Crain's Chicago Business, August 12, 2024 by crainschicago

Can Lyric’s new CEO fix its finances?

Wounded

by the pandemic,

the opera has been dipping into its endowment in order to fill yawning budget gaps

By Brandon Dupré

One of the most pressing tasks for the Lyric Opera of Chicago’s new CEO is to right the nonprofit’s flagging finances, a tough job in a performingarts landscape hard-hit by the COVID-19 pandemic and still struggling to find its feet.

“It’s a long and slow recovery for the arts.”

The Lyric Opera, which unveiled its new CEO and president, John Mangum, on July 31, has relied on endowment funds to plug a yawning budget gap in each of the last two years that its chief financial officer says will continue in the short term.

Claire Rice, executive director of Arts Alliance Illinois

“We don't anticipate using this for any prolonged period of time, but we do expect that we'll need to use additional board-designated funds over the course of the next two to three years (to balance the budget),” CFO Vincente Milianti said.

In fiscal years 2023 and 2022,

the Lyric Opera took out a board-approved $22 million and $14 million of unrestricted funds from the endowment, respectively. Of those figures, Milianti said $10.7 million in 2023 and $4 million in 2022 were part of an unprecedented endowment draw meant to plug the budget holes left by disappearing federal aid that got the opera through the worst of the pandemic. The endowment is left with about $180 million still in the tank.

Donor support, an important pillar of the industry’s business model, hasn’t been able to keep pace with inflation and the loss of ticket revenue caused by the pandemic. In each of the last three years, the Lyric has seen a slight dip in donor contributions and fundraising revenue. The opera recorded $13.8 million in

see LYRIC on Page 26

Mental health movement is having a moment

Faced with a services gap that disproportionately affects Black and Latino Chicagoans, Mayor Brandon Johnson is bringing closed clinics back online I PAGE 11

The city’s long, fascinating and unrivaled history as a political convention host.

Ronald Jackson fought for the reopening of a mental health clinic on Chicago’s Far South Side. GEOFFREY BLACK

John Mangum

What Kamala Harris and Chicago need from the DNC

IGreg Hinz

nside the United Center, carpenters have started work on the stage that Democrats will use to boost Kamala Harris. Outside the hall, a host of security agencies from the Chicago Police Department to the U.S. Secret Service are finalizing plans to keep everyone safe. And in those presumably smoke-free rooms at Democratic Party headquarters, Harris aides are busily reworking the program to ensure that the four-day, made-for-TV spectacle that kicks off Aug. 19 comes off in the right way.

If that sounds like a lot, it is. And though some of it is routine, everybody needs to get it right. Much is at stake, not only for the presumptive Democratic nominee but for Chicago itself, when the whole world will be watching the Windy City a little over a fortnight from now.

Inside the United Center, Harris appears off to the best start since the Chicago Bulls drafted a guy from North Carolina named Michael Jordan.

Harris has been spectacular — that word really does apply — since incumbent Democratic President Joe Biden announced he was withdrawing from his re-election contest and seeking to pass the torch to his vice president.

Within 48 hours of Biden’s announcement, Harris had pumped up and enthused Democrats and locked up enough delegate commitments to secure the nomination. Republicans and a few Democrats are crying foul, but the reality is the donkey party knows all too well its propensity to let victory slip away amid bitter infighting, and this time overwhelmingly decided to forsake a fight and not even think about a replay of the infamous 1968 Chicago convention with riots outside the hall and verbal brawls inside.

Still, Harris has her work cut out for her here in Chicago. She needs to sell herself to the country as a capable, energetic, trustworthy commander in chief in waiting. “She needs to thank Biden, then move on,” says one veteran Chicago pol. “The

convention needs to be about her and the future.”

Harris has clear vulnerabilities she needs to deal with. Like policing the southern border, perceptions that Democrats are soft on crime, and the volatile Mideast. But overall, Harris has done her job of uniting and energizing the party and is in position to enjoy being the center of a four-day infomercial, says North Side U.S. Rep. Mike Quigley.

Outside the hall, the picture is more tricky.

Though the Republican National Convention in Milwaukee was relatively peaceful and the Paris Olympics proceeded without harm to participants, the attempted assassination of GOP nominee Donald Trump illustrates what can go wrong when security drops the ball.

Security officials here are less focused on shootings — the no-go zone around both the United Center and McCormick Place, where some events will be held, is enormous — but what happens with Mideast protests is anybody’s guess.

Faayani Aboma Mijana, spokesperson for the Chicago Alliance Against Racist & Political Oppression, says “tens of thousands” of people protesting Israel’s action in Gaza will be on the street — a potential contingent so large that the mile-long demonstration route the city has offered toward a location near the United Center is “too small” to hold everyone at the same time, Mijana contends.

Mijana is also not impressed with Harris’ statements urging a cease-fire, saying she and Biden backed Israel. Ergo, protests on.

Officials from Mayor Brandon Johnson on down say there is no reason for concern: Peaceful protest is allowed, and it will remain peaceful.

We’ll see. Tossed into a closet at my house is a gas mask I inherited from one of the reporters who covered the ’68 convention. If Chicago pulls this off, its post-COVID reputation and critical convention and hospitality business will receive a huge pop. If not, we’re in trouble. Bottom line: The upcoming convention poses big challenges all around. We’ll see if Harris and Chicago are up to them.

Chef Richard Sandoval to open another Chicago restaurant

By Ally Marotti

Mexican-born chef Richard Sandoval is set to open another restaurant in Chicago, this one at the Fairmont Chicago Millennium Park.

Toro is set to open inside the hotel at 200 N. Columbus Drive this fall, according to a news release announcing the opening. The restaurant will replace Columbus Tap, which occupied the space previously.

Toro, which has locations in other cities such as Scottsdale, Ariz., serves pan-Latin food. Menu inspiration comes from Latin American culinary traditions, including those of Mexico, Colombia, Brazil and Venezuela,

according to the news release.

The restaurant will be Sandoval’s second spot to open in the city this year. The Denver-based restaurant group operates more than 60 restaurants around the world, including some in other Fairmont properties. It opened Casa Chi at the base of the InterContinental Chicago Magnificent Mile hotel in May. That cocktail lounge is Nikkei style, meaning it serves a blend of Japanese and Peruvian cuisine and cocktails.

However, Sandoval has long played in Chicago’s restaurant scene. He once ran a Latin food hall in the Loop’s Block 37 called Latinicity, which opened in late 2015. It did not reopen after pan-

demic shutdowns. He also ran the now-shuttered Baptiste & Bottle, a whiskey-focused spot on the 20th floor of what used to be the Conrad Chicago Hotel off the Magnificent Mile.

Operating in a hotel can be tricky. Hotels typically require their restaurants to be open all day. That can be challenging and costly for restaurant operators, with labor costs and the changing menu options. Indeed, Toro expects to be open from 6 a.m. to midnight Sunday through Thursday, and stay open until 2 a.m. on Friday and Saturday nights. But serving as the hotel restaurant also comes with its perks. It guarantees a captive audience on-site — the hotel guests.

A rendering of Toro Chicago’s interior | KtGY

Former Sam Zell office company shutting down

Equity Commonwealth is returning money to shareholders after spending years hunting for a big acquisition target

By Danny Ecker

After spending years building up a war chest of billions of dollars to make its next big real estate bet, the Chicago-based office company previously led by the late Sam Zell has decided to shut down instead.

Amid a growing push from activist investors to return cash to shareholders, Equity Commonwealth executives last month disclosed that the real estate investment trust will pursue a liquidation of its assets.

The move ends the REIT’s protracted search for a megadeal that likely would have vaulted Equity Commonwealth into new territory. The company sold off almost all of its office properties in the years leading up to the COVID-19 pandemic, amassing cash and hunting for large portfolios or other real estate acquisition targets to kick-start a new strategy.

has determined that it’s advisable and in the best interest of our shareholders to proceed with the wind-down of our operations and the liquidation of our assets in order to maximize value for shareholders.”

Equity Commonwealth looked to be in a good position to make a big move as the public health crisis set in and fueled a remote work movement that has battered the office sector.

Rampant distress across commercial real estate also looked like it would tee up opportunities for Zell, a legendary dealmaker known for vulture investing that earned him the nickname the Grave Dancer.

“We have been evaluating potential investment opportunities in an effort to create long-term value for shareholders,” Equity Commonwealth CEO David Helfand said July 31 during a conference call with analysts. “After working through our pipeline, we have been unable to consummate a compelling transaction. As a result, our Board of Trustees

The company came close to a big deal in 2021, when it agreed to a $3.4 billion takeover of New Jersey-based industrial company Monmouth Real Estate Investment. But Zell’s firm lost a bidding war to Starwood Capital Group.

Since then, some Equity Commonwealth investors have grown impatient with the company’s long-running hunt that tied up their capital. Activist investors began calling for the company to liquidate, questioning whether the potential of a big deal was

See ZELL on Page 27

Schaumburg farm is slated for high-density development

Plans for the last big piece of undeveloped land in the suburb, long owned by the Loeber family of car dealers, are up for consideration by the village’s planning board this month I By

More than 20 years after the owners of the last big unbuilt parcel in Schaumburg began trying to sell it for housing development, the land is on the verge of getting approval for a few hundred new rentals, and some neighbors are not happy about it.

Development, these neighbors say, is both inevitable and fine with them. Their argument is that Schaumburg officials seem poised to approve something that has nearly four times the density

See LOEBER on Page 27

Chicago’s long and unrivaled history as political

Dennis Rodkin

Since 2002, Martin Loeber’s sons, Paul and George, have been trying to sell the land to developers.

convention host

the city built up its wide lead during the rise of the railway age and on account of its central loca tion in the united states

By Steven R. Strahler

Chicago hasn’t had a monopoly on history-altering national political conventions. But it has come awfully close.

It is where Abraham Lincoln, the 19th century’s most consequential president, was nominated in 1860 and where Franklin Roosevelt, the 20th-century paragon, was nominated in 1932 — and renominated twice.

In case you haven’t heard, Democrats are reconvening here this month, making it the city’s 26th major party convention in a line that began with the Lincoln conclave, far more than any other city.

Conventions that simply ratify the renomination of a sitting president and vice president aren’t much to look forward to. Chicago has had plenty, including its last one, in 1996, when Democrats renominated incumbents Bill Clinton and Al Gore, and City Hall, led by Mayor Richard M. Daley, sought to use the conclave as a way of erasing lingering memories of the infamous 1968 convention.

“In 1968, the whole world was watching. In 1996, the whole world is noshing,” Crain’s said at the time.

This year’s Democratic National Convention was shaping

up to be another nosh pit with a foreordained outcome. That is, until President Joe Biden last month reluctantly dropped his bid for re-election.

Though the ticket has been revised, it remains foreordained; delegates have already cast the number of votes online necessary for Vice President Kamala Harris to secure the nomination. Yet the convention should get some pizazz in the form of a coming-out party for Harris and the witnessing of another historic first — the nomination of a Black woman for president.

President Franklin D. Roosevelt speaks to the Democratic convention in Chicago in 1932.

DENNI s RODKIN

Mike Bryskier, left, and James Kroll stand in an open field of the Loeber farm, which borders both of their homes. DENNIs RODKIN

Sam Zell, who took over Equity Commonwealth along with David Helfand in 2014, died last year at age 81.

A Loop office-to-residential conversion is at risk as distressed tower hits the market

A project to transform the building at 105 W. Adams St. into apartments appears to have been blown off course

By Danny Ecker

A Loop office building slated to be turned into apartments through a city program to revitalize downtown has gone up for sale, an apparent setback for a pair of local developers aiming to transform the distressed property.

A venture led by Old National Bank has tapped real estate services firm Millennium Properties RE to seek a buyer for the office portion of the 41-story Clark Adams Building at 105 W. Adams St., Millennium President Dan Hyman confirmed.

Old National took control of the 30-floor portion of the building earlier this year after winning a judgment of foreclosure and submitting the highest bid in a December sheriff’s sale, Cook County records show.

The offering suggests a plan to convert the property into 247 apartments has been blown off course. That proposal from affordable housing developers Celadon Partners and Blackwood Group was one of five shortlisted last year by city planning officials to potentially win taxpayer subsidies through the LaSalle Street Reimagined program, an initiative launched by former Mayor Lori Lightfoot’s administration to try to restore vitality to the central business district. The program offers developers tax-increment financing money and other incentives to turn old office buildings into apartments, as long as at least 30% of the new units are designated as affordable.

Mayor Brandon Johnson in April selected four such projects totaling more than 1,000 apartments to move forward through a formal city review process. The 105 W. Adams project was not among the group, but city officials said at the time they would continue to evaluate the project.

Celadon Partners CEO Scott Henry said last year his firm had an arrangement with Old National to acquire the building after the bank seized it through a foreclosure sale. But no such

deal has been completed.

Henry said July 31 that the lender has complicated the due diligence process Celadon and Blackwood have gone through to verify they would be able to control the building as needed to for the conversion project. Among the unexpected hurdles: Other investors have emerged claiming ownership stakes in the property, muddling the acquisition process, according to Henry.

“We haven’t been able to get under the hood like we’d need to to understand what we’re buying,” Henry said. “We can’t go into a $200 million-plus redevelopment project not knowing what it is that would hold us back from doing what we want to do.”

The developers are still interested in pursuing the deal, “but every day that goes by, we’re less and less confident that we’re going to be given the adequate time we would need to actually do a deal,” Henry said. “It’s really a shame, because we have all the (financial) sources lined up. It’s

just (about) having a seller that’s willing to participate in a way that will allow a transaction to move forward.”

Asked about the matter and sale negotiations with Celadon and Blackwood, a spokesman for Old National said in a statement to Crain’s that “out of respect for the potential buyer’s financial privacy, we do not feel comfortable sharing details or commenting directly about this potential transaction.”

Fleshing out details

A spokesman for Marquette Bank, which is a co-lender with a substantial stake in the property, deferred to Old National as the “lead bank” overseeing the property.

Without full control of the property, Celadon and Blackwood have not been able to move beyond the cost underwriting process with city of Chicago planning and housing department leaders to a more formal city review of the project. The developers have spent more than a

year working with city officials fleshing out details of would-be financing, such as which development costs would be eligible for TIF reimbursement.

As of last summer, the developers’ plan for the historicbut-dilapidated art deco building was to build out 247 units — including 185 that would be affordable — with an estimated project cost of $178 million. The developers’ initial request to the city was for $60 million in TIF money to subsidize the project.

Henry said higher construction labor wages and interest rates since their initial projection has ballooned the estimated project cost closer to $210 million. The developers have commitments from a lender to provide debt and an investor to purchase low-income housing and other tax credits to help finance the project, he said.

A spokesman for the city’s Department of Planning & Development said it “recognizes the immediate challenges involving the building’s proposed redevelop-

Thoma Bravo returns billions to backers in

the Chicago-based buyout group, known for its big bets on enterprise software, is helping to buck the narrative that’s plaguing the buyouts industry

By Ryan Gould, Bloomberg

After a relatively barren few years for deals, backers of the world’s biggest private equity firms have one thing on their minds: returns.

For Thoma Bravo, the Chicagobased buyout group known for

its big bets on enterprise software, a couple of transactions announced across a few days in late July is helping the firm to buck the logjam narrative that’s plaguing the buyouts industry.

The firm sold education software provider Instructure Holdings Inc. to KKR & Co. for $4.8

billion including debt and 50% of its stake in exchange operator Nasdaq Inc. for $2.7 billion. Those transactions generated realizations of about $2.9 billion and $2.4 billion respectively, according to a letter to Thoma Bravo’s investors reviewed by Bloomberg News. The fund had

ment but remains committed to supporting the long-term goals of the LaSalle initiative.”

The new asking price for the Clark Adams Building is unclear, but a source familiar with the offering said Old National is seeking around $10 million for the property.

A sale at that price would complete a financial haircut for the lenders. Old National predecessor First Midwest Bank filed a foreclosure lawsuit in 2020 alleging the property’s previous owner, a venture of Chicago investor Musa Tadros, defaulted on a $26.3 million mortgage it took out to refinance the building in 2016. Tadros’ venture had owned the building since 2006.

Old National was on the verge of seizing the property last summer through a sheriff’s sale, typically a legal formality in Illinois that allows a lender to take possession of a property after winning a judgment of foreclosure. But the Tadros venture delayed the process by filing for Chapter 11 bankruptcy the day before the auction. Some delinquent real estate borrowers use the bankruptcy tactic as a last resort to buy more time to work with their lenders or find a new investor to pay off a loan, since bankruptcy matters usually must be resolved before a foreclosure sale can occur.

That delay was relatively shortlived, as a federal judge in October ruled that Old National could pursue the foreclosure sale even as the bankruptcy case proceeded, federal court records show.

Hyman, who is marketing the property for sale along with Millennium Executive Director Susan Silver, said the sellers are looking for a buyer that can close quickly on a purchase. “The goal is to have a rapid transaction,” he said.

The Clark Adams Building was completed in 1927 and designed by famed architect Daniel Burnham’s sons. The office portion is owned separately from a Club Quarters hotel on the building’s lower floors.

days, defying logjam

owned almost 84% of Instructure’s outstanding shares.

Thoma Bravo also “completely closed out” its investment in software observability platform Dynatrace Inc., according to the letter.

A representative for Thoma Bravo declined to comment.

In netting investors of its buyout fund roughly $5.2 billion in the course of a week, Thoma Bravo has returned about $19.4 billion since January 2023, the letter

shows. From 2020 to 2024, realizations grew to approximately $48 billion, compared with $15.5 billion from 2015 to 2019. Beyond Instructure and trimming the Nasdaq position it inherited in 2023 in connection with the $10.5 billion sale of financial software provider Adenza Inc., the firm announced the sale of cybersecurity player Venafi Inc. to CyberArk Software Ltd. for $1.54 billion in May.

The office building at 105 W. Adams St. | COStAR GROUP

The Chicago Leadership Circle

Understand. Engage. Lead.

The Chicago Leadership Circle (CLC) is designed to support executives in better understanding, shaping, and engaging with the region’s economic and community development.

Upon completing the program, fellows will have:

• A deeper understanding of the economic and social issues affecting Chicago’s future

• A vision for how to build shared value for their companies and for the region

• Formed meaningful relationships with socially responsible business executives and civic leaders across the region

• A roadmap for simultaneously advancing the aims of their institution and the city

Scott Duncan of Skidmore Owings & Merrill

Duncan, 52, is a design partner at Chicago's Skidmore Owings & Merrill, the leading architectural firm for the new satellite concourse project at O'Hare International Airport. The concourse work is one of the largest phases of the extensive airport expansion and renovation plan. Duncan and his wife live in Lincoln Park with their son and daughter, 17-year-old twins. I By

What's your backstory?

I grew up in the tiny rural town of Bloomsbury, N.J. Our school had 100 students from kindergarten to eighth grade. Coincidentally, Bloomsbury was home to the graphite mill for Koh-i-Noor, a company that made pencils and other architectural drawing supplies.

How did small-town living affect you?

It pushed me to explore the broader world. I wanted to get out and see big cities and skyscrapers, and I fell in love with them.

Your first big-city experience?

My dad, who was a fine artist, would sometimes take me into New York City when he was showing his paintings to art dealers. The city's architecture and intensity fascinated me.

Your dream project?

We are building it now! It's an oceanarium and coral farm on the Red Sea coast of Saudi Arabia, where a coral reef has been damaged by high salinity and elevated water temperatures. Scientists there will be 3D-printing coral "skeletons," which will be populated by coral polyps and planted along the coast to restore the reef. The process will drastically reduce growth time and accelerate the reef's recovery.

What would surprise us about you?

I have had essential tremors in my hands for my entire life. I literally can't draw a straight line. Thankfully, I was still in school when digital modeling software debuted, and I became an early adopter.

Worst job ever?

Pumping gas at a huge truck stop at the edge of town. It was hot and I'll never forget smelling like gas all the time.

A hair-raising experience?

Right after 9/11, as a young architect, I flew on assignment to Kuwait. When we landed, there were military planes everywhere and patriot missile batteries on either side of the runway. I had seen the planes hit the World Trade Center firsthand, and now I was in the thick of the buildup before

Laura Bianchi

the Iraq invasion. At the hotel, there were sniffer dogs, sandbags and guys with machine guns checking IDs.

What happened?

While I was trying to sleep, I heard a series of explosions and thought we were being invaded. That's as scared as I've ever been. But when I called reception, they told me it was just fireworks. Ha!

Your favorite building?

The thermal baths in the Swiss Alps designed by architect Peter Zumthor. Sitting in that hot water, looking out over the valley and listening to the cowbells on the mountainside opposite, you experience a true harmony of architecture and landscape.

Owners of Adalina lease the top floor of Oak Street building

the team behind the Italian eatery is planning an expansion in the Gold Coast on one of the city’s most prominent retail corners

The team behind the Italian restaurant Adalina is planning a Gold Coast expansion, leasing a top-floor space on one of Chicago’s most prominent retail corners.

The group will occupy an approximately 12,000-square-foot space on the sixth floor of the retail and office building at 1-15 E. Oak St., according to sources familiar with the property. A concept for the new restaurant hasn’t yet been announced.

A spokeswoman for Adalina declined to confirm the group’s plans, which were previously reported by CoStar News.

Adalina opened its 912 N. State St. location in 2021, when consumers were just gaining the confidence to eat out again after pandemic restaurant lockdowns. Opening was a gamble at the time. Business diners had not returned to Chicago restaurants with their corporate credit cards. But Adalina caters to another clientele, too. It is at the base of No. 9 Walton, one of the swankiest condo buildings in town.

Leading the kitchen there is Michelin-starred chef Soo Ahn, previously at Band of Bohemia. The Gold Coast Italian spot serves handmade pastas, shared plates, steak and seafood. It is a balance of Northern and Southern Italian cuisines. It is unclear if Ahn will be at the helm of the new location, too, or whether the concept will be the same.

The team behind Adalina is also working on a project in Fulton Market. The group is plan-

ning a restaurant at 360 N. Green St., a 24-story building that real estate firm Sterling Bay is developing. Adalina will operate a restaurant with a patio at the location, according to the building’s website.

The group’s newest undertaking, at 1-15 E. Oak St., will go into a space once occupied by a restaurant called Fred’s Chicago at Barneys New York. It was a white-tablecloth joint on the top floor of the store, with skyscraper views and sightlines to Lake Michigan. The restaurant closed before the pandemic.

Restaurant renaissance

The building is about two blocks away from Mariano Park, an area of the Gold Coast neighborhood that has undergone a bit of a restaurant renaissance in recent years. The intersection of State and Rush streets had long been home to a handful of oldschool steakhouses and Italian joints that, with their patios encircling the park, developed into see-and-be-seen spots for patrons over the past few decades.

But mainstay Tavern on Rush closed in late 2022 after 25 years in operation, and the landlords of the building at 1031 N. Rush St. opened a new restaurant called The Bellevue. It triggered a domino effect toward a modernization of the area once nicknamed the Viagra Triangle. Next door, Carmine’s Bar & Lounge is also getting a revamp as a new landlord works to demolish and rebuild the restaurant’s longtime home. Its new digs, expected to open in 2025, will be more modern and

include an expansive, secondstory balcony. Meanwhile, Tavern on Rush owner Phil Stefani is set to reopen the restaurant soon at 1015 N. Rush.

The lease at 1-15 E. Oak St. adds to the momentum the building has had in attracting new tenants in recent months, showing that a major redevelopment the landlord undertook may be paying off. Cartier recently unveiled its 8,000-square-foot boutique on the first and second floors, and Balenciaga’s two-level, 6,700square-foot shop opened in May.

The property’s owner, Bethesda, Md.-based ASB Real Estate Investments, has been preparing to list the property for sale, Crain’s previously reported. A venture backed by ASB paid $154 million for the 94,600-square-foot property in 2013. An ASB executive didn’t respond to a request for comment on the Adalina lease. Though it’s been rebranded as Oak x Rush, the building is best known to Chicagoans as the longtime home of retailer Barneys New York. The company filed for bankruptcy in 2019, closing its multilevel store and leaving the property largely empty. ASB’s redevelopment carved up the space to market it to multiple retail tenants as well as to office users on the upper floors.

CBRE’s Stephen Ansani, Luke Molloy and Danny Jacobson have been marketing the property’s retail space for lease on behalf of the landlord, according to marketing materials. Canvas Real Estate’s Elan Rasansky and Anthony Campagni represented Adalina in the negotiations.

By Rachel Herzog and Ally Marotti

1-15 E. Oak St. COStAR GROUP

JPMorgan dragged into fight over one of Chicago’s oldest hotels

By Scott Carpenter, Bloomberg

A JPMorgan Chase & Co. unit is being dragged into a legal fight over an unpaid $333 million loan backed by the Hilton Palmer House, one of downtown Chicago’s largest and oldest hotels.

Bondholders sued JPMorgan in federal court in New York last month, arguing the bank failed to tell investors key information about how the historic hotel is owned and operated. As bondholders would later learn, the hotel’s owner, New York-based Thor Equities, had split the rights to different parts of the hotel into separate parcels in the 2000s, complicating eventual efforts to take it over after it defaulted in 2020 amid the coronavirus pandemic.

The bondholders, represented by Wells Fargo acting as trustee, filed the New York suit after first filing a foreclosure action against Thor Equities in Illinois’ Cook County in 2020. Now the bondholders have turned to the New York court as a hedge against a possible defeat in Cook County.

“If, in the Cook County Litigation, the court interprets various agreements related to the Loan and governing the operation of the Hotel consistent with the arguments advanced by Borrower and its affiliates, then there were breaches of

the representations and warranties” by JPMorgan, the lawsuit says.

The new legal actions put a focus on the sometimes difficultto-understand details that govern how large buildings are operated on a daily basis. Amid of wave of distress coursing through the commercial mortgage bond market, it’s also a test of how much the banks that arrange such deals are

required to tell investors. JPMorgan declined to comment on the suit. Last month Wells also sued Thor Equities in New York, which didn’t respond to requests for comment.

At the center of the dispute is the 1,641-room Hilton Palmer House Hotel, which has been owned since 2005 by Thor Equities. It’s the longest continuously

operating hotel in North America and has featured shows by singers like Judy Garland and Ella Fitzgerald, according to its website. In May President Joe Biden held a fundraiser there.

In 2018 JPMorgan gave a $333 million loan to a Thor entity called Thor Palmer Hotel & Shops, which pledged Palmer House as collateral to secure the loan. JPMorgan

then packaged the loan into a commercial mortgage backed security, called JPMCC 2018-PHHH, which was purchased by dozens of investors including BlackRock Inc. and MetLife Inc., according to data compiled to Bloomberg.

But in 2020, as the Covid outbreak was decimating the hotel business, Thor defaulted on the loan and Wells Fargo, in its role as the trustee on behalf of the bondholders, filed suit in Cook County to foreclose on the hotel. That litigation is still underway but now, four years later, it’s looking like Cook County courts may well rule that bondholders can’t in fact repossess important portions of the hotel, the suit says.

The hotel's State Street retail space was seized by a lender in 2023.

The snag, the suit says, is that in the 2000s Thor Equities subdivided the Palmer House complex into three separate parcels and assigned ownership of two of the parcels to affiliates, and those affiliates have asserted a counterclaim to the two parcels. JPMorgan knew about the hotel’s subdivision into three parcels but, while arranging the financing in 2018, never informed investors — even though such information would be critical in the event of a default, the suit filed last month says.

The Palmer House Hilton gEttY IMAgEs

EDITORIAL

What’s next for Ford’s Torrence Avenue plant?

Amid the well-founded hoopla over plans to revivify the longabandoned South Works site as a hub for next-generation quantum computing, it's easy to overlook another significant economic anchor of the Far South Side: Ford Motor Co.'s Torrence Avenue plant, which just marked its 100th year. No other factory in Ford's portfolio has been in continuous operation longer.

Ford's massive campus at 126th Street and Torrence has withstood a century's worth of change and even upheaval in the manufacturing business, serving as a stabilizing force in the region even as its neighbor, U.S. Steel, mothballed South Works and left wide swaths of the South Side lakefront to rot.

As Crain's John Pletz notes in an Aug. 9 report commemorating the factory's centennial, Torrence Avenue has managed to stay open — in part because of strategic management and due to a series of happy accidents — and has consistently provided thousands of good-paying jobs to a South Side region in great need of them.

Today, Torrence Avenue employs roughly 4,700 people, making Ford the largest manufacturer in the city and among the top three statewide. Nearly 1,100 more people work at Ford's stamping plant in nearby Chicago Heights, supplying the Torrence Avenue factory with the parts needed to build Ford Explorers and Lincoln Aviators, along with sport-utility vehicles for police. And although Ford doesn’t provide employment numbers for companies in the

PERSONAL VIEW

supplier park near the plant, they’re estimated to provide more than 2,500 jobs.

Torrence Avenue's durability wasn't always assured. At certain low points in its history, the plant operated with just 800 employees. But industry observers tell Crain's Torrence Avenue dodged more than one threat of closure — including during the Great Depression — by virtue of its central location, the relatively low cost and reliability of the power supply, as well as the quality of its workforce.

And as Crain's notes, a succession of

Chicago mayors and Illinois governors have worked with Ford over decades to secure a variety of tax breaks and incentives to keep the plant going. Mayor Richard M. Daley and Gov. George Ryan came up with more than $100 million in incentives in 2002 to enable construction of a supplier park near the factory. In 2009, with automakers struggling to survive the Great Recession and headcount down to 1,200, Gov. Pat Quinn reworked the state's income tax incentives to rebate payroll taxes as well.

More recently: As part of the most recent United Auto Workers contract signed last year following a lengthy strike that affected Torrence Avenue directly, Ford said it would invest $400 million over four years in the Chicago plant. The company declined to address its plans beyond that.

And that's where the questions about Torrence Avenue's next hundred years kick in. How does the Chicago operation fit into the industry's broader transition to electric vehicles, hybrids and even, perhaps, hydrogen-powered cars?

There were concerns as Ford, which previously predicted half its vehicles would be electric by 2030, began announcing which sites would transition to EVs — and Chicago wasn’t among them. But the pace of the EV transition has slowed at Ford, as well as other automakers, amid signs buyers aren’t as enthusiastic about such vehicles as they once seemed. Detroit rethinking its EV priorities could, in the end, prove to be an advantage for plants like Torrence Avenue.

One auto industry researcher tells Crain's that third-party research firms predict Ford will continue making products at Torrence Avenue for at least another 11 years, which is the limit of such forecasts. What gets produced at Torrence Avenue — whether it's a new technology or the gaspowered products it's known for — is ultimately up to Ford. But for the sake of the entire South Side region, city and state leaders would be wise to do what they can to ensure the Torrence Avenue plant has a shot at another century of life.

Political talk at the office will be challenging as DNC looms

Political discussions at work have become inevitable in today’s hyper-polarized world. As Chicago prepares to host the Democratic National Convention this summer, such talk is likely to become even more common around the Windy City.

You can expect a range of opinions and beliefs in any workplace — political or otherwise — and when managed properly, discourse can promote critical thinking and improve understanding of different perspectives. Many wish to avoid all controversial topics entirely, banning them from the workplace outright. While perhaps these bans are well-intentioned, exchanges among coworkers with differing opinions can further better understanding and engagement — when handled correctly.

Johnny C. Taylor Jr. is president and CEO of SHRM. He is a nationally recognized expert on human resources, workplace culture and leadership.

But when mismanaged, it’s far too easy for those exchanges to lead to tension and incivility, making it crucial for businesses to reflect on the best ways to handle such conversations. The reality is: Disagreements will happen, but how you manage those disagreements will define you as a leader.

Uncivil workplace conversations are a surefire way to break down trust and respect among teammates. Unfortunately, far too many of us know what it’s like to dread going to work because of argumentative, rude or even hostile coworkers. But the buck stops at the top: A good leader cannot hesitate to address uncivil behavior in the workplace.

The data bears this out: A recent SHRM (Society for Human Resource Management) study shows U.S. workers collectively witnessed or experienced more than 171 million uncivil acts within just the past month. SHRM research also reveals employees who witness incivility are more likely to be dissatisfied with their jobs, leave their positions and feel less psychologically safe at work.

The consequences of incivility at work can extend far beyond the individuals involved. When employees feel uncomfortable or threatened in their work environments, their productivity and engagement suffer, leading to potential breakdowns in collaboration and teamwork, which can

have long-lasting effects on an organization’s ability to innovate and compete in the marketplace. Maintaining a civil workplace is key to retaining critical talent and keeping retention and recruitment costs down.

Civility is also imperative for creating an inclusive work environment. It isn’t enough to simply have a diverse workplace. As leaders, we must lead with inclusion, while shaping an environment that isn’t divisive. We have a responsibility to create spaces where important discussions can occur without leading to erosive conflict or division.

Show your employees you can navigate the complexities of political discourse in a way that benefits both them and your organization. Real change starts at the top, with leaders walking the walk and communicating cultural expectations to their employees upfront. It’s our responsibility as leaders to set the tone by creating an inclusive culture that values differing viewpoints and can create positive, productive work environments that encourage employees to focus on shared goals.

How can we do this? Start by ensuring political discussions that enrich rather than detract from the workplace. Some ideas include scheduling town halls,

during which employees can engage in moderated discussions on political topics as a way to prevent spontaneous, heated debates. Creating videos or sharing internal blogs demonstrating how individuals can engage in constructive conversations — even if they hold opposing views on an issue — have also proven to be effective.

Additionally, refinements in organizational policies outlining acceptable behavior at work and increasing training programs on communication skills and conflict resolution are helpful tools at your disposal. They can help employees better understand how to appropriately handle political conversations, particularly those involving differing or passionate viewpoints.

Ahead of the DNC, business leaders in Chicago have a unique opportunity to lead by example in cultivating respectful workplace discourse. The time is now: We can have a positive impact on workplace dynamics, particularly as we head into what’s expected to be a divisive election season. As leaders, we must be proactive. Discourse doesn’t have to mean division. We must accept disagreements will occur at work, but it’s time for leaders across industries to choose to model civility.

FORD

This Illinois law is Big Brother in action

If you drive to work in Cook County — or to school, or to your doctor’s office, or to go on a date — the state of Illinois is now tracking where you drive every time you get in your car, without any reason to suspect you of anything, and holding onto your whereabouts just in case they decide in the future that you are an appropriate target for law enforcement.

They do this via a system of highway cameras known as Automated License Plate Readers, of which the state has installed hundreds around Chicago and plans on installing many hundreds more across the state of Illinois.

nonpartisan public-interest litigation law firm

The technology does what the name implies: Cameras set up by the side of the road record the license plates of cars driving by and then feed that information into a national database. But unlike more traditional red-light and speeding cameras, they don’t simply record the single traffic violation and send you a ticket. Rather, Illinois records every car that drives on any Chicago expressway, just in case it might be relevant to some crime now or in the future.

This data has both prospective and retrospective application. Prospectively, the highway cameras are used to run the plates of every citizen driving past against lists of “hot” plates to track down those law enforcement has come to suspect. This sort of mass surveillance can be abused, but if properly regulated can serve legitimate purposes such as identifying fleeing suspects or locating missing persons.

But Illinois also uses the information retrospectively, recording every car that drives by and saving that information in a national database used by cops all over the country, each of whom has access to everywhere you’ve driven — talk about Big Brother knowing your every move, and a major abuse of power and invasion of privacy. When law enforcement chooses to investigate a citizen’s past movements, the database provides a comprehensive map of their travels, recording every time they’ve driven past ISP’s cameras — and indeed every time they’ve driven past cameras in other jurisdictions using the same databases.

The privacy concerns here are obvious — as the ACLU put it, “You are being tracked.” The government is actively engaged in a system of mass surveillance with little or no oversight. They track everyone, and when they decide to target someone and review their movements, there is no warrant

required, no court order — they decide for themselves what counts as a “law enforcement purpose.”

Perhaps they’d like to check if someone attended a Black Lives Matter rally, or an NRA convention. They would know who was leaving their home during COVID lockdowns and where they went. State troopers are not supposed to query the database to track their ex-girlfriends, but it’s not at all clear what will stop them from doing so. Basically, the data and information can be abused by au-

thorities for a variety of reasons with no oversight.

This is why my colleagues and I at the Liberty Justice Center filed a lawsuit on behalf of two Cook County residents against Illinois State Police, Gov. J.B. Pritzker, and Attorney General Kwame Raoul. Our case argues this form of warrantless dragnet surveillance violates the constitutional right of every citizen against unreasonable searches by law enforcement. Privacy requires tradeoffs. We could eliminate a whole lot of

crime by letting the government put surveillance cameras in every room in our homes, but our Constitution rightfully protects against that, because a free society requires that we limit the power of government to police our every movement. There is a role for surveillance technology to play in protecting each of us and our families. But if the government wants to track you, it should go get a warrant. Instead, Illinois is trying to be a real-life version of the movie “Minority Report.”

Reilly Stephens is counsel at Liberty Justice Center, a nonprofit,

headquartered in Austin, Texas.

JAME

PEOPLE ON THE MOVE

ARCHITECTURE / DESIGN

FGM Architects, Oak Brook

Jan Behounek, AIA, LEED AP, has been elected to the FGM Architects (FGMA) Board of Directors. FGMA is an employee-owned firm that provides architectural, planning, and interior design services in eight offices across five states. Behounek joined FGMA as a Principal in 2019, was named director of the firm’s Higher Education practice in 2021 and promoted to Vice President in 2023. An industry leader, she is the current President of the Chicago Building Congress.

BANKING

First Bank Chicago, Northbrook

First Bank Chicago, one of the five largest privately held banks in Chicago, is pleased to announce Andy Kocur has transitioned from his current position to VP/Public Funds Managing Director. In this new role, Andy will manage and grow the Public Funds division, along with his existing commercial clients, and develop new relationships to help the Bank increase deposits and treasury management fee income. Andy joined First Bank Chicago in 2017.

ARCHITECTURE / DESIGN

FGM Architects, Oak Brook

Ron Richardson, AIA has been promoted to Executive Vice President at FGM Architects (FGMA), an employeeowned firm offering architecture, planning and interior design services nationally in 8 offices across 5 states. Richardson joined FGMA in 2006 and was appointed leader of its PK-12 school design practice in 2019. A member of the Illinois Association of School Boards Service Associates Executive Committee, he received his Bachelor of Architecture from the University of Kansas.

FINANCIAL SERVICES

Wintrust Financial Corporation, Rosemont

Wintrust Financial Corp., a financial services holding company based in Rosemont, Illinois, with more than 170 locations across Illinois, Indiana, Wisconsin, and Florida is pleased to announce two promotions. Nick Begley was promoted to EVP, Chief Credit Officer at Lake Forest Bank & Trust Company, N.A. Nick joined Wintrust in 2009. Jennifer O’Neill was promoted to SVP, Senior Commercial Banker, Commercial Banking at Wintrust Bank, N.A. Jennifer joined Wintrust in 2022.

FINANCIAL SERVICES

Wintrust Financial Corporation, Rosemont

Wintrust Financial Corp., a financial services holding company based in Rosemont, Illinois, with more than 170 locations across Illinois, Indiana, Wisconsin, and Florida is pleased to announce two promotions. Jen LaMalfa was promoted to SVP, Risk Management at Wintrust Financial Corporation. Jen joined Wintrust in 2013. Joe Nitti was promoted to SVP, Group Leader, Commercial Real Estate at Wheaton Bank & Trust Company, N.A. Joe joined Wintrust in 2015.

LAW

Thompson Coburn LLP, Chicago Michael Graham has joined the Chicago office of Thompson Coburn LLP as a partner in the labor and employment practice. Michael is experienced in the litigation and transactional sides of employee benefits work and has served as first chair on numerous Employee Retirement Income Security Act (ERISA) and employment cases, including fiduciary breach class actions and victories in the United States Courts of Appeal.

LAW FIRM

Morgan Lewis, Chicago

Global law firm Morgan Lewis welcomes veteran trial lawyer and litigator Stacie Hartman to its Chicago office, deepening the firm’s investment management and disputes capabilities. Stacie represents clients in regulatory and other government investigations and complex litigation focusing on financial markets and the financial services industry. She will continue her group leadership by taking on a leadership position in the firm’s multidisciplinary derivatives and commodities practice.

NON-PROFIT

Connections for Abused Women and their Children (CAWC), Chicago

The Board of Directors of CAWC announces Arshele Stevens as the new Executive Director. Stevens will lead CAWC by disrupting domestic violence through institutional advancement, program development and operational efficiency. A seasoned executive, Stevens’ dedication to social impact is represented by her impressive experience serving as the President of Kennedy-King College, Founding CEO of Girls, Inc. of Chicago, and Senior VP of Children, Youth, and Families at Catholic Charities of Chicago.

PROFESSIONAL SERVICES

CrossCountry Consulting, Chicago

CrossCountry Consulting is pleased to announce that Jaime Garza has been appointed Partner in the national Business Transformation practice focused on Banking and Asset Management clients across the U.S. With extensive experience delivering large-scale management reporting and FP&A transformations, Jaime is instrumental in providing enterprise performance, financial planning and analysis, management reporting, and bank regulatory reporting guidance to our clients.

SHOWCA

Nitti

Mental health movement is having a moment

Faced with a services gap that disproportionately affects Black and Latino Chicagoans, Mayor Brandon Johnson is bringing closed clinics back online I By Katherine

“Ifought for this!” Ronald Jackson exclaims as he approaches the doors of what will soon be a reopened mental health clinic on Chicago’s Far South Side.

Jackson is a mental health advocate who protested the closure of this very location and six other city-owned and -operated mental health clinics during former Mayor

Rahm Emanuel’s administration. Nicknamed “Kowboy” and often seen wearing a red cowboy hat, Jackson barricaded himself inside the lobby of the Roseland building that housed the clinic, forcing authorities to break him out. At other times, he blocked traffic on the clinic’s block before being detained by police officers.

At the time of the closures, city officials

Davis

promised shuttering mental health clinics would save taxpayers money and have little effect on the mental health of residents. They argued residents could instead seek services at a network of behavioral health nonprofits around the city. Meanwhile, Jackson and his fellow

See CARE on Page 12

Disparities

Chicagoans are in desperate need of more mental health resources, but many metrics show it’s greater among Black and Latino residents.

Of the 140,000 residents who were estimated experiencing serious psychological distress last year with an unmet need, Latino Chicagoans accounted for the largest share at 48.5%, despite making up about a third of the city’s population, city data shows. They are followed by Black Chicagoans at 28.7%, white Chicagons at 16.9% and Asian or Pacific Islander residents at 5.9%.

Adding to concerns about the mental well-being of Chicago’s non-white residents is that suicide rates increased among Black men and women, Latino men and Asian women from 2015 to 2021, according to a study published in the American Journal of Public Health by University of Chicago researchers.

Notably, the research, based on data from the Cook County medical examiner, revealed suicide rates among white women and men actually decreased during the same time period, but white men make up the overall highest rate of suicide deaths.

Another key finding from the study revealed that Black and Latino residents were dying by suicide at earlier ages than their white and Asian counterparts. The youngest person in the study to commit suicide was an 8-year-old Black boy.

“Imagine, an 8-year-old is an elementary school student,” says

Janelle R. Goodwill, lead author of the study and an assistant professor at UChicago’s Crown Family School of Social Work, Policy & Practice. “How would they even know how to end their lives? What in the world could an 8-year-old be facing where they could decide they want to end their life?”

Meanwhile, drug overdose deaths, a metric closely linked with mental well-being, have been steadily rising. Most of the deaths involve Black men. The most recent data from Cook County Health shows more than 1,800 people died from an overdose in 2023, up from 647 deaths in 2015. About 80% of victims were male and, of those, 56% were Black. Latinos accounted for just under 15% of victims. White victims made up about 27%.

Several factors, including systemic racism and community gun violence, contribute to poorer mental health outcomes for people of color. But concentrated poverty among Chicago’s Black and Latino residents and inability to pay for mental health services is often the biggest culprit.

Even with health insurance, many plans force patients to pay co-pays and other out-of-pocket costs for therapy services, and not every health care provider takes government-sponsored plans, like Medicare or Medicaid.

“Cost has and will continue to be one of the primary barriers to treatment,” Goodwill says.

Barriers are more intense for Chicagoans lacking basic needs, such as stable housing, food, income and employment — chaotic, painful and stressful experiences that can often trigger or perpetuate a mental illness, says Alexa James, CEO of the National Alliance on Mental Illness Chicago.

“People who are living with serious mental illnesses, oftentimes . . . end up living in pover-

tinue to grow faster than inflation. Johnson has pledged the clinics won’t turn any patients away, which will make it difficult to collect revenue from patients without insurance or cash.

Johnson wouldn’t directly answer a question about whether he would raise taxes or fees to meet budget demands but says he plans to collaborate with Illinois and federal governments to find resources and ultimately do “whatever it takes” to meet patient needs. It’s also an especially difficult time to recruit and retain mental health workers amid a widespread labor shortage. And mental health services are also much more labor-intensive than, say, primary care. Patients with mental illness visit providers several times a week or month, whereas patients often only seek primary care once or twice a year.

Despite the many challenges, which Johnson acknowledges, he’s determined to accomplish his goals, explaining that his progressive health care plan is connected to Black liberation.

ty,” James says. “And a lot of these folks who are living with serious mental illnesses are not walking into a clinic.”

Unable to access basic needs, let alone mental health services, people in crisis are more likely to seek help at emergency rooms, which are required by law to treat patients in need regardless of ability to pay. But ER visits are often more expensive for patients.

In other scenarios, some people with mental illness might end up arrested and held criminally liable for any disorderly or antisocial behavior. Cook County Jail, which houses more than 6,500 inmates, says that 42% of detainees are on the jail’s mental health caseload, making it one of the largest mental health care providers in the country.

‘A human right’

Johnson first unveiled Treatment Not Trauma while on the campaign trail. A lot is riding on successful execution of the plan and whether it ends up serving the people for whom it’s intended amid various challenges that illustrate why local governments across the country have pulled back in recent decades from directly providing mental health care.

Most importantly, the city must correctly identify the neighborhoods most in need of a city-run clinic and then, once open, convince residents to use it.

The second big hurdle is cost. For example, the Chicago Department of Public Health, or CDPH, expects the Roseland clinic will cost about $2.7 million annually to operate and maintain so that it can serve between 300 and 500 people.

While free government-operated services could help break down cost barriers for the most vulnerable patients, maintaining them is expensive as health care costs con-

“The liberation of people is deeply tied to health care,” he says. “That’s why we articulate that it’s a human right.”

Aside from reopening the Roseland clinic by the end of the year, Johnson is opening a mental health clinic in Pilsen, boosting the city’s total number of mental health clinics from five to seven. The city also added mental health services to Legler Regional Library in West Garfield Park in July.

Specific measures of the Roseland clinic’s success have yet to be determined, city officials say, but they’re holding meetings internally and with residents ahead of the opening to best decide.

For Johnson, access to mental health care is personal. His brother, who suffered from an untreated substance addiction and trauma, died while homeless.

“I want for the people of Chicago what my brother deserved,” Johnson says.

All hands on deck

As effort is being put into expanding city-operated mental health services, Chicago’s public health department will continue to fund a network of privately owned behavioral health centers.

In recent interviews, Johnson and CDPH Deputy Commissioner of Behavioral Health Matt Richards said the administration will continue to fund the nonprofit network to meet heavy demand.

“We view it as an all-hands-ondeck moment where we need to bring all resources, all approaches to bear to address the crisis,” Richards says.

Cook County Health operates a similar model. It provides mental health services directly to patients in clinics around the city, but it also gives grants to nonprofits, such as Sista Afya Community Care, which received a $500,000 grant from the county in June.

Camesha Jones, the founder and executive director of Sista Afya Community Care, launched

Camesha Jones, founder and executive director of Sista Afya Community Care | GEOFFREY BLACK

Suicide mortality rate

Per 100,000 people (2018-2022)

source: Illinois Department of Public Health, Death Certificate Data Files

Behavioral health hospitalization rate

Age-adjusted rate of behavioral health hospitalization discharges, excluding discharges to Veterans Administration hospitals, per 10,000 people (2022)

source: Illinois Department of Public Health, Hospital Discharge Data

the mental health services nonprofit in 2020 to serve a sector of the population that could not afford care at her for-profit mental health practice.

Supported by grants, donations and Medicaid, Sista Afya provides free therapy, peer support, and community groups and classes to Black women who experience traumatic events and distress unique to their demographic, such as concentrated poverty, racial and gender discrimination, and untreated mental health conditions.

“There were plenty of Black women, who were coming to us and saying they wanted mental health care, but cost was the most significant barrier,” says Jones, who identifies as a mental illness

A provider shortage leaves too many patients waiting — and waiting

the number of qualified

professionals falls far short of the demand

survivor herself. “The nonprofit was born out of responding to the mental health inequity impacting Black women.”

Sista Afya, which has four staff therapists, sees more than 100 patients a year at its Bronzeville practice.

Even still, Jones says she’s observed the closures of public mental health clinics contributing to health care inequities, particularly on the South Side of the city. That’s why she’s supportive of Johnson’s plan to reopen some.

“When anyone wants to open up a mental health clinic, it’s a positive thing,” Jones says. “Because the longer you go without mental health treatment, the longer it will take to recover.”

By Sophie Rodgers

The need to address mental health as a policy priority surged nationwide following the turmoil of COVID-19, as state and local governments took matters into their own hands. Across Illinois and Chicago, both Gov. J.B. Pritzker and Mayor Brandon Johnson have prioritized expanding mental health care access to lowincome and vulnerable communities. But these ambitious plans to expand access to care — and in Johnson’s case, reopen shuttered clinics — will only prove fruitful if there are enough workers to meet patient demand.

Like the mental health care industry broadly, the state and city face headwinds in recruiting and retaining therapists, psychiatrists and other mental health professionals, who often leave the industry due to burnout and low pay. Maintaining a strong workforce in the public sector, or in clinics that serve the poorest patients, will be even more challenging.

Providers in public mental health centers or clinics that cater to patients with Medicaid, or no health insurance at all, often see low reimbursement rates, resulting in low wages. Staff at these clinics are often stretched thin, leading to high employee turnover and weeks to months-long waitlists for patients in need.

“Burnout, coupled with low wages, lead people to leave the field and work elsewhere,” says Jud DeLoss, CEO of the Illinois Association for Behavioral Health. “There’s less stress, less hassle and better pay in many of those cases.”

But there’s greater demand for mental health services than ever before, attributable to the fentanyl crisis, opioid overdoses, and increased depression and anxiety from the pandemic, according to DeLoss.

Yet the qualified workforce in Illinois does not meet the demand. As of June, over 6.5 million Illinois residents, or 51% of the state, live in areas deemed as “mental health professional shortage areas,” according to the Health Resources & Services Administration. Illinois’ current mental health workforce meets only 21% of that population’s needs.

Disproportionate need

In Chicago, these unmet psychological and emotional needs disproportionately impact communities of color. An estimated 48.5% of Hispanic Chicagoans reported that they have unmet mental health treatment needs for serious psychological distress, according to the Chicago Health Atlas. And about 29% of Black Chicagoans have unmet needs, compared to 17% of white Chicagoans.

Pritzker and Johnson have both addressed the need to improve the state and city’s mental health infrastructures. In June 2022, Pritzker signed legislation to increase the mental health workforce in Illinois by temporarily allowing professional licensees out of practice for less than five years to reactivate their license with the Illinois Department of Financial & Professional Regulation. The bill also removed barriers for those reentering the mental health workforce, such as continuing education credit completion, passing additional examinations and fee payments.

“We need a mental health care workforce that is robust enough to get people help when they need it — not after months on a waiting list,” Pritzker said at the time.

Nearly two years later, Johnson announced his plan to reopen the shuttered Roseland mental health clinic on the Far South Side by the end of this year and expand clinical services at two additional city-run locations. The reopened Roseland mental health clinic will be operated by the Chicago Department of Public Health, or CDPH, which has addressed the systemic challenges underlying the workforce shortage and has plans in place to strengthen the pipeline of mental health providers.

Move to broaden workforce

Matt Richards, CDPH’s deputy commissioner of behavioral health, wants to broaden the city’s mental health workforce by including people who might not have higher education degrees.

“There’s a lot of focus about just hiring people who have master’s degrees and doctorates,” he says. “We’re talking more about hiring community health workers, peer recovery specialists and people with lived (mental health) experience.”

Additionally, diversifying the racial makeup of the city’s mental health workforce is a critical priority, Richards says. “The mental health workforce has historically been disproportionately white. It has not mirrored the demographics, lived experiences and identities of the people it serves.”

Effectiveness in broadening the workforce will heavily depend on the city’s recruitment and retention strategies. According to the city’s Mental Health System Expansion Working Group report, the CDPH has begun conversations with six Chicago-based colleges to understand recruiting timelines, graduate requirements and student interests, with the goal of establishing a formal internship process.

Another of the city’s strategies: providing staff with competitive pay. In the U.S., funding for behavioral health has not been in parity

with physical health services. As a result, the behavioral health workforce has been significantly underpaid.

“When I graduated from graduate school 15 years ago, I was told that I would be fortunate to make $35,000,” says Richards, who is also a licensed clinical social worker. “That would be with a master’s degree and a large amount of student loan debt.”

He says that now the CDPH has created a new position for people who have earned master’s degrees but don’t yet have a final mental health license to practice independently. These positions start at around $60,000. As these professionals build their careers and eventually earn their final licenses, they can earn in the $80,000 range. While the public sector deals with a unique set of workforce challenges, the private sector sometimes sees them, too, especially nonprofit health care providers that focus on Medicaid or uninsured patients.

Take Kerry Lusignan, who previously worked for Pillars Community Health, a nonprofit health and social services provider that does not turn away clients without insurance or who are unable to pay, according to its website. Her decision to leave Pillars Community Health in 2020 largely came down to its lack of resources and inability to meet clients’ needs.

At the peak of the pandemic, Pillars would average about 200 people on a waitlist, Lusignan says. A wait time could last from six to nine months and as long as a year for those needing a Spanishspeaking therapist. About 30% of Pillars’ clients needed a Spanishspeaking therapist.

“Patients want a therapist that looks like them or shares the same background, culturally and ethnically,” says Lusignan. “It can be a challenge for some patients to find that.”

A spokesperson for Pillars Community Health said in written statement, “we faced additional barriers to access to care during the pandemic. … when, all at one time, shelter-in-place rules were in effect, mental health service delivery needed to pivot to telehealth, but many persons from underserved communities needing services did not have telehealth capacities in their homes, there was also increased demand for mental health services and a workforce shortage.”

As the city increases its efforts to recruit and retain an adequate mental health workforce in the public sector, it must contend with the fact that some providers won’t serve the Medicaid population, or those with no health insurance at all.

Reopened centers in Roseland and Pilsen are a good start

In recent years, the discourse on violence prevention has evolved beyond law enforcement and criminal justice reform toward more holistic approaches. Much like the recent police killing of Sonya Massey in Springfield, Quintinio Legrier was also killed at the hands of Chicago police after he called seeking support during a mental health crisis. That response also took the life of his neighbor Bettie Jones.

Among the myriad challenges facing our most divested communities, the lack of access to essential services, particularly mental health care, stands out as a critical and often overlooked factor. A citywide scan conducted by the Collaborative for Community Wellness of mental health providers highlights the enormous disparity in access to mental health care, where the ratio of therapists in affluent, whiter neighborhoods is an average of 4.5 therapists per 1,000 residents compared to an average ratio is closer to 0.2 therapists per 1,000 residents in low-income communities of color.

In 1989, Chicago was home to 19 public mental health centers. During the Daley administration, seven of these vital centers were

Arturo Carrillo is a licensed clinical social worker and director of health and violence prevention for Brighton Park Neighborhood Council, where Any Huamani is a Treatment Not Trauma organizer. They are both co-leads for the Collaborative for Community Wellness, the citywide coalition behind the Treatment Not Trauma campaign.

closed. The public health infrastructure worsened in 2012 when Rahm Emanuel shuttered five more public mental health centers and privatized the Roseland center. At the time, the Mental Health Movement coalition ignited a powerful push against the closures of the remaining five public mental health centers and fueled the urgent demand for the reopening of the others.

The impacts of these closures continue to be felt to this very day. Research conducted in

2022 by the Collaborative for Community Wellness indicates that wards with high rates of behavioral health 911 calls tend to be concentrated in areas of the city where Chicago Department of Public Health public mental health centers have been closed.

The lack of mental health care can place a tremendous strain on any person’s life. Untreated mental health issues can contribute to homelessness, substance abuse, and dangerous police encounters, sometimes costing lives. The fight for equitable resources across all 50 wards in Chicago is crucial for enhancing the overall well-being of Chicagoans.

Our coalition developed our vision for what a fully structured city-operated public mental health system can look like in our white paper, which calls for three essential components of the Treatment Not Trauma (TNT) campaign: 1) a restoration of the 19 public mental health centers, 2) the establishment of a citywide nonpolice crisis response team, and 3) the establishment of the community care corps of paraprofessionals comprised of peer support workers, community health workers and other support roles that can better integrate the outreach

The mental well-being of Black women deserves more support

My first therapist was a brilliant Black woman who shared with me that back in the day, New York City used to refer to mental health care clinics as “mental hygiene clinics.” She discussed the importance of the term as a reminder that Black women’s mental health care should be practiced daily and be as routine to us as brushing our teeth.

I founded Cent(HER)ed Collective, a mental wellness social enterprise, to help Black women and girls heal, grow and thrive. My goal is to provide opportunities that allow Black women and girls to engage in mental hygiene practices. My work allows me to interact with a wide range of Black women who experience mental health challenges, and while Black women are not a monolith, we share similar circumstances that align our journeys.

Black women are in a complicated position, meaning we constantly oscillate between being “too strong, aggressive, loud” while at the same time being overlooked, underappreciated and overqualified. We

Brittney Autry Cole is an assistant professor of social work at Purdue University Northwest and the founder of Cent(HER)ed Collective, a mental wellness social enterprise.

must contend with these negative portrayals that present a challenge with respect to our identity and presentation. Generally, women are more likely to be diagnosed with mental illness, but Black women are less likely to get support for their illness.

There is a litany of systemic and structural challenges that impede appropriate and responsive mental health support. One is a shortage of clinicians of color, particularly those of African American descent. Less than 4% of psychiatrists and 2% of psychologists are Black, according to the American Psychological Association. You’ll often find less access to resources in communities

work in the community with the care provided within the CDPH mental health centers, which we envision as Community Wellness Centers.

TNT is thus designed around hiring both professional mental health workers and trained peer support workers to provide nonpolice crisis response and pre -

vent crises by providing supportive everyday care to those who are at greatest risk of mental health crises, police contact, violence and hospitalization. Our campaign has been successful in establishing nonpolice crisis response in Chicago and increasing the investment to expand the number of teams

At Cent(HER)ed Collective, we work to combat the stigma and lack of resources by providing access to holistic, culturally informed therapy services.

of color and a desire to represent that pillar of strength and resilience that society, particularly American society, has placed upon Black women. Sadly, this grave challenge starts early. Data from 2019 showed that Black females in grades nine-12 were 60% more likely to attempt suicide compared to non-Hispanic white females of the same age, showing there’s sufficient evidence to suggest that mental health challenges start early and can be exacerbated throughout adulthood. And then in adulthood, you’ll see Black women shouldering in-

credible burdens that can tax their mental well-being. Just recently, the country witnessed thousands of Black women taking the lead in answering the call to support Vice

Despite their circumstanc-

President Kamala Harris when President Joe Biden withdrew his candidacy and endorsed her to be the Democratic nominee for president.

available. We have also expanded hours of operation and capacity along with opening new CDPH public mental health centers.

The reopening of Roseland and Pilsen mental health centers is a good start to addressing the city's inequalities, responding to the over decade-long

The connection between mental health issues and homelessness can’t be ignored

After years of hard work to reduce homelessness, a January 2024 point-intime count found that homeless ness in Chicago grew by 25% in 2023, not including the thou sands of migrants newly arrived in our city. And, after decades of disinvestment in behavioral health care, particularly in communities with people of color, the pandemic pushed the demand for mental health services to the breaking point. This puts Chicago at a crossroads.

Michael Banghart is executive director and John Pfeiffer is director of philanthropy for Renaissance Social Services.

Chicago each year, Renaissance Social Services has had to try to pick up the pieces of the broken mental health system. We know that waiting three months for a psychiatry appointment does not work for people experiencing homelessness, because we may not be able to find them in three months.

collective demands and inputs from residents from across the city demanding more public mental health care services. We are encouraged by Mayor Brandon Johnson’s commitment to co-governance and his vision of care for the mental health needs of Chicago’s most marginalized residents.

we work to combat the stigma and lack of resources by providing access to holistic, culturally informed therapy services, as well as semiannual retreats and youth programming to support wellness in a comprehensive fashion.

With directories like Therapy for Black Girls, Clinicians of Color and the like, more access to culturally informed mental health practitioners are becoming available to support Black women in achieving their wellness goals. Organizations like the Loveland Foundation, which provides therapy funding for Black women and girls, and others are aligning resources to close the financial gap for mental health care for people of color as well.

Additionally, Black women are engaging in self-care practices, like gardening, coloring and integrating meditation strategies that provide diversity in their mental hygiene practices.

It is critical for policymakers, the health care industry and allies to partner with Black women by advocating for more access to mental health care in underresourced communities and increasing financial resources to support out-of-pocket costs to make mental wellness more accessible and “hygienic” for women of color.

Unhoused individuals are disproportionately affected by behavioral health issues. Many suffer from conditions such as depression, anxiety, PTSD, physical health issues and substance use disorders. These conditions are often exacerbated by the stress and instability of living without a home. Unfortunately, the stigma associated with homelessness and mental illness further isolates these individuals, making it even harder for them to seek help.

The recommendations in Mayor Brandon Johnson’s “The People’s Vision for Mental and Behavioral Health” outline an ambitious plan to address the mental and behavioral health needs of all Chicagoans, especially those who have been excluded from accessing services when the city shuttered mental health clinics and cut funding for behavioral health services.

Unhoused individuals are disproportionately affected by behavioral health issues. Many suffer from conditions such as depression, anxiety, PTSD, physical health issues and substance use disorders.

As an organization that works every day to engage unhoused Chicagoans through our street outreach teams, prevents homelessness through our homelessness prevention and diversion programs, and provides permanent supportive housing and behavioral health services to more than 1,500 households across

The primary goals laid out in the recommendations include expanding mental health clinical services, expanding and improving behavioral health crisis response, and increasing community awareness of mental health resources. Achieving these goals has the potential to avert an impending crisis facing our city. It will be critical to create a capital plan that supports mental health system expansion. Collaboration and coordination will be necessary, but we will not be successful without the resources needed to improve our system.

While the ball is clearly in the court of the Johnson administration, we all have a role to play in supporting this effort. Anyone who works or lives in Chicago should support this effort because mental health affects everybody. Men, women and children sleeping on the street reduces the quality of life for everyone. Expanding mental and behavioral health services is a moral imperative and will result in a significant social return on investment.

Mayor Brandon Johnson speaks outside the Roseland Mental Health Center on May 30. | WttW NEWs

Crain’s Corporate Holiday Guide 2024 Crain’s Corporate Holiday Guide 2024

Your guide to holiday party planning Your guide to holiday party planning

Experiences, inclusivity and philanthropy are hallmarks of spirited company celebrations

BY WEB BEHRENS

Like the pines, firs and spruces we see so often during endof-year festivities, some traditions for corporate holiday parties are evergreen.

In keeping with custom of recent years, several party planners say you can’t go wrong by arranging for fun group experiences. Think “social, not seated” — thanks to semi-structured activities that encourage people to mingle, interacting on a level playing field and discovering new things about their coworkers. (Just don’t call it a “team-building exercise.”)

“A sit-down dinner isn’t always going to be enough,” says Kate Ahern, associate director of marketing and events for Vandalay Brands, whose restaurants include Millennium Hall (beneath Cloud Gate in Millennium Park). “Whether it’s cookie decorating or even pizza-making classes, incorporating unique experiences into holiday events has been very popular.”

“Philanthropy can be a great connector for a holiday/end-ofyear celebration for a company.”

-Lorelei Kroulaidis, director of special events at the Chicago History Museum.

The Chopping Block agrees: Experiential parties are a hit. “Good food makes people happy, and they enjoy it even more when they have the satisfaction of being able to say, ‘I made that!’,” says general manager Kate Augustin. “The Chopping Block’s events combine cooking and fun, so they make a unique option for holiday parties.”

“Companies want team members and guests to bond over shared experiences like ice skating, cooking or competition. They’re seeking unique venues that offer unique activities,” concurs Melanie Kamme, head of hospitality for Wrigley Field Events. Building on that concept, Kamme notes that Wrigley Field offers tours of the Friendly Confines, and party planners can also arrange meet-and-greet experiences with Cubs legends.

Of course, there’s more to planning a party for the workforce than brainstorming interesting activities. One big-picture strategy for pulling off a successful 2024 bash is to review how recent events have gone.

“Start with a base of inclusivity for your employees,” says Lorelei Kroulaidis, director of special events at the Chicago History Museum. To that end, she advises planners to “really look at what was done in years past. What was the feedback? Were there pinch points that should be addressed?”

In this era of a decentralized sta ng, pay extra attention to involving remote workers. What will encourage everyone to come together under one roof? A top-notch event menu is one motivator, says Emily Dreckshage, director of events at Maple Hospitality Group. “Our clients can choose a chef-curated experience, which incorporates signature Maple & Ash dishes such as caviar, re-roasted seafood towers and our chef’s best cut of steak,” she says.

Focusing on food and drink will always pay dividends, and there are opportunities to pay it further forward when companies pair a rich menu with richness of spirit by adding a charitable component.

Past Chopping Block holiday-party clients have doubled the necessary fare “to purposely have food to donate,” Augustin says. “It’s a great way to ensure that your team has fun at their holiday event, while giving back to the community.”

Another benevolent option involves holiday cocktails, Vandalay’s Ahern suggests. “Our onsite beverage manager works with the client to come up with a specialty drink,” she says, “and a portion of the sales are then donated to the organization of their choice.”

“Philanthropy can be a great connector for a holiday/end-ofyear celebration for a company,” Kroulaidis observes. At the History Museum, she’s run events that combine experiential components with charity, such as having a build-a-backpack station where guests can ll a tote for kids and write them a personalized note. She’s also accommodated silent auctions, with the proceeds going to charity.

Of course, that’s a motivator for those close enough to actually commute. If your company’s remote workforce is too geographically spread out to bring the whole team together, work-around options exist. At e Chopping Block, Augustin notes, “We o er virtual happy hours and virtual cooking events to help facilitate bringing employees together, even if they can’t all be together in person.”

“You never want to exclude those (who) cannot attend live; they need a way to be a part of the fun too,” says Wrigley Field Events’ Kamme. “For example, if you’re hosting a silent auction, you can create a mobile site so remote guests can join for a chance to win. While the execution elements may di er, the strategy should be consistent: inclusive engagement.”

Brewhouse Inn & Suites

1215 N. 10th St., Milwaukee, WI 53205 414-810-3350

The Brewhouse Inn & Suites is your premier choice for group meetings, social events, corporate conferences, rehearsal dinners and more, boasting more than 13,000 square feet of versatile indoor and outdoor event space.

Nestled in the original Pabst Blue Ribbon Brewery in Milwaukee’s historic Brewery District, our unique venue offers a charming atmosphere that enhances any occasion. With five event spaces ideal for groups of any size from eight to 100, we can accommodate a variety of gatherings. Beyond our event facilities, guests can indulge in modern suites, onsite dining and a central location that captures the essence of Milwaukee’s vibrant culture.

sales@brewhousesuites.com • brewhousesuites.com

Max capacity reception (standing): 100 Max capacity banquet (seated): 100

Chicago History Museum

1601 N. Clark St., Chicago, IL 60614 312-799-2252

The Chicago History Museum invites you and your guests into our warm, historical home for the holidays. Be a guest at your own holiday celebration at the Chicago History Museum. Tucked along the gardens of Lincoln Park, the Chicago History Museum offers a variety of spaces that can be used for corporate events, daytime meetings, cocktail receptions, reunions and, of course, your holiday festivities.

events@chicagohistory.org • chicagohistory.org/corporate-events

Max capacity reception (standing): 1,800 Max capacity banquet (seated): 340 indoors and 700 outdoors

The Chopping Block

4747 N. Lincoln Ave. ,Chicago, IL 60625 773-472-6700

The best parties start and end in The Chopping Block’s kitchens! Chicago’s premier recreational cooking school offers private cooking events that bring people together over food and wine in a cozy atmosphere. Whether your goal is to celebrate your corporate team, host an intimate gathering for family and friends or entertain VIP clients during the holidays, The Chopping Block offers a fun, educational and diverse event solution.

From interactive cooking parties for all skill levels with mouthwatering holiday menus to competitive events for those who want to spice things up with our professional chefs to engaging and entertaining wine and cocktail education, our kitchens provide the perfect outlet to create a memorable experience for your guests. Make a lasting impression this holiday season by booking your event with a small business that has been hosting successful cooking parties for over 27 years!

parties@thechoppingblock.com • thechoppingblock.com

Max capacity reception (standing): 50 Max capacity banquet (seated): 50

Maple & Ash

8 W. Maple St., Chicago, IL 60610 312-944-8888

Maple & Ash offers an innovative take on the traditional steakhouse, perfect for corporate holiday events. With a modern aesthetic and authentic service, we deliver classic wood-fired dishes in a variety of versatile event spaces. Whether hosting an intimate gathering or a corporate dinner, our elegant settings and exceptional culinary offerings will make your event unforgettable.

Experience the unique blend of sophistication and warmth that defines Maple & Ash, and let us help you create a memorable holiday celebration for your team. Elevate your next event with Maple & Ash!

events@mapleandash.com • mapleandash.com/reserve/#events

Max capacity reception (standing): 300 Max capacity banquet (seated): 200

Millennium Hall Chicago

11 N. Michigan Ave., Chicago, IL, 60602 312-521-7275

Welcome to Millennium Hall, where timeless elegance meets modern sophistication in the heart of Chicago’s iconic Millennium Park. Nestled at 11 N. Michigan Ave., adjacent to the renowned Cloud Gate sculpture, Millennium Hall offers unparalleled views of one of Chicago’s most popular neighborhoods.

Whether you’re planning an intimate private dining experience or a grand-scale reception, Millennium Hall provides versatile event spaces to suit your needs, including both indoor and outdoor options. With capacities ranging up to 1,800 guests, our venue accommodates events of all sizes with style and grace. Immerse yourself in the vibrant energy of downtown Chicago while enjoying Millennium Hall’s event spaces and cutting-edge amenities. Get in touch with a member of our events team today.

marketing@vandalaybrands.com • millenniumhallevents.com

Max capacity reception (standing): 1,800 Max capacity banquet (seated): 1,100

Museum of Contemporary Art

220 E. Chicago Ave., Chicago, IL 60611 312-397-4017

Transform your next event into an unforgettable experience by hosting it at the Museum of Contemporary Art Chicago. Located just off the Magnificent Mile, the MCA’s distinctive indoor/outdoor event spaces are perfect for any gathering size and will guarantee a lasting impression on your guests.

Ready to book? Inquire at mcachicago.org/rentals, or reach out to us by email at events@mcachicago.org or by phone at 312-3974017, Monday through Friday, 9 a.m. to 5 p.m.

events@mcachicago.org • mcachicago.org/rentals

Max capacity reception (standing): 900 Max capacity banquet (seated): 300

Averyhouse

Pazzo’s Chicago

311 S. Wacker Dr., Chicago, IL 60606 312-913-1600

Pazzo’s Chicago is a prestigious restaurant and event space that has its home within the extraordinary architecture of 311 S. Wacker Drive. For more than two decades, we’ve been serving authentic recipes with an urban flair, suitable for fine outings or daily dining. Our events are second-to-none, whether for business or pleasure. At Pazzo’s Chicago, we know how to celebrate! Whether for a small business meeting in a private room or a large corporate gathering in our Atrium – we’ll work with you to plan a flawless event. And if you are celebrating a personal milestone or choosing Pazzo’s for your special day, let our event managers and chefs work with you to create an experience that neither you nor your guests will ever forget.

pazzos311@pazzoschicago.com • pazzoschicago.com

Max capacity reception (standing): 500 Max capacity banquet (seated): 300

Soldier Field

1410 S. Special Olympics Dr., Chicago, IL 60605 312-235-7000

Soldier Field and the surrounding 17-acre parkland offer unique special event areas with breathtaking lakefront and city views. Whether you are hosting a 10-person meeting, 100-person dinner or 5,000-plus person corporate event, Soldier Field has multiple indoor and outdoor spaces to make your event memorable. Convenient onsite parking garages are available. Now is the time to book your next event at Chicago’s most iconic venue. Soldier Field… Celebrate in style!

events@soldierfield.net • SoldierField.com

Max capacity reception (standing): 100-5,000 (club spaces), 10 – 100 (suites) and 5,000-plus in the parkland and field. Max capacity banquet (seated): 100-5,000 (club spaces), 10 – 100 (suites) and 5,000-plus in the parkland and field.

The Stella Hotel & Ballroom

5706 8th Ave., Kenosha, WI 53140 262-842-2000

Discover the timeless charm of The Stella Hotel & Ballroom located in the heart of downtown Kenosha, just minutes from the breathtaking shores of Lake Michigan. Our contemporary yet classic full-service hotel features 80 guest rooms and suites with comfortable amenities and three onsite dining options.

The Stella Hotel & Ballroom is the ideal destination for corporate meetings, social events, weddings and more, offering over 8,000 square feet of flexible event space with five rooms perfectly suited for groups ranging from 10 to 225 attendees. Choose from settings such as our spacious two-story ballroom, which boasts dramatic 20-foot high ceilings, large picturesque windows, an outdoor balcony and a private bar, or our intimate Pettit Boardroom, perfect for gatherings of up to sixteen.

events@stellahotel.com • stellahotel.com

Max capacity reception (standing): 225 Max capacity banquet (seated): 225

Twenty Six Chicago

2 W. Erie St., Chicago, IL 60654 312-995-0134

Take your holiday party to new heights at LM Catering & Events’ downtown Chicago event venue, Twenty Six! Overlooking Chicago’s bustling River North neighborhood, Twenty Six is the ideal destination for your next celebration.

With a unique combination of indoor/outdoor space, the venue is complete with an open-air rooftop terrace, custom lounge furniture and two bar areas. No matter the occasion your guests will enjoy the expansive views, delicious food and drink and modern lounge environment.

info@twentysixchicago.com • twentysixchicago.com

Max capacity reception (standing): 180 Max capacity banquet (seated): 70

Waldorf Astoria Chicago

11 E. Walton St., Chicago, IL 60611 312-646-1324

Parisian elegance meets modern luxury in Downtown Chicago at Waldorf Astoria Chicago. Inspired by the timeless allure of famous 20th-century writers and the chic Parisian style, our centrally located event venues rede ne sophistication. Step into a world where lavish furnishings harmonize seamlessly with cuttingedge amenities, creating an ambiance that inspires creativity and connection. Whether you’re hosting a corporate meeting, a highpro le conference or a fairytale wedding, our dedicated concierge ensures every detail is awlessly executed.

Nestled in the heart of downtown Chicago, our hotel invites you to explore the vibrant Rush Street and the iconic Magni cent Mile. Choose from our elegant guest suites, each adorned with unique features like cozy replaces or private terraces that offer breathtaking city vistas. Immerse yourself in the perfect blend of Parisian charm and Windy City allure.

CHIWA-SALESADM@waldorfastoria.com • waldorfastoriachicago.com

Max capacity reception (standing): 230 Max capacity banquet (seated): 200

WNDR is an ever-evolving experience with awe-inspiring interactive art, lounge and shop for those curious enough to wonder. WNDR was designed to increase curiosity, creativity and community. Around every corner comes an opportunity to be creative, discover something unexpected, ask questions and play.

In Chicago, we have three stellar options for private corporate events: The Loft, our designated Event Space, and a full Venue Buyout.

• wndrmuseum.com/private Max

John Muggenborg Photography

Kyle Flubacker

Wrigley Field

1101 W. Waveland Ave., Chicago, IL 60613 773-388-8165

Bring the magic of the holidays to life at Wrigley Field, where the spirit of celebration and the historic charm of one of baseball’s most iconic ballparks merge to create an extraordinary event. With event spaces located throughout campus, Wrigley Field is the ideal venue for holiday parties, corporate events and more! Exclusive premier clubs, including the American Airlines 1914 Club, Maker’s Mark Barrel Room, The W Club, James Hardie Catalina Club and Executive Club provide an exceptional atmosphere for celebrating in style.

Adjacent to Wrigley Field, the American Airlines Conference Center features four flexible event spaces, each offering a versatile and elegant environment for more intimate holiday gatherings. Book your holiday party today and mention the word “HOLIDAY” in your inquiry to receive a special offering!

wrigleyfieldevents@levyrestaurants.com • wrigleyfieldevents.com/

Max capacity reception (standing): 400 Max capacity banquet (seated): 200

CREATE YOUR HISTORIC MOMENT

With breathtaking views just steps from the lake, the Chicago History Museum is the perfect location for your next event.

We offer several event spaces, an outdoor plaza, and a theater to allow for gatherings of up to 1,500 people. Add a lively after-hours cocktail reception to unwind after a productive day.

Set the perfect scene for your next event at the Chicago History Museum.

Wrigley Field

CLASSIFIEDS

To place your listing, contact Suzanne Janik at (313) 446-0455 or email sjanik@crain.com .www.chicagobusiness.com/classi eds CAREER OPPORTUNITIES

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CAREER

CONVENTION

“I think they’re on track to have the excitement level really rise,” says Kevin Boyle, a professor of American history at Northwestern University.

‘Smoke-filled room’

No other city is close to hosting the number of major party conventions Chicago has. Baltimore has hosted 10, but none since 1912. Philadelphia is third with nine, counting the Whigs in 1848.

Chicago built up its wide lead during the rise of the railway age and on account of its central U.S. location. It hosted one convention and sometimes two during every presidential election year between 1880 and 1920, with the exception of 1900. Those gatherings gave the world the phrase “smoke-filled room” and, in 1896, William Jennings Bryan’s “Cross of Gold” speech.

Chicago’s pace has slowed since the dawn of the jet age brought more cities into the hosting mix and Illinois ceased being a swing state. Republicans haven’t returned to Illinois since 1960. But its proximity to other swing states — the so-called blue wall of Wisconsin, Michigan and Minnesota — was reason enough for Democrats to select Chicago this time around.

True, conventions outside Chicago have had their moments: Barack Obama’s keynote speech in Boston in 2004, which jump-started the journey that led to his nomination four years later in Denver, was one such event. The 1964 Republican National Convention in San Francisco, where Barry Goldwater delegates jeered New York Gov. Nelson Rockefeller on the podium — and where Ronald Reagan was an alternate Goldwater delegate — marked the beginnings of the hard-right takeover of the GOP.

Chicago’s sheer volume of conventions, though, has provided an advantage in tallying

up a number of historic conventions. Some left their mark for reasons other than picking a presidential nominee — such as picking a No. 2.

In 1944, Democrats selected Missouri Sen. Harry Truman as Roosevelt’s running mate, a fateful decision in light of FDR’s precarious health prospects. The move to dump the incumbent vice president, Henry Wallace, was assisted by a timely maneuver by the city’s fire commissioner to clear the hall when a roll call wasn’t going the right way.

Then, in 1952, Richard Nixon was nominated by Republicans to join Dwight Eisenhower on the ticket, despite the two barely knowing each other. Nixon, in turn, won the presidential nod at the GOP convention here in 1960.

Roosevelt, Truman, Eisenhower and Nixon would prove to be the winning candidates in all but two presidential elections between 1932 and 1972, the heart of the 20th century, spanning the Great Depression, World War II and the Cold War.

This year’s DNC, despite adding to Chicago’s history-making political reputation, is unlikely to see the kind of spontaneity that shaped earlier conventions.

The lead-up to the event generated additional buzz around who would be selected running mate, as Gov. J.B. Pritzker — effective host of the four-day convention — was one of the finalists under consideration.

“It’s just going to be the manufactured show that conventions have become,” says Boyle, the Northwestern professor.

Compared to 1968, suggests Craig Sautter, a co-author of “Inside the Wigwam: Chicago Presidential Conventions 1860-1996,” “Everyone is rowing in the same direction.”

‘Voice

from the sewer’

The 1940 Democratic convention at the Chicago Stadium shows how things have changed. It demonstrated that, under the right circumstances, even a convention that renominates a sit-

ting president can provide drama.

Roosevelt, nearing the end of his second term as war raged in Europe, tiptoed around the nothird-term tradition established by George Washington. FDR sent the convention a finely tuned message rejecting any desire to be nominated, while adding in less than Shermanesque fashion that the convention was “free to vote for any candidate.”

The delegates were dumbfounded until Chicago’s sewers superintendent, stationed in the basement at the behest of Mayor Ed Kelly with the only live microphone, bellowed, “No! No! No! We want Roosevelt, we want Roosevelt.”

The crowd picked up the chant, which became known as “the voice from the sewer,” and went with it for 45 minutes. A New York Times account of the renomination referred several times to a draft of Roosevelt, while putting that word in quotes.

Chicago’s high-water mark as a political convention city was probably in 1952, the year the primary system of nominating candidates began to take hold and take much of the suspense out of conventions.

Both major parties held their conventions just 10 days apart at the Stockyards International Amphitheatre. The Republicans met first, selecting Eisenhower over Ohio Sen. Robert Taft, who was known as Mr. Republican. The Democrats, in what to date has been the last convention to take more than one ballot to nominate a presidential candidate, picked Illinois Gov. Adlai Stevenson on the third ballot.

Four years later, also at the Stockyards, the doomed Stevenson was renominated again.

That year provided one historic last, pending further developments: Stevenson let the convention choose his running mate, and it took two ballots and the withdrawal from consideration by Sen. John F. Kennedy to do so.

Since then, it’s been one and done.

Richard Nixon accepts the nomination at the 1960 Republican National Convention in Chicago. | LIBRARY OF CONGRESS

Downsizing continues with East, West Loop leases

FtI Consulting and CannonDesign have joined the crowd of companies shrinking their downtown workspace

By Danny Ecker

Remote work’s relentless pummeling of downtown office landlords isn’t slowing down.

In one of two recent deals showcasing the workspace-shedding trend, advisory firm FTI Consulting is finalizing a lease for about 55,000 square feet at 155 N. Wacker Drive, according to a person familiar with the negotiation. FTI will relocate its Chicago office from 227 W. Monroe St., where its lease for roughly 70,000 square feet is due to expire next year.

Separately, architecture and engineering firm CannonDesign has extended its office lease at 225 N. Michigan Ave. by 11 years through 2036, but cut its footprint in the building to 40,000 square feet from its current 60,000-square-foot space, the company confirmed.

The moves add to the attrition that has pushed downtown office vacancy to record highs in 13 of the past 15 quarters. Companies have collectively cut back on nearly 1.9 million square feet of office space downtown over the past 12 months, according to brokerage CBRE, wreaking havoc on office building owners’ bottom lines and threatening the vibrancy of the central business district.

While downtown landlords have scored some recent victories from big office expansions by renewable power provider Invenergy and law firm White & Case, reductions by companies including engineering firm AECOM and real

estate software maker Lessen have tempered their enthusiasm.

It’s not clear what is prompting Washington, D.C.-based FTI to reduce its Chicago office footprint, and a spokesman for the publicly traded company did not provide a comment on the deal talks.

But the move would create a headache for New York-based real estate firm Tishman Speyer, which owns the nearly 1.5 millionsquare-foot Monroe Street office tower, known as the Franklin. FTI is one of the larger tenants in the 60-story building, and finding new tenants to backfill its space can be a daunting task at a time when companies are flush with office building options.

Tishman, however, is in a better position than most landlords. The firm has no debt on the property, according to Cook County records, meaning it’s not under pressure to pay off a loan — a problem facing many owners after a couple of years of interest rate jumps. The Franklin is also 92% leased today, according to real estate information company CoStar Group, far higher than the 75% average for downtown office buildings.

Wins for Buck

On the flip side of FTI’s planned move is Chicago developer John Buck, whose company owns the 46-story Wacker Drive tower that lured the consulting firm. FTI adds to a series of key recent leasing wins for Buck after the departure of two of the largest tenants at 155

N. Wacker, law firm Skadden Arps Slate Meagher & Flom and health care management consulting firm Vizient. In addition to FTI, recent new additions to the building include specialty insurance company Ryan Specialty Group and safety science company UL Solutions. Buck was also in advanced talks last year with PNC Financial Services for an 80,000-square-foot lease before those negotiations fell apart, according to people familiar with the matter. PNC ultimately inked a deal to stay at its namesake Loop office tower and cut its footprint in the building by about 20%.

A spokeswoman for Tishman

Wintrust officially completes Macatawa Bank merger

Macatawa Bank Corp.’s $510.3 million merger into Wintrust Financial Corp. closed Aug. 1, just one day after shareholders approved the deal.

Shareholders at Macatawa Bank can convert each of their shares to 0.137 shares of Wintrust Financial stock, or for cash at $14.85 per share. Macatawa Bank on Aug. 1 also filed a notice with the Nasdaq Global Select Market to suspend trading of its shares as of that day and delist from the exchange, according to a regulatory filing to the U.S. Securities and Exchange Commission.

Under terms of the merger, Macatawa Bank will operate as a separately chartered bank under the ownership of the Rosemont-based Wintrust Financial, the parent corporation for 15 community banks in Illinois and Wisconsin that operate as wholly owned subsidiaries.

Macatawa became Wintrust Financial’s 16th community bank subsidiary and retains its name.

“Wintrust provides Macatawa Bank with the ability to retain and enhance its uniquely personalized

consumer and commercial community presence in the West Michigan area by retaining the Macatawa Bank name, its key employees, branches, and a legally constituted community bank board, as a separately chartered bank and the only Wintrust subsidiary bank located within the state of Michigan,” Richard Postma, who served as chairman of the board of Macatawa, said in an Aug. 1 announcement on the merger closing.

“We are confident that this transaction, which combines similar cultures and operating philosophies, will result in a continued community bank that offers all the enhanced services, products and technology of Wintrust to meet the evolving banking needs of our customers,” Postma said.

Formed in 1997, Macatawa Bank has 26 offices in Ottawa, Kent, and northern Allegan counties with $2.65 billion in total assets and $2.32 billion in deposits, according to a June 30 quarterly financial filing to the FDIC. The bank recorded midyear net income of $20.9 million.

Buying Macatawa Bank provides Wintrust Financial with a

solid presence in the growing West Michigan market and a base from which to grow across the state.

“Macatawa Bank provides an ideal platform to expand into West Michigan with a very solid bank. The bank has a strong core deposit base, exceptional asset quality, a client focused culture, and a committed leadership team,” Wintrust Financial President and CEO Timothy Crane said in a statement.

“Together, we will be a formidable, community-minded competitor to the other banks in the area,” Crane said. “We look forward to providing Macatawa Bank’s customers with an expanded array of products and services and are thrilled to welcome Macatawa Bank clients and team members to the Wintrust family.”

At midyear, Wintrust Financial had nearly $57.8 billion in total assets and $48 billion in deposits; loans totaled $44.6 billion. On July 18, Wintrust Financial reported second-quarter net income of $152.4 million, or $2.32 per diluted share.

Mark Sanchez writes for Crain's sister brand Crain's Grand Rapids Business.

nonDesign Chicago Office Leader Charles Smith said in a statement. “We are also taking this opportunity to re-envision and refresh our space to better support our teams’ and clients’ changing needs.”

The lease extension and space contraction is mixed news for Aegis Capital Management, which owns Michigan Plaza. Cannon sets up a new leasing challenge for its landlord, though the firm’s new 11-year commitment to the property shores up a piece of long-term revenue.

Speyer declined to comment, and a spokeswoman for John Buck did not provide a comment.

CannonDesign’s space reduction at the Michigan Plaza office tower came as the Buffalo, N.Y.based company faced an impending lease expiration. A spokesman for the firm said in an email that while the company is shrinking its footprint in the two-tower complex, its Chicago headcount is up over the past five years to about 200 of its 1,300 global employees.

“Our decision to reduce our footprint is based solely on how our work has evolved in recent years with hybrid work and the advancement of technology,” Can-

That’s a small consolation for a property that has suffered some tough losses over the past couple of years. The Blue Cross Blue Shield Association struck a deal in 2022 to leave behind more than 200,000 square feet at 225 N. Michigan for a new office at the nearby Aon Center, punching a big hole in the Michigan Avenue property’s tenant roster. Aon picked off another Michigan Plaza tenant more recently in the American Planning Association, which is set to vacate its roughly 21,000-square-foot office.

An Aegis spokesman did not respond to a request for comment.

Colliers Principal and Vice Chair David Burden represented FTI in negotiating the new Wacker Drive lease. Newmark Vice Chairman Bill Rolander represented John Buck.

CBRE brokers Mark Cassata, Bill Sheehy and Liz McLeary negotiated the lease extension on behalf of CannonDesign. Transwestern Executive Vice President Mark Buth represented Aegis.

By Mark Sanchez, Crain's Grand Rapids Business

155 N. Wacker Drive | COstAR gROuP

Six key takeaways from the latest Chicago housing market data reveal important trends

the month of June was the most expensive time to buy a house here — ever

By Dennis Rodkin

For homebuyers, June was the most expensive month ever in Chicago, the metro area and nationwide.

Welcome to Crain's new monthly roundup of real estate data, a compilation of numbers and trends that characterize the Chicago-area housing market. Here's what you need to know.

Home prices hit new highs everywhere

The median price of homes sold in June in the city was $379,925, the highest ever, according to data released July 23 by the Illinois Association of Realtors, a statewide professional group.

In the nine-county metro area, the median sale price was $375,000, also a record, according to Illinois Realtors. The data goes back to January 2008, when the metro-area median price was $240,000.

Nationwide, the median sale price of existing homes was $426,900, according to data released separately by the National Association of Realtors, also on July 23. This, too, was the highest-ever monthly median price.

Home prices keep growing, but not by as much

In the city, the median sale price in June was up 6.3% from the same time a year ago. That's vigorous growth considering that in the three years prior to the pandemic, prices were generally growing by 4% or less.

Even so, it's a sign price growth is slowing. It's the smallest monthly figure reported so far in 2024, and more than 2 percentage points below the 8.8% growth reported in April.

The same is true in the metro area. Home prices were up 7.1% in June from a year before, the least they've risen in any month

LYRIC

From Page 1

contributions last year, down from $14.4 million in 2022 and $15 million in 2021.

Yet Milianti points to the increase in ticket sale revenue year over year as reason for optimism and a sign of Lyric’s steady recovery from the pandemic, as patrons weary from COVID-19 slowly return to seats. The opera recorded $18.7 million in ticket sale revenue last year, up from $11.6 million in 2022, which was impacted by COVID-19 and canceled performances.

For opera performances, the nonprofit saw 75% capacity on

this year. In each of the first five months of 2024, metro-area home prices were up 9% or more.

Our home prices are rising faster than the nation's. NAR reported home prices were up 4.1% across the U.S. in June from the same time a year ago.

Number of homes sold is the lowest in 13 years

The number of homes sold in June was the lowest since 2011, in both the city and the larger metropolitan area. Home sales volume has a multiplier effect, as people buy furniture, toilet seats and yard equipment to go with their new homes. Lower sales volume generates less economic activity.

In Chicago, 2,235 homes sold in June. Fewer sold in June 2020, a queasy time in real estate in the early months of the COVID-19 pandemic before a new housing boom set in. Setting aside June 2020, no other June since 2011 has seen fewer homes sold in Chicago.

In the nine-county metro area, 8,661 homes sold in June, fewer than any other June, even 2020, since 2011.

Among big-city real estate markets, we're one of the strongest

The S&P CoreLogic CaseShiller Indices are a handy way to measure the biggest U.S. cities' real estate markets against each other. It's useful to do so, in part, because job-hunters want to know how much home they can afford in other cities.

In May — the index runs one month behind the data from Illinois Realtors, whose data above is for June — Chicago home values were up 7.5% from a year before. Among the 20 major U.S. cities the index tracks, Chicago's growth was sixth highest, along with Cleveland, where prices were also up 7.5%.

40 shows in the 2023-24 season and 76% on 37 shows in 2022-23.

For comparison, the 2019-20 season, which wasn’t impacted by COVID-19, notched 75% capacity in over 48 shows.

“We continue to see growth in activity and ticket sales and all the signs point towards us emerging from the pandemic in a growth trajectory, and that gives us optimism as we look to the future,” Milianti said.

Performing arts are struggling

The Lyric Opera is not alone in its financial struggles following the pandemic. The problem facing Chicago performing arts venues is starkly outlined in a recent study by the Chicago De -

Five big cities were stronger. Four of them are warm-weather cities: Las Vegas, Los Angeles, Miami and San Diego. The highest price growth was in New York City, where prices were up 9.4% in June.

Tight inventory of homes for sale isn't getting better

Super-low inventory has been a key factor in rising prices. The buyers who are out there have to pay up to land a home. Nationwide reports suggest inventory shortages are easing up, but it doesn't seem to be happening here.

In the week that ended July 28, there were about 19,370 homes on the market in the Chicago metro area, according to Redfin, the online real estate marketplace. That's down 11% from a year ago and down nearly 35%

partment of Cultural Affairs & Special Events. Season-ticket purchases, another pillar of the industry’s business model, dropped 65% over the past four years, as attendance at Chicago theaters fell nearly 60%. At the same time, inflation has driven up the cost of staging performances.

“It’s a long and slow recovery for the arts,” said Claire Rice, executive director of Arts Alliance Illinois, the state’s top arts advocacy group. “We're still in a recovery phase following the pandemic and it's really just slower than we hoped, especially with the end of some of the federal dollars.”

The Lyric hopes new CEO

from the same time in 2022, when the market was beginning to pivot under the weight of inflation-busting interest rate increases.

Luxury condo market downtown is still droopy, except in the West Loop Weak prices for condos in places like Streeterville and the Gold Coast have been persistent in the 2020s, as fears of crime and the slow return of downtown work have undermined demand.

The latest example is a condominium at super-luxury No. 9 Walton that sold July 30 for $5.8 million. The sellers paid about $11,000 more than that when they bought the three-bedroom new in 2018. They initially priced it at $7.9 million when they put it on the market in 2022,

Mangum will be the person to right the ship. In his previous job as CEO of the Houston Symphony, Mangum was able to increase the orchestra’s endowment by 50% and secured major capital gifts for a $60 million campaign supporting the renovation of the orchestra’s home.

Still, the Houston Symphony suffered a $1.8 million deficit for fiscal year 2023, down from a $2.5 million surplus in 2022, which was aided by $8.7 million in federal relief funds. In 2023, the Houston Symphony benefited from only $2 million in federal relief funds.

Bryan Traubert, co-chair of the search committee that selected Mangum, nodded to the new

anticipating a profit of about $2 million, but ultimately settled for a slight loss.

Walton Street is in the neighborhood called Near North in CAR's data reports. Near North condo sales sold at a median price of $1.9 million in the first six months of the year, a decline of 5.1% from the same time in 2023. In the West Loop, prices are up about 8%.

Meanwhile, the city's condo market overall, including all 77 neighborhoods, is going the other direction. Prices are up 5% so far this year, with a median price of $378,000.

The Illinois Realtors data uses the U.S. Census Bureau definition of the Chicago metropolitan area, which comprises Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties.

leader’s unique ability to handle all parts of the job, which include bringing in donations and charting a new business plan forward for one of Chicago’s most iconic performance venues.

“John is a 21st century performing arts leader with unmatched experience and acumen in the classical music space,” Traubert said in a written statement announcing Mangum's appointment. “His executive superpower is understanding the needs of an arts organization, its musicians, staff, donors and community members, and developing comprehensive programs to address each of their needs, maximize efficiencies and jumpstart strategic change.”

This house on Circle Drive in Norwood Park on the city’s Northwest Side sold for $805,000 in June. | COLDWELL BANKER REALtY GROUP

that used to be the village’s stated goal for the site.

“When we moved into our house 10 years ago, it was made clear to us that single-family homes would be built over there,” says Mike Bryskier, a retired trader whose house in a wooded, streamside setting is in Rolling Meadows but shares a property line with the Schaumburg site.

“Now they’re talking about right up to 12 feet from my garage,” Bryskier says. “I’d like to see them build something more like what’s already here in the neighborhood. What they’re doing is too dense, too much.”

Bryskier’s figures are off, according to Joe Nitti, whose Elmhurst-based firm Nitti Development is proposing the Loeber Farms development. Village code would allow a new structure 16 feet from Bryskier’s garage, but “we agree to build a minimum 30 feet away.” That’s a typical setback for single-family homes, he says, including at another Schaumburg project he’s been building, Summit Grove.

“We’re trying to be the best neighbors we can,” Nitti says.

The 33-acre parcel off Meacham Road near Algonquin Road has been owned by the Loeber family of car dealers since 1948, when Chicago car dealer Martin Loeber bought the rural land 30 miles northwest of the Loop as a place for his family to live quietly and raise cows. Since 2002, Loeber’s sons, Paul and George, have been trying to sell the land to developers, as Crain’s reported in 2020. Failed attempts

Four different plans to build single-family homes on the site fell through over the years, the last and largest of which, in 2016, proposed 92 houses. Nitti’s proposal to build 32 low-rise buildings containing a total of 357 rentals was scheduled to be up for discussion by the Schaumburg planning commission Aug. 7.

“We’re going two-story around the perimeter,” including the border with Bryskier’s property, Nitti says, and putting threestory buildings in the center. The buildings, seen in the rendering,

Page 3

worth continuing to pay millions of dollars to its executives.

Zell, who took over Equity Commonwealth along with Helfand in 2014, died last year at age 81. While he generally stayed in the background of Equity Commonwealth and let the company’s executives chart its course, Zell could no longer serve as a key sounding board for the firm. In the meantime, more pressure to liquidate mounted this year from shareholders, including San Francisco-based Indaba Capital Management and Stam -

will be in the modern farmhouse style, with steep roofs, a mix of shingle and board-and-batten siding, pillared porch roofs and other details.

Nevertheless, some of the site’s neighbors say the plan would squeeze too many units onto the property, creating traffic problems in the neighborhood and potentially exacerbating recurring floods in Salt Creek, which crosses the Loeber property.

In the village’s 1996 plan, “this property was zoned for about three units per acre,” says James Kroll, whose home borders the Loeber property and is in Rolling Meadows. “Developers did their analysis and decided they couldn’t make their money on that, and gave up. So it gets denser.”

Subtracting the property’s wetlands, there’s an estimated 30 acres of buildable land.

The proposal calls for about 11 units per acre, Nitti says. He declined to reveal the price he’s contracted to pay the Loebers

ford, Conn.-based Land & Buildings, which own about 6% of the company combined. As of the end of March, the company had nearly $2.2 billion in cash on hand, according to its regulatory filings.

Liquidating portfolio

Equity Commonwealth today has just four properties in its portfolio, and disclosed earlier this year that it had begun the process of selling three of them — one in Washington, D.C., and two in Austin, Texas. Helfand said during the conference call that the company expects to begin marketing its other property, in Denver, for sale in September.

market,” Fitzgerald says.

Among them: A disused office building across from Woodfield Mall is becoming apartments, and on the former Motorola headquarters, 30 acres are set to become “The District,” a Main Street-throwback neighborhood with 300 apartments and retail and restaurant space.

On an interior site like the Loeber property, Bryskier says, a big development “isn’t appropriate.” He and Kroll both say they’d like to see Nitti build density on the southern portion of the site, nearer to Algonquin Road, and single-family homes on the northern portion, where it’s surrounded by a suburban neighborhood of mostly individually built homes on lots in the 1-acre range. That includes the Bryskier and Kroll houses in Rolling Meadows.

Earlier proposal

In 2020, Schaumburg Mayor Tom Dailly proposed a similar split between the north and south parts of the Loeber parcel. As Crain’s reported at the time, when the Loebers were frustrated over the property sitting unsold for so long, they started pushing Schaumburg to approve higher density for the site as a way to make it a profitable parcel for developers.

for the land.

“That’s crazy,” Kroll says of the proposed density. “You won’t find anything around here that has that much density in a single-family home neighborhood.”

Density is high about a quarter-mile south of the Loeber Farms site, along Algonquin Road where land formerly housing commercial and industrial users like Motorola has fast been turning into a new residential zone.

Since 2017, Schaumburg officials have approved about 2,000 new rentals, says Julie Fitzgerald, Schaumburg’s director of community development, after not approving any new apartments “for decades.”

More than 800 have been completed, another 800-plus are in some stage of planning or construction, and Loeber Farms would add 357. The rentals include retrofitted former office buildings and new construction, as Schaumburg adapts “to a new

Equity Commonwealth expects to file a preliminary proxy by mid-September recommending that shareholders approve a plan of sale and liquidation, Helfand said. He added that he expects the sale of its remaining properties and the distribution of its cash to shareholders to be completed by the end of June 2025.

“We are focused on executing the wind-down process as efficiently as possible, and we will continue to communicate with shareholders regarding our progress,” Helfand said on the call.

In February 2020, Dailly wrote a letter to the Loebers that said Schaumburg “wants to remain good neighbors and be sensitive to the single-family uses in Rolling Meadows.” Dailly rejected the notion of putting apartments or senior living on the northern portion, calling them “incompatible with the existing singlefamily homes.”

Dailly declined to talk with Crain’s about Nitti’s present proposal.

At 33 acres, the Loeber parcel is “the last greenfield site in Schaumburg,” Fitzgerald says, although there are small infill parcels and sites ripe for redevelopment.

Until a few years ago, there was a 62-acre parcel still undeveloped about 6 miles south of the Loeber farm. Nitti Development bought it in 2020. Of the 149 single-family homes Nitti built there in a subdivision that’s now called Summit Grove, all but 17 are sold, Joe Nitti says. The prices start at about $700,000.

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New York-based investment firm and Equity Commonwealth shareholder Irenic Capital Management applauded the company’s announcement.

“We commend Equity Commonwealth’s Board and its management team for making the difficult but correct decision to recommend a liquidation. At the risk of being too subtle: we’re pleased,” Irenic said in a statement.

“We appreciate the support we have received from our shareholders and want to acknowledge the hard work and dedication of the EQC team.” Shares of Equity Commonwealth opened trading July 31 at $20.15 per share, roughly even with where the company’s stock was trading at the beginning of 2024.

A rendering of the proposed Loeber Farms development NIttI DEVELOPMENt

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