Grosvenor Fund Finances Failed Condo Redo

HINSDALE, IL-Inland Opportunity Fund LLC, a division of Oak Brook, IL-based Inland Real Estate Group of Cos. Inc., has gained $9.3 million in financing to acquire and develop a 121-unit condominium project here. The financing came from a fund sponsored by Philadelphia-based Grosvenor Investment Management and Cleveland-based KeyCorp Fund Management Group.

The $65 million Hamptons of Hinsdale project was proposed in 2008, but former owner Wexford Development became wrapped up in an alleged Ponzi scheme investigation by federal authorities. Inland, financed by the Grosvenor Residential Investment Partners I LP fund, will now take over the project on the site of a former 22-building apartment complex.

The Grosvenor fund is a private partnership that invests in “for-sale” residential projects and associated debt across the country, with this deal being the first in the Chicago area. This transaction is the 15^th investment for the $100 million fund, which is now 77% invested, according to a company spokeswoman.

CHICAGO-Locally based Quantum Real Estate Advisors Inc. has brokered the sale of six single-tenant net-leased assets totaling a value of approximately $7 million. Included in the sale were three Family Dollar stores, a Dollar General store, an Advance Auto Parts and a former Blockbuster Video. The properties are in Texas, Michigan and North Carolina. The properties were sold on behalf of four separate clients to multiple investors. Cap rates for the subject properties ranged from 7.60%-8.85%. Listing agent Jordan Kaufman said there is a premium that has been placed on those assets that possess key real estate fundamentals, such as infill locations in dense markets with high barriers to entry, assets with-or-at below market rents and properties that lend to a number of alternative uses.

WESTCHESTER, IL-Healthcare Financial Management Association has signed a long-term extension of its lease of 22,806 square feet of space at the Westbrook Corporate Center here.

Jones Lang LaSalle VP Karla Harmon completed the transaction on behalf of the building’s owners, Arden Realty Inc. Joe Dvorak with Colliers International represented HFMA, which has been a tenant at the complex since 1988. The center is comprised of five 10-story office towers totaling 1.2 million square feet off of the Tri-State Tollway at 22nd Street. The complex is approximately 79% leased. The association is a membership organization for healthcare financial management executives and leaders with more than 35,000 members.

CHICAGO-CB Richard Ellis has been named by American Realty Advisors as the leasing agent for 150 N. Wacker Dr. here. CBRE will assume the leasing for the building effective with Ron Lakin and Rachel Waymire. Built in 1970 and renovated in 2001, the property is a 31-story,  243,616-square-foot office building.

CHICAGO-ACG Equities Inc. will spend $3 million to renovate Belden Centre, a mixed-use commercial property in Chicago’s Lincoln Park neighborhood, which the company acquired last month in a venture with Purinton Development LLC. Renovations will begin immediately on the building exterior and will subsequently focus on the 51,000 square feet of retail and office space that occupies the first two floors of the seven-story Belden Centre at 2301-15 N. Clark Street. The residential condominiums that occupy the building’s upper floors are not part of the ACG Equities acquisition. The transaction includes 76 off-street parking spaces, half in a garage under the building. Peter Graham with CB Richard Ellis will serve as leasing agent for the property. ACG expects current tenants, including realty brokerage Prudential-Rubloff and an H&R Block office, to remain in the building, which once housed Tower Records, Limited Express and Rinalli’s restaurant. Current occupancy is 21%. ACG said the purchase is the latest in a planned series of acquisitions in recovering markets. The company’s strategy is to create ventures with local market partners to acquire and revive distressed commercial properties.

TINLEY PARK, IL-Ryan Companies US Inc. has announced the construction of a 50,000-square-foot expansion of Brookside Marketplace, a 500,000-square-foot community shopping center here. The company started construction of the new space in April and expects to be completed with the addition in September. The space will be leased to three different retailers:  HomeGoods, which will occupy approximately 26,500 square feet; Old Navy, which is leasing approximately 15,500 square feet; and Five Below, which is leasing approximately 7,800 square feet. The property, originally developed in 2005, is a community shopping center anchored by a 176,000-square-foot SuperTarget store. Located on 117 acres at 191st Street and Harlem Avenue, the other tenants of the center include Best Buy, Dick’s Sporting Goods, Michaels, PetSmart, Ulta3, Kohl’s and OfficeMax. With this new construction, three parcels remain available for development, including outlots that can accommodate a 6,400-square-foot restaurant or retailer and a 15,000-square-foot retailer. One larger parcel, which ultimately could accommodate a 25,000-square-foot retailer, can be subdivided. Steve Baer and Gary Greenfield with Metro Commercial represented Ryan in the lease transactions with HomeGoods, Old Navy and Five Below. The pair also represented HomeGoods. Skip Martin with Highview Partners Real Estate Co. represented Old Navy, and Jon Reese with Great Street Realty Partners represented Five Below.

INDIANAPOLIS-SerVaas Laboratories, the locally based maker of the Bar Keepers Friend line of consumer cleaning products, has completed its move into a recently purchased 65,000-square-foot industrial building on the city’s Northwest Side. Jones Lang LaSalle SVP Jake Sturman located the building for SerVaas Labs, and facilitated the building’s purchase. Manufacturing for the company has been based in a 40,000-square-foot building at 1200 Waterway Blvd. since 1972. The new facility is located at 5240 Walt Pl. SerVaas’ former location was sold to Indiana University. The entire transaction was effectuated through a 1031 exchange with Andy Gustafson with Atlas 1031 Exchange serving as qualified intermediary.

STILLWATER, MN-Airlake Development Inc. has started construction on a 15,000-square-foot medical office building, the first build-to-suit project in the northeast suburbs of the Twin Cities to start construction in 2011. The building, at 2900 Curve Crest Blvd., will be 100% occupied by HealthEast, which will open its Stillwater Clinic this fall. The NorthMarq team of Mark Houge, Tom Stella and Rob Davis represented HealthEast in the transaction. The building is the first phase of a two-building complex at the intersection of Highway 36 and Highway 5. The 12,000-square-foot second phase will also focus primarily on medical office tenants offering fiber optics cabling for economical and secure data transmission, separate exterior entrances and convenient patient parking near the doorways. HealthEast is the largest health care provider in the Twin Cities East Metro.

GRAND RAPIDS, MI-Cohen Financial is teaming with the Colliers International West Michigan office. The relationship gives Colliers’ Michigan-based commercial real estate clients a network of capital resources outside of the local and regional banks that have historically served the areas borrowers. Cathy Bronkema, partner and EVP of Cohen Financial, is leading the relationship for the firm. The relationship’s first assignment recently closed, with the arrangement of a total of $4.8 million, renovation and mini-perm loan for the Flat Iron building. This 31,139 square-foot historic office building is in the Ledyard Block Historic District in the downtown here. The four-story property consists of street-level retail space and three floors of redesigned, functional office space fully leased to law firm Smith Haughey Rice & Roegge. The borrower, Locus Development, is a locally based commercial real estate developer focused on revitalizing and redeveloping unique urban properties in Grand Rapids.

ST. LOUIS-Despite extensive damage from the tornado that hit Lambert-St. Louis International Airport in April, Kwame Building Group is continuing work on Phase II of the $70 million interior renovation known as the Airport Experience Program. Kwame is providing program management, design and construction procurement, and design and construction management services for the Airport Experience Program.

SAINT PETERS, MO-True Value Corp. leased 14,144-square feet of retail space for 15 years at 915 Jungermann Rd. here from Gundaker Commercial Group Inc. John McDonald with Gundaker represented the landlord in this transaction.

GERMANTOWN, WI-Plastics Components Inc. recently purchased a 13,787-square-foot industrial building on Bunsen Drive in the Germantown Industrial Park here. James Young and Maximilian Yokosh, brokers with Milwaukee-based Cassidy Turley Barry, represented the seller, Construction Concepts in the transaction, which occurred just weeks after the property was put on the market. Plastics Components, which already owns to other buildings within the Germantown Industrial Park, will expand its operations into this facility. Construction Concepts plans to relocate.

SIOUX FALLS, SD-Locally based Summit Hotel Properties Inc. recently closed on four acquisitions. The properties include a 121-room Staybridge Suites in Cherry Creek, CO for $83,000 per key, a 143-room Holiday Inn in Atlanta for $49,000 per key, a 91-suite Homewood Suites in Jackson-Ridgeland, MS for $80,000 per key and a 122-room Hilton Garden Inn in Atlanta for $115,000 per key.