PNC Expands to Largest Tenant at One North Franklin

CHICAGO-PNC Bank has expanded and extended its lease at One N. Franklin in the downtown, with the company planning to occupy about 116,000 square feet by 2013. The company, now the largest tenant in the 617,000-square-foot tower, will now occupy its offices until 2022.

In reward for the large lease, owner Tishman Speyer has agreed to rename the building as PNC Centre, which will be featured on the building and a sidewalk monument. Joseph Gregoire, regional president for the bank, said in a statement that Chicago is a major growth area for the company. The firm acquired National City Bank in October 2008 for $5.2 billion.  

A Tishman spokesman said the building is now 81% occupied, with the recent leases by law firms Walker Wilcox Matousek and Cremer Spina. He tells GlobeSt.com that the owner refuses to discuss any further aspects of the deal or details of the property. Todd Mintz and Andy Strand with UGL Equis represented the tenant in the PNC lease, and Ellen Meline May and Jon Cordell represented ownership.

CHICAGO-Marcus & Millichap Real Estate Investment Services arranged the sale of a 65-unit building in Chicago’s South Shore neighborhood, according to Gregory A. LaBerge, regional manager of the firm’s Chicago office. At closing the property sold at a price of $1.7 million or $25,461 per unit, with an economic occupancy of approximately 60 percent and needed approximately $200,000 of deferred capital expenses. Eric Bell, an SVP, represented the seller and buyer in this transaction. The seller acquired the whole loan, negotiated deed transfer, and then hired Bell and his team to exclusively market the asset. Built in 1968, and located on 7733 S. Shore Dr., the property consists of studios to two-bedroom/two-bathroom units.

SAUK VILLAGE, IL-Schwarz Supply Source Inc. has leased 372,580 square feet of industrial space at 21399 Torrence Ave. Jeff Janda and Jim Planey, both principals with Lee & Associates of Illinois LLC represented building ownership, Mirvac, and Steve Tick with Podolsky Northstar Realty Partners represented the tenant in the transaction.

WEST AURORA, IL-Dollar Tree recently signed a lease for 10,900 square feet at West Aurora Plaza. According to Richard Spinell, principal of Oakbrook Terrace-based Mid-America Asset Management Inc., the Virginia-based discount variety store plans to open here in June 2011, taking space formerly occupied by Aronson Furniture. Barb Kading and Katie Hennegan represented the landlord, West Aurora Plaza LLC, while Marc Rubin with Zifkin Realty Group represented the tenant.

CHICAGO-Reed Construction has completed 60,000 square feet of spec suites within 500 W. Madison on behalf of MB Real Estate. Reed was hired to build-out new spec suites on the 24th, 26th and 31st floors of the Citigroup Center, a 40-story building. The new spec suites, now available for lease, include executive offices and open work areas. Reed demolished the previous offices and constructed the entirely new suites which feature a new reception area with millwork crafted walls and desks.

CHICAGO-Essex Realty Group Inc. has arranged the sale of a 41-unit vintage corridor apartment building in the Rogers Park neighborhood. The property at 6818 N. Wayne consists of 39 studio and 2 one-bedroom units. Doug Imber was the broker on the transaction. The sale price was approximately $1.6 million.

CHICAGO- Fitness Formula Clubs has selected McShane Construction Co. for the 52,000-square-foot FFC West Loop fitness center assignment on the ground level and third floor of Presidential Towers at 10 S. Clinton St. The building is across from the Ogilvie Northwestern Transportation Center. The club was established in 1984 by founder Gale Landers. The club will feature a new street-level, three-story glass enclosed atrium entry located just off the intersection of Clinton and Madison streets. McShane will complete approximately 31,200 square feet of new construction and 20,800 square feet of extensive renovations throughout the first and third floors of the building.

CINCINNATI-Regency Centers has leased retail space here at Hyde Park Plaza to The Snooty Fox. An upscale consignment shop, the tenant has leased 5,000 square feet of retail space, bringing the center to 96% leased. It is slated to open for business this summer. Casey Ward of Midland Retail represented the tenant. The 396,861-square-foot shopping center is anchored by a 99,675-square-foot Kroger and a 69,592-square-foot Biggs alongside national retailers such as Michaels, Massage Envy, Panera Bread, Starbucks and Staples. The property is at 3760 Paxton Rd.

WORTHINGTON, OH-Worthington Square’s new owners, local resident Tom Carter and Texas-based Morris Capital Partners, announced that Insight Bank is under contract to purchase two buildings (Dalt’s and the adjacent colonial office building) that are part of the Worthington Square center. The agreement, subject to FDIC and state approval, calls for Insight to purchase the two out-parcel buildings and relocate the bank’s headquarters from Polaris in one building and open a community bank branch in the other. Insight Bank will purchase the 5,500 square foot former Dalt’s building and an adjacent 11,000 square foot, two-story office building. Plans call for converting the former Dalt’s building into a branch location with a drive-thru and moving the company’s headquarters to the adjacent office building. Combined, the locations will employ 50 people. Insight is working with the city on an incentive package in support of the bank’s purchase. Cassidy Turley heads up the leasing efforts for Worthington Square.

CLEVELAND-Premier Development Partners LLC has purchased 12117 Bennington Ave., a three-building industrial complex totaling about 200,173 square feet situated on 12.3 acres. The property was purchased from Premier Manufacturing Co. for $1.1 million. The transaction includes a year-leaseback. Once the leaseback term ends the property is slated to be redeveloped and tenanted.

INDIANAPOLIS-The Purdue Research Park at AmeriPlex-Indianapolis, a joint development by the Purdue Research Foundation and Holladay Properties, has signed a 22,000-square-foot lease with Advion BioServices Inc., a provider of bioanalytical research. The new laboratory will be housed in the Purdue Technology Center of Indianapolis, a class 'A' office building in the park. The Indiana Economic Development Corp. provided performance-based tax credits and training grants to help recruit Advion to Indiana.

AVON, IN-HFF announced today that it has closed the sale of Washington Quarters Apartments, a 256-unit, Class A multihousing community here. The seller was Crossmann Properties LLC, and St. Louis-based Thiemann Real Estate LLC bought the site for approximately $18 million. HFF also worked on behalf of the buyer/borrower to secure new debt on the property through Freddie Mac. Constructed in 1999 and maintaining an occupancy rate of more than 95 percent, the property has a mix of one-, two- and three-bedroom units averaging 956 square feet each. The property offers a clubhouse with a fitness room, billiards room and a swimming pool. Additional community amenities include a car wash station, sand volleyball court, basketball court and picnic area. The HFF team representing the seller included managing director John Sebree and senior managing director David Keller.

AUBURN HILLS, MI-Friedman Integrated Real Estate Solutions recently negotiated the sale of an 80,510-square-foot industrial building at 3720-3740 Lapeer Rd. The seller, Capstone Realty Inc., sold the property to Balt Properties LLC. Established in 1998, the company’s subsidiary PC Treasures specializes in providing consumer focused digital entertainment products, along with award winning, high quality software bundles. PC Treasures will be using this space as their new company headquarters and to expand their operations. Paul Feldman and Larry Schultz represented the seller in this transaction.

WIXOM, MI-Dingman Investments LLC purchased a 120,000-square-foot industrial building at 29706 West Tech Dr. in Wixom from Peoples State Bank. John Arthurs with Grubb & Ellis represented the buyer.

MINNEAPOLIS-Patrick Minea, SVP and Managing Director of NorthMarq Capital’s (NorthMarq) Minneapolis Regional office, arranged first mortgage financing in the amount of $10.9 million for three industrial buildings. Plymouth Tech IV & V are located at 5500 and 5010 Cheshire Ln. N. in Plymouth, MN and Burnsville Bluffs II is located at 11351 Rupp Dr. in Burnsville, MN. The properties contain a combined total of 172,094 square feet of industrial space. Financing was based on a seven-year term and was arranged for the borrower by NorthMarq through its relationship with Associated Bank.

OAKDALE, MN-S&H Partnership LP has sold Eastgate Apartments, a 64-unit property here. Abe Appert, Ted Abramson, Keith Collins, and Laura Hanneman with CB Richard Ellis represented the seller, which had owned Eastgate since 1979. Synergy Capital Corp., an affiliate of Eden Prairie, MN-based Reacor Ltd. purchased the property. Financing was procured through Fannie Mae Delegated Underwriting and Servicing financing, by

Joel Torborg with CBREs’ Debt and Equity Finance in Minneapolis.

ST. LOUIS-Don Weis with CB Richard Ellis represented tenant Bradford Schools Inc. in its renewal of 16,166 square feet of office space at 940 West Port Plaza in St. Louis from landlord US Reif Westport Plaza Fee LLC.

LEAWOOD, KS-David Farrell, SVP and managing director with NorthMarq Capital, arranged second mortgage financing of $2 million for Leawood at Stateline, a 254-unit multifamily complex located at 2140 W. 137th Terrace. Financing was based on an 8.5-year term with a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its seller-servicer relationship with Freddie Mac.