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THE CHICAGO INDEX: Our quarterly measurement of public perceptions debuts. PAGE 8

CRAIN’S CHICAGO BUSINESS

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Table tennis, happy hours and on-site lunches and gyms may be moot perks this year, but the best companies are finding other ways to take care of their employees in this unprecedented time. Turn to Page 14 for our popular annual ranked list of the area’s top-rated companies. By Danielle Braff

Restaurants are raising pay, adding benefits and resorting to poaching to snare workers

Section begins on PAGE 13

JOHN R. BOEHM

BY ALLY MAROTTI Competition for talent has become cutthroat in Chicago’s restaurant world as COVID restrictions loosen and diners venture out again. Workers are tantalized with more money and options, and employers are poaching from competitors. Restaurant job postings in Chicago increased 100 percent during the month of March, according to data from hospitality job site Culinary Agents. Hiring sprees are normal in the springtime, as restaurants prepare for warm weather. But here’s the problem: The number of job applicants dropped 50 percent from where they were just before the pandemic struck. “The war for talent is going to be at the highest level you’ve ever seen,” says Karen Browne, CEO of One Off Hospitality, the group behind Avec, Big Star and

Kitchen prep at Rooh restaurant the Publican. One Off is beefing up its employee retention program, adding quarterly bonuses for hourly staff, rolling out wellness training and discussing other offerings beyond pay increases. “Compensation is very important,” Browne says. “But See RESTAURANT WORKERS on Page 29

Want to buy a home? You gotta know somebody.

In a hot market, buyers are tapping neighbors, strangers and deeply entrenched agents in search of houses not yet on the market BY DENNIS RODKIN

buy in the neighborhood. Then the real estate market turned into a feeding frenzy, as buyers quickly and aggressively bid See HOT MARKET on Page 29

JOHN R. BOEHM

SEVERAL MONTHS INTO THE PANDEMIC, Dave and Elizabeth DeYoung moved with their two children from a South Loop condo they owned to a rental house in Beverly. The one-year lease, they reasoned, would give them time to calmly shop for a house to

Dave and Elizabeth DeYoung

YOUR VIEW Lead water service lines belong in the history books. PAGE 10

CHICAGO COMES BACK An organization that advances the lives of young Black students. PAGE 4

2 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

Patience with CPS is wearing thin S

CPS’ performance, with another 25 percent “satisfied.” Participants are peppier about the schools in their particular neighborhood, but nearly 9 in 10 said improving schools generally is either “essential” (55 percent) or very important (33 percent). The only other listed goal that ranked higher as a priority was curbing political corruption, at 91 percent. (See story on Page 8.) Bad as those findings were, one other was worse: With concerns about schools and crime on their minds, barely a third of Chicagoans, 35 percent, say the city is a good place to raise kids. That number came in at just 24 percent THE FINDINGS OF OUR SURVEY among South Siders. Guess COULD NOT HAVE BEEN CLEARER. what? If there’s no kids, there’s no future, Chicago. Those findings are consistent the endless jostling over how to best with other events unfolding at a run a system that needs stability time when, after a smidgen of staand true change. The question is bility under Mayor Rahm Emanuel, how to do that. Mayor Lori Lightfoot and the ChiOverall, whatever your statisticago Teachers Union can’t seem to cal take, the findings of the survey go a week without striking, arguing could not have been clearer. about a possible strike or otherwise Just 2 percent—yes, two whole throwing brickbats. percent—are “very satisfied” with tatisticians argue about the validity of different polling methods. Crain’s new, longitudinal survey, The Chicago Index, is no exception. Let’s just say we decided to try something a little different to gauge public opinion beyond employing the same traditional polls that were so off base the last two presidential elections. But amid that debate, there shouldn’t be much disagreement over perhaps the clearest finding of our new survey. That’s the evidence that Chicagoans have lost patience with Chicago Public Schools and

I place the greater share of the blame on the union. CTU continues to blithely mix its and the public’s interest, frequently in inflammatory fashion. Often it looks like the union just doesn’t want to reach a reasonable deal. For instance, amid a dispute over reopening high schools, CTU recently released a fire-breathing email declaring, “When we hear the words ‘learning loss,’ we have to ask how does learning loss compare to the permanent loss of life? . . .High schools are logistically more complex environments than (already reopened) elementary schools, and youth are among the demographic groups at the heart of the current (COVID) surge.” That suggests high schoolers are at grave risk of death, doesn’t it? But, according to the city’s COVID dashboard, just two of the more than 5,000 Chicagoans claimed by COVID were under 18. Regardless of who’s right, all of this has begun to affect CPS enrollment in parts of town in which people have the financial resources to move to the suburbs or send the kid

GREG HINZ ON POLITICS

to a private school, leaving poor and minority students more isolated. For instance, state Sen. Sara Feigenholtz, a Democrat, tells me schools in her mid-North Side district lost 772 students this year, with enrollment down 3.4 percent. In at least 13 cases, schools that were gaining students now are losing them, usually 7 percent or more. “The loss of so many students is reflective of frustrated parents" who have pandemic and e-learning fatigue, she says. “We have to find a way to get kids back into the classroom. That requires decisive leadership, less acrimony and doing everything we can to keep students.” Here’s two ways to expedite that. One, Mayor Lightfoot, quit diddling around and float your own plan for an elected Board of Edu-

cation, a hybrid plan that will allow some members to be elected and others to be appointed by you, with some experience requirements. If you don’t act soon, CTU’s bill to totally elect a huge 21-member board is going to prevail—and our unwaveringly pro-union governor is sure to sign it into law. Two, Stacy Davis Gates, make a choice. Either you can remain vice president of the CTU, the emotional heart behind much of the union’s aggressive public stance. Or you can run for mayor, a job that everyone in Chicago politics knows you’re now sizing up. Trying to do both is a conflict of interest, because a city in turmoil is ripe for a new mayor. Let’s start there. If we’re going to have a city after COVID, it’s time to put that city first.

Scrutiny of Navy Pier’s operations is long overdue

avy Pier is one of Chicago’s crown jewels. In a good year—the kind that came before the COVID-19 pandemic—visitors spend more than $350 million in and around the pier. And Navy Pier Inc., the nonprofit entity that runs the pier, gets use of this precious public asset by paying $1 a year in rent. Not only that. When Navy Pier Inc. was spun out of the Metropolitan Pier & Exposition Authority a decade ago, MPEA, a city-state agency, provided $115 million in taxpayer money for improvements to the century-old pier. Plus at least $60 million in operating funds. Plus vehicles and other equipment worth $2.5 million. Plus a $5 million, interest-free loan. Plus another $220,000 in, well, petty cash let’s call it. In short, the body that runs Navy Pier may be a 501(c)(3) nonprofit organization. But taxpayers own Navy Pier, made a big investment in getting Navy Pier Inc. started and have a compelling interest in knowing how it’s being run. That’s the thinking behind a bill introduced in the state Senate by Sen. Bill Cunningham, a Southwest Side Chicago Democrat. “It’s public property, and the public has a right to know how the people who run a public entity comport themselves,” Cunningham told me. Ald. Gilbert Villegas of the 36th Ward is calling for City Council hearings, too, Politico Illinois Playbook reported. He called attention to the $2.5 million Navy Pier Inc. received from the federal Payroll Protection Program. The scrutiny is long overdue. Until now, the effort to hold Navy

Pier Inc. accountable has been the lonely work of my organization, the Better Government Association. In 2014, we filed public records requests for Navy Pier Inc. contracts, board minutes and other records. We got no cooperation, so we sued. We’ve been at it ever since. Navy Pier Inc. and MPEA have fought to block the public’s right to access at every step. The last time the BGA tallied the cost, three years ago, MPEA had spent $670,000 of taxpayer money on outside lawyers, just to keep Navy Pier Inc. records behind lock and key. We have no idea how much Navy Pier Inc. is spending on lawyers. After all, they claim their records aren’t subject to Freedom of Information Act requests—and keep losing the argument in court. History tells us the public can’t afford to divert our attention from Navy Pier. A low point came during Gov. George Ryan’s administration, when the pier was at the center of a bid rigging and patronage hiring scandal. In 2017, the BGA and Crain’s used records requests filed to MPEA to show how Mayor Rahm Emanuel’s administration took $55 million in tax-increment financing money earmarked for a McCormick Place hotel project and funneled it instead to Navy Pier. Navy Pier Inc. officials say they’ve cleaned house and are running a solid operation. Of course, it’s impossible to verify any progress, since Navy Pier Inc. won’t turn over its records. Seven years since the BGA filed its case, the need for Navy Pier transparency is as great as ever. The pier has been shut since last September.

CORRECTIONS The Notable Residential Real Estate Brokers feature on April 5 should have said: Steve Genyk is with Dream Town. Lina Shah’s title is broker.

It lost $5.5 million in 2018, the last reported results—and two years before the pandemic halted tourism. Should Navy Pier Inc. ever fail, MPEA would need to pick up the pieces—another reason taxpayers need to know what’s happening there now. Cunningham said he is willing to make reasonable exceptions for a nonprofit—such as protecting the names of donors. But the demands for concessions just keep on coming, and Cunningham shouldn’t bite. Choose Chicago, the city’s tourism agency, has told him Navy Pier

DAVID GREISING ON GOVERNMENT

will be at a disadvantage if details of bids and contracts are made public. But McCormick Place and the rest of the MPEA complex get no FOIA exemptions, and they’re able to compete. Cunningham introduced his bill, he told me, out of concern over Navy Pier Inc.’s costly court fight to

deny the BGA’s records requests. He should stand his ground—and stay on the public’s side. Crain's contributor David Greising is president of the investigative watchdog Better Government Association.

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CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 3

Northbrook Court’s lender sizes up a sale

Area clinics report soaring demand during the pandemic

The trophy mall’s backer is interviewing brokers for a potential sale, sources say

COVID FROZE TIME. THEY'RE FREEZING THEIR EGGS. BY STEPHANIE GOLDBERG

AT A TIME WHEN LIFE seemed to be standing still, Erin Hanley found a way to feel like she was moving forward. The 33-year-old West Loop resident is among the growing number of women freezing their eggs during the COVID-19 pandemic. “Going out, meeting people, dating—it was pretty nonexistent,” says Hanley, a vice president at Ketchum, a New York-based communications consultancy firm. “We kind of missed a full year of it and we’re still getting older.”

Hanley had been thinking about freezing her eggs for a couple of years. Then the pandemic hit. Working remotely gave her the flexibility to undergo an intensive 11-day treatment cycle from the comfort of her home in November. And moving in with family for a few months helped her save up for the procedure. Hanley isn’t alone. Demand has soared during the pandemic, with egg freezing up 20 to 50 See FERTILITY on Page 30

“IT’S JUST A GOOD WAY TO FREEZE TIME FOR YOURSELF, ESPECIALLY IF YOU WANT TO DO OTHER THINGS IN YOUR LIFE FIRST.” Chicagoan Erin Hanley

Northbrook Court was on the cusp of a comeback in December 2019, when crews began demolishing a shuttered Macy’s department store there, a key early step in a $250 million makeover of the mall subsidized by the village of Northbrook. The Macy’s is long gone. A vast wall of exposed concrete where it attached to the mall offers one remaining visible trace. Banners proclaiming “Great Things Are Coming” and “Exciting Things Underway” hang on construction fencing surrounding the site where the massive store once stood. A “For Sale” sign might tell the story better. Amid a brutal pandemic that has crushed shopping mall owners across the country, Northbrook Court’s lender, Barings, has been interviewing brokers for a potential sale of the mall, according to people familiar with its plans. In a sign of surrender, the mall’s owner, a joint venture led by Brookfield Property Partners, stopped making payments on its mortgage months ago, the people say. Brookfield and Barings are trying to figure out how to cut their losses in what once seemed like a bulletproof investment: a regional mall near some of the wealthiest Chicago suburbs with sales exceeding $700 per square foot, near the top of the Chicago market. But the steady rise of online shopping and sudden blow from COVID-19 have exposed the vulnerabilities of See NORTHBROOK on Page 28

The pandemic era’s winners and losers Some paychecks shrank, of course, but others grew amid lockdowns BY JOHN PLETZ The COVID-19 pandemic also scrambled paychecks while rearranging the job market. Hot housing and financial markets fueled big gains in pay for mortgage lenders and commodities traders. Those still working in industries frozen by lockdowns, such as school bus drivers and hotel workers, suffered double-digit wage declines, according to Bureau of Labor Statistics data. The data is preliminary and can fluctuate dramatically, but it

P003_CCB_20210412.indd 3

provides clues to the shifting fortunes of workers in different sectors as wealth oozed in and out of industries. The pandemic was more sudden and widespread than a typical recession, creating some dramatic shifts. Some businesses were all but shut down. Others surged as the economy shifted or parts recovered. “There are sectors that are making out like bandits and others that get hammered,” says Andrew Weaver, an economist at the school of labor and employment relations at University of Illinois at Urbana-Champaign. “Reces-

sions are times when there is a reshuffling. There are consequences of the recession and the way it shifts wealth around. This downturn is a little different because it didn’t originate with an economic crisis. The key thing is whether we get back to a very low unemployment rate.” Bureau of Labor Statistics data that tracks the actual payrolls of employers underscores how COVID rearranged the economy. The data lags about six months, so the most See COVID PAY on Page 31

Mortgag Commod Call cente Hosting, Home ce Grocery s School, e Hotels an Warehou Air transp

COVID WINNERS AND LOSERS The pandemic upended paychecks as well as jobs across a wide variety of industries. Changes in average weekly Chicago-area wages, Q3 2020 compared with Q3 2019. WAGE INCREASES

WAGE DECREASES

Mortgage loan brokers 44%

School, employee bus transportation -42%

Commodity and futures traders 29%

Hotels and motels

Call centers

Warehousing and storage -15%

28%

Hosting, cloud computing 17%

-15%

Air transportation -13%

Home centers 16% Source: Bureau of Labor Statistics

CRAIN’S ILLUSTRATION / GETTY AND @PROPERTIES PHOTOS

Erin Hanley is among a growing number of women freezing their eggs during the pandemic.

JOHN R. BOEHM

BY ALBY GALLUN

*includes all employees

4/9/21 4:25 PM

4 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

Wisconsin firm has big plans for Medical District development

CHICAGO COMES BACK

BY DANNY ECKER A Wisconsin real estate developer is hunting for companies to anchor a big project it’s planning in the Illinois Medical District, betting the Near West Side health care-centric campus is poised for growth coming out of the COVID-19 crisis. General Capital Group has hired the Chicago office of brokerage CBRE as the leasing agency for a building that could be as large as 500,000 square feet at 1240 S. Wood St. in the southern portion of the IMD. The project, framed as a “build-to-suit” development on a vacant full city block bounded by Wood and 13th streets and Wolcott and Washburne avenues, is being marketed to prospective users as medical offices, life sciences lab space or educational or healthtech commercial space along what CBRE dubs the “Wood Street Medical Mile”—a stretch of properties running through the heart of an area that includes Rush University Medical Center, the John H. Stroger Jr. Hospital of Cook County and UI Health. General Capital, based in suburban Milwaukee, signed a 100-year ground lease for the IMD-owned site last May after the District selected it as the parcel’s prospec-

building going up first. If anything gets built, the site would mark the first new development in a federal Opportunity Zone within the IMD. The threeyear-old tax incentive program, which lets investors defer capital gains taxes if they reinvest profits into designated blighted areas nationwide, was an “added benefit” to acquiring control of the site. Gorens-Levey says. She declined to say how much the firm paid for the leasehold interest.

READY TO GROW

General Capital is best known for developing affordable housing but recently expanded its work into life sciences when it developed over 600,000 square feet of lab and research space combined in Madison, Wis., for molecular diagnostics company Exact Sciences and genetic sequencing company Illumina. Now it’s looking to build off of that experience in a location where medical office and lab space is in demand but limited, says CBRE First Vice President Allison Olszta, who is marketing the project for General Capital. “This is the opportunity for (IMD) stakeholder users to be able to expand and grow,” she says, noting hospital systems in the IMD that have been adding more beds in recent “YOU’VE GOT A LOT OF DIFFERENT years and looking for new places to house FACTORS TO MAKE THIS A REALITY.” administrative staff. Linda Gorens-Levey, partner, General Capital Life sciences lab space in Chicago is also short on supply, tive developer. Now the company one reason industry experts say is touting what it thinks will be a many biotech and pharmaceutical compelling location for any num- startups born in the Chicago area ber of health care industry users, move to other life sciences marespecially if demand for office or kets when they are ready to grow. research space in the IMD grows Whatever General Capital’s site in the wake of the pandemic. becomes, the IMD will want it to “You’ve got an active biohealth come together more quickly than ecosystem, you’ve got active another vacant parcel it teed up for (public) transit, you’ve got a lot development near the northwest of activity and a lot of potential corner of the district. That mixedusers,” says General Capital Part- use project, dubbed Gateway, was ner Linda Gorens-Levey. “You’ve meant to turn into a 1.2 milliongot a lot of different factors to square-foot cluster that included a make this a reality.” hotel, residential towers and up to Marketing materials for the proj- 550,000 square feet of offices, but ect show an eight-story building developer Jack Higgins struggled along the eastern portion of the to land financing for several years site, which would be connected to and built only a pair of single-story a parking garage along the west- retail buildings on the site. ern edge. Gorens-Levey says the After Higgins walked away from developer could build it for one the project early last year, a venture large user or, if the developer can controlled by Chicago developer pre-lease enough space to land a Elzie Higginbottom took over and construction loan, it could be de- recently began foundation work veloped in pieces with a smaller for a hotel and residential building.

JOE CAHILL IS ON VACATION

P004_CCB_20210412.indd 4

GETTY IMAGES

A building as large as 500,000 square feet marketed on the Near West Side health care-centric campus

‘Chicago can be that city that opens doors for all young people’ LINK Unlimited Scholars CEO Jonathan Swain talks about his organization’s work to advance the lives of young Black students in partnership with some top firms BY EMILY DRAKE AND TODD CONNOR Chicago Comes Back is a weekly series on ChicagoBusiness.com providing leadership insights to help your business move forward, written by leadership consultants Emily Drake and Todd Connor. Drake and Connor facilitate Crain’s Leadership Academy. Drake is a licensed therapist, owner of the Collective Academy and a leadership coach. Connor is the founder of Bunker Labs and the Collective Academy and is also a leadership consultant. Check out previous installments at ChicagoBusiness.com/comesback. As we explore how Chicago Comes Back each week, we wanted to turn our attention to partnerships and investments being made in initiatives and communities across the city, to build back differently and better. While there is a renewed sense of awareness for many people and groups, organizations like LINK Unlimited Scholars have been doing work to advance equity for Black youth for decades. We connected with President and CEO Jonathan Swain, himself an alumnus of LINK Unlimited, to talk about how he sees opportunity in this moment. TODD CONNOR: Jonathan, thanks for spending time with us. You are a lifelong South Sider and have been working to advance the lives of young Black students with a proven model that propels them to college and beyond. You’ve also just announced some major investments through your partnerships with Kirkland & Ellis and Mesirow to double the size of next year’s class. What’s your sense of the opportunity now for LINK? JONATHAN SWAIN: The question “Why LINK?” is really a question of opportunity. The kids we serve are awesome. And they’re no different than any kid anywhere else in the world. Except, in many cases, when it comes to access to opportunity, either because of their zip code or the limits on them socioeconomically. So, what LINK tries to do is to match the talent and potential of our young people to as wide an array of opportuni-

ties as possible through college and beyond. It’s not just about these young kids. It’s also about their families, and us as a society. TC: When we connected with Carl Davis, vice president and head of diversity and inclusion, as well as corporate recruitment, at Mesirow, he framed their investment in your organization less in charitable terms and instead that LINK is “a strategic partner in Mesirow’s ongoing work to advance diversity, equity and inclusion not only at the firm and within our industry, but also in terms of creating equitable opportunities for youth in our communities.” Joi Bourgeois, global director of diversity and inclusion at Kirkland & Ellis, said partnering with LINK is about “developing and sponsoring the next generation of diverse leaders within our law firm, the legal profession and our wider communities, (which) is a strategic priority for Kirkland.” Jonathan, is this a tipping point moment in terms of how companies are stepping up to do work in the communities? That this conversation has moved from simply being about charitable giving toward a more strategic view of investment? JS: A lot of support that’s going into programs like ours that are serving the African American community are a direct response to the death of George Floyd, and what I’ve noticed in terms of a lot of corporate support since that time is that a lot of folks are looking to find ways to have a

deeper impact and do deeper dives with organizations on the ground to really make sustainable change. We are seeing that with companies and partners recognizing an opportunity right here in our city for talent. I think it’s important for us in the city to recognize the boundaries of our neighborhoods are lines that we have drawn. They are arbitrary. It does not mean we can’t cross them. We’re a city of neighborhoods and that’s really great that we have a love for our neighborhoods. But I think we have to recognize that we’re really one city and to really appreciate the totality of the city that we live in. EMILY DRAKE: You are both a product of this work and are now leading this work. How do you think about success? And what’s your vision, not just for LINK, but for kids and our city as well? JS: I think there’s a couple of ways we measure success. One measure is kids graduating high school, being accepted to college and finishing college in four years. That’s the baseline of success that we’ll see ultimately in eight years or so when this initial partnership is at its fruition. But beyond that, hopefully, what the young people will find is a broader perspective of folks who are willing to advocate for them. And not necessarily just in those particular firms, because everyone’s not going to be a lawyer or financial professional. But people who are willing to advocate for them when it comes to opportunity and resources. Think about all of our lives. We can all point to someone who opened a door for us. It can be any type of person, but someone opened a door for us. And every one of us can open a door. Chicago can be that city that opens doors and gives special consideration for all of its young people.

4/9/21 3:41 PM

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6 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

NOMINATION PROGRAMS

to honor any deserving colleague BARTESIAN CAPTION

2021

GENERAL COUNSELS NOMINATION DEADLINE: APRIL 16 PUBLICATION DATE: JUNE 7

Featuring Chicago-area general counsels who practice with distinction at public and private companies; nonprofit, government and health care organizations; and higher-education institutions and are active in civic affairs and generous in contributions of pro bono work.

2021

EXECUTIVES IN DIVERSITY, EQUITY AND INCLUSION NOMINATION DEADLINE: MAY 7 PUBLICATION DATE: JUNE 28

Identifying the leading changemakers in Chicago business, who are helping to shape workplace equality and championing change within their industries to promote stronger diversity and inclusion.

2021

MINORITIES IN COMMERCIAL BANKING NOMINATION DEADLINE: MAY 28 PUBLICATION DATE: JULY 19

Crain’s Notable Minorities in Commercial Banking feature will list minorities who are managing people and millions –if not billions– of dollars at some of Chicago’s largest commercial banking institutions.

2021

LGBTQ EXECUTIVES NOMINATION DEADLINE: JUNE 18 PUBLICATION DATE: AUGUST 9

Crain’s Notable LGBTQ Executives will recognize leaders from a wide range of sectors who have demonstrated the power to advance their industries, workplace equality and civic engagement in Chicago.

Nominate at ChicagoBusiness.com/NotableNoms

Bartesian launched in 2019 and is now sold at major retailers and online.

Cleveland Avenue and Beam Suntory bet on cocktail machines Bartesian, a Chicago-based company that makes $350 cocktail machines, just closed a $20 million round of funding to help fuel growth and expand offerings BY ALLY MAROTTI Ex-McDonald’s CEO Don Thompson’s venture-capital firm is helping fuel growth at Bartesian, a Chicago-based company that makes $350 cocktail machines. Cleveland Avenue led the $20 million round of funding, says Bartesian CEO and founder Ryan Close. Previous investor Beam Suntory also participated. The main priority for capital deployment will be making sure the company can meet demand for the cocktail makers, Close says. “In 2020, we were out of stock half the year,” he says. “We were growing at triple digits, month over month. What could we have done if we had not run out of stock?” Bartesian launched in 2019 and is now sold at Williams-Sonoma, Bed Bath & Beyond and other major retailers, as well as online, Close says. Once users buy the appliance, they also must buy cocktail capsules and load in base spirits, such as vodka, tequila, rum or even water. It works much like a Keurig coffee maker. The company makes cocktail options such as a jalapeno lime shrub or Long Island iced tea. Users can choose how strong they want the cocktail or omit the alcohol and make a mocktail. Cocktail capsules can be bought via subscription or a la carte.

HAPPY HOUR

Bartesian is in part tapping into a demand for cocktails at home that was spurred by the pandemic, when bars shuttered and consumers started having happy hour at home. New categories, such as readyto-drink canned cocktails, have seen astronomical growth. Ready-

to-drink cocktail sales grew 153.4 percent to almost $349.5 million in the past year, according to market research firm Nielsen. Close says the cocktail at home category has long been an underserved market. “People always want them when they go to restaurants and bars,” he says. “But when they’re home, they go to beer or wine. It’s filling a need.”

NEW RECIPES

Close also differentiates the Bartesian from a canned cocktail because of the experience. He says customers appreciate getting to choose the strength or garnish they want. Close declines to disclose revenue. The company has about 10 employees and a facility in River North where new cocktail recipes are created. The new funding will also help bulk up the team—Close says he wants to double headcount—expand cocktail offerings and get Bartesian in more commercial settings, such as hotels and stadiums. Mila Kunis will also become a board member. “Bartesian’s innovative approach to high-quality cocktails is clearly resonating with consumers, tapping into the growing interest in premium beverages,” Keith Kravcik, chief financial and chief investment officer at Cleveland Avenue, says in a news release. “We believe the company is poised to continue its market-leading position for years to come.” Cleveland Avenue was founded by former McDonald’s CEO Don Thompson and his wife, Liz. The firm has been on an investing spree lately; it recently put money into a new venture from Mariano’s founder Bob Mariano.

CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 7

Revamped former Target on South Side for sale

Royal Bank offers commercial loans with attractive rates and terms. Contact Andrew Morua, Senior Vice President 2IƓFH Ř 0RELOH (PDLO DPRUXD#UR\DO EDQN XV

The developer who turned a Morgan Park property into a community center and office building hopes a lucrative sale will bring more private investors to the area BY DANNY ECKER A few weeks after pulling off a deal to revive his second vacant former Target store on the South Side with a major corporate tenant, Chicago developer Leon Walker is looking to cash out on his first one. A venture of Walker’s DL3 Realty has hired the Chicago office of Jones Lang LaSalle to sell Blue Cross & Blue Shield of Illinois’ multipurpose facility in the Morgan Park neighborhood, according to marketing materials for the property. The offering will test investor appetite for commercial properties in a part of the city that isn’t known for generating hefty returns for developers. But the building at 11840 S. Marshfield Ave. could go a long way in helping change that, says Walker, who expects the 129,000-squarefoot property to fetch bids of around $20 million. A sale near that price would likely net a big payday for DL3,

moded store amid a “retail apocalypse” with more people shopping online. “I think it sends a positive signal to investors and the equity market that you can do innovative transactions in these neighborhoods with the right partners.” Walker has at least one recent trend on his side: Commercial real estate investors have paid premiums during the pandemic for properties that have single, high-credit tenants with long-term leases, which limits the risk to the building owner amid the uncertainty of the crisis.

store in more than 40 years. Brian Shanfeld and Alex Sharrin of JLL are marketing the Morgan Park property on behalf of DL3.

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Blue Cross Blue Shield’s lease runs through May 2030, and the building is expected to generate annual net operating income of more than $1.3 million, according to a JLL flyer. The insurance company also spent around $20 million building out its space on the property, according to the brokerage. The offering also THE OFFERING WILL TEST INVESTOR comes just weeks after DL3 announced a APPETITE FOR COMMERCIAL similar turnaround in PROPERTIES IN A PART OF THE CITY the Chatham neighborhood, where it’s conNOT KNOWN FOR GENERATING verting another vacant former Target store into HEFTY RETURNS FOR DEVELOPERS. a call center for Riverwoods-based financial which inked a 10-year lease in services giant Discover that’s slat2019 with health insurer Blue ed to bring 1,000 new jobs to the Cross & Blue Shield of Illinois’ neighborhood by 2024. parent company to turn the Such deals have been few and vacant store into a Blue Door far between in predominantly Neighborhood Center and office Black communities on the South building with more than 500 new and West sides that have longjobs. Shortly thereafter, the de- standing problems with major veloper paid $250,000 to buy the retailers closing up shop. Dwinproperty from Target, according dling population and commercial to Cook County property re- corridors rife with vacant storecords, though Walker says it took fronts have kept even some of the another “$10 million commit- most socially conscious commument” to renovate the building nity developers away from taking for its new use. on new projects in such neighDL3 refinanced the property borhoods. in July 2020 with a nearly $4.9 Walker says Blue Cross Blue million loan, property records Shield and Discover will hopefulshow. ly spur other companies to help revive disinvested Chicago communities and tap into a local but SIGNAL SALE Netting a strong return on overlooked deep labor pool. “We’re showing and demonthe property would send a message to other private investors strating the viability of the comthat there is money to be made munities, the neighborhoods— by putting money into areas of all the key metrics that their Chicago that historically haven’t businesses are looking for,” he says. gotten enough, Walker says. DL3 has been one of the most “We went in with creative thoughts about what could be active South Side commercial possible, and what it says is that real estate developers in recent others can also come and re- years. The company developed a imagine what’s possible in our Whole Foods-anchored shopping neighborhoods,” says Walker, center in Englewood in 2016 and noting he began discussions co-developed a Jewel-Osco in about the project as it was on Woodlawn, the neighborhood’s track to become an empty, out- first new full-service grocery

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8 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

Is Chicago on the right track?

The inaugural edition of The Chicago Index, a new quarterly measurement of public perceptions of the region’s strengths and challenges, shows people are deeply worried about the city’s current trajectory BY GREG HINZ

Methodology

ANTONIO JANESKI

hicagoans believe their city is a great place to visit. They even are pretty satisfied with their home neighborhoods. But they have enormous doubts about the city’s overall future and especially their ability to safely raise and educate children here, with Mayor Lori Lightfoot getting an overwhelming thumbs down in dealing with such problems at midterm. That’s the main conclusion of the first edition of The Chicago Index, a collaboration between Crain’s Chicago Business and The Daily Line Chicago as well as broadcast partner WLS-TV/ABC-7, which asked a new “jury” of more than 2,000 active voters to assess conditions in the city and nearby Cook County suburbs and to continue to do so quarterly, to track changes in public opinion. A particularly stark summation: When asked if they would say things in the city of Chicago are heading in the right direction or off on the wrong track, Chicagoans replied by a nearly 3-1 margin that the city is on a bad trajectory, with just 27 percent expressing optimism about the city’s present course. While some of the findings are predictable—people often like their immediate neighborhood better than their larger municipality, for example—some are more surprising. For instance, 89 percent of respondents said improving Chicago public schools ought to be a top priority. That’s higher than the 75 percent who prioritized changes in the Chicago Police Department—and higher than any subject respondents were asked about besides the need to reduce public corruption, which 91 percent said was important. These answers varied little between white and nonwhite respondents. In a related finding, while 44 percent of those questioned said Chicago is an at least good place to live, only 34 percent said that’s true as a place to raise children. That figure was even lower among residents in the southern half of the city, with just 25 percent approving of the current conditions for families with children. These downbeat readings may explain why the mayor garnered such low popularity numbers in the survey after nearly two years in office, years in which she endured a Chicago Teachers Union strike and continuing battles with the union over reopening schools amid the COVID-19 pandemic. Only 4 percent of those replying gave the mayor “excellent” job-performance marks and 12 percent a “good” rating, with 32 percent finding her performance “fair” and 50 percent “poor.” Lightfoot’s rating in the Cook County suburbs actually is better (21 percent good or excellent) than it is in the southern half of the city (10 percent). There’s not much difference between whites, 18 percent of whom rated her as excellent or good, and nonwhites, at 15 percent. In comparison, Gov. J.B. Pritzker gets a much better 60 percent positive job-performance rating, though other surveys have shown his support weakens the farther you get from Chicago proper. Members of the continuing panel were selected by various means and questioned by a survey hosted by Polco, an online civic engagement platform, from March 8 through March 31. More than 2,500 randomly selected households received postcards inviting them to participate, with other outreach via social media and contact with community groups. A total of 2,174 surveys were completed, with responses statistically weighted to be

QUALITY OF LIFE IN CHICAGO Respondents were asked to rate each of the following aspects of quality of life in the city of Chicago. Seventy-six percent said Chicago was an excellent or good place to visit, and 67 percent said their neighborhood was an excellent or good place to live, but only 34 percent said it was an excellent or good place to raise children. Excellent 46%

Good 30%

Your neighborhood as a place to live

27%

40%

24%

As a place to work

23%

38%

26%

As a place to visit

Fair

Poor 15%

10% 9% 14%

Sense of community

11%

35%

31%

23%

Place to raise children

10%

24%

31%

35%

Chicago as a place to live

10%

34%

33%

23%

NEIGHBORHOOD QUALITY OF LIFE People were asked to rate the quality of their neighborhood in each of the following areas. Access to public transit and healthy grocery options rated high, but a majority of respondents rated safety, public schools, street and sidewalk conditions, and housing affordability as only fair or poor. Access to public transportation

Excellent 35%

Good 40%

Fair 19%

Poor 6%

Healthy grocery options Opportunities for education, culture and the arts Quality of public parks

31%

38%

22%

29%

34%

23%

27%

41%

22%

Access to community banking

25%

42%

22%

11%

13%

Overall quality of natural environment

16%

36%

32%

Feeling of safety

14%

35%

24%

28%

Quality of public schools

12%

24%

27%

37%

10%

35%

33%

22%

19%

42%

35%

Conditions of streets and sidewalks Housing affordability

16%

MORE ONLINE: See complete Chicago Index coverage at ChicagoBusiness.com/chicago-index representative of the area by age, race, length of residence and geography (Far North Side, North Side, Central, West Side, Southwest Side, South Side, Far Southwest Side, Far Southeast Side and suburbs) based on American Community Survey data collected by the U.S. Census Bureau. With census data delayed this year, ACS may become the basis for upcoming reapportionment of Illinois congressional and legislative districts and of city wards. The Chicago Index survey is not a traditional poll with a scientifically determined error margin, but rather a newer technique

that uses a self-selected but demographically balanced continuing group of respondents to gauge changes in public opinion over time. Such a method is used by the Federal Reserve Bank here for its monthly survey of business conditions, among others. Chicago-specific questions were answered only by those living in the city. Among other key findings:  Seventy-six percent of respondents said Chicago is a good or great place to visit, with a fairly peppy 61 percent saying the same of Chicago as a locale for jobs. Significantly, only 14 percent said the city is a

This is the first edition of The Chicago Index. The survey was hosted on the Polco online civic engagement platform during the weeks of March 8 through March 31. Respondents were recruited through a multimode, multicontact method employing mailed postcards, online invitations and social media campaigns. The outreach resulted in a total of 2,174 surveys completed. The precision of this poll applying a Bayesian credibility interval for a sample of 2,000 surveys is +/-2.5 percent. While the number of completed surveys was larger than expected during the first implementation of The Chicago Index, not all segments of the Cook County population engaged at the same level. Thus, to better reflect the greater Cook County, the dataset of survey responses was statistically weighted by respondent age, race, tenure and geography based on the American Community Survey. It is our commitment and intent to build the representation of The Chicago Index panel over time so future surveys will bring not only a larger number of respondents but greater inclusivity and diversity to the index ratings. The Chicago Index used a hybrid method. We combined a probability sample in the form of a random sample of 2,500 mailings to Chicago residents. We also used a non-probability sample and a networking non-probability sample by emailing and promoting to subscribers of the three news organizations and the social media. The team at Polco then reweighted. While a comparison of Chicago residents’ ratings over time is the primary goal of the index, comparisons of Chicago’s scores to national ratings also are important to help identify areas where the community is strong and faces challenges. As possible, results of The Chicago Index are compared to Polco’s National Community Survey benchmark database, a dataset representing more than 500 communities across America.

poor place to work.

 A whopping 92 percent said it’s at least

somewhat important for the city to finally get a handle on its soaring pension costs. Decreasing racism was almost as high a priority at 88 percent.  Chicagoans are happy with their fire department and park district, which get 94 and 81 percent positive ratings, respectively. But ratings for police are 47 percent positive, and for CPS 24 percent, with an almost invisible 1 percent saying they are “very satisfied” with the schools. State lawmakers, like Pritzker, got decent job ratings, but just 28 percent of Chicagoans gave a positive rating to their alderman.  As unhappy as voters are with Lightfoot, they’re even more unhappy with the City Council as a whole, with 93 percent giving the body negative marks compared to 84 percent for the mayor. But they’re a tad warmer to their own alderman or alderwoman, with “only” 72 percent negative. The next round of The Chicago Index will be released this summer.

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10 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

C EDITORIAL

Get the Thompson Center plan right

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ethinking what to do with the James R. Thompson Center in the heart of the Loop was always going to be a challenge. Was it possible to refurbish the deteriorating structure in need of at least $325 million in deferred maintenance and preserve a massive atrium that’s prohibitively expensive to heat and cool? Or would it be better to tear the whole thing down—the objections of its star architect, Helmut Jahn, and his fans notwithstanding—and erect something entirely new in its place? And, if so, what should that be? Those questions have swirled around the Thompson Center since the state of Illinois decided two years ago to unload the structure, which encompasses an entire city block and intertwines with a massive, subterranean Chicago Transit Authority superstation. As Crain’s Danny Ecker reported in the April 5 issue, a pandemic that has drained the Loop of much of its life and called into question future demand for office space has only intensified the challenge, a stark reality that hangs over the proceedings as the state this month begins soliciting proposals from developers on what to do with the 36-year-old colossus. Ecker crystallized the problem thusly: “The pandemic not only made it a tricky time to make any big new bet on downtown commercial real estate, it

ating another lingering, Block 37-style gap in the Loop’s landscape. Pritzker administration officials must decide now whether they want to pursue a project of reasonable size soon or hold out for a bigger payday, making a risky leap of faith that the central business district will experience a post-COVID rebound. While it’s difficult to fathom what the Loop actually needs more of at this point, it’s relatively easy to make a list of what it doesn’t: Office, hotel and retail space. Ecker’s reporting reveals ideas that might have seemed outlandish be-

TO TEAR IT DOWN WITHOUT A PLAN IN PLACE RISKS CREATING ANOTHER BLOCK 37-STYLE GAP.

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also injected potentially competing interests in the 17-story white elephant’s next chapter: While the state is focused on getting the costly, rundown building off its books to the highest bidder to address its fiscal woes, the city of Chicago— which must approve any redevelopment of the building—now faces the daunting

task of reviving its urban core, and must carefully consider the Thompson Center as a strategic tool in that effort.” It’s crucially important for the state, in collaboration with the city, to get this right. To tear down the Thompson Center prematurely without a coherent plan and solid financing in place risks cre-

fore COVID shut offices, halted travel and steepened the downturn in brickand-mortar retail. Green space, for one. Affordable housing for another. Whatever notions developers may float for the project, we have to hope state officials go the reasonable-scale route and take what they can get in order to wipe the building, and its $17 million in annual maintenance, off its books. When Bruce Rauner was governor, there was talk of getting $200 million for the Thompson Center. A figure like that seems like a fantasy now.

Assista

YOUR VIEW

Lead water service lines belong in the history books

Lead service lines are solid p to 10 million lead lead pipes that connect water pipes deliver drinking mains to individual homes water to homes in the and businesses. Despite inUnited States every single dustry pushback, the instalday. lation of new lead lines was These pipes present a confinally prohibited in 1986; stant risk of lead exposure however, the 1991 EPA Lead when water treatment is workand Copper Rule did not ining and a catastrophic risk of clude any requirements to lead exposure when it goes systematically remove those wrong. With up to 400,000 already installed. Contrary to lead water service supply science and common sense, lines—that’s the pipe that de- Elin Warn Betanzo, the delayed Trump EPA’s livers water to your home from a national drinkLead and Copper Rule Revithe city water main—Chicago ing water expert, sions still don’t require prohas more than any other city participated in the active removal of lead pipes. in the United States. Exten- U.S. EPA response After multiple lead-in-wasive data collected from lead to the Washington, lines demonstrate the high D.C., lead crisis and ter crises and a growing datalead levels Chicagoans con- most recently helped set that shows lead pipes are more dangerous than complisume in their water every day. uncover the Flint ance sampling suggests, famiEven though lead pipes have water crisis. lies in Chicago and across the well-documented health impacts, federal Environmental Protection country continue to drink water—filling Agency and state regulations allow lead baby bottles and sippy cups—through pipes to continue delivering drinking lead straws. As an added injustice, these water to homes in Chicago and through- poison pipes are concentrated in low-inout our nation, even though there is no come Black and Brown communities, compounding health risks for families safe level of lead exposure.

already burdened by additional sources a new federal requirement. Chicago, Illinois and the EPA can build on Michiof lead exposure and health inequities. As the city with the most lead lines, gan’s initiative, the first state to mandate Chicago should advocate for a national removal of all lead service lines by 2041. proactive lead service line replacement The latest state and federal funding prorequirement, endorse and promote posals can make lead removal plans a Biden’s $45 billion lead service line re- reality, while keeping water safe and placement plan and champion the new affordable. Studies show that removlead service line replacement bill in Il- ing lead service lines makes economic linois. Now is the time to create a future sense, not only from the increase in jobs and economic productivity to remove without lead service lines. Nationally, we have some success stories for removing lead pipes. WITH UP TO 400,000 LEAD PIPES, Madison, Wis., Green Bay, Wis., and Lansing, Mich., removed their lead CHICAGO HAS MORE THAN ANY OTHER service lines through voluntary proactive programs. Newark, N.J.; Flint, CITY IN THE UNITED STATES. Mich., and Pittsburgh all have commitments to remove their lead lines, the the pipes, but also from the societal outcome of hard-fought lawsuits that decrease in health care, education and criminal justice costs from decreased followed disasters. We can’t rely on failed regulations, lead exposure. Chicago and the Biden administration good intentions, or reactive lawsuits to get the lead pipes out. We have 30 years can write a new chapter for drinking waof experience and up to 400,000 lead ter safety. Our lead pipes belong in the service lines in Chicago alone to show history books, teaching an important lesson on the consequences of infrathe ineffectiveness of that strategy. The phased replacement schedule in structure disinvestment, environmental the Illinois bill can serve as a model for injustice and public health failure.

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, 150 N. Michigan Ave., 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.

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CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 11

Crain’s announces staff changes CRAIN’S CHICAGO BUSINESS is pleased to announce the promotion of one veteran team member and the addition of two new ones. Karen Freese Zane has been named associate creative director, working closely with Creative Director Thomas Linden to oversee the look and feel of Crain’s city-oriented publications in Chicago, New York, Detroit and Cleveland. Freese Zane, 41, who initially joined Crain’s in 2005, previously worked at GLC custom publishing and the Daily Southtown. She is a graduate of the University of Missouri. “Karen is an exceptionally talented designer whose work has received numerous national and local awards and has helped make Crain’s a visual standout in print and online,” says Ann Dwyer, editor of Crain’s Chicago Business. “She also brings to her work the instincts of a

Chief executive officer KC Crain Group publisher/executive editor Jim Kirk

Associate publisher Kate Van Etten *** Editor Ann Dwyer Creative director Thomas J. Linden Assistant managing editor Jan Parr Assistant managing editor/ Joe Cahill columnist

journalist, always asking questions about the material and thinking deeply and creatively about ways to serve the reader. In the process, she improves everything she touches.” “I cannot say enough about Karen’s work ethic and her desire to make sure our pages are top flight at every turn,” says Group Publisher and Executive Editor Jim Kirk. “She brings an abundance to both aspects of her job, daily.” Rob Garcia joins Crain’s as a copy editor from the Toledo Blade, where he was a digital editor. Previously, he was an editor and page designer at GateHouse Media. Garcia, 29, a native of Chicago’s Beverly area, earned a bachelor of science degree in news and editorial journalism from the University of Illinois at Urbana-Champaign. Garcia will work closely with Copy Chief Scott Williams as well as the graphics and research teams.

Karen Freese Zane

Rob Garcia

Michael Stassus

Michael Stassus joins Crain’s as associate art director. The veteran journalist will work with Linden in the Chicago newsroom and will be primarily focused on design for the Detroit and Cleveland publications. Stassus, 55, comes from EGM Media, where he designed and produced a network of print magazines, websites, social media video channels and mobile apps. “We welcome Rob and Michael and look forward to their contributions toward our mission: Helping our readers succeed in Chicago and beyond,” Dwyer says.

Clayco is proud to be named one of the 2021 “Best Places to Work” in Chicago.

Assistant managing editor/digital Ann R. Weiler Deputy digital editor Todd J. Behme Digital design editor Jason McGregor Associate creative director Karen Freese Zane Copy chief Scott Williams Copy editor Robert Garcia Deputy digital editor/ Sarah Zimmerman audience and social media Forum editor Cassandra West Political columnist Greg Hinz Senior reporters Steve Daniels Alby Gallun John Pletz Reporters Danny Ecker Stephanie Goldberg Wendell Hutson Ally Marotti A.D. Quig Dennis Rodkin Steven R. Strahler Contributing photographer John R. Boehm *** Director of digital strategy Frank Sennett Director of custom media Sarah Chow

claycorp.com/careers

*** Production manager David Adair Account executives Claudia Hippel Christine Rozmanich Bridget Sevcik Laura Warren Courtney Rush Amy Skarnulis People on the Move manager Debora Stein Events/marketing coordinator Lauren Jackson Project manager Joanna Metzger Marketing manager Jessica Dalka Digital designer Christine Balch Crain Communications Inc. Keith E. Crain Chairman KC Crain Chief executive officer Lexie Crain Armstrong Secretary Veebha Mehta

Mary Kay Crain Vice chairman Chris Crain Senior executive vice president Robert Recchia Chief financial officer Chief marketing officer

***

G.D. Crain Jr. Founder (1885-1973)

Mrs. G.D. Crain Jr. Chairman (1911-1996)

For subscription information and delivery concerns please email customerservice@chicagobusiness.com or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations).

Our collaborative approach can open new doors to your career and professional development. Clayco is always looking for people who are smart, creative, up for any challenge and incredibly excited about what they do. Working at Clayco is an entirely different experience from the industry standard. We build our business around the passion of our people and the ideas they bring everyday. Whether you’re a project manager, estimator, architect or accountant, you play a part in delivering some of the most complex and iconic building projects in North America.

12 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

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

ARCHITECTURE / DESIGN

HEALTH CARE

MANAGEMENT CONSULTING

BBA Architects, Chicago

Athletico Physical Therapy, Oak Brook

The William Everett Group, Chicago

BBA Architects, a custom, high-end residential design practice in Chicago, welcomes Gary Hodonicky, AIA as Senior Associate. Gary was previously with Vault Design in Elgin. Gary returns to his passion of producing inspired residential design work, which he previously performed with Florian Architects of Chicago. At BBA, Gary will work closely with principals Gary Beyerl & Ed Twohey to lead projects through the design journey.

Athletico Physical Therapy announced Dan Doyle as its new Chief Financial Officer. Doyle will be responsible for leading all Finance operations, including FP&A, Accounting, Treasury, Tax, Audit, and Athletico’s Billing Center. Doyle’s leadership will be instrumental in creating a scalable and sustainable revenue growth plan for our organization.

The William Everett Group, (TWEG), a premier Chicago-based, woman and minority owned management and information technology consulting firm, today announced the elevation Kureva of Chaka Kureva as the company’s newest Principal, and the hiring of Jason Cummings in the newly formed position of Managing Director of Client Engagement. Both appointments signal the continued growth of the Cummings firm which in July 2019 was recognized by OnDeck® as their Small Business of the Month.

HEALTH CARE

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

Complia Health, Schaumburg

ARCHITECTURE / DESIGN Lamar Johnson Collaborative, Chicago Lamar Johnson Collaborative (LJC) has promoted Sarah Hitchcock, AIA to Associate Principal. With a background in architecture and interior design, Sarah has a wide range of experience in mixed-use, multifamily, adaptive reuse and commercial development projects. She holds a BS in design and M.Arch from the University of Nebraska, and is a licensed architect in the state of Illinois.

Complia Health, a leading home health and hospice technology solutions provider welcomes Rich Berner as Chief Executive Officer. Berner is a healthcare strategist and technology executive with more than 25 years of experience building award-winning teams and products in established and emerging markets. Previously he was the CEO of MDLIVE where he led the industry transition to consumer-focused healthcare online.

NON-PROFIT SGA Youth & Family Services, Chicago SGA Youth & Family Services, a human services agency, serving Chicagoland children and families in the areas of parenting, early childhood, education supports and workforce development, recently announced that Martha Guerrero was promoted from Executive Director to President. Martha has been with SGA for 23 years and brings a wealth of experience in business and program development. She continues to demonstrate her passion for making a difference and SGA advances her vision for the future.

1x5 1x7

ENGINEERING H.W. Lochner, Inc., Chicago Paul Loete, PE, joined Lochner as VP and Illinois Area Manager responsible for leading market growth initiatives and overseeing the firm’s statewide design and CEI practices. As a prior Illinois DOT Chief Engineer and Director of Highway Project Implementation, Paul brings extensive project programming, funding, delivery, and assessment experience. He played a key role in the development of the $45 billion Rebuild Illinois Capital Plan, the largest transportation program in the state’s history.

To order frames or plaques of profiles contact Lauren Melesio at lmelesio@crain.com or 212-210-0707

TECHNOLOGY LAW Skadden, Arps, Slate, Meagher & Flom LLP, Chicago Skadden is pleased to announce Sarah Beth Rizzo and David Wagener have become partners of the firm. Ms. Rizzo advises clients on a range of federal income Rizzo tax planning matters, including REIT transactions, mergers, acquisitions and dispositions, reorganizations, partnership transactions, private and public securities offerings, financings, private equity transactions and foreign Wagener investments in the U.S. Mr. Wagener represents borrowers and lenders in connection with various types of sophisticated financing transactions in multiple industries. His representations involve complex, cross-border secured financing structures, including ABL facilities, acquisition and other leveraged financings, and corporate restructurings.

Discovery Partners Institute, Chicago Discovery Partners Institute (DPI) is pleased to announce that Omowale Casselle and Michael G. Bennett have joined the team. Casselle is the inaugural director Casselle of the Pritzker Tech Talent Labs where he is responsible for overseeing the immersion, workforce development, graduate programs & lifelong learning programs. Michael G. Bennett, Ph.D. joins as the director of immersion programs and Bennett is responsible for directing and overseeing DPI’s growing portfolio of academic and informal learning programs, and leading a team that implements and manages them. Bennett will also focus on developing and maintaining relationships with Chicago-based employers through which many of DPI’s job creation ambitions will be realized.

For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to CHICAGOBUSINESS.COM/PEOPLEMOVES

BEST PLACES TO WORK 2021

13 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 13

BEST CRAIN’S CHICAGO BUSINESS 2021

PLACES TO WORK

More than a year into the pandemic, most office workers are still doing their thing from home, making office perks like catered lunches, table tennis and happy hours moot points. But the best companies came up with ways to support their troops working remotely in tough times: cash for office equipment and child care, additional PTO to deal with COVID challenges. Once again this year, Crain’s partnered with Best Companies Group to survey employees and identify the 100 Best Places to Work, a list that gets more competitive each year. Here they are in ranked order, along with facts about what makes them great: flexible hours, 401(k) matches, generous health benefits and more. And, because some factors are not quantifiable, we pulled out employee comments that speak to what makes their workplaces great. By Danielle Braff METHODOLOGY: Who was eligible? The Best Places to Work in Chicago program was open to all publicly or privately held organizations, either for-profit or not-for-profit. To be eligible for consideration, organizations had to have at least 25 employees working in the seven-county area of Cook, DuPage, Kane, Lake, McHenry and Will in Illinois and Lake in Indiana. Published employee totals are as of October. What criteria were used? Best Companies Group (BCG), an independent workplace excellence research firm, conducted a two-part survey. Part one of the assessment consisted of an employer questionnaire, used to collect information about benefits, policies, practices and other general information. Part two was a confidential 78-question employee survey used to evaluate local employees’ workplace experience and culture. BCG collected data from the companies in October and November. How was it scored? BCG combined the scores of the two surveys, with the employee responses making up 75 percent of the total, and conducted in-depth analysis to determine the number of companies that met its standard of excellence. Photos, from top: Duane Morris Managing Partner John Weiss poses with the three-cheese chicken lasagna rollups he made from a recipe recommended by an office staff member in Austin, Texas. Klein & Hoffman’s Brian Mathus at work. Staffers at Waystar have a socially distanced gathering. Lunch at Clune Construction. MNJ Technologies COO Ben Niernberg works at home while his son, Brendan Niernberg, attends class via e-learning. Lendlease creates communities and green spaces for people of all ages to enjoy; this is from the opening of Southbank Park. Ryan LLC Chicago employees get cookie packages—a socially distant thank-you. Reverb’s rockin’ annual “Battle of the Bands”-style holiday party has featured music performed by employees at iconic Chicago music venues like Thalia Hall.

P013-P027_CCB_20210412.indd 13

4/9/21 3:20 PM

14 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

IN THEIR OWN WORDS

WHY IS YOUR COMPANY A ‘BEST PLACE TO WORK’? Redmond is proud to be an outlier in our industry when it comes to gender equity. Fifty percent of our Project Team is female, as is 30 percent of our Leadership Team. We firmly believe that diverse teams are stronger teams, and building an equitable company is at the core of our corporate values.”

“At Assurance, we recognized our colleagues need us more than ever. They’re stressed—about work, caring for their families, the virus, racial injustice, tense elections and more—and we’ve used it as an opportunity to prove to our colleagues what they’ve suspected for more than a decade: We really do care about their well-being.”

“When Antonio Pasin started Radio Flyer in 1917, his dream was to ‘bring joy to every boy and every girl.’ Today, Radio Flyer remains a Chicago-based family company committed to bringing smiles to children and families around the world by creating quality products that inspire adventures fueled by laughter and joy.”

“Working at Reverb is a dream for both music lovers and anyone who wants to make an impact on real people and a passionate industry.”

“At Braviant, we’re not just about the snacks, the outings, the cool office or the swag. We’re about making a meaningful and lasting impact on the world.”

“Prime TSR goes above and beyond to put employees first. We realize that without our loyal and talented employees, the company would not have grown to what it is today. Many of our employees have been with us since the inception of the company, or close to it, and that says a lot on its own.” “ “Stumm Insurance not only has a history based on family tradition but a legacy of accountability, integrity and commitment to its clients. Stumm takes care of and treats employees like people, not just employees. This commitment to employees leads to happiness of clients.”

CRAIN’S LIST BEST PLACES TO WORK 1 2 3 4 5 6 7 8 9 10 11 12 13

Local/U.S. Employees

Percentage female executives

Voluntary turnover

100% paid medical

Flexible hours

401(k) match

✔

Name

Industry

Location

BLUEDOG DESIGN

Advertising/PR

Fulton Market

33/33

67%

POPULUS GROUP

Staffing

Lisle

58/270

17%

15%

✔

AVIONOS

Consulting

Loop

71/71

25%

12%

✔

RADIO FLYER

Consumer products

Elmwood Park

78/78

38%

✔

YCHARTS

Technology

River North

48/64

20%

✔

STUMM INSURANCE

Health care/insurance

Rosemont, Warrenville

39/39

✔

TOPSTEP

Financial services

West Loop

61/61

44%

10%

CITY STAFFING

Staffing

Loop

25/25

100%

✔

BALASA DINVERNO FOLTZ

Financial services

Itsaca

64/64

33%

13%

✔

PRIME TSR

Technology

Loop

42/42

25%

✔

INSTANT ALLIANCE

Staffing

Loop

25/25

60%

✔

REDMOND CONSTRUCTION

Construction

River North

27/27

33%

✔

INFUTOR DATA SOLUTIONS

Technology

Oakbrook Terrace

78/98

✔

P013-P027_CCB_20210412.indd 14

✔ ✔

✔

4/9/21 3:20 PM

TRUST

THE

TOOTH

to keep everyone happy.

At Delta Dental of Illinois, we take care of our employees because we know how hard they work to take care of those we serve. That’s why we’re pleased to be recognized as one of Crain’s 2021 Best Places to Work in Chicago.

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16 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS 401(K) MATCH: Offered by 84% of companies on our 2021 list; up from 75% on our 2018 list.

CRAIN’S LIST BEST PLACES TO WORK 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Percentage female executives

Voluntary turnover

100% paid medical

Flexible hours

401(k) match

Name

Industry

Location

Local/U.S. Employees

ALL CAMPUS

Advertising/PR

West Loop Gate

109/109

40%

BURWOOD GROUP

Consulting

Loop

93/193

27%

16%

THE SALEM GROUP

Staffing

Loop, Oakbrook Terrace, Naperville, Buffalo Grove

25/72

50%

RALPH H. SIMPSON

Construction

Elmhurst

27/27

40%

BRAVIANT HOLDINGS

Fintech/financial

Loop

36/37

43%

26%

DUANE MORRIS

Legal

Loop

86/1,433

28%

STRATOSPHERE NETWORKS

Technology

Evanston

51/51

RYAN LLC

Corporate tax advisory services

Loop, Downers Grove

ASSURANCE

Financial services

Schaumburg, West Loop

GLENSTAR

Real estate

Chicago

PERKINS COIE

Legal

Loop

BOLD INSIGHT

Consulting

PSC GROUP

29%

88/1,836

20%

12%

529/530

33%

10%

35/48

20%

251/2,444

n/a

Downers Grove, Loop

34/36

73%

Consulting

Schaumburg

59/59

PARIVEDA SOLUTIONS

Consulting

Loop

72/702

20%

10%

LENDLEASE

Real estate

Loop

139/1,335

30%

14%

NEIGHBORHOOD LOANS

Financial services

224/343

25%

n/a

Check out the jobs link at ChicagoBusiness.com/BPTW

Downers Grove, Bucktown, Old Irving Park, Midway

Consulting

Burr Ridge

103/217

29%

14%

Read the sponsored spotlight on Page 19

Consulting

Loop

137/137

25%

Life sciences/biotech

Lake Forest, Loop

499/1,193

15%

12%

INTEGRATED PROJECT MANAGEMENT COMPANY CLARO HEALTHCARE HORIZON THERAPEUTICS

P013-P027_CCB_20210412.indd 16

4 4

4/9/21 3:20 PM

Grotefeld Hoffmann is honored to be named to

Crain’s 2021 Best Places to Work! .

Austin. Chicago. Geneva. Los Angeles. Minneapolis. Palm Beach Gardens. Portland. San Francisco.

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18 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

IN THEIR OWN WORDS

WHY IS YOUR COMPANY A ‘BEST PLACE TO WORK’? Our flexible, results-orientated workplace program encourages employees to balance their work life and personal life. All employees are measured on results and not ‘face time’ in the office. (Ryan LLC)”

“We stress the importance of following the rules, practicing disciplined risk management and creating sustainable habits. Trading is more than a job—it’s a lifestyle—and Topstep is committed to helping all of our traders achieve long-term success.”

C H

“The Salem Group is a staffing company built from scratch based upon the belief that ‘People Matter Most’— including ours! With an average tenure of over 12 years, Salem has become the destination for high character, high drive, extraordinarily talented individuals from all walks of life, to thrive, serve and grow.”

200 Cla

So Su

“From sabbaticals every five years to making time in our busy workdays for a drink in the kitchen or a game of basketball on our courts, we at Arco/ Murray fuel our positivity with fun.”

Vena

“Our core values have hung on the walls since the company was founded in Chicago eight years ago; they drive every decision made from top to bottom and exist to make Smokeball a place where employees look forward to working every day. Yes, there are great benefits and perks, but that’s not culture. At Smokeball, employees’ ideas, career development and challenges are taken seriously because Smokeball understands that happy employees work hard to achieve goals together.”

CRAIN’S LIST BEST PLACES TO WORK 33 34 35 36 37 38 39 40 41 42 43 44 45

quic last The maj syst focu eme first

Percentage female executives

Voluntary turnover

Flexible hours

401(k) match

✔

17%

✔

55/57

25%

Loop

73/87

15%

Legal

Loop and Geneva

33/68

30%

SMOKEBALL

Technology

Loop

69/69

67%

54%

APTITIVE

Consulting

Loop

38/50

25%

17%

CHICAGO ASSOCIATION OF REALTORS

Real estate

Mag Mile, River North, Cicero

39/39

40%

LIBERTY ADVISOR GROUP

Consulting

Loop

43/43

10%

15%

LOGICGATE

Technology

River North

113/133

17%

✔

Banking

Highland Park, Northbrook, Skokie

135/135

31%

✔

Office furniture dealership

Roselle, Chicago

105/160

50%

✔

Name

Industry

Location

Local/U.S. Employees

ARCO/MURRAY

Construction

Downers Grove, West Loop

222/222

13%

MAGENIUM SOLUTIONS

Consulting

Glen Ellyn

54/54

25%

KI INDUSTRIES

Manufacturing

Berkeley

54/54

BUILTECH SERVICES

Construction

Schaumburg

KOVITZ INVESTMENT GROUP

Financial services

GROTEFELD HOFFMANN

FIRST BANK OF HIGHLAND PARK BOS

P013-P027_CCB_20210412.indd 18

Read the sponsored spotlight on Page 23 and check out the jobs link at ChicagoBusiness.com/BPTW

100% paid medical

Wha of C prop high ROI wise high edu serv now from Arqu

✔ ✔ ✔

✔

✔ ✔

4/9/21 3:20 PM

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k) h

SPONSORED CONTENT

BEST CRAIN’S CHICAGO BUSINESS 2021

PLACES TO WORK

CLARO HEALTHCARE 200 South Wacker Drive, Suite 2800, Chicago | 312-508-4444 ClaroHealthcare.com

Sound Values Lead to Continued Success at Claro Healthcare Claro Healthcare. “I’m very proud of our firm and how we all reacted.” Claro Healthcare’s proven success, especially in challenging times, is based on sound values and an innovative business approach. That’s why Claro Healthcare has been named one of Chicago’s Best Places to Work for 2021.

Venanzio Arquilla, Managing Director

ith its clients at the epicenter of the COVID crisis, Claro Healthcare quickly pivoted its entire workforce last year to adapt to the new reality. The consulting firm’s clients, major U.S. hospitals and healthcare systems, were understandably focused exclusively on the emergency at hand for at least the first six weeks of the pandemic. What emerged is a reaffirmation of Claro Healthcare’s strong value proposition. Claro Healthcare offers high impact services and a strong ROI, both financially and qualitywise, by improving strategic and high value processes along with education and technology. “Our services are valued more than ever now as our clients try to emerge from the pandemic,” says Venanzio Arquilla, Managing Director at

Arquilla, with over 30 years of consulting experience, founded the firm along with other partners and long-term colleagues nearly four years ago. The firm has 150 employees. Claro Healthcare has grown about 20 percent annually over the last five years.

Claro Healthcare Olympics Winners

welcome new ideas and information is shared transparently. For example, the firm holds an “All Hands” call to bring everyone up to date. The calls are more frequent now because of the pandemic. Great teamwork keeps the focus on clients. About 90 team members are based in Chicago, but another 60 employees are located in 24 different states. The switch to remote work even deepened collaboration since everyone was

People First and career growth is built into the culture. “Claro Healthcare offers a career path, not a job,” Arquilla says. Leadership views employees as people first, which has been especially important during the pandemic. Health and well-being has been the top priority. Personal situations are taken into consideration. There have been no layoffs or salary reductions over the past year. Last year, 36 team members at all levels were promoted. Team members work from the start with Managing Directors and clients.

Claro Healthcare contributes to the wider community too, providing financial support to worthy causes. Employees are given time off to volunteer for an organization of their choice. The bottom line: Claro Healthcare’s values help employees and clients achieve their goals. “We want to do good in our community,” Arquilla says. “When our people do well, our clients do well.”

“WE WANT TO DO GOOD IN OUR COMMUNITY. WHEN OUR PEOPLE DO WELL, OUR CLIENTS DO WELL.” - VENANZIO ARQUILLA, MANAGING DIRECTOR AT CLARO HEALTHCARE

IMPROVING THE FUTURE OF HEALTHCARE Claro Healthcare’s ongoing success is based on three core values: collaboration, client value and people first. Collaboration is fostered among team members and with clients. Resources are dedicated to help nurture relationships. Leaders

online together for company activities. “Our culture is stronger,” Arquilla says. Social activities have helped maintain a sense of belonging. Fun events include sharing pet pictures, a best office (Claro Healthcare cribs) contest, and trivia nights. Arquilla conducted a cooking class on how to make a high quality pasta meal. Client Value. Claro Healthcare’s priority is to provide exceptional value to our clients through initial client engagement, a focus on collaborative working relationships, and a strong ROI. “As a professional services firm, we deliver comprehensive solution-based results. We increase financial and quality performance through a proven approach including People, Process and Technology,” Arquilla says.

Claro Healthcare Civic Committee - Habitat for Humanity

P013-P027_CCB_20210412.indd 19

Venanzio Arquilla, conducting cooking class – how to make a delicious pasta meal.

4/9/21 3:20 PM

20 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS FLEXIBLE HOURS: Offered by 73% of companies on our 2021 list; up from 59% on our 2018 list.

CRAIN’S LIST BEST PLACES TO WORK 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

Percentage female executives

Voluntary turnover

100% paid medical

Flexible hours

401(k) match

Name

Industry

Location

Local/U.S. Employees

CENTRO

Technology

Loop

227/580

56%

18%

HUNT CLUB

Staffing

River North

70/70

20%

10%

Construction

River West

138/667

13%

THE OFFICE OF EXPERIENCE

Advertising/PR Marketing

West Loop

47/47

30%

OBJECTIVE PARADIGM

Staffing

Loop

36/36

22%

10%

C+R RESEARCH

Market research

Loop

123/123

70%

LASALLE NETWORK

Staffing

Loop, Schaumburg, Oak Brook

184/203

60%

23%

Construction

Loop

57/57

80%

ADAGE TECHNOLOGIES

Technology

West Loop Gate

63/63

17%

NEIGHBORHOODS.COM

Real estate

Fulton Market

70/70

38%

10%

IMANAGE

Technology

West Loop

332/416

12%

11%

KLEIN & HOFFMAN

Engineering

Loop

56/56

33%

KEYPATH EDUCATION

Education

Schaumburg

204/220

31%

OPTIMA

Real estate

Glencoe

33/86

30%

10%

SIKICH

Professional services: accounting, tech and advisory

Naperville, Loop

279/918

19%

14%

MUELLER & CO.

Accounting

Loop, Orland Park, Elgin

150/150

34%

14%

BIG CONSTRUCTION

Construction

West Loop

26/26

20%

Consulting

Loop

43/43

43%

17%

Technology

Loop

75/75

10%

11%

CLUNE CONSTRUCTION

SQN ASSOCIATES

KENWAY CONSULTING

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MEDIAFLY

4 4

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This is where we work. Because the experience is the brand. And in the marketplace of your customer’s mind, there are no second chances.

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transformative brands. Discover what OX can do for you at

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CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 21

k) ch

65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83

Percentage female executives

Voluntary turnover

Flexible hours

401(k) match

21%

37%

n/a

83/196

18%

13%

Chicago

55/155

50%

17%

Real estate

Western suburbs

48/378

28%

10%

ALTAIR ADVISERS

Financial services

Loop

53/53

41%

WHITNEY ARCHITECTS

Architecture

Loop

39/39

33%

Education

West Loop

361/452

67%

17%

ACTIVECAMPAIGN

Technology

Loop

544/544

33%

13%

MNJ TECHNOLOGIES

Managed services provider

Loop, Buffalo Grove

101/117

33%

12%

CARRIERDIRECT

Consulting

Loop

27/27

20%

28%

MESIROW FINANCIAL

Financial services

River North, Highland Park, Oak Brook

374/467

24%

10%

BARNES & THORNBURG

Legal

Loop

201/1,173

n/a

Technology

Loop

35/126

16%

24%

BAKER TILLY US

Accounting

Loop

364/4,300

n/a

13%

THE MARKETING STORE

Advertising/PR

Loop

305/305

30%

17%

TALMAN CONSULTANTS

Engineering

Loop

65/65

40%

SCALE MARKETING

Advertising/PR

River North

25/25

40%

REVERB

Retail

Lakeview

191/191

33%

19%

Name

Industry

Location

Local/U.S. Employees

HONEY CAN DO INTERNATIONAL

Consumer packaged goods wholesale

Berkeley

101/101

71%

BEACON HILL STAFFING GROUP

Staffing

Loop

78/975

MCSHANE CONSTRUCTION

Construction

Rosemont

Advertising/PR

LAUGHLIN CONSTABLE NEW HOME STAR

DISTINCTIVE SCHOOLS

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100% paid medical

4 4

WE WANT YOU Whether you are looking for a new full service bank Wh or a new career path, First Bank is the place to be! Now is the time to learn more about First Bank No and why we are one of the “2021 Best Places to Work”. To learn more, visit www.firstbankhp.com/careers

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4/9/21 3:20 PM

22 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

LIFE AT A FEMALELED FIRM Today, 31 percent of all smallbusiness and franchise owners are women, up 4 percentage points from 2020, according to a Small Business Trends survey by Guidant Financial. So how does it feel to work in a female-dominated company? We spoke with employees and the CEO of City Staffing, a Chicago recruiting agency ranked No. 8 on the Crain’s Chicago Business Best Places to Work, where 75 percent of the employees and 100 percent of the executives are women. Every employee interviewed (the firm has 25 employees in the United States) agreed there was one major difference at their female-based company when compared with their former malebased businesses: empathy. Juliet Venturis, director of recruiting and client liaison, has been with City Staffing for a decade; previously, she was with male-dominated companies. Venturis was originally hesitant about joining the team, as she questioned whether a female company would be gossipy or catty. She found her assumptions were wrong. “It’s a very teamwork and collab-

STILL MISSING FROM EXEC RANKS: WOMEN

orative environment, and there’s more of an empathy within the dayto-day of our work lives,” Venturis says. Also, the notion of remaining unemotional at work was thrown out the window. “We’re all human beings. We’re all working with other human beings: The empathy factor that women bring into the workplace allows for greater success.” Mistakes, vulnerability and compassion are all embraced at City Staffing. While the company didn’t intentionally recruit women, management is not complaining about the result of the hiring decisions.

Daphne Dolan, CEO and co-owner, joined City Staffing 10 years after it was founded. She previously worked at a male-dominated staffing firm. She noticed immediately that the women at City Staffing were better able to handle the demands of this particular career. “When you’re dealing with people who are trying to get a job, this is their livelihood,” Dolan says. “We need to hold their hands, and women multitask a little better than guys.” Danielle Braff

The year is 2021, and companies are still lagging when it comes to promoting women. Even within the companies that reached the top 100 in Crain’s Best Places to Work in Chicago list, there was a shortage of women in the top positions. Just a handful of companies—including Bluedog Design, Smokeball, Distinctive Schools, Honey-Can-Do, Delta Dental and Bold Insight—had a large majority of women in the executive office. City Staffing in Chicago stands out from the pack with 100 percent female executives. Nearly all the other companies were dominated by men. Three companies had no female executives at all, and some organizations didn’t release numbers to Crain’s. Board and executive positions tend to go to people who have connections and sponsors—or to those who are already CEOs or high-profile executives, says Emilia DiMenco, the president and CEO of the Women’s Business Development Center in Chicago. There is a small percentage of women and minorities in high-profile positions, so those same individuals are considered for

board and executive positions, and the pool is not made larger. It’s a cycle. “Thus, the percentages have been improving at glacial speeds,” DiMenco says. Companies can rectify the situation, however. First, those at the top need to identify criteria for board and executive openings, and they should demand that the slate of candidates considered is diverse. “My favorite answer that I hear from the uninformed is ‘If I could find them, I would,’ ’’ DiMenco says. She pointed to Amanda Gorman, the national youth poet laureate, as an example. Jill Biden met Gorman and gave her an opportunity, despite her inexperience, and now the world is talking about her impact, talent, intelligence and potential. “Someone judged her on her talent and potential, rather than her gender and race, and gave her a hand up,” DiMenco says. If corporate America could follow that lead, executive offices would look very different than they do today. Danielle Braff

We’re proud to be recognized by Crain’s as one of Chicago’s Best Places to Work. www.mcshaneconstruction.com

P013-P027_CCB_20210412.indd 22

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SPONSORED CONTENT

BEST CRAIN’S CHICAGO BUSINESS 2021

PLACES TO WORK

FIRST BANK OF HIGHLAND PARK 1835 First Street, Highland Park | 847-432-7800 | firstbankhp.com

Teamwork Is Business as Usual Business has been anything but usual this past year. First Bank of Highland Park met the challenge with great teamwork and a lot of flexibility. That spirit of collaboration to create a businessas-usual customer experience is a big reason why First Bank of Highland Park has been named one of Chicago’s Best Places to Work for 2021. Like a lot of businesses, the bank had to quickly pivot when the pandemic hit. Fortunately, a disaster preparedness plan was already in place. Each department immediately implemented their plan and got to work remotely meeting the needs of their clients throughout Chicagoland. Within just 48 hours, most employees had a laptop and the necessities needed to work from home. A core crew staffed the three

locations and 110 of the bank’s 144 full-time employees worked remotely.

“The bank made it easy,” she says. “They’ve been flexible and very supportive.”

An important goal set by ownership and senior management was to keep the staff connected and morale boosted. Newsletters, emails, video messages and townhall zoom meetings have done just that. The annual awards presentation was held virtually.

Teamwork and helping each other navigate remote office life have been a priority. Marcela Melendez, senior vice president of the lease finance group and president’s award recipient, helped streamline a system to manage workflow remotely with her team. “It is a true team effort,” she says. “Providing outstanding service is the common goal.”

“The level of communication has been incredible,” says Simon Yohanan, senior vice president, managing director of commercial banking. A father of twins, he appreciated the regular check-ins on his personal situation. “The bank has a culture of genuine kindness and compassion,” Yohanan says. Every two weeks, all staff receive a creative gift put together by the

While many businesses suffered layoffs, First Bank of Highland Park on-boarded 10 new employees. A virtual tour of the bank’s three locations was created by the marketing team to show new employees the physical locations. Currently, new employees are being interviewed for a “Getting to Know You” video message to be shared bank wide.

Luke Krzesaj, VP Controller/Finance, working from home and receiving assistance from his co-worker.

“THE BANK HAS A CULTURE OF GENUINE KINDNESS AND COMPASSION.” - SIMON YOHANAN, SENIOR VICE PRESIDENT, MANAGING DIRECTOR OF COMMERCIAL BANKING.

marketing department. A Chicago hotdog kit, ingredients for a virtual ice cream social and gift cards for lunch were just a few of the many gifts. Since the annual holiday party was cancelled, the executive management team hand delivered a $100 bill to each employee at their home. In January, employees received a newly branded hoody when the bank rolled out its new logo and tagline— Your Interest Is Our Priority. “While the tagline is a financial play on words, we truly have an interest in the needs of our clients, staff and community”, said Denise Bryant, director of marketing and community outreach.

Leo Mora, Loan Operations Rep, showing off some office supplies sent to bank staff.

P013-P027_CCB_20210412.indd 23

Adjusting to a new reality Flexibility has been key. Waylet Harper, who was promoted to loan operations officer last year, initially worked on-site. But when her children started remote school, she was able to work from home.

With community service a big part of its mission, First Bank of Highland Park was able to provide virtual outreach to local non-profits during a difficult time. Despite the obstacles, the staff contributed over 2,000 virtual volunteer hours. Grants and donations were also made to struggling nonprofits. In recognition of their community service efforts, the bank received awards from the Illinois Bankers Association and the Highland Park Chamber of Commerce. Looking ahead, business as usual will continue to focus on teamwork and customer service. “Having this level of support, personally and professionally, during unusual circumstances makes all the difference in the world,” says Yohanan.

Denise Bryant, Director of Marketing, enjoying a Chicago hotdog kit sent for Memorial Day.

4/9/21 3:20 PM

24 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 10

TO BE NAMED A 2021 BEST PLACE TO WORK

We’re grateful to be able to support our clients in healthcare, this year and every year. We’re only able to do so because of the talent and commitment of our incredible team. That’s why we work hard to offer a workplace where our people can collaborate, innovate and thrive.

Want to join a team that believes in the power of technology to improve healthcare for everyone? Visit waystar.com/careers

Waystar’s technology helps healthcare providers simplify complicated payments processes so they have more time and resources to devote to patient care.

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Top, Mikel Naples, president of Premier International, delivers meals from Alinea to a project team. Above, one of the employees shows the Alinea meal. At right, Radio Flyer sent COVID-19 care packages to its “FUNomenal QuaranTeam.”

PLACES TO WORK

THEY STEPPED UP

SQN Associates, LLC

134 N. LaSalle Street, Suite 700, Chicago 312-625-9500 | sqna.com

Employees Are Essential at SQN

ssential workers have taken on a special role over the last year. But the employees at SQN Associates have always been considered essential.

Field employees and office staff are equally important to SQN’s success as a company.

SQN stands for “sine qua non,” a Latin phrase that means absolutely essential. The firm is a leader in construction management, and project and program management with a specialty in transportation. Major projects, such as the CTA’s 95th Street Terminal, are included in the project portfolio of SQN. “Our team is indispensable,” says Rozie Makhani, President & CEO at SQN. Makhani left an engineering company in 2012 to launch SQN on her own. The firm now has more than 50 employees. She attributes the growth of the firm to her team. “We hire professionals who are passionate about what they do,” she says. But it doesn’t stop there. Employees have opportunities to grow through professional development and on-the-job training. “I want my team to feel like they’re part of a family company with big company benefits,” says Makhani. “We treat people well.”

P013-P027_CCB_20210412.indd 24

SQN offers both professional development and social events – sometimes at the same time! In 2019 the company combined a training session with a fun downtown outing.

Not surprisingly, the Best Places to Work acted fast to help employees during a trying pandemic year Last year was a pivotal one for businesses, and some companies pivoted better than others. When the pandemic hit and companies went virtual, altering just about every facet of their operations, most employers were quick to follow the guidelines outlined by the city of Chicago. But a few companies went above and beyond when it came to their COVID-friendly perks. Radio Flyer, ranked No. 4 on Crain’s Best Places to Work list, wanted to make sure employees suffered as few stresses as possible when they transitioned to working from home. So the company started by promising employees that there would be no layoffs in 2020—and it kept that promise. Within 24 hours of the pandemic’s arrival, Radio Flyer provided employees with the equipment needed to work from home and gave each person

$1,500 to pay for other home office expenses. It added three companywide wellness days and an additional 20 days of PTO for COVID-related challenges. Assurance, a financial brokerage company with offices in Schaumburg and the West Loop, reimbursed employees $500 for home office equipment—in addition to providing all employees with two monitors, a docking station and a keyboard. They also gave parents $1,000 in child care credit—a helpful perk when schools and camps were closed for the better part of the year. In addition, Assurance offered four hours of free virtual tutoring. Premier International, a consulting firm in the Loop, understood that the way to cheer up a Chicagoan is via their belly—so it did this in the very best way possible. In the midst of a demanding client project during the pandemic, the leadership team hand-delivered Alinea meals and wine to the project team to recognize their hard work and to encourage them to celebrate their success. Danielle Braff

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CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 25 100% PAID MEDICAL: Offered by 21% of companies on our 2021 list; up from 15% on our 2018 list.

CRAIN’S LIST BEST PLACES TO WORK 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Local/U.S. Employees

Percentage female executives

Voluntary turnover

45/51

n/a

252/256

n/a

100% paid medical

Flexible hours

401(k) match

Name

Industry

Location

LEAHY-IFP

Manufacturing

Glenview

M. HOLLAND

Distribution

Northbrook

CONCORD MARKETING SOLUTIONS

Promotional marketing

Glendale Heights

55/55

56%

BEACON FUNDING

Financial services

Northbrook, West Loop

98/98

22%

WEISS & CO.

Accounting

Glenview, Arlington Heights

61/61

15%

CLAYCO

Construction

Loop

298/2,400

16%

10%

REVENUEWELL

Technology

Bannockburn, Loop

142/142

14%

15%

EBCO

Manufacturing

Elgin

36/44

33%

BENCHPREP

Ed tech

Loop

131/132

14%

CLARITY PARTNERS

Consulting

Loop

102/105

17%

20%

PREMIER INTERNATIONAL

Consulting

Loop

46/46

33%

EVERGREEN BANK GROUP

Banking

Oak Brook, Hinsdale, Evergreen Park

109/153

25%

12%

Health care/insurance

Naperville

183/183

67%

15%

Technology

Loop, Pilsen

209/231

63%

13%

Health care

Loop

63/90

40%

23%

Technology

West Loop

55/1,160

17%

Construction

West Loop

193/193

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The company responded to help its own workforce too, providing resources to keep everyone safe and secure. “That’s what matters most,” Koziol says.

2021

PLACES TO WORK

INFOSEC Chicago Board of Trade Building, 141 W. Jackson Blvd. 708-689-0131 | infosecinstitute.com

Job Satisfaction at Infosec Brings Rewards

he cybersecurity education company Infosec lives by a simple equation. Employees who know their work matters are likely to be successful. And employee success equals corporate success.

expeditions. Is it safe to click on an email? How can hackers be stopped before they get into the system? “Our employees are helping fill the cyber security skills gap,” says Jack Koziol,

“WE ARE A PROFITABLE BUSINESS BECAUSE WE ARE FOCUSED ON CUSTOMER OUTCOMES.” -JACK KOZIOL, founder and CEO, INFOSEC

It all adds up at Infosec.

founder and CEO at Chicago-based Infosec. “They care deeply about making a difference through their work.”

Employees feel good about helping others. The company’s software products equip individuals and organizations with the skills and confidence to outsmart cybercrime. They learn how to protect themselves against cyber attacks and phishing

Launched in 2004, Infosec has grown quickly. It now has about 150 employees. Revenues in 2020 grew by 87 percent, as businesses shifted to remote work and hackers exploited the coronavirus crisis.

Infosec has a strong culture with three core values: relentlessness, humility, and customer focus. Employees at Infosec are relentless in giving every project their all. Humility encourages introspection which leads to innovation. The old approaches aren’t always the best ones. Lastly, the culture at Infosec is customer focused. Infosec is not financed by venture capital or other outside sources. “We are a profitable business because we are focused on customer outcomes,” Koziol says. “Every day we strive to exceed clients’ expectations by listening intently and supporting their goals.” Infosec is also focused on the wider community. Its philanthropic program, Infosec Gives, contributes 1 percent of its profits, product and employees’ time to causes that align with its core values and staff passions. Last year, the company awarded $120,000 in security education scholarships and gave $50,000 to social causes, representing about 55 different nonprofit organizations.

Infosec’s core values greet employees and visitors in the office lobby.

Hard work with a dose of fun! Infosec team-building event at Ragnarok Axe Throwing.

With plans for further growth, Infosec is recruiting new team members. “We are always looking for the best people that match our core values,” Koziol says. Infosec earns United Way recognition for its New Employee Campaign.

Braff

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4/9/21 3:20 PM

26 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

SPONSORED CONTENT

BEST CRAIN’S CHICAGO BUSINESS 2021

PLACES TO WORK

Kenway Consulting

20 N. Clark Street #1825, Chicago 888-953-6929 | kenwayconsulting.com

Kenway Consulting Bounces Forward

hile a lot of companies hope just to bounce back from the pandemic, Kenway Consulting plans to bounce forward. “We are on our way,” CEO Matt Kueker says. The management and technology consulting firm saw business tick up at the end of last year. Five new employees were hired in January. The firm expects to add an average of two per month through 2021. What gets the credit? “Our strong culture,” Kueker says. The firm attracts and retains top talent because of its focus on its mission. “We call it our ‘Why’,” Kueker explains. The company’s purpose is “To Help and Be Helped.” He says that COVID put that mission to the test. But everyone on the team has stayed focused to help clients and each other.

The pandemic highlighted three other strengths of Kenway’s culture: • Swift and effective communication. Employees, most working remotely, received daily updates last spring, and are now updated monthly via CEO Status Summaries, Virtual Roundtables, and personal interactions with Career Counselors. The outreach to employees about their personal situation has been intentional and proactive. “We really take care to reach out to every employee,” Kueker says. • Transparency. Communication is honest. Managers admit they don’t have all the answers. Employees are part of the solution, providing new ideas which are welcomed.

Kenway Consulting’s strong culture is helping the company “bounce forward,” with revenue on track to outperform pre-pandemic levels.

return, as it has, Kenway focuses on training and professional development. “We invest in our people,” Kueker says. What’s ahead? Revenue this year is on track to outperform pre-pandemic levels. And the firm’s mission of “To Help and Be Helped” is now even stronger. “We will bounce forward better than ever,” Kueker says.

• Continuous improvement. Confident that demand would

NONPROFITS:

Do you have a new 2021 event to share? On June 21 Crain’s will be publishing Big Dates 2.1, an update for all non-profit fundraising events taking place July-December 2021. Submissions are FREE. Deadline is May 21.

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P013-P027_CCB_20210412.indd 26

COOL PERKS Paid leave, flex hours and medical benefits are the basics of employee benefits. But some Chicago companies go above and beyond. Topstep, a Chicago-based financial technology firm that ranked No. 7 on the Crain’s Best Places to Work list, provides a $500 vacation bonus to everyone who takes five consecutive days off work, in a bid to encourage mind-clearing long breaks. Employees at this company already receive many days off before dipping into PTO, thanks to a recently introduced four-day workweek option. This perk was initially a pilot program launched when the company went remote during COVID. The company quickly realized that employees were more focused during their four-day workweek, so it was beneficial to everyone involved. Topstep offers stipends covering internet, utilities and office

supplies if employees choose to work those four days outside the office, as well as up to $50 twice a month for meals from a local restaurant. Topstep employees may want to walk to those local restaurants: They’re issued Fitbits and have an option to participate in companywide fitness challenges. At All Campus, a Loop-based company that partners with higher education institutions to grow online enrollment, education is not just for employees. In 2020, the company allowed parents to use a professional development credit (up to $1,000 per employee) on their children instead. Families were able to use the funds to buy technology or supplies for e-learning, or to subsidize child care needs. If employees want to advance their own education, they are reimbursed for external professional development, and they receive

Scale M

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FUN STUFF

OUR EMPLOYEES LOVE THIS Avionos “Recently married employees receive a gift and a night out; the company hosts baby showers for those expecting a baby.”

Ralph H. Simpson “We are extremely flexible with our paid time off, family and personal commitments and anything else our employees might need.”

C+R Research “One of the most used perks we offer every employee is access to four free tickets to Bulls, Sox, and Cubs games. Employees can take their kids (or friends) to an event they will remember forever. This perk is valued as high as $500 per game.” Assurance “All colleagues can send each other gift cards—paid for by us—to recognize and appreciate their co-workers for a job well done, or for just general awesomeness.”

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CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 27

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Scale Marketing a tuition discount to pursue advanced education in one of the programs All Campus manages. At the Salem Group, a women-owned staffing company in Oakbrook Terrace, employees who meet or exceed budget goals receive a threeto-five-day, all-expenses-paid trip to any destination (cruises included). Salem owns a cor-

porate house in Galena, where employees are invited to golf, swim, play tennis, ride horses and get away from city life. Scale Marketing in River North pays for a round-trip flight to anywhere in the world for employees who reach the one-year mark. Danielle Braff

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Neighborhoods.com “Home Purchase Bonus Program: If an employee purchases a home with one of our partner real estate agents, they are eligible for a bonus in the amount of the referral amount.” Ryan LLC “This year Ryan closed its offices for a full week to celebrate our success in 2019— without asking employees to use their PTO. Employees loved the freedom to completely unplug.” Evergreen Bank Group “Free use of bankowned Galena townhouse for employees with three-plus years of service, catered breakfasts and lunches, raffles, gift cards, free shoe shines.”

P013-P027_CCB_20210412.indd 27

Beacon Hill Staffing Group “Employees and their partners are flown to Boston for the annual holiday party; annual performance incentives such as vacations to Florida and shopping sprees.”

EMPOWERING OUR STAFF, POWERING OUR COMMUNITIES A happy an7 _;-Ѵ|_ v|-@ |;-l bv 1ubঞ1-Ѵ =ou v |o ruo b7; o u l;l0;uv b|_ |_; 0;v| v;u b1;v rovvb0Ѵ; -m7 7;Ѵb ;u om o u lbvvbom |o mb|; -ѴѴ =-1;|v o= |_; bm7 v|u -v - Ѵ;-7bm] -7 o1-|; =ou u;-Ѵ ;v|-|;ķ 7ub bm] ! $ ! ® 0 vbm;vv v 11;vv -n7 ;1omolb1 7; ;Ѵorl;m| o= o u 1oll mbঞ;v |o ;mv u; _b1-]oŝv 1oll mbঞ;v -u; _;-Ѵ|_ ķ b0u-m| -n7 7b ;uv; rѴ-1;v |o Ѵb ;ķ ouh -m7 play.

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28 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

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DADS’ RIGHTS! Northbrook Court’s turnaround plan, approved by the village in 2019, included 315 apartments, a grocery store and a food hall.

Follow Our Victories ! Chicagoland’s latest business news and events.

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Is Northbrook Court headed for discount rack? NORTHBROOK from Page 3

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trophy malls like Northbrook Court, a 986,000-square-foot property at 1515 Lake Cook Road. The decision to explore a sale raises doubts about Brookfield’s $250 million turnaround plan, approved by the village in 2019. The redevelopment’s “great things” included 315 apartments, a grocery store and a food hall. Subsidized with nearly $22 million in tax-increment financing from the village, the project offered a promising path forward for Northbrook Court and a model for other malls trying to survive a wave of department store closures and the e-commerce threat. Brookfield put the project on hold after the pandemic hit but has told village officials it plans to move forward with it this summer, says Village President Sandy Frum. The company sounds noncommittal now. “We have engaged various stakeholders to determine a viable path forward for the property that best serves the interests of all invested parties,” Brookfield says in a statement. A company spokeswoman declined to answer questions, and Barings representatives did not respond to requests for comment. Frum says the project has received no money from the village. New York-based Brookfield holds a 45 percent stake in Northbrook Court in a joint venture with the New York State Common Retirement Fund, a pension plan for New York state employees. A fund representative did not respond to requests for comment.

TOUGH TIMES

Find your next corporate tenant or leaser.

Connect with Claudia Hippel at claudia.hippel@crain.com for more information.

P028_CCB_20210412.indd 28

The coronavirus pandemic has been especially tough on shopping mall owners, especially in its early months, when many malls shut down and many retailers refused to pay their rent. Housebound consumers bought even more goods online, accelerating the shift away from brick-and-mortar retailers. Store closures and retail bankruptcies jumped. Owners of several local malls, including Gurnee Mills, Lincolnwood Town Center and Yorktown Center in Lombard,

stopped making loan payments. An index of U.S. mall values created by California research firm Green Street Advisors has fallen 20 percent from pre-pandemic levels. Northbrook Court has suffered losses, too. Lord & Taylor shut down its 126,000-square-foot store there in December, leaving the mall with just one department store, Neiman Marcus, a chain that emerged from bankruptcy in September. At least 17 tenants inside the mall have left in the past nine months, including Corner Bakery, Abercrombie & Fitch, Banana Republic and Victoria’s Secret, according to the property’s website and a June 2020 leasing plan. Excluding department stores, Northbrook Court’s occupancy rate has fallen to 68 percent from 85 percent in June. It’s unclear whether an investor would pay enough for the mall to allow the Brookfield venture to pay off its outstanding debt to Charlotte, N.C.-based Barings. The balance on the mall’s mortgage, which matures in November, totals about $117 million, according to Brookfield’s 2020 annual report. Brookfield took over Northbrook Court and two other big local malls, Water Tower Place and Oakbrook Center, through its 2018 buyout of Chicago-based GGP. A publicly held real estate investment firm with about $88 billion in assets, Brookfield has the financial muscle to turn around a struggling shopping mall. But the company has made it clear that it won’t pour any money into lost causes. In January, Brookfield handed over its North Point Mall in suburban Atlanta to a lender even after securing approval for a redevelopment that would have included 300 apartments. Built in 1976, Northbrook Court has bounced back from past disruptions, like the loss of department store anchors Sears, J.C. Penney and I. Magnin. But it hasn’t kept up with Old Orchard Center in Skokie, which isn’t enclosed like Northbrook Court and became a more attractive destination for many retailers after Nordstrom opened a department store there in 1994. The 2003 opening of the Glen Town Center in Glenview also “si-

STATUS UPDATE Brookfield Property Partners owns three shopping malls in the Chicago area: NORTHBROOK COURT

Location: Northbrook Size: 986,000 square feet Anchor tenants: Neiman Marcus, AMC Theatres Sales per square foot: $735 Status: Plans for $250 million redevelopment on hold as Brookfield and lender mull a sale of the mall.

WATER TOWER PLACE

Location: Chicago Size: 794,000 square feet Major tenant: American Girl Sales per square foot: $782 Status: Major redevelopment in the works after Macy’s closed its department store there in March.

OAKBROOK CENTER

Location: Oak Brook Size: 2.4 million square feet Anchor tenants: Macy’s, Nordstrom, Neiman Marcus Sales per square foot: $1,193 Status: Brookfield refinanced Oakbrook Center, the healthiest of its three Chicago malls, with $475 million in debt in November. Sources: Company reports, Green Street Advisors, Crain’s reporting

Note: Sales per square foot do not include department stores.

phoned some sales away,” says John Melaniphy, president of Chicago consulting firm Melaniphy & Associates. “We were just generally reaching a saturation point,” he says. Internet shopping and then the pandemic compounded Northbrook Court’s challenges. A new owner will need to go back to the drawing board and explore a wide range of uses for the site, including residential, office, hotel and recreation, Melaniphy says. There’s still room for retail at a redeveloped Northbrook Court, but for categories insulated from e-commerce competition, like grocery stores, restaurants and home improvement, he says. Whoever is in charge, Melaniphy isn’t betting against the property. “It’s always the darkest before the dawn,” he says. “Fundamentally, it’s good real estate.”

4/9/21 4:13 PM

CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 29

Restaurant workers wanted by the thousands

HUNGRY FOR WORKERS The state’s pool of leisure and hospitality industry workers took a beating during the pandemic and has a ways to go to recover. ILLINOIS LEISURE AND HOSPITALITY EMPLOYMENT

RESTAURANT WORKERS from Page 1

700 thousand 600 550 500 450 400 350 300 JOHN R. BOHEM

we’re going to have to do other things.” Turnover in the restaurant industry is already high, with 77 percent of staffers switching out in a normal year, according to Culinary Agents. This year, of course, is incomparable. Illinois restaurants were closed to indoor dining for more than four months throughout 2020 and endured a roller coaster of restrictions when they were open. Some completely shut down for the winter, laying off or furloughing all staffers. Those that didn’t close operated with skeleton crews. Upscale Indian restaurant Rooh in the West Loop was able to keep some employees working over the winter, serving customers in a large outdoor dome. Competitors covet that pandemic experience and are poaching staffers, says owner Manish Mallick. He’s lost five or six so far, undercutting his effort to expand capacity. “Everyone is trying to come after my employees,” Mallick says. “If they leave, now I have to hire more and train.” Nearly every restaurant in the state that survived the turmoil is rebuilding its staff, preparing for consumers confident in dining out again. But the pool of job applicants they are wading into is not the same. Restaurant operators say some former staffers have moved to states with more lenient restaurant restrictions or left the industry altogether. Some went back to school or took a job at a company that thrived during the pandemic, like Amazon, DoorDash or a cannabis firm. Employment in Illinois’ leisure and hospitality industry dropped from 629,900 people in February 2020 to a low point of 328,500 last April, according to the U.S. Bureau of Labor Statistics. It has rebounded, but not fully: An estimated

Manish Mallick, owner of Rooh, says he’s lost five or six workers to poaching so far. 444,200 worked in the industry this February. To compete, restaurants are increasing pay, offering more benefits or bonuses, and getting creative in where they search for talent. Such investments are hard for restaurants just starting to break even after months of loss. And the stakes are high: Without enough workers, the reopening process could be slowed. Employees have been working overtime at French-Mexican restaurant Tzuco, says managing partner German Gonzalez. He started noticing the shortage of applicants about a month ago, when he posted a hosting job and only got six hits. Usually, a job posting at Tzuco gets about 50 applicants, he says. The Near North restaurant started offering $100 bonuses to employees who referred a new hire who stuck around. Pay was increased a dollar or more for dishwashers and other hourly employees. Tzuco also started hiring hosts with no experience in the industry. “We don’t want this to be your first hosting job,” Gonzalez says, “but now we’re in a position where, ‘If you have the right attitude and the right motivation, we’re willing to train you.’ ”

Raising pay and making some positions salaried hasn’t yet helped Pennyville Station in Park Ridge rope in any more candidates, at least not yet, says owner Tony Antonacci. His restaurant just turned a profit for the first time since October, and the tough hiring situation is a cherry on top of a year of seemingly insurmountable challenges.

WAITING IT OUT

Chicago restaurants are not alone in their plight. Recruiting firms that work in hospitality are being bombarded with new clients from around the country and hearing similar tales from employees not yet ready to get back to work. “Not that this is the only reason, but a lot of people are making just as much money on unemployment as they would be working,” says Steve Farrahi, regional director of recruiting at Goodwin Recruiting. The firm works with Maggiano’s Little Italy, Lettuce Entertain You Enterprises, DineAmic Hospitality and others in Chicago, and added 200 new hospitality clients nationwide in the first quarter. Candidates know jobs will still be available in a few months, so they figure why not stay home, away

444,200 jobs*

250 200 150 100 50 0

Jan ’19

Apr ’19

Jul ’19

Oct ’19

Source: BLS

from potential COVID exposure, collect unemployment and apply for a job later, Farrahi says. Roughly half of workers in the U.S. are getting more from benefits than they would be from working, says Peter Ganong, assistant professor at the University of Chicago’s Harris Public Policy. That measure, called the replacement rate, increases among lower-wage occupations, such as those in the food-service industry. But the disincentive to work was very small, even when the federal government was supplementing state unemployment benefits with an extra $600 per week, Ganong says. That likely dropped even lower with the supplement now at $300, and as other deterrents, such as closed schools, become less of a problem. The Illinois Restaurant Association’s Sam Toia says that at this point, many workers are waiting for vaccines to return to work. Restaurant workers became eligible late last month. Toia is working

Jan ’20

Apr ’20

Jul ’20

Oct ’20

Jan ’21

*Preliminary, data rounded

with the city to open vaccine clinics for industry workers in Albany Park, South Shore and other neighborhoods. The off-and-on nature of COVID restrictions might also have left some workers with whiplash, and they’re waiting until there is more stability. Dr. Rachel Rubin, senior medical officer at the Cook County Department of Public Health, said April 7 that the county wouldn’t hesitate to harshen restaurant restrictions if case counts continue to rise. Restaurants that closed completely for the winter find themselves at the particular disadvantage of having to rebuild from the ground up. Anna Posey, who owns Elske in the West Loop with her husband David, says she was shocked when it came time to start hiring staffers and no one was biting. The restaurant is set to reopen in late April. “We thought people would be raring to go,” Posey says. “I hope there are enough cooks to go around.”

To snag a home in Chicago’s tightening real estate market, connections help HOT MARKET from Page 1 against one another for any house that came on the market. Frustrated, the DeYoungs tried a different way to find their next house. “When we went out on family walks, I would talk to people,” says Dave DeYoung. “I’d say, ‘Do you know anyone who’s looking to sell?’ We were just out getting to know the neighborhood, but basically, I was prospecting.” It worked. Earlier this year, the DeYoungs bought a five-bedroom Prairie Style house on Damen Avenue for $490,000. The sellers, who declined to comment for this story, didn’t have to do any premarket painting, install air conditioning or pay agents’ commissions. The DeYoungs “got a pre-pandemic price,” Dave says, and sidestepped the hassle of bidding wars. In a real estate market filled with frustrations—lost bidding wars, sharply rising prices and a dearth of inventory among them—buyers like the DeYoungs are trying to jump the line. If they’re not moseying up to strangers, they’re asking

real estate agents to massage their personal networks in search of a house that isn’t on the market or even texting homeowners to ask if they’d consider selling. Anything to get a house before the rest of the market sees it.

IN THE KNOW

There’s no way to count how many buyers are going this route, but here’s one measure of Chicagoans’ high level of interest in circumventing the tight market: Top Agent Network is a members-only online space where high-end brokers swap information on what’s for sale, including homes about to be listed. David Faudman, CEO of the San Francisco-based network, tells Crain’s the number of inquiries on behalf of Chicago buyers is up 57 percent from last year, while the number of homes offered there is down 10 percent. There’s also a mismatch system-wide on Top Agent Network, Faudman says, but it’s not quite so lopsided on the buyer side. In the six metro areas where the network operates, buyer-related inquiries

are up about 32 percent, he says, and inventory is down 25 percent. At the upper end of the price ladder, agents are accustomed to bumping into the same set of peers at transaction after transaction. That’s why when Millie Rosenbloom of Baird & Warner set out to sell her clients’ distinctive, well-designed home on a double lot in Lincoln Park, she says, she knew that “there are a handful of agents who might already have the buyer. Or if they didn’t, they’d know somebody who knows somebody.” Rosenbloom contacted a few of those agents, including Jennifer Ames of Engel & Voelkers, and the mansion went under contract without going on the market; the sale closed April 7 at $7.5 million. “It’s about who you know,” Rosenbloom says. Sometimes it’s about who the doorman knows, as Coldwell Banker agent Gary Richter discovered last summer. Richter was prepping for market a client’s 45thfloor condo at Harbor Point in the Lakeshore East neighborhood. The

bathrooms needed some paint, so he called in the building’s doorman, who does painting jobs on the side. While painting, Richter says, the doorman told him, “I know somebody who would want this.” It went under contract to the doorman’s connection a few days later, without going on the market, and sold for $1.15 million in late September. While DeYoung’s gregariousness among his Beverly neighbors worked in his favor, the cold-call approach doesn’t always pay off. Catherine Johns, a professional speaker, owns an expanded bungalow in North Mayfair. In March, she received a text message that said, “Hello, hope all is well. I drove by (Johns’ address). Are you the owner and have you considered selling? –Mary.” “I thought it was creepy,” Johns says. The robotic language and single name in the text could indicate it was a scam. “If she had texted, ‘This is Mary McGillicuddy. I love your neighborhood and I’m look-

ing for a house,’ ” the texter would at least have gotten a polite reply from Johns. Instead, “I ignored it,” she says. Prospecting among homeowners who aren’t on the market is an age-old tactic for real estate agents. Jamie Roth, a North Shore agent for Engel & Voelkers, has mastered the skill, and used it this spring on behalf of some downsizing clients. They’re confident, Roth says, that their big family home “will sell in a nanosecond” in today’s fast-moving market, so they asked him to first find them a landing pad in a development popular with affluent North Shore downsizers. Roth wrote a letter to the few dozen unit owners in the development, explaining that he had a buyer who wanted to purchase there. It’s worked for him before, but not this time—he hasn’t received a single response. That means his clients won’t list their house for sale, which in turn might mean that somebody who would have bought it is out prospecting for unlisted homes right now.

30 APRIL 12, 2021 • CRAIN’S CHICAGO BUSINESS

Egg-freezing demand soars as COVID delays new relationships, people work remotely FERTILITY from Page 3 percent year over year at several Chicago-area clinics. The growth is particularly noteworthy given that many fertility treatment centers stopped seeing new patients last April and May as COVID-19 spread. “People have predicted for a long time that there was going to be more of a boom in egg freezing and utilization of genetic testing. This is probably the beginning of a scale up,” says Dr. Eve Feinberg, a reproductive endocrinologist and infertility specialist at Northwestern Medicine. “The transition to a workfrom-home environment has opened up more time and space for people to focus on some of their life goals and priorities.” The growth comes as more employers include fertility preservation in benefits packages to better attract and retain workers. But pressure to offer the costly coverage is increasing at a time when many businesses are dealing with the financial fallout from the pandemic. Still, industry observers predict the benefit will become more widespread as companies develop robust equity and inclusion initiatives and adopt permanent remote work arrangements that erase geographic boundaries for top talent.

Once reserved for those about to undergo cancer treatment, egg freezing is becoming increasingly popular among those undergoing gender-affirming care and women looking to extend their so-called reproductive potential. While year-over-year increases are commonplace given that the technology is still relatively new (the American Society for Reproductive Medicine in 2012 declared that egg freezing was no longer an experimental procedure), the pandemic has sharply accelerated demand. “There’s a huge opportunity to take the fertility clinic into a whole other realm” due to changes in “access to care, companies covering this, the knowledge that you can freeze eggs if you don’t have a partner, that the LGBTQI community can have a family even if you don’t have an egg or a sperm between you,” says Dr. Angeline Beltsos, CEO and chief medical officer at Chicago-based Vios Fertility Institute. “All that will change the landscape of who gets care, how they get care and how they pay for it.” Hanley, whose employer doesn’t cover egg freezing, paid about $12,400 out of pocket for the procedure and necessary drugs, which are billed separately. For self-pay patients, the total cost typically ranges from $10,000

to $15,000, with some patients spending more on drugs, local clinic owners say. That doesn’t include annual storage costs, which can range from $300 to $1,000. With tech and financial services firms leading the way, 11 percent of employers with more than 500 workers in 2020 reported covering egg freezing, compared with just 5 percent in 2015, according to Mercer’s annual surveys of employer-sponsored health plans. Meanwhile, 19 percent of employers with more than 20,000 workers last year reported covering the benefit , compared with just 6 percent in 2015. Uber Technologies and McKinsey are among companies that offer the benefit.

GROWTH

Even during a slower than normal sales season, Progyny added 45 new employer customers during the pandemic, says David Schlanger, CEO of the New York City-based fertility benefits management company. He notes that the majority of Progyny’s 180 customers across two dozen industries cover egg freezing. During 2020, many employers were focused on beefing up telehealth and behavioral health coverage as their workers navigated pandemic life, Schlanger says. But now, with vaccination

campaigns underway, employers are focusing on what benefits packages need to look like in the future. “By covering fertility, you’re making a pretty strong cultural statement that you value your female workforce, you value gender diversity, you value family building,” Schlanger says. While Illinois is among states that require certain health plans to cover infertility treatment, elective egg freezing typically is not covered under the law. As more employers cover fertility preservation, removing financial barriers for workers looking to freeze their eggs, demand is expected to increase. Vios is among clinics that quickly scaled up last year, as the number of egg-freezing cycles climbed 45 percent, compared with the year earlier. Vios aims to expand in the Chicago area, where it operates seven clinics, and beyond—with plans to launch centers in Detroit and Portland, Ore., later this year, Beltsos says. Meanwhile, at Chicago-based Institute for Human Reproduction, egg-freezing cycles increased 69 percent from June 1 to Dec. 31 last year, compared with the same period in 2019, says Ryan Flood, an administrator at the institute, noting that the clinic

is projecting at least a 46 percent increase in egg-freezing cycles this year. The pace at which new patients moved through the egg-freezing process also quickened during the pandemic, says Colleen Wagner Coughlin, founder of Chicago-based egg freezing specialty center Ova. Some women were worried about losing their jobs and their employer-sponsored coverage; many were eager to do it while working remotely; and others wanted to do it before potentially getting infected with COVID-19 at a time when little was known about the virus’ effect on reproductive health, Wagner Coughlin says. While demand for egg freezing is expected to level off as more people get vaccinated against COVID-19 and life returns to some sort of normal, industry observers say the process will continue gaining traction among patients. “It’s just a good way to freeze time for yourself, especially if you want to do other things in your life first,” Hanley says. “I would love to fall in love and be in a solid relationship before I have kids. I want to hit that life stage first. But if it doesn’t happen, it’s empowering to take what you have and give it to yourself later if it’s something you really want.”

This program is open to executive level and emerging leaders. Recommendations will be required for all application submissions. GO TO CRAINSACADEMY.COM FOR FAQS, PRICING OR TO SUBMIT YOUR APPLICATION FOR QUESTIONS: EMAIL CRAINSACADEMY@CRAIN.COM

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At South Loop condo, it’s all about da view Three-bedroom unit owned by a family of Bears season ticket holders has expansive views of Lake Michigan, lakefront parks and—most important—Soldier Field BY DENNIS RODKIN FROM HER 27TH-FLOOR CONDO in the South Loop, Ann Spiotto has a view of the Shedd Aquarium and its neighbors on the museum campus, but as a longtime Bears season ticket holder, the one she talks most fondly of is Soldier Field. “We can go over to the game for a few quarters,” Spiotto says, and if her grandchild gets bored, “it’s no trouble to leave.” From her other home, in Lincolnwood, a Bears game would be an all-day excursion.

Spiotto bought the condo in 2010 with her husband, James, who died in 2020. For several years in between, their son and his family lived in the condo and hosted people on game days, but they later moved out of state. Since her husband’s death, Ann Spiotto says, she uses the three-bedroom condo much less. She put it on the market last week, represented by Juliana Yeager of @properties. The asking price is $995,000.

MORE PHOTOS ONLINE: ChicagoBusiness.com/residential-real-estate

FIO CREATIVE PHOTOS

CRAIN’S CHICAGO BUSINESS • APRIL 12, 2021 31

COVID-19 hit some Chicagoans’ paychecks hard while others got a boost COVID PAY from Page 3 current results are from the third quarter, when the economy was lurching out of shutdown mode in fits and starts, before vaccines were announced. The lockdown and low interest rates sent new homebuyers and existing homeowners rushing for new mortgages. The average weekly wage at mortgage brokerages in the third quarter was $2,764, up from $1,925 a year earlier, the largest increase of the roughly 200 biggest industries in the Chicago economy. “I don’t know anyone who didn’t have a record year,” says Nathan Britsch, president of the Illinois Mortgage Bankers Association. “You’ll have people getting W-2s this year with a half-million to a million dollars on them. Commission-based loan agents were able to work as much as they want. Some were pulling 20-hour days. They have to make hay while the sun shines because they don’t know when rates are

going to change.” Commodities traders also did well after the initial pandemic shock. Wages rose 29 percent in the third quarter from a year earlier, according to BLS data. The move to working and shopping from home also rippled across the economy in sometimes unexpected ways. Warehouses exploded as Amazon, Target and others ramped up ahead of the holidays. Warehouses hired so many workers, increasing headcount 36 percent, that the average wage in the third quarter actually declined 15 percent year over year as entry-level workers hit the payrolls. Overall, however, starting pay rates in the booming warehouse industry are on the rise, settling at about $15 now, up from $10 to $12 an hour just a few years ago, says Brian McDonald, vice president of operations at Priority Staffing in Joliet. “Prior to COVID, pay rates were all over the place. Now everyone’s in the same range,” he says.

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“COVID put pressure on those rates. To get people to come out, employers had to give them a little extra money. I don’t think that money will go away.” Call-center industry wages rose 28 percent to $1,284 per week despite a 4 percent decline in jobs. “Pay is increasing with work from home and COVID fears,” says Tom Gimbel, CEO of LaSalle Network, which supplies workers to call centers and other industries.

GOING REMOTE

Even as some call-center work gets automated, more business-to-business sales and support that once was done in person is going remote. “The skill rate is going up,” Gimbel says. “You’ve seen a huge flow of college-degreed people going into call centers. Pay rates are up. We saw the quality of people willing to do the job increase.” Another beneficiary of COVID is tech. The average pay in cloud hosting, which includes video

streaming, was up 17 percent to $2,833 per week as companies moved to remote work. Chicago is home to growing sales and support operations for Google’s and Amazon’s cloud operations, as well as a large number of independent providers. Most categories of retail were victims of a stay-at-home economy, but home centers did well. The average wage rose 16 percent to $616 a week amid a 15 percent increase in jobs. Wages at grocery stores rose 5 percent to $552 a week, and headcount grew 4 percent. “I think we will see surprising strength in wage growth post-pandemic,” says Mark Zandi, chief economist at Moody’s Analytics. “Wage growth has remained resilient throughout the pandemic, edging only a bit lower last year and will pick-up quickly post-pandemic in industries that have navigated the pandemic reasonably well and are experiencing generally tight labor market conditions. Wage

growth will remain restrained in industries that got hit hard by the pandemic.” Wages in the school-bus industry were hit harder by COVID-19 than any other in Chicago, dropping nearly half. Workers, who generally are paid four to five hours a day, saw weekly wages drop from $390 to $228 in the third quarter, as many schools didn’t reopen and sports were canceled. “In March we were dead in the water until September, slowly creeping back,” says John Benish Jr., chief operating officer of Cook-Illinois, a school bus company in Oak Brook. “We’re about 60 to 70 percent back.” With the end of the school year in sight, he’s already wondering about how he’ll staff up for next year. “We lost 30 percent of the workforce,” he says. “It’s going to be tough: Anyone making $15 to $22 hour, they can structure it so they make as much, or a little less, on unemployment.”

Vol. 44, No. 15 – Crain’s Chicago Business (ISSN 0149-6956) is published weekly, except for the last week in December, at 150 N. Michigan Ave., Chicago, IL 60601-3806. $3.50 a copy, $169 a year. Outside the United States, add $50 a year for surface mail. Periodicals postage paid at Chicago, Ill. Postmaster: Send address changes to Crain’s Chicago Business, PO Box 433282, Palm Coast, FL 32143-9688. Four weeks’ notice required for change of address. © Entire contents copyright 2021 by Crain Communications Inc. All rights reserved.

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One year ago, our lives dramatically changed. For many in our region, COVID-19 has disrupted our jobs, education, budgets, and access to healthcare. Though it’s a new year, our neighbors still need our help. We face many hurdles as we work to reverse the economic impact of the pandemic, but with your support, we can move from pandemic response to recovery. Your donation will help 9RMXIH ;E] HIPMZIV GVMXMGEP VIWSYVGIW XS RSRTVSƤX SVKERM^EXMSRW on the front lines of the crisis so that our neighbors can easily access food, housing, and healthcare.

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