector partners and research universities to study computing and big data, food and agriculture, and health and wellness. Led by the U of I System, the $1.2 billion DPI will bring students, faculty and businesses together to share ideas. and take them into their respective communities.

CHICAGO—Newmark Knight Frank has just hired Mark Breithaupt to serve as marketing manager for the firm's Chicago office. He brings 20 years in the marketing field to his role, including 14 years in the real estate industry. As marketing manager with NKF he will plan, manage and implement the marketing initiatives, direct mail, and advertising campaigns for the company's Chicago office, ensuring that messaging is consistent with the company's overall marketing and public relations efforts. Prior to joining NKF, Breithaupt was employed as director of marketing with Colliers International Chicago. Before Colliers, he was manager of the Creative Services Studio for Discovery Chicago, a medical communications agency and a division of Publicis Groupe. He also served as a senior marketing associate with Cushman & Wakefield for seven years in both the New York City and Chicago offices.

DEALTRACKER

CHICAGO—Transwestern has been retained by S. Boehme & Co. to provide exclusive leasing services for The Rookery Building, a historic 288,924-square-foot landmark at 209 S. LaSalle St. in the Central Loop area of Chicago. Transwestern's Eric Myers, Jeff Dowdell and Courtney Rosoff will serve as leasing agents for the LEED® Gold property. “The new spec suites and design standards that have been implemented are reflective of modern tenant needs,” says Myers. “Every office in the building has access to natural light, high ceilings and recently upgraded amenities, which is ideal for tenants that want contemporary space in a building with celebrated history and immense character.” The oldest standing high-rise in Chicago, the 12-story, class A building was designed by John Wellborn Root and Daniel Burnham of Burnham and Root in 1888. Frank Lloyd Wright redesigned its light court and lobbies in 1905. The building was named to the National Register of Historic Places in 1970 and later designated a Chicago landmark and national historic landmark.

BUILDING BLOCKS

MINNEAPOLIS—Kraus-Anderson, a Minneapolis-based construction firm, has just completed its new downtown headquarters located at 8th St. and 5th Ave. Employees from throughout the metro area have begun moving into the 100,000-square-foot campus, which consolidates the company's Twin Cities operations under one roof. “The top priority of consolidating our metro area offices is to provide an innovative culture with greater synergy and collaboration, which will help us position Kraus-Anderson for strategic growth at a time of unprecedented business volume and demand,” says Bruce Engelsma, chairman of Kraus-Anderson Cos. The five-story headquarters will accommodate about 300 employees, doubling the current downtown staff with room for future expansion on the site. Consolidation will combine employees from the Kraus-Anderson Construction office in Circle Pines, and Kraus-Anderson Realty Co. and Kraus-Anderson Development offices in Bloomington. The new building also will house Kraus-Anderson Mortgage, as well as the parent corporation, Kraus-Anderson Cos. Kraus-Anderson Insurance will continue to operate from its offices in Burnsville.

WICHITA, KS—The Opus Group recently started construction on a new headquarters for Cargill's North America protein business. Company officials say they will complete the 190,000-square-foot office building by October 2018. It will have room for up to 950 employees and feature four stories of office space with an immersive technology center, presentation kitchen, sensory center kitchen and testing booths on the first floor and a third-floor balcony and employee café space. Wichita's downtown is undergoing a revitalization, and Cargill officials wanted a headquarters that fit the city's style and personality, as well as encourage employee collaboration. The project also includes an 800-car parking garage for Cargill's employees during work hours and for public use for events in Old Town and the nearby arena. Opus' previous experience working with Cargill includes the development, design and construction of the company's 920,000-square-foot, three-building, class A corporate campus in MN.

Instant Insights /

Middle Market Digest-The Midwest

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