n's Chicago Business, February 5, 2024

50 HIGHEST-PRICED

HOME SALES OF 2023

JENA RADNAY/ @PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

PAGE 13

EMILY SACHS WONG/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

EMILY SACHS WONG/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

A clear sign of the big decline in upper-end home sales in 2023: The lowest rung dropped by more than a million dollars.

JENA RADNAY/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

CHICAGOBUSINESS.COM I FEBRUARY 5, 2024

Could CBOE, CME tame the crypto market?

Investors seek stability amid the cool factor of cryptocurrencies

By Mark Weinraub

Old-line institutions like CME Group and Cboe may help cryptocurrencies gain an air of respectability for the asset class once thought of as a cutting-edge investment before it was tarnished by a string of controversies.

That progression was accelerated by the U.S. Securities & Exchange Commission’s approval of a spot bitcoin exchange-traded fund in early January, a move the regulator had fought for nearly a decade.

“It is here, it is now and people are putting it into their portfolios” said David Nuelle, head of digital assets at Chicagobased Geneva Trading.

The ETF will allow bitcoin to be packaged like a traditional investment asset, which could prove attractive to investors searching for a way to dip their toes in the cryptocurrency waters without having to jump over hurdles like setting up an online wallet on the blockchain.

“It legitimizes crypto,” said Ben Weiss, CEO of CoinFlip, a Chicagobased company that fo- — David Nuelle, cuses on selling bitcoins head of digital and other digital cur- assets at Geneva rencies in ATMs. “It Trading adds more credibility.

In many ways, crypto is a financial asset just like stocks, just like gold. There is no reason that the financial products that are around for traditional investing would not eventually come to bitcoin and the crypto ecosystem at large.”

Growth in cryptocurrencies was chilled by the implosion of top exchange FTX in November 2022. FTX, which had sought to boost its mainstream appeal through a Super Bowl ad featuring comedian Larry David and endorsements from athletes Tom Brady and Steph Curry, was rocked by

“It is here, it is now and people are putting it into their portfolios.”

See CRYPTO on Page 18

VOL. 47, NO. 5 l COPYRIGHT 2024 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

VISTRIA GROUP NAMES SENIOR ADVISER Former Massachusetts Gov. Deval Patrick is joining the Chicago-based private-equity firm. PAGE 2

BOEING’S WOES HIT HERE With the Max 10’s timing uncertain, United’s CEO faces difficult choices. PAGE 4

Former Massachusetts Gov. Deval Patrick named senior adviser at Vistria Group The South Side native will focus on fundraising, deal sourcing and portfolio performance for the Chicago private-equity firm as it continues to expand

By Mark Weinraub

Former Massachusetts Gov. Deval Patrick is joining Chicagobased private-equity firm Vistria Group as a senior adviser focused on fundraising, deal sourcing and portfolio performance.

Vistria’s pattern of making investments in companies that also help their local communities attracted him to the job, Patrick said in a Jan. 26 announcement from the firm.

“It is around long-term value rather than short-term gain,” Patrick said. “The long-term value is

for owners and shareholders, of course, but also members of the community. I think that is the way capitalism ought to work. The notion that a whole firm is steering in that direction is incredibly exciting to me.”

Kip Kirkpatrick, co-CEO of Vistria, said Patrick’s broad wealth of experiences will help partners across the firm, which traditionally targets investments in education, health care and financial sectors and is expanding in real estate and credit markets.

“Nobody we know has a better reputation and a passion like

Deval does for trying to show the world that private capital can be done differently and make a difference in the industries that we have targeted,” Kirkpatrick said.

Patrick, 67, grew up on the South Side and will split his time between Chicago and Massachusetts. He has a long relationship with Vistria co-CEO Marty Nesbitt, who hosted a fundraiser for Patrick during his 2020 campaign for president.

Vistria and Patrick have worked together in the past, when the firm he formerly led, Bain Capital Double Impact, bought educa-

Deval Patrick | BLOOMBERG PHOTO

tional company Penn Foster from Vistria in 2018.

Most recently, he has served as co-director of the Harvard Kennedy School’s Center for Public Leadership, where he also is a professor of practice. He also was an assistant attorney general for civil rights under former

President Bill Clinton.

Patrick’s hiring comes as part of an overall expansion by Vistria, which manages more than $11 billion in assets. It recently opened an office in New York and hired former Goldman Sachs partner Margaret Anadu to lead the real estate team there.

DAN MCGRATH ON THE BUSINESS OF SPORTS

DePaul, desperate for a post-Meyer savior, begins coach search again

H

ank Luisetti is said to have invented the jump shot as a hustling Stanford forward in the 1930s, but basketball had pretty much been a yawner on the Tall Trees campus thereafter, so the Cardinal made a splash by hiring Dr. Tom Davis as its coach in 1982.

Davis enjoyed distinctive success at Boston College, and having “Dr.” in front of his name appealed to campus eggheads known to be snootily indifferent to sports.

A bio sheet circulated at his introductoDan ry press McGrath conference noted that Dr. Tom got his start coaching high school basketball in Illinois.

“Whereabouts?” an emigre from Illinois asked.

“Real small town. You never heard of it.”

“Try me.”

“Milledgeville?”

“The Milledgeville Missiles, the Ashton Aces, the Mount Carroll Hawks . . . ” Dr. Tom was not expecting a thorough rundown of the Mid-Northern Conference, one of the tiny farm-town leagues we covered back in the really early days in Freeport. He got a laugh out of it, though, and we hit it off.

Interesting guy, Tom Davis.

The Milledgeville job included classroom responsibilities — English and social studies — as did a subsequent high school stop in his native Wisconsin.

Davis believed it was the most significant coaching he’d ever done.

“Coaching is teaching,” he explained, “and I had to learn how to teach before I could really coach.”

2 | CRAIN’S CHICAGO BUSINESS | FEBRUARY 5, 2024

Most coaches from Davis’ generation had backgrounds similar to his. But as television and the allure of an expanded NCAA tournament turned the college game into a billiondollar enterprise, name recognition replaced duespaying as the prime qualification for a college job.

Davis didn’t begrudge the Steve Alfords who slid right from playing into college coaching. But he believed they had missed out on something valuable and might be better coaches had they learned to teach first.

The story comes to mind because DePaul University is in the market for a men’s coach for the seventh time since Joey Meyer was fired in 1997.

“Sleeping giant,” insist the talking heads whose memories extend to the 1980s. They’re all over this mid-major superstar who’s clearly ready for the “next level” or that dashing young assistant who’s been by Coach Oil Slick’s side, clipboard in hand, input sought and clearly ready to run his own program.

Google “sleeping giant” and you will not get DePaul basketball, despite assertions that tradition, history, Chicago location and Big East Conference add up to a top-tier job.

Google “desperation” and Athletic Director DeWayne Peevy’s smiling face might pop up. Peevy cannot afford to miss on this hire. DePaul has allowed itself to become irrelevant in the Chicago sports market. Worse than the parade of losing seasons is the pervasive apathy — nobody goes to the games and hardly anybody donates to athletics, which leaves basketball lacking the NIL money that’s the coin of the realm in recruiting these days.

Any wonder why many underclassmen are delaying their dreams of “the league”

and sticking around to play more college ball? A secondround, nonguaranteed NBA contract probably entails a pay cut; a G-League deal almost certainly does.

Peevy came to DePaul from Kentucky — Calipari U, among the bluest of the college game’s blue bloods. His background includes fundraising, too, so you’d think he’d be able to handle this if he hadn’t whiffed so badly on his first hire. Tony Stubblefield seemed overmatched from day one, and his midseason firing was timed to give DePaul a head start on other schools sure to be looking for coaches.

A national search is underway, everything is on the table . . . and

desperation is in the air.

The answer might be sitting 3 miles away, in plain sight at DePaul College Prep High School, where Tom Kleinschmidt presides over a perennial state title contender.

He’s DePaul royalty, a four-year starter for the Blue Demons from 1991-95, still the No. 6 scorer in school history, effort and toughness personified.

And he’s as Chicago as summer heat and winter potholes, capable of at least restoring interest in what’s currently a ghost program.

Some DePaul types with money and influence are pushing his candidacy.

Kleinschmidt joined Jerry Wainwright’s staff after wrap-

ping up a distinguished overseas playing career, but the gig only lasted a year — Wainwright was the third Meyer successor to be shown the door after failing to restore the magic. That’s the extent of his college experience.

Of course it’s a risk hiring a high school coach, even a highly accomplished one. But nothing else DePaul has tried has worked, and Kleinschmidt isn’t just any high school coach.

Dr. Tom Davis, winner of 598 college games at five schools, would tell you he has learned the craft.

Crain’s contributor Dan McGrath is president of Leo High School in Chicago and a former Chicago Tribune sports editor.

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Illinois GOP appears to be turning a corner

The Incredibles chocolates made in collaboration with Magnolia Bakery.

THC-infused wing sauce for the Super Bowl?

Chicago-based marijuana companies are partnering with well-known food brands and restaurants on edibles that go beyond the typical gummies and chocolates | By Ally Marotti

C

hicago cannabis companies are partnering with restaurants and mainstream food brands on new infused products, adding variety among the gummies and chocolates that dominate edible sales.

Cresco Labs’ brand Good News is rolling out a THC-infused wing sauce made with Wicker Park sports bar The Fifty/50, just in time for the Super Bowl. Green Thumb Industries’ edible brand

Incredibles launched chocolate bars with New York’s Magnolia Bakery just before the holidays last year. And Okay Cannabis, a newer dispensary chain, sells infused brownie and cake mixes using West Town Bakery’s recipes.

The collaborations are one more step in the industry’s long-running effort to build identifiable See THC on Page 19

An upcoming sold-out fundraiser has brought in more money than the party reported raising all of last year

By Greg Hinz

Just in time for election season, the Illinois Republican Party is showing signs of life.

A fundraiser set for this month not only is a sellout, with 740 tickets purchased for the Feb. 9 dinner at a Rosemont hotel, but has garnered more money than the party reported raising all of last year. Combined with an armistice of sorts between often feuding factions on the party’s central committee, the party appears to have taken at least initial steps to pull out of the funk it’s been in since former Gov. Bruce Rauner lost his re-election bid to Democrat J.B. Pritzker in November 2018.

Rauner moved to Florida shortly after the 2018 vote, followed soon by Citadel chief Ken Griffin. Both men and a couple of others, such as shipping mogul Dick Uihlein, had almost personally kept the party funded, writing large personal checks. With them gone and Pritzker easily winning a new term in 2022, income dried up, with the Illinois Republican Party reporting income of only $230,000 in 2023, according to Illinois State Board of Elections records.

That has changed. The upcoming Rosemont event featuring U.S. Sen. John Kennedy of Louisiana already has grossed “more than $300,000,” says party Chairman Don Tracy, a Springfield lawyer who took office after Rauner left the state.

The event added as many seats

as it can to the Rosemont venue and sold them all.

“That’s the biggest event I can remember in many years,” said Tracy in a phone interview. “There’s a lot energy.”

“Seven hundred people and $300,000 — that’s quite an accomplishment,” said former party Chair Pat Brady. The event appears to be the largest fundraiser for the state party since a host of presidential candidates showed up at a 2011 Chicago event honoring Ronald Reagan’s birthday, according to Brady.

Despite the new money, Illinois Republicans face a daunting task this election cycle.

In an odd twist that also indicates some change, Tracy said much of the proceeds from the event will be used to amplify the Illinois GOP’s early- and absentee-vote efforts. Ergo the dinner’s “bank the vote” theme.

Former President Donald Trump famously ridiculed such efforts after his 2020 loss, repeatedly charging that any votes not cast in person on Election Day were subject to massive fraud. Many party professionals later concluded that relying strictly on in-person votes ceded too much ground See GOP on Page 18

Cold-weather charging is another EV pain point Freezing weather can deplete the EV battery and slow charging times

By Hannah Lutz, Automotive News

When Milwaukee plunged to minus 5 degrees Fahrenheit last month, the range on Don Wright’s Ford F-150 Lightning fell by almost half, plummeting to 160 miles.

It’s an edge case. Most days are not so frigid, even in Wisconsin.

But the situation highlights an electric vehicle pain point.

Freezing weather can deplete the EV battery and slow charging

times, and the U.S. doesn’t have enough public chargers to give drivers confidence in finding a station when they need it.

EVs lose about 30 percent of their range on average in freezing conditions, according to a study of 18 popular models by analytics firm Recurrent. The 2021 Volkswagen ID4 lost the most power, 46 percent of its range. The 2021 and 2022 Audi e-tron lost the least, 16 percent.

Recurrent’s analysis includes data from more than 10,000 vehicles across the U.S., along with

tens of thousands of data points from on-board devices that provide data on energy usage.

Last month, local news outlets in Chicago reported that several Tesla drivers were stranded at a charging station. But it likely wasn’t the fault of the charger.

The battery cells cause the charging delay, said Charlie Parker, founder of Ratel Consulting, a battery advisory group.

In extremely cold temperatures, power moves in and out of See EV PAIN on Page 19

EV charging in winter weather | GETTY

FEBRUARY 5, 2024 | CRAIN’S CHICAGO BUSINESS | 3

Boeing’s woes put the squeeze on United With the Max 10’s timing uncertain, CEO Scott Kirby faces a menu of difficult choices Boeing’s problems have become Scott Kirby’s problems, and that’s not good for either one of them.

The United CEO has built his turnaround plan on growth, flying more passengers and making more money doing it. A key part of his United Next plan involves flying bigger, more fuel-efficient planes between hubs such as Chicago’s O’Hare International Airport.

Boeing’s 737, particularly the largest version, called the Max 10, was a critical piece of that strategy. When Kirby announced the plan, he ordered 270 new socalled narrow-body aircraft, 200 of them from Boeing.

But with the new problems surrounding the Max 9, in which a false door blew out of an Alaska Airlines flight in midair, and a history of 737 production delays stretching back five years, Kirby has to start looking at other options. As he hinted in January, those options may include buying more planes from Airbus.

“We are not canceling the order,” Kirby told analysts last month when United reported earnings. “We are taking it out of our internal plans. And — so we're taking it out of our internal plans, and we'll be working on what that means exactly with Boeing. But Boeing is not going to be able to meet their contractual deliveries on at least many of those airplanes. And I'll just leave it at that.”

The problem is that the substitute for the Max 10, which has capacity for 188 passengers in the type of configuration United likely would use, is the Airbus 321 Neo. It’s one of the best-selling

BLOOMBERG

By John Pletz

aircraft in the world.

“He’s caught between very long waiting lines at Airbus and minimal confidence that the Boeing Max 10 can get certification,” says Richard Aboulafia, managing director at consulting firm AeroDynamic Advisory. “At this point, the backlog is so long, it doesn’t matter what they order: They’re not going to get them anytime soon. (His only choice) is making do with other 737s and whatever A321 Neos they can get.”

Boeing and Airbus declined to comment.

United is a customer of both Boeing and Airbus, but it favored Boeing when it placed the giant order for domestic aircraft in

mid-2021. Of the 270 planes it ordered, just 70 were A321 Neos. It has 277 Max 10s on order and options for 200 more.

Workhorses The 737 and A320 families of planes, which generally carry 130 to 200 passengers, are the workhorses of commercial aviation.

Delta and American also use both types of aircraft. But Delta ordered more A321s than Max 10s. American’s order book is roughly split.

“If you’re Scott, you have to think, ‘How do I cover my risks?’

The only way he can do that is place an Airbus order. That’s not a win for Boeing,” says George Ferguson, a Bloomberg Intelli-

gence analyst.

“He can’t just walk into Airbus headquarters and say, ‘I need A-321s.’ That’s the challenge.”

United and Boeing once were part of the same company.

“They've been a great American company; they're our biggest exporter,” Kirby told analysts.

“They're going through a rough patch right now, but I believe that Boeing is across the board, from top to bottom, is committed to changing and fixing it. I'm encouraging them to do it even faster, and it is going to impact United in the near term because of some of the challenges they've had.

“But they're great people there, and they will get it togeth-

er. . . .There's no one that's a bigger supporter that wants Boeing to succeed outside of Boeing than me, and I'll do everything I can to help.”

United went heavy on Boeing at a time when the airplane maker was still reeling from the two fatal crashes of the Max, which resulted in the plane being grounded for nearly two years.

Airlines that place big orders get price breaks, although neither aircraft makers or buyers ever disclose exactly how much.

“One of the big challenges will be he got really good pricing on those (Max) airplanes,” Ferguson says. “Airbus isn’t going to give him that kind of pricing.”

Aircraft economics are always crucial, but they’re acutely important now because all the big U.S. airlines have given their pilots and other workers big raises. “(Kirby) is in a race with Delta and American, especially Delta,” Ferguson says. “If he gets back in the queue at Airbus, it’s price and it’s timing. He’s going to be out four or five years before he gets the planes.”

The problem is that the aircraft industry, like so many others, still has supply-chain and labor challenges limiting the number of planes that can be produced.

Plane makers are trying to increase production, but it has been difficult, especially for Boeing. Just as the company was hoping to ramp up 737 production, the Max 9 problems caused the FAA to hit the brakes.

If Kirby can’t jump the line or speed up production, there is one other option, Aboulafia says.

“You can go talk to the lessors.”

That has its own challenges. As Aboulafia said, United is between a rock and a hard place.

Walgreens explores sale of specialty pharmacy business The retail pharmacy chain is working with advisers to scope out interest in Shields Health

By Michelle F. Davis, Ryan Gould and Dinesh Nair, Bloomberg

Walgreens Boots Alliance Inc., the troubled drug-store chain in turnaround mode, is exploring options including a sale of Shields Health Solutions, the specialty pharmacy business it acquired a majority of three years ago, according to people familiar with the matter.

The business could be valued at more than $4 billion in a sale, said the people, who asked to not be identified because the details aren’t public. Walgreens is working with advisers to scope out interest in Shields Health, which is expected to draw interest from private equity firms and health-care companies, the people said.

4 | CRAIN’S CHICAGO BUSINESS | FEBRUARY 5, 2024

No decision has been made and Walgreens could opt to hold onto the business, the people added.

A representative for Walgreens declined to comment.

“A Walgreens divestiture of Shields would represent a pointed reversal of the prior CEO’s strategy to diversify,” Jonathan Palmer, a senior industry analyst with Bloomberg Intelligence, said in a research note on Jan. 24. “A sale makes financial sense to shore up the balance sheet, but the specialty-solutions provider plays in an adjacent market where the strategic rationale for owning it remains strong.”

Walgreens stock was up 1.1% this morning. Walgreens has fallen by 37% in the past year as

Walgreens acquired a minority stake in Shields Health in 2019, took majority control in 2021 and bought out the last 30% for $1.37 billion in 2022. | BLOOMBERG

the drugstore chain grapples with high debt and what Chief Executive Officer Tim Wentworth described last month as a “challenging consumer back-

drop.” Wentworth, who took over in October, said in Walgreens’s latest quarterly report that the company was “evaluating all strategic options” as it

looks to cut costs and increase cash flow.

Walgreens has nearly halved its dividend and has also revived plans to exit its international Boots chain, which could fetch about $8.8 billion, Bloomberg News reported in December.

Specialty pharmacies such as Shields Health help health-care providers cater to patients with complex and chronic conditions such as cancer. Walgreens took control of the business through a series of transactions in recent years as former CEO Roz Brewer went on an acquisition blitz to diversify the company into primary care and other aspects of the industry.

Shields Health has served more than one million patients and has nearly 80 “health system partners” representing about 1,000 hospitals, Walgreens said in a statement announcing the full takeover.

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Etta’s recent closings follow eviction orders, a loan default and a bankruptcy filing Restaurant operator David Pisor, who also co-founded Maple & Ash, defaulted on a $2.5 million loan, court filings show The restaurant group behind Etta, Cafe Sophie, Aya Pastry and more is bleeding.

Wintrust Bank filed a complaint in Cook County Circuit Court on Jan. 17 alleging Etta Collective owner David Pisor had defaulted on a $2.5 million loan he took out in July 2022. The complaint, coupled with a string of recent Etta closures and a bankruptcy filing, paints a bleak picture for the company that maintains it has big plans for expansion in Chicago and beyond.

According to documents in the Wintrust filing, Etta Collective received an eviction order in December for its Gold Coast space at 847 N. State St., home of the sinceclosed Cafe Sophie. The restaurant owed its landlord more than $85,000 in rent, according to the order. Pisor previously attributed the closing to high costs of construction and other headwinds.

Also included in the Wintrust complaint was an email dated Jan. 2 from Pisor to lenders informing them that he was looking “to reorganize the company — either through an ABC or a subchapter 5,” prompting insolvency concerns.

On Jan. 18, the day after Wintrust filed its complaint, Etta Scottsdale, the company’s sole operation in Arizona, filed for Chapter

ETTA

By Jack Grieve

Etta in Bucktown

11 bankruptcy protection.

Four days later, Etta River North, located at 700 N. Clark St., abruptly closed.

Shuttered in Los Angeles Etta also shuttered operations at a location in Los Angeles at the end of December. The landlord of that location had tried to evict Etta from the space multiple times in summer and fall 2023, according to Eater Los Angeles. Pisor attributed that closure to underlying issues with the lease he inherited

and struggles related to the writers’ strike in Hollywood.

In the Jan. 2 email, Pisor stated his intention to sell the company’s property at 1332 W. Grand Ave., which is home to Aya Pastry. Pisor told Crain’s that he does not intend to sell the business itself, just the property.

Etta’s struggles come just months after the group announced plans to expand in 2024 with new restaurants in Evanston and Dallas, as well as a second spot in Los Angeles.

Pisor was also a co-founder of Maple & Ash, considered one of the most successful restaurants in the city. But he and co-founder Jim Lasky had a falling out a few years ago, and the two landed in a 10-month-long court battle that eventually led them to divvy up their nationwide restaurant portfolio.

“I created the No. 1 grossing restaurant in Chicago,” Pisor told Crain’s, referring to Maple & Ash. “There will be a time soon when I do that again. But I have had to

deal with the unknowns of an ugly divorce (with Lasky).”

Pisor took ownership of the Etta brand and Cafe Sophie, while Lasky retained ownership of the Gold Coast steakhouse and several other restaurants.

“When I took the assets out of the contentious divorce with my ex-partner, there were a lot of problems that were contained in the assets that I didn’t know about,” Pisor said, drawing a connection between lingering issues with the Maple & Ash breakup and Etta’s current struggles without going into the specifics.

“In an effort to solve those problems, I took out this personal loan.

I put my personal name on a loan with Wintrust to try to save them.”

Pisor also cited some of the city’s broader struggles as detrimental to the Etta business, including the perception of public safety in the River North area.

Still, he remains adamant that there’s a path forward for his restaurants in the city. “We have a couple of things that are really exciting in the cards,” he said. “We’re working hard to make those a reality. I think that the most exciting one is in downtown Chicago, because I am a big believer in our amazing city, and I want it to work.”

Etta Bucktown, located at 1840 W. North Ave., remains operational and is “doing well,” Pisor said.

Journeyman Distillery unveils plans for Beverly Shores restaurant and bar

By Jan Parr

Now that the owner of Journeyman Distillery, a popular Three Oaks, Mich., spot, has opened a branch in Valparaiso, he’s got his sights set on tiny Beverly Shores, Ind. Bill Welter is turning his attention to a long-vacant building on Dunes Highway that most recently housed Bartlett’s Gourmet Grill & Tavern, once a popular spot for locals, Indiana Dunes visitors and those heading to and from southwest Michigan from Chicago.

Welter has hired Kil Architecture & Planning, a firm in South Bend, to redesign the roadhouse, which has been empty since 2019.

One of Kil’s projects includes the restoration of the Gary Aquatorium. (Welter hired another firm, Rubio Studios of Chicago, four years ago to do the concept drawing.)

Welter said he plans to call the new spot The Trophy Room, an homage to a bar of the same name that operated out of the space in the 1960s and 1970s.

Welter was attracted to the location in part because he and his partner in life and business, 6 | CRAIN’S CHICAGO BUSINESS | FEBRUARY 5, 2024

Johanna Fridrich, had their second date at Bartlett’s in 2011, stopping by on his motorcycle. “But from a biz perspective, it’s one of the best locations around,” he says. “Route 12 is one of the prettiest stretches of road. The restaurant is nestled back in the woods.

It’s quaint.” Plus, it’s within walking distance of the national park’s 66-site campground.

Save and expand structure Though the building is in rough shape, Welter says he plans to save the structure and expand it. It will seat about 100. “We’ll go to great lengths to preserve the existing structure,” he says, while admitting that leveling it would be cheaper and easier and that the option is not entirely off the table.

He’s planning a fireplace, pine paneling and lots of taxidermy to reflect the wildlife that surrounds the restaurant.

The Trophy Room will serve food, beer, wine and Journeyman’s artisan spirits. “The food will be largely game-focused — a more elevated food concept than what we’ve done in the past,” he says.

Welter plans an addition with a tiny 8-by-6-foot distillery making

artisan gins based on the types of plants found in the Dunes. Welter is aiming for a 2025 opening (his hard deadline is Jan. 25, 2025, when the liquor license expires).

“As pioneers of good food along Route 12, I am proud of the draw we had at this location,” says Nicole Bissonnette, who coowned Bartlett’s and now runs Bartlett’s Fish Camp in Michigan City and Joe & Freddy’s in the Pines on 12 nearby. “Bill and Johanna are visionaries and will do a great job of preservation if possible and honoring history. The building was in disrepair when operations (Bartlett’s) ceased.”

The $40 million Valparaiso Journeyman, in a renovated historic factory, started a phased opening in October, including a distillery, craft brewery, restaurant, shop and event spaces. A pizza/karaoke room and rooftop deck are in the works for summer.

Tree-lined Dunes Highway, or U.S. Route 12, which runs between Gary and the popular Chicago getaway spot New Buffalo, Mich., is becoming a hot strip as it seeks to catch visitors to the nearby Indiana Dunes state and national parks and those headed for south-

An architect’s rendering of the eatery Journeyman Distillery that owner Bill Welter plans for Beverly Shores, Ind. | KIL ARCHITECTURE & PLANNING

west Michigan.

Besides Bissonnette’s Joe & Freddy’s, longtime Michigan City fixture Burn ‘Em Brewing plans to open a larger spot in February on U.S. 12 near the Blue Chip Casino.

A vintage clothing and accessories shop, Cat’s Eye, opened last summer at 1 E. Dunes Highway in a renovated midcentury office building in Beverly Shores, joining Goblin & Grocer restaurant and Over Yonder gift shop across the street.

“The revival of the Bartlett’s building by Bill and Johanna comes at an exciting time, as the area is experiencing increased

activity with the growing attention to and number of visitors to the neighboring Indiana Dunes National Park,” says Rob Harte, co-founder of NWI Development Group, which renovated the 1 E. Dunes Highway building. “The Trophy Room will not only cater to the local community but also offer a welcoming haven for those exploring the natural beauty of the region. The announcement adds to the projects in the pipeline, and will only add to the continued upward trajectory of the region.”

The Times of Northwest Indiana first reported this news.

Winter weather also froze out blood donations With the nationwide supply down to two days’ worth, some hospitals like Northwestern Memorial are taking precautions The traditionally tight supply of donated blood during a strong respiratory virus season and following the holidays was exacerbated in large areas of the county by severe winter weather, the American Red Cross says.

With a break in the weather, the supply may be bouncing back, but Red Cross has recently had to limit distributions of some of the most-transfused blood types, with platelet donors and type O blood donors still urgently needed, according to a statement from the organization emailed on Jan. 23.

“Over the last 20 years, the number of people donating blood to the Red Cross has fallen by more than 40%,” the Red Cross statement said. “Over the past two decades, several factors have converged that have made it challenging to keep and grow a motivated donor base to meet patient needs. Most recently, COVID-19 accelerated how people engage in the communities where they live, learn and work. As more people moved to remote work, it became more challenging to meet people where they are with convenient blood drives.”

This winter, the holidays, illness

BLOOMBERG

By Jon Asplund

and the frigid temperatures “were all probably in play” as the Chicago area saw shortages, Dr. Glenn Ramsey, medical director of the Blood Bank at Northwestern Memorial Hospital said.

“We were somewhat low a week ago, and are still sort of low,” but may have turned the corner, Ramsey said.

Nevertheless, the nationwide supply is down to about two days, and hospitals usually want to have a three or four-day supply available, he said.

Early warning measures Since the beginning of the year, blood drives have been canceled in nearly every state where the Red

Cross collects blood, causing thousands of units of blood and platelets to go uncollected, the Red Cross statement said.

In Illinois in January, low temperatures led to the cancellation of 11 blood drives, causing a few hundred units to be lost, the statement said. Now, the Red Cross must collect an additional

8,000 blood donations each week over the next few weeks to recover from the current blood shortage, it said.

Another major blood supplier, Vitalant, has seen the severe weather contribute to a recent loss of more than 1,800 units of blood not being collected.

On Jan. 14 alone, Vitalant lost out on close to 200 units because of canceled donations, said Ann Sterling, communications manager for the company’s northeast division.

“We’re urging people to donate whenever they can, but we’re also urging everyone to be safe and donate when it’s safe to venture out,” she said.

At Northwestern Memorial, Ramsey said they took early warning measures like limiting some transfusions to one unit at a time, doubling down on making sure that all transfusions were called for and checking closely with operating rooms to understand their anticipated blood needs.

“It’s also encouraging that donations in our regular blood drives among staff and visitors show that our donor spots are all pretty well full,” Ramsey said. “So the message seems to have been heard.”

In Memoriam

William “Bill” Sick April 20, 1935 – December 8, 2023

FEBRUARY 5, 2024 | CRAIN’S CHICAGO BUSINESS | 7

PE

It EDITORIAL

For an activist, a win. For a mayor, a pointless gesture.

JOHN R. BOEHM

B

randon Johnson was elected to solve the problems of the city of Chicago.

He won that honor and, along with it, inherited a raft of long-standing, seemingly intractable challenges: ◗ Chicago’s fiscal health is shaky at best, quivering under the weight of pension obligations and tipping out of balance as the life support that came in the form of federal COVID relief wanes. ◗ Gun violence remains a public health emergency that corrodes impoverished neighborhoods throughout the city and casts a shadow of fear and uncertainty in the city’s very epicenter. ◗ Chicago's generations-long reputation for corruption and graft among its elected officials and public servants still tarnishes its image on the national stage. ◗ Relations between Chicago police and the communities they are sworn to serve and protect are, in some portions of the city, guarded if not downright hostile. ◗ In the national and even global contest for new investment in the form of corporate headquarters, conventions and tourism, Chicago must put on a smart, focused and energetic push to compete — a difficult feat at a time when leadership of key agencies is in flux. ◗ Too many of Chicago’s youth graduate from Chicago Public Schools unprepared to fully participate in the city’s economic life. ◗ The business district hasn’t fully bounced back from the COVID shutdowns and the new work-from-home norm that followed, posing enormous challenges for Loop-area landlords and raising profound questions about the future of the city center. ◗ Opportunity, investment and wealth are

still unevenly distributed among neighborhoods as well as racial and ethnic groups in the city, stymieing prospects for improving the quality of life for all Chicagoans.

We could go on and on — from the high cost of starting a business in this town to the need to fix an increasingly broken Chicago Transit Authority — but you get the idea.

Chicago has big challenges. It needs leadership that’s focused with laserlike intensity on the issues that matter most to its residents as we all collectively seek to rescue a great city and put it on a path toward shared prosperity.

Which is why it was more than disappointing to see the mayor and his progressive cohorts on the Chicago City Council waste so much of our time and energy on a meaningless resolution that does nothing to address even one of the priorities listed above.

We’re talking, of course, about the resolution, passed Jan. 31, that calls for a ceasefire in Gaza.

As Gov. J.B. Pritzker correctly put it the day after the mayor took the rare step of breaking a 23-23 vote on the measure, “I don’t think that the resolution will have any actual

impact on the foreign policy of the United States or on the hostilities taking place in the Middle East.”

Nor will it have an impact on the hostilities taking place in Chicago.

The council’s vote came the same afternoon that a Chicago Public Schools student was killed and two others wounded just blocks from Senn High School on the city’s North Side. That incident in Edgewater occurred days after two CPS students were killed in an afternoon shooting in the Loop, near Washington and Wabash, just blocks from Innovations High School, which they both attended. And on Jan. 22, a student was gunned down outside CICS-Loomis-Longwood, a Chicago International Charter School on 95th Street.

In a city plagued by unspeakable violence, Johnson and his aldermanic allies chose to spend considerable political capital, after an emotional and heated debate, on a useless foreign-policy resolution, the outcome of which can do little but deepen already festering divisions within the City Council and the city itself.

It’s also worth wondering why the mayor chose to put his muscle behind a pointless gesture, a toothless resolution that effectively sticks a thumb in the eye of President Joe Biden, who will soon come to Chicago for a convention to be hosted here by Johnson himself. Similarly, how does the mayor think his attempt to influence this nation’s foreign affairs will affect the temperature in the room the next time he hits up the Biden administration for help on the migrant crisis?

There’s a difference between being an activist and being a mayor. Johnson needs to demonstrate he understands that.

PERSONAL VIEW

Businesses of the future are coming to Illinois.

Is the state’s infrastructure ready?

E

very state wants to be the destination for companies building the economy of the future. Every state wants to attract advanced manufacturing complexes that will produce the millions of electric vehicles emerging as tomorrow’s mode of transportation. Every state wants to attract investment from technology sectors like data centers that are foundational to our ever-more digital world.

Every state wants to attract agribusinesses producing more sustainable foods and laboratories with scientists researching breakthrough treatments and products.

Every state wants these businesses.

Illinois is getting them.

Gov. J.B. Pritzker came into office nearly five years ago with a vision, and he’s backed it with policy. Since 2019, when he forged a bipartisan consensus

behind the state’s Data Center Tax Credit, the industry has attracted billions in investment and created over 8,000 jobs.

The Climate and Equitable Jobs Act — or CEJA — that passed into law in 2021 envisioned a clean energy future for Illinois powered by a clean energy workforce, along with incentives for the

nois territory. And EV registration shows a 50% annualized growth rate as we pursue CEJA’s goal of 1 million EVs on Illinois roads by 2030.

Business investment has also followed. In recent months, Lion Electric has opened a massive production complex in Joliet, while Gotion has announced plans for an EV battery manufacturing plant in Manteno and Stellantis is re-tooling and expanding its Belvidere operations to include electric vehicle and battery manufacturing.

Since 2021, ComEd has completed nearly $12 billion in new projects to bring service to customers across the region, with combined plans to bring 11,000 new jobs to northern Illinois. The pipeline of future projects includes not only data centers and advanced manufacturing centers, but also

Reliable, affordable power has been crucial to attracting business investment in Illinois. state’s consumers to adopt low-carbon technologies like EVs and rooftop solar.

That, too, has produced results. In December, Pritzker and Commonwealth Edison celebrated the 100th community solar project in ComEd’s northern Illi-

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Chicago Business, 130 E. Randolph St., Suite 3200, Chicago, IL 60601, or email us at letters@chicagobusiness.com. Please include your full name, the city from which you’re writing and a phone number for fact-checking purposes.

8 | CRAIN’S CHICAGO BUSINESS | FEBRUARY 5, 2024

Jack Lavin is president and CEO of the Chicagoland Chamber of Commerce.

Gil Quiniones is CEO of ComEd.

a company that makes solar panels and another that makes meat like chicken by cultivating animal cells.

So CEJA is working. Illinois has made huge strides on environmental, ecoSee FUTURE on Page 9

Sound off: Send a column for the Opinion page to editor@chicagobusiness.com. Please include a phone number for verification purposes, and limit submissions to 425 words or fewer.

I

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PERSONAL VIEW

It’s time to give the Mag Mile a hand with this development tool

I

n America, great cities begin downtown. The Magnificent Mile is the gateway to our city, lined with high-end retail establishments from Oak Street to Wacker Drive that make it the iconic landing pad for visitors and Chicagoans.

Like all great gateways in America, the Magnificent Mile is working hard to overcome the challenges of the pandemic, and we must give them the right tools to recover.

During the pandemic, the Magnificent Mile was granted a temporary three-year Special Service

Area, which expires at the end of this year. A more suitable, longterm tool awaits in the form of a Business Improvement District, or BID. Currently, BIDs are a thriving and useful tool in 45 states, leaving Illinois as an outlier with untapped revenue. Fifteen of the largest cities in the U.S. receive $600 million in direct private investments annually through BID assessments alone.

Now it's Chicago's turn.

This spring, the General Assembly will have the opportunity to

make a Magnificent Mile BID a reality. Legislation we are sponsoring, Senate Bill 2164, will lay the groundwork to establish a BID in downtown Chicago.

A BID allows business districts to set spending priorities themselves, without the limitations that have long defined Special Service Areas. BIDs are also more nimble by providing the flexibility of self-governance. The BID's governing board can adjust how the BID assessment is designed to ensure each business shares assessment

burdens and benefits equitably.

Our retail, hospitality and tourism sectors are counting on us to give them the tools they need to address increased organized retail theft, the changing shopping habits of post-pandemic consumers and other unique challenges that a BID will help them tackle.

It's time to pass BID legislation so we can keep the Magnificent Mile magnificent and give our bustling retail, hospitality and tourism industries the shot they need not just to survive, but to thrive.

State Sen. Sara Feigenholtz, D-Chicago, represents Illinois’ 6th District.

State Rep. Kam Buckner, D-Chicago, represents the 26th District.

FUTURE From Page 8

nomic and workforce objectives. That progress is undeniable.

But sustaining progress? That is the toughest challenge when it comes to economic development. The competition is so fierce, a state must constantly be raising its own standards to stay ahead of others in attracting businesses of the future.

The best way to build a commanding lead in such a race is to have quality infrastructure, from roads and airports to schools and housing to telecommunications and power.

Especially power. It’s a leading cost for data centers, manufacturers and food processors.

And it must be reliable, as a single disruption of power has the potential to cascade in a way that can bring a whole supply chain crashing down.

Reliable, affordable power has been crucial to attracting business investment in Illinois.

Other states have surely taken notice, and in the years to come they will look to strengthen their recruiting pitch by improving their electric grids, among other infrastructure components.

Rebuild Illinois was the largest infrastructure investment in a generation, focusing mostly on railways, roads, bridges and freshwater transportation. And the electric grid is just as vital.

Utilities supporting the grid must have the financial strength to make the investments needed to ensure the infrastructure is prepared for the tidal wave of demand coming from manufacturing complexes, data centers and residents who are charging EVs and electrifying their homes. By taking this action, we can put ourselves on track for long-term sustained economic growth.

We are at a unique moment in time where we can position communities in every corner of our state for a very prosperous future, but it will take constant, continued investments in the kinds of infrastructure — power, roads, transportation — that will allow Illinois to be a competitive force for decades to come. Let’s meet the moment.

FEBRUARY 5, 2024 | CRAIN’S CHICAGO BUSINESS | 9

Financial scandal highlights ADM’s struggle to expand beyond crop trading on to rise more than 20% that year, but the momentum soon faded. Growth was less than 7% in 2022, and earnings shrank by a fifth in 2023, according to analysts’ estimates compiled by Bloomberg.

By Simon Casey, Tarso Veloso and Gerson Freitas Jr. | Bloomberg

Two acquisitions

BLOOMBERG

On a recent flying visit to Archer-Daniels-Midland’s European base, the company’s Chief Financial Officer Vikram Luthar had a pessimistic message to deliver.

Speaking to employees in Rolle, a small Swiss town on the shore of Lake Geneva, Luthar said operating costs across the company were continuing to go up and that everyone had to find ways to boost margins, according to a person familiar with the events, who asked not be identified describing internal meetings.

Luthar, 56, who had been in the CFO role for less than two years, was under pressure from multiple fronts, not least from a faltering multibillion-dollar strategy related to ADM’s vaunted nutrition business that makes ingredients for humans and animals. The decline in earnings at its core crop trading business also fueled doubts over whether the storied Chicago-based company would hit its overall 2023 profit target.

As of last month, that target is history, slashed by ADM as it stunned the agricultural trading and processing world with its weekend bombshell that Luthar is on administrative leave pending an investigation into accounting practices at the nutrition unit, following a request for information from the US Securities and Exchange Commission. ADM also postponed its fourth-quarter earnings report that had been scheduled for last month. Its shares plunged by almost a quarter on Jan. 22, wiping $8.8 billion from its market value.

The scandal has thrown the spotlight on a decade-long push, largely under the leadership of Chief Executive Officer Juan Luciano, to lessen ADM’s dependence on its legacy agricultural commodities trading business, which is notoriously prone to volatility.

“It never looks good for a CEO

when the company is running an investigation into whether or not the financial statements are correct,” said Seth Goldstein, an analyst at Morningstar Investment Service. “While it doesn’t seem that ADM is planning a CEO change right now, I’d imagine the board is at the very least thinking about a succession plan.”

An ADM spokesperson declined to comment.

Bet on nutrition For years, ADM and rivals Bunge Global SA and Cargill Inc. made money buying, storing and selling grain and profiting from exclusive information about supply and demand around the world. With information spreading faster and faster, the traders have sought to diversify their business. Cargill focused on beef. ADM followed with a bet on nutrition.

Across the industry, those efforts involved billions of dollars of acquisitions, bulking up the agricultural trading giants — known as the ABCDs (ADM, Bunge, Cargill; the “D”

is for Louis-Dreyfus Co.) — and transforming them into massive players across multiple layers of the modern food supply chain.

Many of those deals have been successful, but some have failed to live up to expectations, including ADM’s attempt to build its food-ingredient powerhouse.

ADM has focused on providing customers with products to help them change the formulation of processed food, such as reducing sugar content while preserving sweetness, or alter its appearance.

The push began in earnest with the $3.1 billion acquisition in 2014 of Wild Flavors GmbH, a European maker of food flavorings and colors. It remains the biggest deal in the history of ADM, which traces its history back more than 120 years. ADM also spent about $1.8 billion to buy animal feed maker Neovia from France’s InVivo.

The war in Ukraine and the resulting supply-chain to agricultural supply chains provided a boost not only for ADM’s core trading activities but also its

nutrition business. Companies producing specialty ingredients were in high demand in the immediate aftermath of the invasion, as food makers sought to tweak recipes.

But that gain was limited once the worst of the disruption had eased. The nutrition business subsequently struggled with demand for changes in the formulation of products including alternative protein used in veggie meats.

To make matters worse, the industry is expanding soybeans processing capacity in the US fast, boosting competition for ADM and threatening to hurt profits. US soybean crush margins are sharply down from last year, while margins for ethanol — the corn-derived biofuel of which ADM is the third-largest US producer — are at their lowest in almost a year.

In January 2021, Luciano told investors that ADM’s nutrition business was expected to enter a period in which annual operating profit growth would average 15%. Indeed, operating earnings for nutrition would go

Still, the company plowed on, announcing two ingredients acquisitions in December. ADM recently studied the potential purchase of International Flavors & Fragrances Inc.’s food and beverage business as a way to expand the nutrition segment, people with knowledge of the matter told Bloomberg in November.

As the nutrition business increased in importance and size, it also acted as a springboard for Luthar’s career at ADM. Luthar, who holds an engineering degree from the Indian Institute of Technology and an MBA from the Wharton School at the University of Pennsylvania, joined ADM two decades ago from General Motors Co. After various roles, he became CFO of nutrition, before taking the CFO role for the whole company in April 2022.

The decision to place him on leave was made by the ADM board on Jan. 19, according to a company filing, with ADM executive Ismael Roig taking over as interim CFO. Luthar’s surprise suspension leaves ADM in a state on limbo.

While the company trimmed its 2023 earnings forecast, questions clearly remain over the full impact of what has occurred internally, and investors have priced in a major hit. The shares slumped 24% on Jan. 22. They rose slightly Jan. 23, closing at $52.31, a 1.2% bump.

At least five stock analysts cut their recommendations on ADM Jan. 22. According to one of those analysts, Stifel’s Vincent Anderson, the probe and change of CFO “makes an already more difficult valuation case far more difficult.” The news “will be a setback for investor confidence at a time when valuation would already have struggled against normalizing earnings.”

Northwestern clean-tech spinout heads for Fulton Market

By John Pletz

A Northwestern University spinout is taking space in the same Fulton Market building as the Chan Zuckerberg Biohub Chicago and life-sciences incubator Portal Innovations.

Mattiq, a clean-tech company, leased 17,000 square feet of office and lab space, or about half a floor, at 400 N. Aberdeen St., one 10 | CRAIN’S CHICAGO BUSINESS | FEBRUARY 5, 2024

of two buildings dubbed Fulton Labs.

Mattiq is developing and commercializing chemicals from renewable and environmentally friendly sources that can be used as alternatives to scarce and expensive materials, such as iridium, a key component in so-called clean hydrogen production.

The company spun out of the

International Institute for Nanotechnology at Northwestern that was founded by Chad Mirkin, a prolific researcher who has started a variety of companies in Chicago.

Mattiq, which raised $15 million, employs about 20 workers.

It has doubled in the past year and expects to double again in the next year or two, says CEO Jeff Erhart.

The company will move to the new space in September from its current facility at the Illinois Science & Technology Park in Skokie.

Fulton Market has become a hot destination for life-science companies since Trammell Crow began building wet-lab space in a neighborhood that already was popular with technology companies such as Google.

“It’s where we wanted to be: in

the city, where we can attract young talent,” Erhart says.

Trammell Crow’s first Fulton Labs building at 1375 W. Fulton St. is almost fully leased. The second building, at 400 N. Aberdeen, is nearing the halfway mark.

In the latest deal, Dan Lyne of CBRE represented Trammell Crow; Max Zwolan and Scott Brandwein of JLL represented Mattiq.

PEOPLE ON THE MOVE

Advertising Section

To place your listing, visit www.chicagobusiness.com/peoplemoves or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

ACCOUNTING

CONSTRUCTION

HEALTH CARE

Cray Kaiser, Ltd., Oakbrook Terrace

Northern Builders, Inc., Schiller Park

Cray Kaiser is proud to promote Natalie McHugh, CPA from Manager to a Principal.

Natalie approaches every client interaction with a belief that accounting isn’t just about figures but about individuals. She prides herself on leveraging her expertise to assist clients in all aspects, providing holistic tax guidance on the business, individual, trust and estate platforms.

As a Principal, Natalie will continue providing full-service tax planning, compliance, and consulting services to CK’s clients.

Northern Builders, Inc. is pleased to announce the promotion of Kevin J. McDonough to Senior Project Manager.

In his expanded role, Kevin is responsible for the oversight of the designbuild process, inclusive of finding creative and cost-effective solutions for Northern’s clients to enhance schedule and ensure quality. Kevin has been a member of Northern’s team for 3 years.

The HAP Foundation, Oakbrook Terrace The HAP Foundation welcomes Anthony Balthazor to its Board of Trustees. Balthazor is a Group Senior Vice President for Wintrust Bank Commercial Bank and Family Office Banking Group.

With over 20 years in Commercial Banking, he has worked with privately and closely held Middle Market businesses and Family Offices. He is involved with the Big Shoulders Fund, recently serving as Co-Chair of the Chairmen’s Advisory Council Board. Also, he is a 2019 Fellow of the Leadership Greater Chicago Fellowship.

HEALTH CARE

CONSTRUCTION CONSTRUCTION Skender, Chicago Skender, one of the nation’s top building contractors, congratulates Courtney Boatwright on her promotion to Creative Director. Courtney joined Skender in 2011, and her branding and design talents have long influenced and guided Skender’s marketing initiatives. In her new role as Creative Director, she will be responsible for overseeing all creative production aspects of Skender’s brand, marketing campaigns and initiatives.

Skender, Chicago Skender, one of the nation’s top building contractors, congratulates Andy Halik on his promotion to Senior Vice President.

Andy joined Skender in 2011 and has over 18 years of experience in the construction industry. Since 2021, Andy has co-led the Interiors group, focusing on market strategy, client service and motivating the team toward continued growth.

As SVP, Andy will continue to provide strategic vision and a commitment to growing relationships for the awardwinning Interiors group.

The HAP Foundation, Oakbrook Terrace The HAP Foundation welcomes Maggie Lapcewich to its Board of Trustees. Lapcewich is a C-level executive with 35+ years of progressive leadership experience in the Beverage Alcohol industry. With industry and functional oversight experience, she led large commercial business units, strategy and cross functional teams as a Supplier and Wholesaler executive. Recently, Lapcewich was Chief Growth Officer for Breakthru Beverage Group, an $8Bn distributor of beer, wine, spirits and non-alc beverages.

HEALTH CARE The HAP Foundation, Oakbrook Terrace

CONSTRUCTION Skender, Chicago Skender, one of the nation’s top building contractors, congratulates Brian Bukowski on his promotion to Senior Vice President. Brian joined Skender in 2007 and has over 20 years of experience in the construction industry. Since 2021, Brian has co-led the Interiors group, focusing on driving financial success, efficient operations, and the team’s vision. As SVP, Brian will continue to provide strategic and operational leadership to Skender’s awardwinning Interiors group.

CONSTRUCTION Skender, Chicago Skender, one of the nation’s top building contractors, congratulates Patrick Sullivan on his promotion to Director of Field Operations.

Pat joined Skender in 2015 and has been an invaluable resource in managing field activities and operations for crucial client projects, including recent large-scale buildouts for Salesforce Chicago and Bank of America. In his new role, he will help oversee field operations, guiding projects and teams to safe, timely, on-budget completions.

CONSTRUCTION Skender, Chicago Skender, one of the nation’s top building contractors, congratulates Kate Calenberg on her promotion to Director of Learning and Development. Kate joined Skender in 2004 and jumped into learning and development after a decade in project management, carefully cultivating the firm’s new hire onboarding process. In her new role, she will be responsible for the effective development, direction and presentation of training and development programs for all operational employees.

P011_CCB_20240205_v3.indd 1

HUMAN RESOURCES The Morton Arboretum, Lisle Norissa Bailey, SPHR, joined The Morton Arboretum in the new position of Vice President of People and Culture. She oversees strategic people leadership, workforce development, and integrated mentorship. Bailey brings 20 years of experience creating collaborative, equitable and innovative work environments that attract and develop top talent. She will play a lead role in forwarding the Arboretum’s vision of a greener, healthier, more beautiful world where people and trees thrive together.

The HAP Foundation welcomes Jesse White to its Board of Trustees.

White served as Illinois’ 37th Secretary of State.

First elected in 1998, he won landslide victories in 2002, 2006, 2010 and 2014. In 2018, White won a record-breaking sixth term, earning over 3.1 million votes statewide-the most ever by a statewide candidate in a midterm election. He retired from elected office following his 6th term. White continues his volunteer work with the Jesse White Tumblers, a program he started in 1959.

LAW Thompson Coburn LLP, New York Partner Howard Lavin and counsel Liz DiMichele have joined the New York office of Thompson Coburn LLP, continuing the expansion of the firm’s labor and employment Lavin practice nationwide.

Lavin counsels clients on a range of local, state and federal employment laws and related issues, including discrimination, harassment, wage-andhour, and M&A due diligence. He conducts internal investigations, DiMichele workplace training, and compliance audits.

DiMichele advises HR professionals and in-house counsel navigating laws related to areas including antidiscrimination practices, reasonable accommodations, wage and hour issues, reductions in force, restrictive covenants, hiring practices, termination decisions and personnel policies.

LAW

MANAGEMENT CONSULTING

Blank Rome LLP, Chicago

Harmer Financial Solutions, Chicago

Blank Rome announces that partner William J. Dorsey was appointed Vice Practice Group Leader of the firm’s Corporate Litigation group. Will is a founding member of the Blank Rome Chicago office and helps lead the banking and real estate litigation practices.

Will is a nationally recognized trial lawyer who has tried more than 75 cases to judgment. Clients turn to Will for high-stakes commercial finance, real estate, M&A, and executive compensation and noncompete disputes.

Congratulations, Kristy Sellinger, on your promotion to Partner!

Kristy was the second employee of Harmer Financial Solutions, directly responsible for the firm’s success serving clients. She is a thought leader regularly called upon to address critical initiatives advising companies regarding their stretch goals in the areas of finance and accounting. Kristy’s leadership, and ability to effectively mentor others at the firm will continue to drive Harmer’s future growth.

LAW Thompson Coburn LLP, Washington, D.C. Kenyen Brown has joined the Washington, D.C. office of Thompson Coburn LLP as a partner.

Former U.S. Attorney Brown focuses his practice on white-collar criminal litigation and compliance counseling, including in internal and government investigations.

He performs compliance program reviews, audits and risk assessments and helps clients manage risks that can affect organizational reputation, fiscal health, and strategic effectiveness. He also is a member of the firm’s Lobbying & Policy team.

RECRUITING Brilliant Staffing, LLC, Chicago Brilliant® welcomes Keith Ordan as Chief Executive Officer to lead vision and growth.

Keith has more than 25 years of experience leading and building thriving businesses in the staffing and recruitment industry that have outpaced market growth.

Most recently, Keith was the EVP of Customer Success for an international technology recruitment firm, where he led sales and customer acquisition in North America.

RECRUITING Brilliant Staffing, LLC, Chicago

LAW Thompson Coburn LLP, St. Louis John Howard has joined the St. Louis office of Thompson Coburn LLP as a partner in the Health Care Group. Howard advises health systems, large physician groups, health plans, and health care executives on a full range of regulatory, transactional, and organizational issues, drawing on his own experiences as a health care executive to counsel clients on strategic planning, hospitalphysician alignment, population health initiatives, and fiduciary board engagement.

LAW Thompson Coburn LLP, Chicago Erik Lewis and Matthew Misichko have been promoted to partner with Thompson Coburn LLP in Southern Illinois and Chicago. Lewis is a litigator with an emphasis Lewis on products liability, toxic torts, and railroad litigation. He has worked as an Assistant Attorney General for the State of Illinois and was counsel on numerous federal, state, and administrative cases involving property damage, employment Misichko discrimination, and alleged FMLA violations.

Misichko represents public and private companies across the country on a range of corporate matters.

His M&A practice includes crossdepartmental due diligence, drafting and negotiating definitive purchase agreements, advising on corporate entity strategy and formation, and commercial contract matters.

Brilliant® announces Jonathan Amador as Director of Technology Recruiting along with the launch of its new location for their Technology Solutions practice in Atlanta, Georgia. Jonathan brings a wealth of experience and expertise in identifying exceptional tech talent and aligning them with the specific needs of clients. Prior to Brilliant, Jon led the launch of Global Accounting Network’s data division, specializing in executive placement and staffing initiatives within the realm of data.

TECHNOLOGY Chamberlain Group, Oak Brook Chamberlain Group (CG), global leader in intelligent access solutions and Blackstone portfolio company, welcomes two new executive leaders to accelerate the company’s growth. Mike Eklund is Eklund CG’s new Chief Financial Officer and EVP, joining from Shutterfly, where he was CFO, and Gina Hardy has been named Chief Marketing and Experience Officer and EVP, joining from Uber subsidiary, Drizly, where Hardy she was Chief Customer Officer. CG products are found in 50+ million homes and 10 million+ people use the myQ app to seamlessly and securely access their homes and businesses daily.

To order frames or plaques of profiles contact Lauren Melesio at lmelesio@crain.com

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50 HIGHEST-PRICED HOME SALES OF 2023

By Dennis Rodkin

Here's a clear sign of the big decline in upper-end home sales in 2023: On Crain’s annual ranking of the 50 highest-priced sales, the lowest rung dropped by more than a million dollars.

On the list, 50th place is a tie: Two homes, one in Lake Forest and one in Hinsdale, each sold for $4.45 million. Crain’s list for 2022 cut off at $5.5 million.

In 2023, the top rung dropped, too. Leading our latest ranking is a Winnetka mansion that went for $12.5 million in July. On the 2022 list, five properties sold for more than that, topping out at $20.5 million, the price a buyer paid for a penthouse at the St. Regis tower.

The extreme upper end was hit last year by the same factors as the overall real estate market, says Jena Radnay, the @properties Christie’s International Real Estate agent who represented the seller of 2023’s top-priced mansion and both the buyer and seller in the second-highest sale, which was also in Winnetka.

Those factors, said Radnay: a “lack of inventory, lack of confidence about the future and interest rates.”

The frenetic pace of sales in the boom years helped drain the pool of inventory.

“The chain of buyers broke.”

No. 1, a five-bedroom home on Sheridan Road in Winnetka sold for $12.5 million. | JENA RADNAY/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

Number of home sales of $4 million or more 125

— Jennifer Ames, Engel & Volkers broker And as for the future, we're looking at two wars, a national immigration crisis that has reached Chicago and a highly fraught presidential election looming. One war was already raging in Ukraine when another one ignited in the Middle East in early October, and “a lot of people feeling the emotional consequences of it just stopped making decisions to do things like buy or sell a house,” said Jennifer Ames, the Engel & Volkers broker who represented the sellers of a $6.5 million Gold Coast house that landed at No. 9 on the ranking.

While people buying $4 millionand-up homes generally aren’t taking out a mortgage, and thus don’t have to worry about interest rates, they’re feeling it secondhand, when potential buyers who want to trade up can’t or won’t move because of high interest rates cutting their affordability.

Both Radnay and Ames said they witnessed it this past year.

“The chain of buyers broke,” Ames said.

During the pandemic housing boom, the tally of $4 million-plus sales nearly doubled, topping 100 in 2021 compared with 52 in 2019.

It then reached 136 in 2022.

In 2023, volume fell. Seventythree homes sold for $4 million or

100

73

75

50

25

Source: Crain’s reporting

Above, clockwise from left: No. 5, a house on West Van Buren Avenue in Naperville sold for $8.1 million. No. 9, a house on East Scott Street in Chicago sold for $6.5 million. The 47th-floor pool terrace at the St. Regis tower in Lakeshore East where No. 8, a four-bedroom condo, sold for $6.5 million. | KATIE MINOTT AND KIM MARINO/ @PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE, JENNIFER AMES/ENGEL & VOELKERS CHICAGO, AND THE ST. REGIS

more during the year, a 46% drop from 2022. That’s much steeper than the 20% decline in Chicagoarea home sales overall.

Some notables on this latest ranking: Naperville is back in the extreme-upper-end mix: There hadn’t been a sale in that suburb on this list since at least 2018, but in November, a mansion on Van Buren Avenue sold for $8 million. It’s the highest price ever recorded in Naperville — as well as in DuPage County, where Hinsdale usually sets the bar — and lands at No. 5.

While it’s clearly an outlier — the year’s second-highest sale in Naperville was a little more than $3 million — it sent a signal, said Katie Minott, who with fellow @properties Christie’s International Real Estate agent Kim Marino represented the seller.

“There are people who want to come out here and buy at that (price) level,” Minott said. “Not just one of them, who bought this house. We know because we had a number of buyers come who could afford” the Van Buren house.

0

’15

’17

’19

’21

’23

Downtown isn't dominating: In 2022, the three highestpriced home sales of the year were downtown Chicago condos.

But in 2023, after those two Winnetka mansions, No. 3 was former Chicagoan Ken Griffin’s January sale of a Park Tower condo for $11.2 million.

Radnay said the shift at the top from city to suburbs reflects “what we’re seeing with buyers, who are coming up to the North Shore.”

Affluent people have long moved north, but Radnay said, “We’re definitely seeing it more than a

few years ago.”

Radnay has the experience to say so. Of the five highest-priced sales in Winnetka, she represented the sellers in all five cases and also represented the buyers in two.

Radnay declined to specify which of those homes sold to people arriving from Chicago, but said if she did, “it would confirm what I’m saying. Uncertainty from a political standpoint, violence, theft: Those are things that aren’t making people feel safe buying in Chicago, and they’re coming up here.”

FEBRUARY 5, 2024 | CRAIN’S CHICAGO BUSINESS | 13

CRAIN’S LIST: CHICAGO’S PRICIEST HOME SALES OF 2023

All sales in 2023. Ranked by purchase price.

1. Sheridan Road, Winnetka 60093 Purchase price: $12.5 million Bedrooms/bathrooms: 5 BR/7.5 BA Purchase date: July 28 Buyers: Jared and Gabriella Smith Seller: Chicago Title Land Trust

No. 2, a five-bedroom house on Sheridan Road in Winnetka sold for $12.3 million. | JENA RADNAY/ @PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

2. Sheridan Road, Winnetka 60093 Purchase price: $12.3 million Bedrooms/bathrooms: 5 BR/7 BA Purchase date: Aug. 31 Buyers: Shiraz and Vijay Kotte Seller: Randy Abrahams

3. North Michigan Avenue, Chicago 60611 Purchase price: $11.2 million Bedrooms/bathrooms: 5 BR/6 BA Purchase date: Jan. 13 Buyer: Traenif LLC Seller: Ken Griffin Neighborhood: Gold Coast

4. North Orchard Street, Chicago 60614 Purchase price: $10.7 million Bedrooms/bathrooms: 7 BR/7 BA Purchase date: May 18 Buyer: Chicago Title Land Trust Seller: 1956 Natl Orchard St LLC (Jennifer Prewitt) Neighborhood: Lincoln Park

5. West Van Buren Avenue, Naperville 60540 Purchase price: $8.1 million Bedrooms/bathrooms: 5 BR/7.5 BA Purchase date: Nov. 13 Buyer: Chicago Title Land Trust Seller: Jane Brooks

6. Lake Road, Lake Forest 60045 Purchase price: $7.8 million Bedrooms/bathrooms: 7 BR/7 BA Purchase date: Nov. 15 Buyer: NA Seller: David and Kristin Keenan

7. North Lake Shore Drive, Chicago 60611 Purchase price: $6.8 million Bedrooms/bathrooms: 4 BR/5.5 BA Purchase date: June 7 Buyer: OFTT LLC (Mike Jones) Sellers: Amit Dhadwal, Jennifer McNeil Neighborhood: Gold Coast

From left: No. 6, a seven-bedroom home on Lake Road in Lake Forest sold for $7.8 million. No. 4, a seven-bedroom home on North Orchard Street in Chicago’s Lincoln Park neighborhood sold for $10.7 million. | PHOTOS PROVIDED BY KATIE HAUSER AND MEG MCGUINNESS, COMPASS (LEFT) AND SUZANNE GIGNILLIAT/ @PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE (RIGHT)

8. East Wacker Drive, Chicago 60601 Purchase price: $6.5 million Bedrooms/bathrooms: 4 BR/5.5 BA Purchase date: May 12 Buyer: Chicago Title Land Trust Seller: Magellan Development Neighborhood: Lakeshore East

9. East Scott Street, Chicago 60610 Purchase price: $6.5 million Bedrooms/bathrooms: 5 BR/6.5 BA Purchase date: May 30 Buyer: Chicago Title Land Trust Seller: Scott Street Partners LLC Neighborhood: Gold Coast 14 | CRAIN’S CHICAGO BUSINESS | FEBRUARY 5, 2024

No. 9, a five-bedroom house on East Scott Street in Chicago’s Gold Coast neighborhood sold for $6.5 million. | JENNIFER AMES/ENGEL & VOELKERS CHICAGO

No. 5, a five-bedroom house on West Van Buren Avenue in Naperville sold for $8.1 million. | KATIE MINOTT AND KIM MARINO/ @ PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

No. 13, a six-bedroom house on Hill Road in Winnetka sold for $6.2 million. | JENA RADNAY/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

17. Bluffs Edge Drive, Lake Forest 60045

Purchase price: $6.4 million Bedrooms/bathrooms: 7 BR/8 BA Purchase date: May 18 Buyer: Chicago Title Land Trust Seller: Mohawk Partners II LLC Neighborhood: Lincoln Park

Purchase price: $5.8 million Bedrooms/bathrooms: 4 BR/4.5 BA Purchase date: Jan. 10 Buyer: Linda Kapfer Trust Seller: Karen A. Guenther, Arlington Jeffrey Guenther

11. East Grand Avenue, Chicago 60611

Purchase price: $5.7 million Bedrooms/bathrooms: 10 BR/10 BA Purchase date: June 30 Buyer: Julie Workman Seller: Andrew McKenna estate

Purchase price: $6.4 million Bedrooms/bathrooms: 4 BR/5 BA Purchase date: June 23 Buyers: Brandon and Kristy Moran Seller: RMW Streeterville LLC Neighborhood: Streeterville

18. Locust Road, Winnetka 60093

19. North Dearborn Street, Chicago 60610 Purchase price: $5.7 million Bedrooms/bathrooms: 5 BR/7.5 BA Purchase date: April 10 Buyer: Rosewood Residential LLC (managed by John Pellouchoud) Seller: Driehaus estate Neighborhood: Gold Coast

20. Healy Road, Barrington Hills 60010 Purchase price: $5.6 million Bedrooms/bathrooms: 6 BR/6.5 BA Purchase date: July 18 Buyer: Murrell Trust Sellers: Robert and Denise Krause No. 16, a three-bedroom condo on North Lakeview Avenue in Chicago’s Lincoln Park neighborhood sold for $6.0 million. | VHT STUDIOS

12. Shoreline Court, Glencoe 60022 Purchase price: $6.3 million Bedrooms/bathrooms: 5 BR/6 BA Purchase date: July 6 Buyer: 325 Shoreline Court LLC Seller: Chicago Title Land Trust

13. Hill Road, Winnetka 60093

@

No. 18, a 10-bedroom house on Locust Road in Winnetka sold for $5.7 million. | JENA RADNAY/@PROPERTIES

E

CHRISTIE’S INTERNATIONAL REAL ESTATE

or

10. North Mohawk Street, Chicago 60614

Purchase price: $6.2 million Bedrooms/bathrooms: 6 BR/7.5 BA Purchase date: Dec. 1 Buyer: Northern Trust Sellers: Heartland Bank & Trust (Steve and Anita Livaditis)

14. North Cleveland Avenue, Chicago 60614 Purchase price: $6.2 million Bedrooms/bathrooms: 7 BR/7 BA Purchase date: Oct. 25 Buyer: Chicago Title Land Trust Seller: Dasco Cleveland LLC Neighborhood: Lincoln Park

15. Stonegate Road, Lake Forest 60045 Purchase price: $6.0 million Bedrooms/bathrooms: 6 BR/8.5 BA Purchase date: Jan. 31 Buyer: Proper Title LLC Seller: NA

16. North Lakeview Avenue, Chicago 60614

No. 12, a five-bedroom home on Shoreline Court in Glencoe sold for $6.3 million. | JENA RADNAY/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

Purchase price: $6.0 million Bedrooms/bathrooms: 3 BR/3.5 BA Purchase date: Sept. 20 Buyers: Andrew Marks trust, Gail Marks trust Seller: James Gearen Neighborhood: Lincoln Park

21. West Walton Street, Chicago 60610 Purchase price: $5.5 million Bedrooms/bathrooms: 4 BR/4.5 BA Purchase date: Oct. 3 Buyers: Anthony Zingale trust, Allison Zingale trust Sellers: John and Kacia Morris Neighborhood: Gold Coast

21. North Hudson Avenue, Chicago 60614 Purchase price: $5.5 million Bedrooms/bathrooms: 7 BR/7.5 BA Purchase date: March 2 Buyer: Chicago Title Land Trust Sellers: John and Mary Willis Neighborhood: Lincoln Park

23. West Oak Street, Chicago 60610 Purchase price: $5.3 million Bedrooms/bathrooms: 6 BR/7 BA Purchase date: Dec. 8 Buyer: 30OAK21 LLC Sellers: Douglas and Joanne Pertz Neighborhood: Gold Coast

24. North Lake Shore Drive, Chicago 60610 Purchase price: $5.2 million Bedrooms/bathrooms: 5 BR/6 BA Purchase date: Jan. 9 Buyer: NA Seller: Co-op (sellers not identified) Neighborhood: Gold Coast

25. Sheridan Road, Winnetka 60093 Purchase price: $5.2 million Bedrooms/bathrooms: 5 BR/5.5 BA Purchase date: Jan. 3 Buyer: Chicago Title Land Trust Seller: MALPF LLC (Marc Lifshin) FEBRUARY 5, 2024 | CRAIN’S CHICAGO BUSINESS | 15

CRAIN’S LIST: CHICAGO’S PRICIEST HOME SALES OF 2023 All sales in 2023. Ranked by purchase price.

25. East Walton Place, Chicago 60611

34. Indian Hill Road, Winnetka 60093

Purchase price: $5.2 million Bedrooms/bathrooms: 3 BR/3.5 BA Purchase date: April 11 Buyer: Chicago Title Land Trust Sellers: Palmore Prop LLC (Michael and Gayle Ahearn) Neighborhood: Gold Coast

Purchase price: $4.9 million Bedrooms/bathrooms: 6 BR/7 BA Purchase date: March 31 Buyers: Corbett Porter Trust, Melanee Porter Trust Seller: Martha and Curt Schreiber

27. North Greenview Avenue, Chicago 60613 Purchase price: $5.1 million Bedrooms/bathrooms: 7 BR/5.5 BA Purchase date: Sept. 18 Buyers: James and Heidi Suprenant Seller: Dorsey Wilson trust Neighborhood: Graceland West

27. Indian Hill Road, Winnetka 60093 Purchase price: $5.1 million Bedrooms/bathrooms: 7 BR/7 BA Purchase date: Oct. 20 Buyer: Karen Lavin Sellers: Will and Stefii Galvin

27. 87th Street, Burr Ridge 60527 Purchase price: $5.1 million Bedrooms/bathrooms: 5 BR/6.5 BA Purchase date: Aug. 18 Buyer: Internationale Investments LLC (manager David Pollock) Seller: Chicago Title Land Trust

30. North Fremont Street, Chicago 60614 Purchase price: $5.1 million Bedrooms/bathrooms: 5 BR/5 BA Purchase date: April 6 Buyer: Patrick Zilis Sellers: Amy Ennesser, Daniel Engel Neighborhood: Lincoln Park

31. East Cedar Street, Chicago 60611 Purchase price: $5.0 million Bedrooms/bathrooms: 6 BR/5.5 BA Purchase date: April 28 Buyer: Chicago Title Land Trust Seller: Steve Kaplan Neighborhood: Gold Coast

32. South Oak Street, Hinsdale 60521 Purchase price: $5.0 million Bedrooms/bathrooms: 4 BR/7 BA Purchase date: June 5 Buyer: Michael Keeley Seller: Chicago Title Land Trust

33. North Dayton Street, Chicago 60614 Purchase price: $5.0 million Bedrooms/bathrooms: 6 BR/7.5 BA Purchase date: Jan. 9 Buyer: Chicago Title Land Trust Sellers: 1862 N Dayton LLC Neighborhood: Lincoln Park

16 | CRAIN’S CHICAGO BUSINESS | FEBRUARY 5, 2024

35. Breakenridge Farm Road, Oak Brook 60523 Purchase price: $4.8 million Bedrooms/bathrooms: 8 BR/11.5 BA Purchase date: Aug. 31 Buyers: Ahmed and Sadia Mansoor Seller: Debra Palumbo

36. South Dearborn Street, Chicago 60605

No. 25 (tied), a three-bedroom condo on East Walton Place in Chicago’s Gold Coast neighborhood sold for $5.2 million. | CARRIE MCCORMICK/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

No $5

Purchase price: $4.8 million Bedrooms/bathrooms: 5 BR/NA Purchase date: July 6 Buyer: Yellow Lemon LLC (Vaibhav Bajaj) Seller: ChrisTalsma, Sara Talsma as CCSC LLC

36. North Cleveland Avenue, Chicago 60614 Purchase price: $4.8 million Bedrooms/bathrooms: 6 BR/7 BA Purchase date: Aug. 7 Buyer: Coby White (of the Chicago Bulls) Seller: Rajeev Rathi Neighborhood: Lincoln Park

36. Essex Road, Kenilworth 60043 Purchase price: $4.8 million Bedrooms/bathrooms: 7 BR/6 BA Purchase date: July 24 Buyers: Matthew J. Miller trust, Leslie J. Miller trust Seller: Robert B. Womsley Jr.

39. Brinker Road, Barrington Hills 60010 Purchase price: $4.8 million Bedrooms/bathrooms: 7 BR/8.5 BA Purchase date: July 18 Buyers: Mick and Megan Austin Sellers: Christopher Bilton trust, Anna Bilton trust

No. 46, a seven-bedroom home on Longmeadow Road in Winnetka sold for $4.5 million. | EMILY SACHS WONG/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

39. Fox Trail Lane, Oak Brook 60523 Purchase price: $4.8 million Bedrooms/bathrooms: 5 BR/9 BA Purchase date: June 15 Buyers: Nikola Kozul and Fox Trail Revocable Trust Sellers: Purva Shah Revocable Trust and Aakash Shah

39. North Dayton Street, Chicago 60614 Purchase price: $4.8 million Bedrooms/bathrooms: 6 BR/6 BA Purchase date: Sept. 2 Buyers: Connor and Keri Roth Seller: Dayton Residence Trust Neighborhood: Lincoln Park

42. North Cleveland Avenue, Chicago 60614 Purchase price: $4.6 million Bedrooms/bathrooms: 6 BR/6 BA Purchase date: Oct. 30 Buyer: 1815 Natl Cleveland LLC Sellers: Sanjay and Avni Kaushal Neighborhood: Lincoln Park

No. 30, a five-bedroom home on North Fremont Street in Chicago’s Lincoln Park neighborhood sold for $5.1 million. | EMILY SACHS WONG/@PROPERTIES CHRISTIE’S INTERNATIONAL

No. 39 (tied), a six-bedroom home on North Dayton Street in Chicago’s Lincoln Park neighborhood sold for $4.8 million. | EMILY SACHS WONG/@PROPERTIES CHRISTIE’S

No. 4 Aven for $

REAL ESTATE

INTERNATIONAL REAL ESTATE

INTERN

43. North Magnolia Avenue, Chicago 60614 Purchase price: $4.6 million Bedrooms/bathrooms: 6 BR/6 BA Purchase date: Dec. 19 Buyer: Ryan and Brittney Einwag Seller: Savane Design + Build Neighborhood: Lincoln Park

44. Harbor Street, Glencoe 60022 Purchase price: $4.6 million Bedrooms/bathrooms: 6 BR/7 BA Purchase date: Sept. 18 Buyer: Andrew Frankel Sellers: John and Rebecca Garabedian No. 27 (tied), a five-bedroom house on 87th Street in Burr Ridge sold for $5.1 million. | NATALIE RYAN AND ANNA FIASCONE/BERKSHIRE HATHAWAY HOMESERVICES CHICAGO

45. Aspen Lane, Glencoe 60022 Purchase price: $4.6 million Bedrooms/bathrooms: 4 BR/4.5 BA Purchase date: April 10 Buyers: Fereidoon Yarandi, Victoria Vahdani Seller: Nena Addis estate

46. Longmeadow Road, Winnetka 60093 Purchase price: $4.5 million Bedrooms/bathrooms: 7 BR/8.5 BA Purchase date: Dec. 5 Buyers: Andrew Weir trust (Andrew and Ashley Weir) Sellers: Matthew and Leah Jimenez

47. East 7th Street, Hinsdale 60521

No. 39 (tied), a seven-bedroom home on Brinker Road in Barrington Hills sold for $4.8 million. | JOHN MORRISON/@ PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

Purchase price: $4.5 million Bedrooms/bathrooms: 6 BR/6.5 BA Purchase date: Sept. 29 Buyer: 26E7 LLC Seller: DS Homes Hinsdale LLC

47. West Deming Place, Chicago 60614 Purchase price: $4.5 million Bedrooms/bathrooms: 6 BR/5 BA Purchase date: March 16 Buyer: Bonnie Lou LLC Sellers: Craig and Justyna Della Valle Neighborhood: Lincoln Park

49. East Woodland Road, Lake Forest 60045

No. 34, a six-bedroom home on Indian Hill Road in Winnetka sold for $4.9 million. | VHT STUDIOS

Purchase price: $4.5 million Bedrooms/bathrooms: 7 BR/10 BA Purchase date: Feb. 13 Buyer: Woodland Properties LLC Sellers: John and Diana Terlato

50. Elm Tree Road, Lake Forest 60045 Purchase price: $4.5 million Bedrooms/bathrooms: 4 BR/6 BA Purchase date: Nov. 6 Buyer: 80 North Western LLC Seller: Harry Hoopis

50. South Lincoln Street, Hinsdale 60521 Purchase price: $4.5 million Bedrooms/bathrooms: 5 BR/7 BA Purchase date: Aug. 21 Buyer: David and Mary Smith Seller: Antoanela and Scott Vaccaro for

No. 42, a six-bedroom home on North Cleveland Avenue in Chicago’s Lincoln Park neighborhood sold for $4.6 million. | EMILY SACHS WONG/@PROPERTIES CHRISTIE’S INTERNATIONAL REAL ESTATE

No. 44, a six-bedroom home on Harbor Street in Glencoe sold for $4.6 million. | HOWARD MEYERS AND SUSAN MEYERS/

Includes homes sold in 2023 in Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties and reported in real estate listings or public records by Jan. 30, 2024. Purchase price is rounded to the nearest thousand; only those homes that share a ranking number have identical full prices. Researched by Dennis Rodkin and Sophie Rodgers.

COMPASS

FEBRUARY 5, 2024 | CRAIN’S CHICAGO BUSINESS | 17

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charges of fraud and conspiracy against founder Sam BankmanFried.

The market received a further jolt in 2023 when Changpeng Zhao, the founder of cryptocurrency exchange Binance, pleaded guilty to money-laundering violations. The company also agreed to pay $4.3 billion in settlements to various agencies and agreed to government oversight of its business after admitting to compliance violations.

As the new exchanges stumbled, stalwarts such as Cboe and CME Group are expected to fill the gap, offering new crypto-flavors of their traditional investments that investors have relied on for decades.

Cboe remains bullish on crypto even after it was forced to take a writedown of more than $450 million on its acquisition of ErisX, an exchange for crypto coins and derivatives, following the market meltdown of 2022.

Earlier this month, Cboe launched margined Bitcoin and Ether futures on its Cboe digital

platform, which is what the Chicago-based exchange renamed ErisX. It also is looking to list options on the newly approved bitcoin ETF to help investors hedge their exposure to the crypto market.

“It is palatable,” said Katherine Kirkpatrick Bos, chief legal officer at Cboe Digital. “It is crypto wrapped in a traditional finance product. All of these things are going to bring more people to the table.”

ETF approval The SEC’s approval of the bitcoin ETF also was seen as boosting volumes for CME Group’s cryptocurrency offerings, which averaged around 60,000 contracts a day in 2023.

The day after the SEC’s approval, nearly 149,000 contracts traded across CME Group’s crypto futures suite, the fifth-busiest day on record for those products, the exchange said. Daily volume in CME’s bitcoin futures has averaged 17,500 contracts so far this month, in line with the alltime high recorded in January 2021.

“While it’s too early to know how the approval of spot Bitcoin ETFs will impact all marketplace

GOP

From Page 3

to Democrats, and Tracy said efforts to get the GOP back into the early-vote game this year have the blessing of not just the Republican National Committee but Trump himself.

Despite the new money, Illinois Republicans face a daunting task this election cycle. They hold no statewide offices, are in no super-minority positions in the Illinois House and Senate, and likely presidential nominee Trump lost the state by a wide margin to Democratic nominees in 2020 and 2016.

Trump heading the 2024 ticket “could be a headwind,” particu-

Chairman Don Tracy

larly in Chicago, where the party needs to do much better, Tracy said. Tracy has remained neutral in this GOP contest, with Richard

participants, we believe this development will be a positive for the overall crypto ecosystem,” Tim McCourt, global head of financial and OTC products at CME Group, said in an email.

Cboe’s stock has surged 7.5%, closing Jan. 24 at $188.80 after hitting an all-time high, since the approval of the bitcoin ETF, while shares of CME Group have risen 3.3% during the same period, closing Jan. 24 at $204.27.

Bitcoin prices rose ahead of the SEC’s ruling on Jan. 10, hitting a nearly two-year high of $48,969 each. Prices have fallen about 19% recently but were still well above the low of $15,599.05 they sank to as the FTX scandal rocked the market in November 2022.

Cryptocurrencies may never be as cool as when Matt Damon promised investors that “fortune favors the brave” in a 2022 ad for trading platform Crypto.com. But stability is also a cool feature, one highly valued by many investors, that can help the asset survive long-term.

“This is just the natural maturity of the market,” said CoinFlip’s Weiss. “There is room for everyone. You want to grow the pot.”

Porter, the GOP national committeeman from Illinois, having backed Florida Gov. Ron DeSantis.

Regardless of who the party nominee is, “We’re going to be broad-based, on a wide range of issues. . . .We have a team,” Tracy said.

Jeanne Ives, the former gubernatorial candidate and conservative who serves on the state party’s governing board, confirmed the group is more unified at the moment than it has been in recent years.

“There’s a concerted team effort to turn the tide and make things better,” Ives said in a phone interview. Having a plan and the money to fund it “will help,” even in Illinois, she added.

EV PAIN From Page 3

battery cells slowly, said Wright, the Lightning owner who is vice president of engineering at battery-testing company Unico.

Data from Here Technologies backs up that thesis: The company hasn’t found an abnormal increase in inoperable chargers in Chicago so far this winter.

“Vehicle battery and hardware may be contributing to reports from drivers in the area,” said spokesperson Jordan Stark.

EVs also lose range in the winter because cold drivers crank up the heat to stay warm. That’s a drain. EVs use energy from the battery to produce cabin heat.

Gasoline powered vehicles use “waste heat” from the engine to warm the interior.

Extreme cold usually won’t hurt the battery in the long run, but it will impact immediate performance, Parker said.

“The technology, even though it is mature, is not accounting for these once-a-year, twice-a-year situations,” he said.

There are also “not enough chargers to go around,” Parker said.

The U.S. had nearly 3 million

EVs in operation as of October, according to S&P Global Mobility.

There are just over 160,000 public charging ports scattered across the country, according to the Department of Energy. That’s about 19 EVs for every Level 2 or fast charger.

Charging company Flo said its sessions have been slightly longer during last month’s cold spell. But its overall performance has barely changed because its chargers are designed to operate in minus 40 degrees. Most of the company’s team engineered and manufactured the chargers in Quebec City, said Nathan Yang, chief product officer.

Flo uses components that can operate at a wide range of temperatures. The company designed filters to ensure the snow doesn’t block the chargers’ air intake. The charging cords are also flexible, avoiding the rigidness that afflicts some of them in winter weather.

Still, frigid temperatures exacerbate the problem of charger reliability nationwide, Yang said.

“It’s not just the hardware. It’s also the software network to be able to call somebody if you have a problem,” he said.

What drivers can do There are several actions drivers can take to improve cold-weather

From Page 3

New retail outlets opening Four years into recreational weed sales in Illinois, new retail outlets are finally opening, creating competition for established shops. The state’s dispensary scene had been dominated by many of the same companies that operated medical-only shops before recreational use was legalized. The state issued new retail licenses after long delays from litigation and the pandemic, and many of those stores started opening last year. There are about 177 dispensaries in Illinois, an increase of more than 50% over the previous year.

EV range loss by popular models

For Magnolia, the goals were similar, said Sara Gramling, vice president of communication and partnerships at the bakery. Customers were talking on social media about reaching for Magnolia’s cupcakes when they had the munchies. The partnership was about getting in front of a new audience and getting people talking about Magnolia’s brand in new ways.

It highlights the “progressive maturation” of the cannabis business into a well-regulated industry, said Nicola Persico, professor of managerial and decision sciences at Northwestern University’s Kellogg School of Management.

“The industry has come out of the shadows, so to speak,” Persico said in an email.

Ultimately, collaborating with mainstream brands makes marijuana more mainstream. It is progress cannabis companies have long been working toward.

For Chicago-based Cresco, borrowing brand equity and expertise from a well-known wing powerhouse just made sense, said Chief Communications Officer Jason Erkes. People already turn to The Fifty/50 for wings on Super Bowl Sunday. The sports bar sells more than 1,000 pounds of chicken wings on a typical big-game Sunday, according to a news release from Cresco.

The cannabis company will get the wing sauce from The Fifty/50 and infuse it with a clear and tasteless THC distillate. The wing sauce was to be available at select Cresco Sunnyside dispensaries starting Feb. 1. (The Super Bowl is scheduled for Feb. 11.)

The product also offers a way into the advertising frenzy that surrounds the Super Bowl. Cannabis marketing is still “severely regulated,” said Kristoffer Inton, equity strategist at Morningstar.

“You’re not going to see a commercial somewhere to try and get buzz that you’d typically get from a normal advertising campaign,” he said. “Partnering with a known brand is a decent strategy.”

The tactic is a direct evolution from the partnerships between marijuana companies and celebrities such as Snoop Dogg and Martha Stewart, which dominated the industry’s early days, Inton said. However, it could still be some time before collaborations between big, publicly traded companies emerge.

Senior vice president of sales Susan Jacobs (312) 649-5492 or susan.jacobs@crain.com

State regulated

PRODUCTION

Electric vehicles lose an average of 30% of their driving range in freezing conditions, according to a Recurrent analysis of popular EV models.

Volkswagen ID4 2021

-46%

Chevrolet Bolt 2017-2022

-42%

Ford Mustang Mach-E 2021 premium AWD extended

-34%

Hyundai Kona 2020-2021

-34%

Nissan Leaf 2015

-34%

Tesla Model S 90D

-28%

Ford F-150 Lightning 2022-2023 extended range

-26%

Tesla Model 3 Long range

-24%

Tesla Model X 100D

-24%

Tesla Model Y Long range AWD

-24%

Nissan Leaf 2019 plus

-23%

Audi e-tron 2021-2022

-16%

ChicagoBusiness.com President and CEO KC Crain Group publisher Jim Kirk, (312) 397-5503 or jkirk@crain.com Editor Ann Dwyer Managing editor Aly Brumback Director, visual media Stephanie Swearngin Creative director Thomas J. Linden Director of audience and engagement Elizabeth Couch Assistant managing editor/special projects Ann R. Weiler Assistant managing editor/news features Cassandra West Deputy digital editor Robert Garcia Associate creative director Karen Freese Zane Digital design editor Jason McGregor Art directors Kayla Byler, Carolyn McClain, Joanna Metzger Copy editors Todd J. Behme, Beth Jachman, Tanya Meyer Political columnist Greg Hinz Notables coordinator Ashley Maahs Newsroom (312) 649-5200 or editor@chicagobusiness.com SENIOR REPORTERS Ally Marotti, John Pletz, Dennis Rodkin

Source: Recurrent. AWD = all-wheel drive.

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consumer brands. Such products also rope in new customers. A fan of Magnolia Bakery might come into the dispensary to try a Swirled Famous Banana Pudding Bar and pick up a few other items.

The products, which stray from the gummies that so many consumers associate with marijuana edibles, are also a sign the industry is maturing. The restaurants and food brands collaborating on such products no longer feel that entering the cannabis industry poses the risk to their reputation it once did. On the flip side, having an edible option that isn’t just the same old gummy will set dispensaries apart in an increasingly crowded market.

“The name of the game I think right now in this industry is having something someone else doesn’t have that (customers) are willing to travel to you for,” said Scott Weiner, co-owner of Fifty/50 Restaurant Group, parent company of West Town Bakery and The Fifty/50. Weiner is also an Okay Cannabis owner.

charging.

When a battery is stressed from extreme weather, it’s not able to charge as fast as usual, Parker said.

Pre-conditioning can help when possible.

Slow charging on a Level 2 system, such as a home charger in a driver’s garage, often works better in frigid weather than a public fast charger, Wright said, but it takes more time.

Buying an EV with a heat pump could also help, Parker said. Tesla has heat pumps on its newer models. They handle battery thermal management, heat the motor and warm the cabin. Heat pumps use less energy than typical EV heaters, which are resistive and work more like the coils of a toaster.

Recurrent suggests forgoing the cabin heater altogether. The EV data firm recommends using seat warmers and a heated steering wheel, which use less energy.

Gasoline-powered vehicles also struggle in freezing conditions.

Gasoline mileage is about 15 percent lower in the freezing cold, according to the Department of Energy. But the winter wallop is an inconvenience of EV ownership, Parker said.

“It will become less of a problem over time” as battery technology improves, he said.

A THC-infused cake mix from Okay Cannabis and West Town Bakery. | OKAY CANNABIS

Illinois also now competes with other newly legalized neighbors like Missouri. Recreational sales were up 5% in 2023 to $1.6 billion, but growth slowed from 2022. The industry has faced other growing pains, too, including falling prices and rising costs.

“As the market matures, it gets really competitive and there are a lot of players and a lot of brands,” said Eli Weiner, brand manager for Green Thumb Industries’ Incredibles — no relation to Fifty/50’s Scott Weiner. “It makes us have to be more creative.”

Magnolia Bakery initiated the limited-time partnership with Chicago-based Green Thumb. Incredibles makes two THC-infused chocolate bars as part of the collaboration that use Magnolia desserts as inspiration: the banana pudding bar and Red Velvet Piece Ahhh Cake.

Those flavors were chosen because Magnolia Bakery customers can easily recognize them, and they did not overlap with any existing Incredibles flavor, Eli Weiner said. The goal was to rope in more customers using Magnolia’s gravitas.

“They’re just a bigger brand.

They’re more well known. They were on ‘Sex and the City’ and we weren’t. They’ve been around longer than we have,” Eli Weiner said.

“It was about establishing ourselves with a big conventional brand.”

Though these newer products go outside the typical gummy and chocolate edible sandbox, they are still state regulated. The cannabis company or infuser must submit the recipe, the ingredients, the packaging and more for approval.

The challenge will be competing with THC-infused gummies, which have gained market share.

In Illinois, more than 50% of consumers said they had consumed gummies in the last six months, according to a fourth-quarter survey from market research firm Brightfield Group. That’s up from 44% during the same period in 2021.

There is flavor variety with gummies, and they offer convenience — largely because they don’t melt like chocolate, said Matt Zehner, insights manager at Brightfield.

Some markets have seen nongummy edible products discontinued because consumers so quickly gravitate toward gummies. Rolling out nongummy edibles will take commitment, he said.

“I do think there’s a lot of room to grow sales in the edible category,” Zehner said. “It does require investment and innovation, like we’re starting to see.”

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