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Sterling Bay Companies Announces Partnership with IPDNA to Redevelop Chicago’s Historic Old Post Office

25 Jun 2014, 11:53 pm

By Gabriel Circiog, Associate Editor

Sterling Bay Companies has recently announced a strategic partnership with International Property Developers North America to redevelop Chicago’s historic Old Post Office.

“We are very excited to partner with IPDNA and serve as the development partner on such a high profile project,” says Andy Gloor, managing principal at Sterling Bay Companies.

The rezoning plans for the site were approved last July by the Chicago Plan Commission and the City Council. Sterling Bay and IPDNA will now embark on an approximately $500 million dollar first phase renovation project which will convert the vacant historic structure into a high-end, mixed-use development.

“Sterling Bay has had great success transforming large, underutilized properties into highly desirable office destinations. The firm has played a significant role in transforming Chicago’s West Loop, and we feel that their knowledge of the city and current market trends will lead us to initiate the first phase of one of the most notable projects in Chicago in the last 50 years,” says IPDNA Chairman Bill Davies.

Upon completion of the first phase, the Old Post Office will feature over 2.7 million square feet of office space and retail amenities. Later phases could include further retail, hotel, residential and leisure accommodation.

“There are very few, if any, properties today that can accommodate corporate users looking for large, open floor plates, and/or tech companies looking for creative, non-traditional work space. We feel we are in an excellent position to capitalize on this growing demand,” says Gloor.

In the last several years, Sterling Bay has undertaken numerous projects in the Near West Side, including the redevelopment of 111 North Canal, 400 South Jefferson and 1000 West Fulton.

Photo Courtesy of: www.ipdamerica.com



29th Street Capital Acquires MF Property; eBay to Expand Presence in Illinois

18 Jun 2014, 6:28 pm

By Gabriel Circiog, Associate Editor

Real estate investment and advisory firm 29th Street Capital recently announced it has closed on a multi-family property located in the Bridgeport neighborhood of Chicago.

Located on the city’s Near South Side, bounded by the South Branch of the Chicago River, Bridgeport is an ethnically diverse community that serves as an affordable, safe and family-friendly alternative to some of the more expensive nearby areas such as the South or West Loop neighborhoods. 29th Street Capital has announced plans to upgrade the interior and exterior of the building. Besides the building renovations, the firm also plans to create a large outdoor common patio in a previously unused space.

“The current residents are excited about the renovations, and the property is certainly going to be attractive both to renters and future buyers. Bridgeport is a gentrifying neighborhood with a rich history,” said Dan Howard, director of acquisitions.

29th Street Capital intends to seek other investment opportunities in the Chicagoland area. The firm will continue to pursue value-add deals which will offer its investors above market return.

In other local real estate news, The Chicago Business Journal reports that Braintree will move into 60,000 square feet of leased space in Chicago’s Merchandise Mart. The online and mobile payment platform has been acquired by eBay in 2013. eBay will also expand its presence in Illinois and will add 360 new jobs over the course of the next three years.

eBay has received a tax credit, under the state’s Economic Development for a Growing Economy, worth an estimated $12 million over 10 years from The Illinois Department of Commerce and Economic Opportunity. As per the EDGE agreement, eBay will invest $24 million in its Chicago expansion and pledges to create 216 full-time jobs by March 18, 2016, and another 144 by March 18, 2017.

Logo Courtesy of: www.29thstreetcapital.com



W.P. Carey Inc. Acquires $48 Million Distribution Facility

12 Jun 2014, 3:35 pm

By Gabriel Circiog, Associate Editor

W.P. Carey Inc. recently announced it has acquired an 824,624-square-foot distribution facility just outside of Chicago. The property was purchased from Exeter Property Group for a price of about $48 million.

Located in University Park, Ill., the facility is fully-leased to a subsidiary of The J.M. Smucker Company for a period of nine and a half years. The original 575,024-square-foot facility was built in 2008 and Exeter expanded it by 249,600 in 2013 to facilitate the distribution of coffee under the Folgers brand, which Smuckers acquired in 2008.

“This investment represented an opportunity to acquire a new Class-A logistics facility that serves as a primary distribution center for all of Smuckers’ varied products,” says Gino Sabatini, W. P. Carey Managing Director and Co-Head of Global Investments. “In addition, the transaction demonstrates W. P. Carey’s ability to work with a variety of sellers, including those whose investment time frame is shorter and who are predominantly IRR-focused. Because our strategy is to generate income and cash flow over the longer term, we are an attractive source of liquidity to owners, developers and investors with shorter term investment horizons, as was the case with the Exeter Property Group.”

Located in Chicago’s South Suburban submarket, the modern Class-A distribution center with 32-foot clear height is one of only six distribution centers operated by Smuckers in the U.S.

“We are thrilled to consummate this win-win transaction for Exeter and W. P. Carey. We acquired the property in a non-stabilized condition and utilized Exeter’s development and leasing skills to add value and high investment performance to Exeter’s institutional partners, and are pleased to have made an outstanding asset available to a high quality organization like W. P. Carey,” says Ward Fitzgerald, Exeter CEO.

Logo Courtesy of: www.wpcarey.com



New Loews Chicago Hotel Joins ALHI

5 Jun 2014, 1:02 am

By Gabriel Circiog, Associate Editor

Associated Luxury Hotels International recently expanded its portfolio with the addition of the new Loews Chicago Hotel which is scheduled to open in the beginning of 2015. ALHI will provide Global Sales Organization support, expertise and sales services for the new Chicago Hotel.

Situated in the center of Chicago, just one block north of the Chicago River and two blocks east of North Michigan Avenue, Loews Chicago Hotel will feature 400 guest rooms and suites in a highly visible 52-story tower. The hotel will offer 25,717 square feet of meeting space and outdoor function venues, including a board room with video conferencing capabilities, an 8,591-square-foot ballroom and a 4,740-square-foot junior ballroom. The hotel will be conveniently located within walking distance of numerous shopping and entertainment venues, and will be just 25 minutes away from Chicago O’Hare International Airport, and 30 minutes from Chicago Midway International Airport.

“The brand-new Loews Chicago Hotel will be a very welcomed addition to the amazing city of Chicago,” says ALHI CEO David Gabri. “Chicago continues to be one of the most highly sought-after destinations, and this will be an outstanding new hotel for meetings and programs. It complements our other exceptional Chicago hotel members and provides needed new space in the marketplace.”

Owned and operated by Loews Hotels & Resorts, the Loews Chicago Hotel will feature numerous on-site leisure options including a signature restaurant, retail shop, 75-foot indoor lap pool, a fitness center with state-of-the-art equipment and spa treatment rooms, and a rooftop lounge offering panoramic views of Chicago. The hotel is being developed by DRW Trading Group and designed by architectural firm Solomon Cordwell Buenz.

The Loews Chicago Hotel will become ALHI’s sixth member in Chicago, joining The Peninsula Chicago, The Langham Chicago, the Fairmont Chicago Millennium Park, the InterContinental Chicago Magnificent Mile and the Sofitel Chicago Water Tower. The Loews Chicago Hotel also becomes the newest member of the ALHI City Solutions Collection which features 61 ALHI Four- and Five-Diamond quality member hotels from numerous metropolitan areas around the world.

Renderings Courtesy of: www.scb.com



CVMC REIT Pays $211.7 Million for 250,000-Square-Foot Chicago Data Center

28 May 2014, 10:06 pm

By Gabriel Circiog, Associate Editor

Carter Validus Mission Critical REIT Inc. has acquired the Chicago Data Center Facility in the Northlake suburb of Chicago for $211.7 million. The REIT will provide new capital for the continued build out and expansion of the facility.

“This property represents our largest single portfolio acquisition to date and demonstrates our continuing commitment to the data center space,” says John Carter, CEO of CVMC REIT.

CVMC REIT acquired the data center from Ascent and according to the announced partnership agreement Ascent will continue to manage operations, engineering and construction at the site.

“Partnering with CVMC REIT allows Ascent to concentrate on building out our current portfolio of data center facilities and increase strategic investment in the development of future locations,” says Phil Horstmann, CEO of Ascent. “CVMC REIT’s commitment to the data center space is the perfect complement to our design, construction and operational capabilities, strengthening our ability to provide current and future customers with the innovative solutions and mission-critical services they demand.”

The Chicago Data Center, a 250,000-square-foot multi-tenant facility, features Ascent’s purpose-built Dynamic Data Center SuiteSM model and shared infrastructure colocation suites. The facility has been designed for a wide range of customers with diverse computing and power density requirements, accommodating critical power requirements from less than 1 MW up to 20 MW of gross power.

“Given this property’s desirable location and long term leases with high-quality tenants, we believe that the Chicago Data Center is a great addition to our growing portfolio of mission critical real estate assets,” says Michael Seton, president of Carter/Validus Advisors, the advisor to CVMC REIT. “We look forward to our relationship with Ascent, a recognized leader in the data center industry, who will continue to manage and develop the property for CVMC REIT.”

Logo Courtesy of: www.cvmissioncriticalreit.com







One Response to Chicago Archive

  1. Joselyn Overley

    Sep. 26, 2011 at 12:58 pm

    I just think it’s too hard for small businesses to try to purchase a property, renting or leasing is their only real option

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