BY THE NUMBERS
LOUISVILLE—The Louisville industrial market posted its highest quarter of net absorption in market history, with a total of 2.65 million square feet of positive net absorption in the second quarter, according to a report from CBRE. “To put that absorption number in perspective, annual industrial absorption totaled 2.5 million square feet in 2017, and that was our fourth-largest year ever,” says Kevin Grove, senior vice president with CBRE. “We just eclipsed that total in one quarter. The amount of activity we are seeing right now is unprecedented.” This activity comes on the heels of a strong first quarter, which saw 1.65 million square feet of positive absorption, bringing year-to-date totals to 4.3 million square feet of absorption. All of this activity has driven the vacancy down, which now sits at 6.2%, well below the 7.2 percent that ended 2017. Much of this activity was achieved through several significant new leases and the completion of a 1,462,589-square-foot build-to-suit distribution warehouse in the Southside/Airport submarket.
NEWS & NOTABLES
CHICAGO—Holliday Fenoglio Fowler, LP recently secured $150 million in financing for The Wrigley Building, an iconic class A office and retail property totaling 478,920 square feet in Chicago. The HFF team worked on behalf of the borrower, Mansueto Properties LLC, to secure the 30-year, fixed-rate acquisition financing through a major life insurance company. Originally built between 1921 and 1924, the building is one of Chicago’s most iconic properties and is listed on the National Register of Historic Places. The two-tower property, which has connecting walkways on the 3rd and 14th floors, was completely renovated from 2012 to 2014 to create modern office and retail space, to further enhance the historic façade and provide tenants with best-in-class amenities, including a fitness center, tenant lounge and conference center. The 18-story North and 26-story South Tower are 90% leased overall to tenants including, American Medical Association, Leo Burnett, ABA, Nuveen, Walgreens and Perkins + Will. “We are committed to preserving the legacy of this building and ensuring that it remains a vital part of Chicago’s growth well into the future,” says Joe Mansueto of Mansueto Properties LLC. The HFF debt placement team representing the borrower consisted of managing director Stephen Skok.
DEALTRACKER
CHICAGO—Interra Realty, a Chicago-based commercial real estate investment services firm, just brokered three apartment building sales in the Chicago area totaling $10.1 million. The transactions include properties in the suburb of Evanston and North Side city neighborhoods. “These sales show the appetite for quality multifamily buildings in Chicago – not just in core areas, but near the furthest edge of the city as well as the suburbs,” says Jon Morgan, co-founder and managing principal of Interra. “Deconversions also remain popular, as they present investors an opportunity for a quick turnaround to capitalize on rent growth.” Interra brokered the $4.82 million deconversion sale of 222-240 Asbury Ave., a three-story, 34-unit courtyard multifamily building in Evanston. Joe Smazal, Interra managing partner, represented the buyer, an IL-based investor. Patrick Kennelly, Interra managing partner, and Paul Waterloo, Interra director, represented the seller, 222-240 Asbury Condominium Association. In addition, Interra helped sell a 23-unit brick apartment building in Chicago’s Avondale community at 3149 N. Springfield Ave. for $3.1 million, or an average of $134,782 per unit. Smazal represented the buyer and seller, both IL-based investors. Finally, in Chicago’s Rogers Park neighborhood, Interra helped sell a four-story, 19-unit multifamily building located at 7735-57 N. Sheridan Road for $2.18 million, or an average of $114,736 per unit. Smazal represented the buyer and seller, both IL-based investors.
BUILDING BLOCKS
MT. PROSPECT, IL—Chicago-based Dayton Street Partners plans to develop a 132,270-square-foot speculative distribution center at 1731 Wall St. in Mount Prospect, IL, for an investment platform sponsored by Black Creek Group, LLC. The company will break ground on the development later this month and plans to finish by spring 2019. The new state-of-the-art building will feature 32’clear ceiling height, up to 40 dock doors, two drive-in-doors and 176 parking spots. New buildings are tough to find in the O’Hare submarket, but this one will be located near O’Hare International Airport’s north cargo entrance, and Dayton Street expects to draw interest from a variety of users in the freight forwarding and service industries and/or users seeking modern infill properties for last-mile distribution and light assembly. “The proximity to the airport is obviously terrific,” says Michael Schack, Dayton Street principal. “With quick access to I-90, and within minutes of I-294 and I-355, the site provides an ideal central location from which to access the Chicago area.” This is the second project Dayton Street is developing for Black Creek in the O’Hare market. Early this spring, the firm announced plans to build a 116,000-square-foot speculative distribution center in Bensenville, IL.