Acquisition of NAI Global by C-III Capital Partners is Complete

January 25, 2012

Local affiliate NAI Hiffman to benefit from acquisition

Chicago, Illinois, January 25, 2012 — NAI Global, the largest network of independent commercial real estate firms worldwide, announced today that its previously reported acquisition by C-III Capital Partners LLC (C-III) has been completed. The transaction will help create a leading fully integrated commercial property services company that will operate in markets around the world. Locally-based NAI Hiffman, is the Chicago representative of NAI Global.

C-III is a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, title services and multifamily property management. C-III is led by CEO Andrew L. Farkas, who founded and was Chairman and CEO of Insignia Financial Group, Inc. (NYSE:IFS). Its principal place of business is located in Irving, Texas, and it has additional offices in New York, New York; Greenville, South Carolina; McLean, Virginia; Chicago, Illinois; Dallas, Texas and Nashville, Tennessee.

NAI Global will continue to operate as a separate company under its current management. C-III will accelerate NAI Global’s growth by exploring business development opportunities in strategic locations, including New York, London, Singapore and other primary global business centers. It will also invest in the growth of the corporate solutions and capital markets offering, expanding asset/property management, project/facilities management and valuation services worldwide.

“The completion of this transaction represents a significant step forward in our strategy to build a fully diversified commercial real estate services company,” said Mr. Farkas. “With the NAI Global acquisition, we are gaining the world’s leading commercial real estate network and a tremendous foundation for future growth. As we begin a new year, we look forward to partnering with the NAI team to provide enhanced services to the commercial and institutional real estate markets they serve as well as continuing to take advantage of other opportunities to grow and expand our platform.”

“We are thrilled to be joining forces with C-III and excited about the opportunity to deliver an even broader range of services to our members and add greater value to our collective corporate and investment clients. We look forward to tapping into their extensive resources and expertise to assist all of our clients in strategically optimizing their commercial real estate assets,” said Jeffrey M. Finn, President and CEO of NAI Global.

NAI Hiffman CEO Dave Petersen said he expects the benefits of the transaction will translate to new real estate assignments for the company’s local office and will create added opportunities for existing clients and shareholders.

“This is an exciting chance to expand upon our existing philosophy of client service to increase the advisory and operational deliverables available to tenants and landlords,” Petersen said. “The best aspect of this transaction is that its greatest value will be seen at the ground level in the form of property management, leasing and investment sales opportunities.”

Founded in 1977 by Gerald Finn, NAI Global has grown from covering 15 countries in 1999 to offering a full, collaborative platform of services to clients in over 350 offices in 55 countries, with over 300 million square feet of commercial space under management.

C-III commenced operations with the purchase of Centerline Capital Group’s institutional real estate debt fund management and commercial mortgage loan servicing businesses in March 2010. Since that time, C-III has successfully launched mortgage origination, investment sales and title insurance businesses, and expanded its principal investment, loan origination, fund management and primary and special loan servicing businesses, including acquiring the special servicing and CDO management businesses of JER Partners in August 2011.

Financial terms of the NAI Global acquisition were not disclosed.

NAI Global (www.naiglobal.com) is the largest network of independent commercial real estate firms worldwide, comprised of over 5,000 professionals in 55 countries with more than 350 offices. NAI advisors work in tandem with our global management team to ensure our clients strategically optimize their real estate assets. NAI offices complete over $45 billion in combined transactions annually and manage 300+ million square feet of commercial space.

NAI Hiffman (www.hiffman.com) is the Chicago area representative for NAI Global, the world’s largest managed network of real estate service providers, comprising 5,000 brokers in 325 offices serving over 50 countries throughout the world. NAI Hiffman’s professionals represent clients in all aspects of commercial real estate and currently manage a 58+ million SF portfolio of over 250 commercial properties throughout metropolitan Chicago and Northwest Indiana.

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

Oak Brook panel tackles signs

January 18, 2012

As seen The Doings Oak Brook

Oak Brook’s newly revived commercial revitalization committee kicked off their first meeting in over three years this week with a review of the past while attempting to set goals for the future of the village.

Former Trustee Jeff Kennedy chaired the committee, which met as a committee of the whole due to a lack of quorum, with six of the 10 members attending.

The group discussed the village’s original commercial revitalization plan, which included new signs to help visitors locate businesses in the not-so-visible areas of Oak Brook. Examples included Jorie Boulevard, and Commerce and Windsor drives.

Initial plans for signs included stone monuments around 10 feet tall with the various business names on them. The size and cost of such a plan was scrutinized.

“It’s a slippery slope,” said Oakbrook Center general manager Chuck Fleming. “The more (names) you put on a sign the harder it’s going to be to read.

“Some offices have 20-25 tenants. Who’s going to be on there and who’s not? It’s going to be quite difficult.”

The village estimated the larger signs to cost around $75,000 each, but was hopeful businesses would help offset the cost. With the questions brought up, the committee felt the village would have a tough time being reimbursed for its investment.

Jeff Shay of Jones Lang LaSalle said the signs were “advertising in the form of directional signage,” and they could create conflicts with current signs and monuments placed by existing businesses.

Community Development Director Bob Kallien presented the opportunity site analysis which chose 20-25 sites within the village as having potential to add development, be redeveloped or have new development.

Seven consultant proposals were submitted to study only three or four of the areas in the hope that when the economy improves they’d be ready for improvements, but some felt it may be an unnecessary task for the village.

“I think smart developers already have put Xs on properties,” said Dennis Hiffman of NAI Hiffman. “I think when the market tells them to (the developers) will come to the village.”

Village President Gopal Lalmalani felt the meeting was productive and stressed the commercial revitalization and streetscape committee continue to beautify the village to set Oak Brook apart from other communities within DuPage County.

“Twenty-Second Street is our Michigan Avenue,” Lalmalani said. “We have to make it as beautiful as we can.”

Lalmalani also brought up the idea of a downtown area for Oak Brook, which, he says, comes up “every time discussions like this take place.”

Fleming felt a downtown would need a train station or commuter hub to work, but Lalmalani said he’s looking for more of a gathering place for residents, not so much a retail center.

“We can make it something unique and exciting for families to get together,” Lalmalani said. “It may not happen in four years, but it may happen in the next eight to 12 years. It is what residents want and we are here to serve the residents.”

Posted by NAI Hiffman | Filed Under General Business

Darwin Realty & Development Corp. Announces Deals

January 17, 2012

As seen in RE Journals

Darwin Realty & Development Corp. has announced more than 243,000 square feet in sale transactions. The transactions include:

27,000 square feet at 601 Carboy Road, Mt. Prospect, to 601 Carboy LLC. Richard Daly, SIOR, principal/president, and Dan Prendergast of Darwin Realty & Development represented the Buyer, 601 Carboy LLC, and Steve Sullivan of NAI Hiffman represented the seller. The building has two drive-in-doors and a 14-foot clear ceiling height.

10,000 square feet at 278 Park Ave., Lake Villa, to SAI Infusion Technologies. Dan Prendergast of Darwin Realty & Development represented the buyer, SAI Infusion, and Steve Sullivan of NAI Hiffman represented the seller. The building features one drive-in-door and one exterior dock.

Posted by NAI Hiffman | Filed Under Industrial

Final preparations for 10th Annual Forecast; industrial leaders on tap for Jan. 24 event

January 10, 2012

As seen in RE Journals

The final preparations are being made by the event planners for the 10^th Annual Commercial Real Estate Forecast Event produced by Illinois Real Estate Journal and the Real Estate Publishing Group.

Following an hour plus for registration and networking, the Jan. 24 forecast event will kick off at 8:10 a.m. with a fireside chat between Chicago real estate legend Sam Zell, chairman of Equity Group Investments, and Debra Cafaro, chief executive officer of Ventas Inc.

During a 45-minute discussion, Zell and Cafaro are expected to cover a broad range of topics, from how the general economic, capital markets and political climates impact real estate to markets and property types Zell believes are emerging and/or returning.

“Sam Zell is one of the most colorful and sought after speakers who provides great insights into the world of commercial real estate,” said Michael Millar, the event organizer from Real Estate Communications Group. “We look forward to his perspective on the issues that will be most impactful in 2012 and beyond.”

The Annual Forecast Event is being held at the Marriott Chicago Downtown, 540 N. Michigan Ave. Registration is $99, $129 at the door, and can be completed online at www.rejournals.com/conferences or over the phone at 312-644-2804.

Among those who will be adding an industrial perspective, either on the general “state of the market” session or an industrial market breakout session include:

Len Caldeira, SIOR, Jones Lang LaSalle;
Steve Schnur, Duke Realty;
Don Schoenheider, Liberty Property Trust;
Chris Curtis, SIOR, Nugent Curtis Real Estate LLC;
Jim Dieter, SIOR, Cushman & Wakefield;
John Picchiotti, ProLogis;
Steve Connolly, NAI Hiffman; and
John Coleman, Newmark Knight Frank Epic.

Following the fireside chat and three general session panels, attendees will have the opportunity to participate in breakout sessions focused on market specialization. Breakouts are being held on the suburban and downtown office, industrial, investment, retail and multi-family markets. In total there will be nearly 50 industry professionals taking part as speakers or moderators of the sessions.

Posted by NAI Hiffman | Filed Under General Business

The Globe St Deal Wrap

January 8, 2012

As seen in Globe St

SCHAUMBURG, IL- KBS Real Estate Investment Trust, based in Newport Beach, CA, has finalized two lease agreements for 32,207 square feet at its Woodfield Preserve Office Center complex here. KBS acquired the 647,216-square-foot property in 2007. Hitachi High Technologies America, a developer of electron microscopy solutions, renewed its 26,595-square-foot lease on the fifth floor of Woodfield Preserve I. Chad Freese and Victor Toft with CBRE in Chicago represented Hitachi in the transaction. Nippon Life Insurance of America, a subsidiary of Japan-based Nippon Life Insurance Co., signed a new lease for 5,612 square feet at Woodfield Preserve II. Nippon Life was represented by Dan O’Neill with NAI Hiffman and Tak O’Hara with White Cube. Mark Smith, Rob Graham and Allison Reynolds with CBRE’s Schaumburg’s office represented KBS in the two transactions.

WHEELING, IL- Ellen Steinbrecher and CJ Kuehl, both principals with Lee & Associates of Illinois LLC represented National Louis University in its lease of 11,199 square feet of office space in the Capitol Commerce Center here. Jason Streepy with NAI Hiffman represented building ownership in the transaction.

ROMEOVILLE, IL- Distribution 2000 Inc., a third-party public warehouse and distribution firm offering food grade storage, has leased 236,000 square feet at 1165 Crossroads Parkway here. The new lease is a relocation and consolidation from two locations, with an increase in total square footage by 61,000 square feet. Sally Macoicz, a senior director with Cushman & Wakefield of Illinois Inc., represented the tenant in the five-year lease. Dan Leahy and Adam Roth with NAI Hiffman represented the landlord, TA Associates. The 471,500-square-foot industrial warehouse building was built in 2004.

Posted by NAI Hiffman | Filed Under Industrial, Office

U.S. Cellular leases space at former HSBC complex

January 6, 2012

As seen in Chicago Real Estate Daily

By: Dave Matthews January 06, 2012

(Crain’s) — U.S. Cellular Corp. leased 40,000 square feet in a vacant former HSBC PLC complex, a small boost for the office market near O’Hare International Airport that is still hurting from the recession.

The cell phone service provider signed a four-year lease in the Oakwood Commerce Centre, a 238,202-square-foot development fully occupied by HSBC until June, when the North American unit of the financial services giant vacated the property.

Built in 1985, the complex is along North Wood Dale Road between Thorndale and Foster avenues in Wood Dale, just west of O’Hare.

“We want to do what HSBC did before: We’re going to be a high-density, processing, call center-type building,” says Jack Reardon, a senior vice-president with real estate firm NAI Hiffman, which handles Oakwood’s leasing. “In a challenging market, we just got our first deal done.”

In the slow suburban office market, even small deals are coveted.

“There has not been a lot of velocity in the market . . . although we’re starting to see that change,” says Mark Hamilton, a partner in Itasca-based developer Hamilton Partners, which attempted to lure U.S. Cellular to its Meadows Office Park in west suburban Addison.

“With big companies, there’s always kind of a chance they stay longer than they say they will,” Mr. Hamilton notes.

The four-building Oakwood complex is owned by Hartford, Conn.-based UBS Realty Investors LLC, which paid about $51.5 million for the buildings in 2001, property records show.

UBS had no debt on Oakwood and can afford to be patient as it leases up the property, Mr. Reardon says.

“There’s no clock ticking,” he says.

In a cost-cutting move, London-based HSBC in 2008 consolidated five suburban offices into a 540,000-square-foot complex in north suburban Mettawa developed by Hamilton Partners.

U.S. Cellular plans to use the complex to house vendors working on a “long-term project” that the Chicago-based company declines to identify, a spokesman says in an email.

“We made the strategic business decision to relocate some of their associates to be closer to our (information systems center in Bensenville) and (Chicago) regional headquarters,” he says.

Posted by NAI Hiffman | Filed Under Industrial