BY THE NUMBERS

CHICAGO—The past year saw a significant jump in the vacancy rate of Chicago's office market, largely due the opening of several new trophy office towers. But leasing within the towers has gone well, and in the fourth quarter the region's overall vacancy rate dropped 40 bps to 17.4%, the lowest it's been in 2017, according to a new report from Newmark Knight Frank. Rental rates increased 1.1% year-over-year to $27.47. And the big trades continue. Sterling Bay, for example, went under contract to purchase 600 W. Chicago for about $500 million.

NEWS & NOTABLES

ELMHURST, IL—Darwin Realty and Development Corp. announced that industrial associate Brendan J. Sheahan has recently been promoted to vice president. Sheahan's expertise includes tenant and buyer representation, ownership representation, and build-to-suit projects, as well as investment analysis, acquisition, and disposition services. He is active in the Elgin-I-90 Corridor, Fox Valley, and I-88 Industrial Corridor and has recently completed over 1.3 million square feet in transactions totaling more than $30 million in value. Sheahan joined Darwin Realty in 2012 following graduation from the University of Wisconsin-Madison.

CHICAGO—The Chicago chapter of the Society of Industrial & Office Realtors recently named their new executive board officers for the year 2018. Daniel Smolensky will lead the organization, which includes nearly 200 of the top office and industrial real estate brokers in the Chicago market. Additional board members include those pictured in the attached photo. Pictured are (from left to right): Daniel Benassi of Entre Commercial Realty (vice president); Daniel Smolensky of Taurus Modal Group (2018 president); Jason West of Cushman & Wakefield (past president); Tom Boyle of Transwestern (treasurer); and Mark Nelson of NelsonHill (director-at-large). Not pictured is David Ariola of Chicago Realty Co. (secretary).

DEALTRACKER

OAK BROOK, IL—Inland Real Estate Acquisitions, LLC, announced earlier this week that it negotiated and closed the purchase of four Jewel-Osco stores located in the Chicago suburbs, specifically Arlington Heights, Glenview, Naperville and Stickney, totaling 248,622 square feet. Joe Cosenza, vice chairman of The Inland Real Estate Group, LLC and president of Inland Real Estate Acquisitions, LLC, completed the deal, with assistance from Gina LaMantia, managing counsel for Charles J. Benvenuto PC, on behalf of an Inland affiliate. All four are grocery and pharmacy stores with new 20-year leases. They are located at 1860 S. Arlington Heights Rd., Arlington Heights, IL with 61,475 square feet; 1340 Patriot Blvd., Glenview, IL with 63,523 square feet; 1759 W. Ogden Ave., Naperville, IL with 64,977 square feet; and 7122 W. 40^th St., Stickney, IL with 58,647 square feet. “These Jewel-Oscos are staples in their community, with sales ranging from $27 million to $33 million per year for each store,” says Cosenza. “They are well-established and in prime locations with an average three-mile household income of $108,000 and an average three-mile population of 128,000 customers for all four stores.”

BUILDING BLOCKS

MINNEAPOLIS—The Opus Group just began construction on a new four-story, 147-unit senior living center in Minnetonka, MN. The project will provide a wide continuum of housing and service choices, including independent living, assisted living and memory care apartments. Ebenezer Management Services will operate and manage the project upon completion in spring 2019. “We are pleased to expand our collaborative business model into senior living through this shared effort with Ebenezer,” says Matt Rauenhorst, vice president, Opus Development Co., LLC. “The market demand coupled with our vision for this site and Ebenezer's strong track record managing these properties is a recipe for success.” Opus Development Co., LLC is the developer and Opus Design Build, LLC is the design contractor. Opus AE Group, LLC is the architect and engineer of record and Sperides Reiners Architects is the design architect. Consilium Home is the interior designer on the project.

CHICAGO—Draper and Kramer, Incorporated, has started construction on 61 Banks Street, a new boutique residential rental building along Chicago's lakefront. The eight-story property, which will grace the last undeveloped site on N. Lake Shore Dr. in the Gold Coast neighborhood, will feature a mix of 58 upscale two- and three-bedroom residences, including seven two-story “maisonette” rowhome units with direct street-level entrances and private terraces. “This building will be a unique residential enclave in one of this city's most sought-after areas, not only delivering unmatched resident services, but also complementing the context of the Gold Coast and adjacent lakefront,” says Ed Polich, senior vice president and chief development officer for Draper and Kramer. Designed by Larry Booth, principal and director of Booth Hansen, 61 Banks Street will have a scale similar to the iconic residences nearby along E. Lake Shore Dr. “The design of 61 Banks Street incorporates elements of the many fine examples of art deco and midcentury modern architecture found in the immediate neighborhood,” says Booth.

Instant Insights /

Middle Market Digest-The Midwest

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