Leasing

June 29, 2010

Door Connection completed a lease renewal for 14k SF at 1400 Norwood Ave. in Itasca. Podolsky Northstar CORFAC International repped the landlord, KTR Illinois. Podolsky’s Adam Tarantur and Randy Podolsky represented KTR. NAI Hiffman’s Larry Much and Kelly Disser repped the tenant. Barack Ferrazzano’s Dapo Adedeji provided legal services for KTR Illinois.

Source: Bisnow.com

Posted by NAI Hiffman | Filed Under General Business, Industrial, Lease, Media Coverage

Gulf Oil Spill Not Likely to Impact Commercial Real Estate

June 22, 2010

Gulf Coast Commercial Property Experts See No Long-Term Effect on Supply or Demand

PRINCETON, NJ, June 22, 2010 – The BP oil spill that has continued for more than 60 days has caused widespread environmental damage and is already affecting shipping, fishing and tourism, but commercial property experts in the region do not believe the accident will have a significant impact on Gulf Coast real estate markets, according to a special report released today by NAI Global.

Commercial real estate leaders from markets bordering the Gulf of Mexico and renowned economist Dr. Peter Linneman weigh in on how experts are quantifying the impact of the oil spill, and provide regional on-the-ground observations of how property markets are faring today. While some markets may see a temporary up-tick resulting from the cleanup efforts, most do not expect any long-term impact, positive or negative, on supply or demand, the primary factors influencing rental rates and property values.

NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, has a presence in markets all along the Gulf Coast, including New Orleans, LA, Pensacola, FL, Mobile, AL, Fort Myers, FL, and Houston, TX.

While there is no questioning the potential environmental impact, Dr. Linneman, NAI Global’s Chief Economist, suggests that political activists are inflating the economic impact of the oil spill, and that the impact on the Gulf Coast’s economy in general and real estate in particular will probably be minimal.

“This spill is the most overhyped problem we’ve seen in the past six months,” said Dr. Linneman. “The overall economic impact to the nation will be trivial.”

The full report is available for free download at www.naiglobal.com under Publications/Articles & White Papers, or by clicking here.

Posted by NAI Hiffman | Filed Under NAI Global, Press Releases

93,231-Square-Foot Office Building Sells For $4.1 Million

June 17, 2010

LIBERTYVILLE, ILL. — Lake County Forest Preserve District has acquired an office building, which is located along Winchester Road in Libertyville. The three-story, 93,231-square-foot facility sold for $4.1 million. Lake County plans to consolidate eight offices into the property and relocate the Lake County Discovery Museum to the facility. The planned office consolidation will take place within the next 12 months followed by the museum relocation in 2 to 3 years. Michael Adams and Darryl Silverman of Colliers Bennett & Kahnweiler represented the buyer; Michael Flynn, Jason Wurtz and Art Burrows of NAI Hiffman represented the seller, PNC MAC Pine Meadows III, in the transaction.

Source: REBusinessOnline.com

Posted by NAI Hiffman | Filed Under General Business, Office, Sale

Duke brings Aurora facility to 100 percent occupancy

June 16, 2010

Source: Rejournals.com

Duke Realty Corporation’s Chicago office has fully leased its 188,700-square foot industrial building at 880 N. Enterprise Street in Meridian Business Center in Aurora, Ill., by signing a new client and renewing two existing customers.

Susan Bergdoll, vice president of leasing for Duke Realty in Chicago, and Nick Eboli and Jeff Janda with Lee & Associates worked closely with the three customers to ensure each of their business needs were met both in terms of space requirements and location in the building.

In a new lease, ACM Technologies, a distributor of copiers, printers and facsimiles, leased 21,788 square feet. John Whitehead and Mark Moran with NAI Hiffman represented the client.

Renewing their leases and adjusting their location in the building were FGS/Demand One and Hanchett Paper Company. FGS/Demand One, a company specializing in printing and fulfillment, leased 82,762 square feet. They were represented in their renewal by Mike Nelligan of Jones Lang LaSalle. Hanchett Paper Company, a supplier of paper packaging materials, leased 28,050 square feet.

The remaining 56,100 in the building is occupied by Velux-America.

Posted by NAI Hiffman | Filed Under General Business, Lease, Office

Packaging firm expands northwest suburban office

June 3, 2010

Packaging company Tegrant Corp. expanded its offices by about a third, to 44,153 square feet, as part of a renewal of its lease at 3930 Venture Drive, Arlington Heights. Tegrant will take 2,800 additional square feet right away and another 8,700 square feet in November, says Michael Flynn, an executive vice-president at Oakbrook Terrace-based NAI Hiffman, which represented the building owner, Oakbrook Terrace-based real estate investment firm Premises Management. Tegrant is increasing its space in part to accommodate the company’s Protexic division, which makes protective packaging and moved from Pennsylvania. The building is east of State Route 53 between Lake Cook and Dundee roads. Grubb & Ellis Co. represented DeKalb-based Tegrant.

Source: ChicagoRealEstateDaily.com

Posted by NAI Hiffman | Filed Under General Business, Lease, Office

Boston firm buys loan at big discount, wins office complex

June 2, 2010

By Todd J. Behme,

(Crain’s) — A Boston real estate investment firm has gained control of a two-building Oak Brook office complex after buying the loan for about half its $36-million balance.

Davis Cos. obtained 1420 and 1520 Kensington Road, known as the Crossings, through a deed-in-lieu of foreclosure in late March from Alliance Commercial Partners LLC. Davis’ price for the note amounts to less than half of the $41.9 million Colorado-based Alliance paid for the property four years ago.

Davis CEO Jonathan C. Davis declines to specify exactly what his firm paid for the note but says it was somewhat less than the “roughly $20 million” that Commercial Mortgage Alert reported in January was offered by the then-unidentified winning bidder. The loan was originally made by CBRE Realty Finance in 2006 and subsequently became part of a collateralized debt obligation (CDO).

Mr. Davis says his firm, which owns mainly office and medical/life science properties in Massachusetts and Connecticut, plans to be “aggressive” on lease rates and tenant buildout allowances at the 295,000-square-foot complex, which is about a third vacant. This is Davis’ first local acquisition.

Such cut-rate deals for older, Class B buildings will put pressure on rival landlords in the western suburbs who will have a hard time competing because they can’t offer such attractive economics, says James Adler, an executive vice-president with Oakbrook Terrace-based NAI Hiffman, who represents landlords and tenants.

Mr. Adler says several Class B buildings are on the market in the area, particularly in Lisle and Naperville, and he expects those will sell in the mid-$60s per square foot range — roughly what the Crossings fetched. That means the sweet deals tenants have been seeking are more likely to materialize because those owners have a lower cost basis. Read more

Posted by NAI Hiffman | Filed Under General Business