Middle Market Digest-The Midwest

BY THE NUMBERS

CHICAGO—The I-80 submarket here had a strong second quarter of industrial activity, according to a new report from Newmark Knight Frank. As reported in GlobeSt.com, Amazon expanded its footprint here even further by leasing all of 16824 Enterprise Dr., a 438,000 square foot spec building in Crest Hill, IL. The e-commerce giant now occupies more than eight million square feet of space in the Chicagoland area. And with IDI Gazeley's completion of its Channahon Corporate Center, a 749,554 square foot speculative building at 23700 W.  Bluff Rd. in suburban Channahon, the submarket also had the largest industrial delivery of the quarter. Overall, developers delivered 1.2 million square feet of space in I-80 in the second quarter, and have another 1.2 million square feet under construction.

NEWS & NOTABLES

CHICAGO—LaSalle Investment Management has just appointed Usman Shakeel as its Americas chief compliance officer within its private equity business, effective June 2017. In this role, Shakeel will oversee the development and implementation of compliance programs in the Americas region and perform legal functions in support of LaSalle's investment advisory business. “LaSalle is committed to conducting business with the highest degree of ethics, integrity, and compliance, and Usman's appointment reflects our focus on maintaining a strong fiduciary mindset,” says David Doherty, LaSalle Americas general counsel. Shakeel joined LaSalle in April 2017 from the law firm Latham & Watkins LLP where he focused on investment management matters for private equity and hedge fund clients. Prior to that, he worked as a senior associate and consultant at Deloitte and FTI Consulting respectively.

DEALTRACKER

MOUNT PROSPECT, IL—Multifamily properties in the suburbs continue to attract buyers. Marcus & Millichap just helped complete the sale of Rand Park Apartments, a 42-unit apartment property located in suburban Mount Prospect, IL, according to Steven D. Weinstock, first vice president/regional manager/managing broker of the firm's Chicago Oak Brook office. Ryan D. Engle and Andrean Angelov, investment specialists in that office, had the exclusive listing to market the property on behalf of the seller, a private investor.  The buyer, 29th Street Capital, a limited liability company, was also secured by Engle and Angelov. This was the firm's fourth multifamily acquisition in the northwest suburbs. Rand Park Apartments is located at 1050-1110 North Wheeling Rd., and consists of three 14-unit apartment buildings.

BUILDING BLOCKS

MILWAUKEE—Walker & Dunlop, Inc. recently structured a $20 million loan for The Oaks of Shorewood, an age-restricted, luxury multifamily construction project in Shorewood, WI, an upscale Milwaukee suburb. Walker & Dunlop's Jeff Schmidt and Tim Cotter led the origination team, which arranged the three-year, interest-only loan with local lender, TCF Bank. Additional loan terms include a floating rate, 75% loan to value, and debt service coverage ratio of 1.37x. Sherman Associates will develop the project, and expects to deliver the $26 million project in 2018. Headquartered in Minneapolis, Sherman has completed over $2 billion in projects over the past 36 years. According to Ross Stiteley, senior developer at Sherman, “Walker & Dunlop has been an excellent partner in providing guidance in structuring the Shorewood development. Their support ensures that this project will provide an excellent housing option in the area.”

CHICAGO—Englewood Construction recently completed a 35,330-square-foot office build-out within Retail Properties of America's Schaumburg Towers in Schaumburg, IL. The space within the two-tower complex was part of the former headquarters of Zurich North America, which recently moved to a new headquarters nearby. Cincinnati-based Great American Insurance Group, which specializes in property and casualty insurance, relocated its Schaumburg location to this new two-floor space in June. “Transforming this office space within Schaumburg Towers was a terrific project for us,” says William Di Santo, president of Lemont, IL-based Englewood. “We've worked with RPA on many of their shopping center developments across the country. The trust that comes from that longstanding relationship, paired with our firm's diverse experience building out a variety of spaces, made Englewood a natural choice to be selected as the general contractor for this project.” The new office space includes 51 offices and 104 work stations. Chicago-based Funke Architects LLC was the project architect.

BY THE NUMBERS

CHICAGO—The I-80 submarket here had a strong second quarter of industrial activity, according to a new report from Newmark Knight Frank. As reported in GlobeSt.com, Amazon expanded its footprint here even further by leasing all of 16824 Enterprise Dr., a 438,000 square foot spec building in Crest Hill, IL. The e-commerce giant now occupies more than eight million square feet of space in the Chicagoland area. And with IDI Gazeley's completion of its Channahon Corporate Center, a 749,554 square foot speculative building at 23700 W.  Bluff Rd. in suburban Channahon, the submarket also had the largest industrial delivery of the quarter. Overall, developers delivered 1.2 million square feet of space in I-80 in the second quarter, and have another 1.2 million square feet under construction.

NEWS & NOTABLES

CHICAGO—LaSalle Investment Management has just appointed Usman Shakeel as its Americas chief compliance officer within its private equity business, effective June 2017. In this role, Shakeel will oversee the development and implementation of compliance programs in the Americas region and perform legal functions in support of LaSalle's investment advisory business. “LaSalle is committed to conducting business with the highest degree of ethics, integrity, and compliance, and Usman's appointment reflects our focus on maintaining a strong fiduciary mindset,” says David Doherty, LaSalle Americas general counsel. Shakeel joined LaSalle in April 2017 from the law firm Latham & Watkins LLP where he focused on investment management matters for private equity and hedge fund clients. Prior to that, he worked as a senior associate and consultant at Deloitte and FTI Consulting respectively.

DEALTRACKER

MOUNT PROSPECT, IL—Multifamily properties in the suburbs continue to attract buyers. Marcus & Millichap just helped complete the sale of Rand Park Apartments, a 42-unit apartment property located in suburban Mount Prospect, IL, according to Steven D. Weinstock, first vice president/regional manager/managing broker of the firm's Chicago Oak Brook office. Ryan D. Engle and Andrean Angelov, investment specialists in that office, had the exclusive listing to market the property on behalf of the seller, a private investor.  The buyer, 29th Street Capital, a limited liability company, was also secured by Engle and Angelov. This was the firm's fourth multifamily acquisition in the northwest suburbs. Rand Park Apartments is located at 1050-1110 North Wheeling Rd., and consists of three 14-unit apartment buildings.

BUILDING BLOCKS

MILWAUKEE—Walker & Dunlop, Inc. recently structured a $20 million loan for The Oaks of Shorewood, an age-restricted, luxury multifamily construction project in Shorewood, WI, an upscale Milwaukee suburb. Walker & Dunlop's Jeff Schmidt and Tim Cotter led the origination team, which arranged the three-year, interest-only loan with local lender, TCF Bank. Additional loan terms include a floating rate, 75% loan to value, and debt service coverage ratio of 1.37x. Sherman Associates will develop the project, and expects to deliver the $26 million project in 2018. Headquartered in Minneapolis, Sherman has completed over $2 billion in projects over the past 36 years. According to Ross Stiteley, senior developer at Sherman, “Walker & Dunlop has been an excellent partner in providing guidance in structuring the Shorewood development. Their support ensures that this project will provide an excellent housing option in the area.”

CHICAGO—Englewood Construction recently completed a 35,330-square-foot office build-out within Retail Properties of America's Schaumburg Towers in Schaumburg, IL. The space within the two-tower complex was part of the former headquarters of Zurich North America, which recently moved to a new headquarters nearby. Cincinnati-based Great American Insurance Group, which specializes in property and casualty insurance, relocated its Schaumburg location to this new two-floor space in June. “Transforming this office space within Schaumburg Towers was a terrific project for us,” says William Di Santo, president of Lemont, IL-based Englewood. “We've worked with RPA on many of their shopping center developments across the country. The trust that comes from that longstanding relationship, paired with our firm's diverse experience building out a variety of spaces, made Englewood a natural choice to be selected as the general contractor for this project.” The new office space includes 51 offices and 104 work stations. Chicago-based Funke Architects LLC was the project architect.