Middle Market Digest-The Midwest

BY THE NUMBERS

INDIANAPOLIS—In the first half of 2016, investors bought up a number of value-add office properties in the Indianapolis area, but it was the purchase of stabilized assets in the second half of the year which pushed investment sales volume to a record level, according to Colliers International. Buyers spent $590 million on 21 properties in 2016, the firm found, a 130% year-over-year increase. The two biggest deals were Duke Realty Corp.’s sale of Parkwood Crossing and the disposition of Salesforce Tower and PNC Center by Equity Commonwealth. And, as reported in GlobeSt.com, big deals have continued in 2017.

NEWS & NOTABLES

CHICAGO—SVN | Chicago Commercial kicked off 2017 by adding five new brokers to their retail, office, and restaurant group. Michael Thanasouras, managing director, views the growth in the company as a reflection of the market. “In order to service the needs of our clients, we sought to add professionals in specific asset classes where we see continued growth.” Adam Napp, formerly of Jameson Commercial Real Estate, returns to SVN| Chicago Commercial this year as a vice president and brings expertise in retail leasing and investment sale. Napp has completed deals with qualified local, national, and international retailers like AutoZone, Dunkin Donuts, 7-Eleven, and ChiroOne. Also joining the firm is Michael Rudman, senior advisor, formerly of Marcus & Millichap, who brings over 25 years of experience, culminating in a transaction volume in excess of $100MM. Rudman will continue to focus on office and industrial sales in the northern suburbs of Chicago. John Guill transfers over from the SVN Landmark office and joins SVN | Chicago Commercial as an advisor working on office leasing and sales in the western suburbs. Scott Reinish joins the restaurant group as a senior advisor. Reinish, formerly of Kudan Group, brings a wealth of experience in restaurant/bar sales and leases in Chicago and surrounding suburbs. Tim Anderson, associate advisor, also joins the restaurant group.

DEALTRACKER

EAST MOLINE, IL—Jeffrey Miller, senior managing director in Newmark Grubb Knight Frank’s Chicago office, recently arranged the successful purchase of 500 36^th St. in East Moline, IL, on behalf of an undisclosed buyer, a regional repeat client of NGKF. The Quad Cities area manufacturing facility, a 95,000-square-foot facility comprising of 87,320 square feet of warehouse space, along with 7,680 square feet of office space, was valued at more than $5 million. The property features eight dock doors, two drive-in doors and 16’ ceilings. JMF Co., a wholly subsidiary of Zheijiang Hailiang Co., LTD, leases 100% of the facility. Miller and attorney Ben Yeggy of Gomez May LLP represented the buyer in the acquisition, and Chris Wilkins of NAI Ruhl Commercial Co. and attorney Dick Davidson of Lane & Waterman LLP represented the seller, Bears in Bettendorf, LC. “The client is an active investor in investment real estate,” says Miller. “Our NGKF research identified this facility due to its centralized location and long-term tenancy. It was also a great investment opportunity based on its investment return and its 100% occupancy by a dynamic and growing company.”

CHICAGO—Andrew Davidson, Jay Beadle, and David Burkards of MB Real Estate’s corporate services and tenant advisory division have completed an 80,000 square foot lease on behalf of First Midwest Bancorp, Inc. The company will move its headquarters from suburban Itasca to Triangle Plaza, located at 8750 West Bryn Mawr Ave. in Chicago’s O’Hare corridor. Building ownership was represented by NGKF. According to First Midwest’s president and chief executive officer, Michael L. Scudder, the firm wanted a more central location, and an office space that would improve internal collaboration, help retain and attract top talent, and accommodate the bank’s growth strategies. Although many firms have recently decided to move from the suburbs to the CBD, Davidson says First Midwest needed a location that was convenient for both suburban and downtown employees. Furthermore, Triangle Plaza provides the opportunity for signage along I-90.