CHICAGO—Yesterday, JLL held its Chicago 2025 forecast event. I'll have more to say about the event on Monday, but a notable aspect was the location. Rather than the typical downtown hotel, all of which begin to look the same after a while, JLL brought several hundred of the region's commercial real estate players to Venue West, an event space at 221 N. Paulina St. on the Near West Side. It was definitely a statement by JLL on where they think professionals will focus their attention in the next seven years. The spot still feels a bit out of the way, but it's just to the west of 1KFulton, the regional headquarters of Google and now a thriving office and retail hub. Chris Kelly, the co-founder of Convene, which creates amenity centers for entire buildings and even portfolios, was the keynote speaker. He sketched out a grand vision of where commercial real estate can go. Although some have said rental rates are hitting a ceiling, he believes that the new commercial model, where tenants are wrapped in experiences and amenities, will greatly boost the value of real estate. He drew an analogy with what has happened with phones. Consumers who once would never pay more than $150 for a flip phone now think nothing of buying an iPhone for $900.

NEWS & NOTABLES

CHICAGO—Peaceable Street Capital, a specialty finance platform focused on providing preferred equity capital to small and mid-sized income producing real estate in North America backed by Orangewood Partners and SunBridge Capital Management, has opened a Chicago office and named Rob Nadler as executive vice president and managing director. The Chicago-based Nadler joins PSC's executive team alongside David Henry, co-founder, and Fred Kurz, chief executive officer. Nadler has more than 37 years of real estate experience and spent the last 20 years at Kimco Realty, where he was the president of the central region, responsible for acquiring, developing and/or managing approximately 200 assets with over 30 million square feet and net operating income in excess of $180 million. Prior to Kimco, he was with JMB Realty Corp. as executive vice president and managing director. Since launching in January 2016, PSC has completed 16 preferred equity real estate transactions in 28 unique properties across the US and Canada with a combined value of almost $500 million across several sectors, including multi-family, self-storage, retail and RV parks.

CHICAGO—Morgante Wilson Architects, an Evanston, IL-based residential architecture and interior design firm, has named Marie Nissen as the firm's first chief financial officer. Nissen joined MWA in 2011 as a staff accountant, a position she held for two years before the firm named her senior accountant in 2013. “As our firm continues to grow, in terms of staff as well as the number, size and scope of projects we undertake, it has become increasingly important to have a senior leadership position dedicated to the strategic handling of our finances and guiding the processes and procedures necessary to support a firm of our size,” says Fred Wilson, co-principal of MWA. “Marie was the perfect choice as our first CFO, since she not only knows our company inside and out as a veteran employee, but also has the professional expertise and management skills to lead our finance department in this capacity.”

CHICAGO—Holliday Fenoglio Fowler, LP provided $38.7 million in financing for the acquisition and renovation of Chicago Marriott Schaumburg, a 398-room, full-service hotel in suburban Schaumburg. The HFF team worked on behalf of the borrower, an affiliate of Chicago-based Arbor Lodging Partners, to place the three-year, floating-rate loan with a one-year extension with Ladder Capital. Arbor plans to complete significant upgrades to the property, including a full renovation of the lobby, meeting space, common areas and guest rooms, along with the addition of the new Marriott M Club lounge. Arbor Lodging Management manages the property. Located at 50 N. Martingale Rd., the 13-story Chicago Marriott Schaumburg comprises 183 double and 211 king guestrooms and four presidential suites. The HFF debt placement team consisted of senior director Jeff Bucaro and associate Nicole Aguiar, along with managing director Tony Malk and directors Matt Enright and Bryan Rosenberg.

DEALTRACKER

INDIANAPOLIS—Onward Investors, a national commercial real estate investment and development firm, has signed a lease with Angie's List, an online review platform and an operating business of ANGI Homeservices. Angie's List becomes the largest tenant of the newly renovated 12-story, 203,305-square-foot 130 E. Washington office tower. The tenant will occupy four floors, 9-12, totaling 65,620 square feet. “The incredible transformation of the 130 E. Washington office tower is redefining office space in downtown Indianapolis,” says Art Templin, director at Minneapolis-based Onward. “The lease with Angie's List demonstrates the robust interest from prospective tenants and retailers, which recognize the first-class amenities and strong customer base of this prominent location in the heart of the business center and historic district.” Ratio Architects restored much of the building's historic elegance and mid-century modern design, while at the same time provided creative office space that fosters collaboration and appeal to talent in technology, advertising, media and other creative market sectors.

CHAMPAIGN, IL—Marcus & Millichap just completed the sale of a 400-bed student housing community at 512 S. Third St. in Champaign, IL, located just west of the University of Illinois at Urbana-Champaign campus. This 140-unit asset sold for $29.25 million, approximately $73,000 per bed, or $208,929 per unit. Scott D. Harris, senior managing director of investments, and associate Bryan W. Kunze, of Marcus & Millichap's Chicago Oak Brook office, represented the seller, a local private developer. The team also procured the buyer, a Denver-based limited liability company seeking to gain a presence in the Champaign-Urbana market. “This transaction underscores the strong investor interest for private, near-campus student housing,” says Harris. “With enrollment expected to increase, 512 S. Third St. should be an outstanding core asset for the investment group.” Built in 2001, the community features three shared courtyards, as well as underground parking for 246 vehicles. The property is currently 95% leased for the 2018-19 school year.

CHICAGO—Jeff Blake, senior vice president with Paine/Wetzel TCN Worldwide, exclusively represented M&R Printing Equipment in the long-term year lease of the 161,000 square foot building at 450 Medinah Rd. in Roselle, IL. This lease extends M&R's occupancy into the entire 480,885 square foot two-building campus owned by AEW – and completes a five-transaction, $42.1 Million consolidation, involving the sale lease or sublease of over 921,000 square feet over the last 24 months. M&R, a 30-year-old manufacturer, consolidated two Chicago-area manufacturing locations and their corporate headquarters from Glen Ellyn and Niles. The transaction relocated 400 jobs to Roselle with an additional potential 200 jobs projected in the future. In addition to the latest expansion, Blake represented M&R in: its initial 14-year lease at 440 Medinah Rd.; the sale of their 106,000 square foot headquarters and manufacturing building in Glen Ellyn; the $6.3 million sale of 6200 Howard St. in Niles, IL; M&R's five-year sublease to Kellstrom Aerospace.

Instant Insights /

Middle Market Digest-The Midwest

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