• Top Sales

    A prominent industrial deal handled by JLL and a multifamily disposition arranged by Eastdil Secured are among the top third quarter property sales recognized by CoStar.

    As big ticket items involving sizable investments, commercial property transactions often have a wider impact within the local community. CoStar recognized the largest deals completed during the third quarter in their respective markets.

    Here are the Chicago property sales selected as the third quarter 2022 winners of the CoStar Power Broker Quarterly Deal Awards:

    TOP SALE: Portfolio of 14 Properties

    Sale Price: $380,000,000

    Sale Date: July 26, 2022

    Size: 3,825,589 SF

    Buyer: EQT Exeter, Westchester, IL

    Seller: UBS AG, Zürich, ZUR and CenterPoint Properties, Oak Brook, IL

    Brokers Involved: John Huguenard and Kurt Sarbaugh of JLL represented the seller.

    Deal Commentary: Eight large warehouses north of Chicago sold for $380 million in July, adding to a record pace of industrial sales even as real estate investors brace for a slowdown because of rising interest rates and other economic concerns. EQT Exeter bought the buildings in Wisconsin and Illinois totaling more than 3.8 million square feet of fully leased space, as well as 144 acres of development land, from CenterPoint Properties. Seven of the buildings are in the LakeView Corporate Park in Pleasant Prairie, Wisconsin, between Chicago and Milwaukee. The other is at 3200 Skokie Highway in North Chicago. Packaging company Uline leases five full buildings that total more than 2.4 million square feet. The largest building is a 736,205-square-foot warehouse fully leased by Ta Chen at 8500 109th St. in the LakeView complex. Other tenants include Crown Bakeries, Global Industrial Distribution and APL Logistics.

    TOP SALE: Portfolio of 3 Multifamily Properties

    Sale Price: $181,000,000

    Sale Date: July 29, 2022

    Size: 1,333,892 SF

    Buyer: Morgan Properties, King of Prussia, PA

    Seller: Harbor Group International, Norfolk, VA

    Brokers Involved: David Nachison of Eastdil Secured represented the seller.

    Deal Commentary: Morgan Properties bought three Chicago-area apartment buildings for $181 million, or $180,458 per unit, from Harbor Group International in July. The acquisition brings the Pennsylvania buyer's holdings in Illinois to 2,035 units. The 2022 net operating income for the portfolio was said to be more than $9.7 million, yielding an actual capitalization rate, or rate of return, of 5.37%. The 1,003-unit portfolio included the 428-unit The Lakes of Schaumburg in Schaumburg; the 371-unit Blackhawk Apartments in Elgin; and the 204-unit Gates of Deer Grove in Palatine.

    TOP SALE: Bourbon Square, 500 E. Constitution Drive, Palatine, IL

    Sale Price: $139,250,000

    Sale Date: July 8, 2022

    Size: 808,452 SF

    Buyer: Albion Residential, Oak Brook, IL

    Seller: Broadshore Capital Partners, Los Angeles, CA

    Brokers Involved: Elizabeth Gagliardi, Susan Lawson and Charles Johanns of Newmark represented the seller.

    Deal Commentary: Albion Residential paid $139.25 million for the Bourbon Square complex in Palatine in one of the year's largest multifamily deals. The 612-unit property was built in 1984 and traded for $227,533 per unit. It last sold in 2014 for $97 million.

    TOP SALE: Echelon Chicago, 353 N. Desplaines St., Chicago, IL

    Sale Price: $133,000,000

    Sale Date: August 9, 2022

    Size: 275,170 SF

    Buyer: Morguard Investments Limited, Mississauga, ON

    Seller: Crescent Heights, Miami, FL

    Brokers Involved: John Jaeger of CBRE represented the seller.

    Deal Commentary: Canadian firm Morguard Investments’ $133 million deal for the 350-unit Echelon tower in the Fulton River District stands as the largest multifamily deal in the city so far this year. The property is 95.6% occupied, and traded for $380,000 per unit. The seller was Crescent Heights, a Miami firm that purchased the 39-story Echelon tower in 2012 for $104.25 million. Average monthly effective rent at Echelon was estimated at $2,575 per unit. The net operating income for the year 2022 was said to be $5.985 million, yielding a cap rate of 4.5%.

    TOP SALE: The Bennington, 100 George St., Bensenville, IL

    Sale Price: $106,000,000

    Sale Date: July 29, 2022

    Size: 639,216 SF

    Buyer: DRA Advisors, New York, NY

    Seller: FPA Multifamily, San Francisco, CA

    Brokers Involved: Susan Lawson, Elizabeth Gagliardi and Charles Johanns of Newmark represented the seller.

    Deal Commentary: The 571-unit The Bennington sold for $106 million, or $185,639 per unit, in July. Built in 1974, the complex at 100 George St. consists of four six-story buildings. Per 2021 CMBS data, the property generated more than $4.3 million in net operating income, yielding an approximate cap rate of 4.06%. The buyer assumed the property’s $60.8 million mortgage rather than seeking a new loan to finance the acquisition.

    Sale Price: $1,671,000,000

    Sale Date: August 22, 2022

    Size: 17,378,709 SF

    Buyer: GIC Real Estate, Singapore, SGP

    Seller: EQT Exeter, Radnor, PA, PSP Investments, Montréal, QC, and Abu Dhabi Investment Authority, ABU DHABI, U.A.E.

    Brokers Involved: Jay Borzi of Eastdil Secured represented the seller.

    Deal Commentary: GIC, one of the managers of the government of Singapore’s investment capital, paid $1.671 billion to acquire a 58-property, 17.3 million-square-foot-plus portfolio of U.S. industrial real estate. The portfolio was reportedly fully leased at the time of sale, and included several properties in the Chicago area, including 702 Commerce Center Drive in University Park and 5900 Carlson Ave. in Portage, Indiana.

    *Part of a portfolio sale

    TOP SALE: Portfolio of 13 Properties

    Sale Price: $97,500,000

    Sale Date: August 15, 2022

    Size: 844,325 SF

    Buyer: TradeLane Properties, Oak Brook, IL

    Seller: Oxford Properties Group, New York, NY

    Brokers Involved: Michael Caprile, Ryan Bain, Zachary Graham and Victoria Gomez of CBRE represented the seller.

    Deal Commentary: TradeLane Properties in August bought this 13-property, 848,355-square-foot industrial portfolio for $97.5 million. The portfolio is 100% leased to 18 tenants that vary in industries, including food packaging, printing, third-party logistics and e-commerce. The buyer was attracted to the portfolio due to the physical quality of the buildings, building sizes and strong tenant diversity and credit.

    TOP SALE: Arrive Glenview, 2550 Waterview Dr, Northbrook, IL

    Sale Price: $97,000,000

    Sale Date: July 14, 2022

    Size: 259,088 SF

    Buyer: FPA Multifamily, San Francisco, CA

    Seller: The Connor Group, Miamisburg, OH

    Brokers Involved: Elizabeth Gagliardi, Susan Lawson and Charles Johanns of Newmark represented the seller.

    Deal Commentary: The 290-unit Arrive Glenview sold for $97 million, or $334,483 per unit, to FPA Multifamily. The San Francisco firm plans to invest $3.6 million into unit upgrades and exterior and common area improvements.

    TOP SALE: The Reserve Glenview, 195 Waukegan Road, Glenview, IL

    Sale Price: $87,650,000

    Sale Date: August 26, 2022

    Size: 291,812 SF

    Buyer: Mesirow Financial, Chicago, IL

    Seller: Broadshore Capital Partners, Los Angeles, CA

    Brokers Involved: Peter Evans of Berkadia Real Estate Advisors represented the seller.

    Deal Commentary: Mesirow paid almost $87.7 million for the 239-unit Reserve at Glenview complex in Chicago’s northwest suburbs. The deal was backed by a nearly $56.1 million loan from Walker & Dunlop. The seller was Broadshore Capital Partners. Then known as Lowe Enterprise Investors, the Los Angeles-based firm bought the complex for $80.5 million in 2019. Built in 2015, the property is 95.8% leased, with an average asking rent of $2.34 per square foot, according to CoStar data.

    TOP SALE: Glen Oaks Commons, 9700 Sumac Road, Des Plaines, IL

    Sale Price: $74,000,000

    Sale Date: July 27, 2022

    Size: 548,812 SF

    Buyer: F&F Realty, Lincolnwood, IL

    Seller: Empire State Realty Trust, New York, NY

    Brokers Involved: John Jaeger and Justin Puppi of CBRE represented the seller.

    Deal Commentary: The 504-unit Glen Oak Commons sold for $74 million, or $146,825 per unit. The property had an estimated average monthly effective rent of $1,488 per unit.

    Source: www.CoStar.com