ou’ve heard it all before. The rise in construction material costs, coupled with material and labor shortages and rising interest rates, continue to plague the market, leav ing businesses no choice but to find a creative and mutually beneficial workaround.
Chicago Industrial Properties recently spoke with HSA Commercial Real Estate CEO & Vice Chairman Robert Smietana and JLL Senior Director, Capital Markets Kurt Sarbaugh to find out.
VOL.32 NO.5 SEPTEMBER 2022THE LEADING NEWS SOURCE FOR INDUSTRIAL REAL ESTATE PROFESSIONALS & USERS CRE MARKETPLACE (pg.18): BROKERAGE FINANCECONTRACTORSCONSTRUCTIONFIRMSCOMPANIES/GENERAL&INVESTMENTFIRMS
Though many look forward to the dissipation of these challenges, it’s unlikely that will happen any time soon. Krusinski Construction Company President Jeff Krusinski said that the “when” is yet
By Mia Goulart, Senior Staff Writer
By Mia Goulart, Senior Staff Writer
Still no space, but is redevelopment the solution to the lack of available land?
SOUTHERN WISCONSIN (continued on page 8) PRSRT STD U.S. PERMITCHICAGO,PAIDPostageILNO.3223 D REDEVELOPMENT (continued on page 6)
evelopers continue to flock to Southern Wisconsin because of its low taxes and business-friendly climate. But why else has the market been quick to gain traction? And what sets it apart?
11559 80th Ave (Uline) (Courtesy of JLL)
The market, to start, is just north of the Illinois state line, with most of the development occurring along the Inter state 94 North-South stretch connecting Chicago to Mil waukee. It’s an area that’s seen constant activity over time but has caught fire in the last 10 years in terms of interest. Kenosha County and Racine County have seen the highest activity, Kenosha being closer to Illinois and Racine about 15 miles from the border.
The Badger State has earned a spot next to Chicago and Northwest Indiana as the region’s most highly regarded. But why?
Y
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3SEPTEMBER CHICAGO INDUSTRIAL PROPERTIES
PUBLISHER Mark 708.622.0074menzies@rejournals.comMenzies
Sunny with a chance of strong winds: CRE forecast, according to its leaders The overall sentiment for CRE in Chicago is seeing a fair amount of change.
SENIOR STAFF WRITER Mia mia.goulart@rejournals.comGoulart
1The
MANAGER Ernie eabood@rejournals.comAbood
VICE PRESIDENT OF SALES Marianne mgrierson@rejournals.comGrierson
Chicago Industrial Properties® (ISSN 1546-377X) is published bi-monthly for $59 per year by Real Estate Publishing Corporation, 1010 Lake St Suite 210, Oak Park, IL 60301. Contact the subscription department at 312.933.8559 to subscribe. © 2022 by Real Estate Publishing Corporation. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical including photocopying, recording or by any information storage or retrieval system.
E-commerce demand is at an all-time high. The prob lem? Vacancy rate is at an all-time low, according to CBRE E-commerce continues to fuel the market as consumers continue to shop online.
VICE PRESIDENT OF
ADVERTISING SUPPORT Hayley hayley.meyers@rejournals.comMeyers
Susan smickey@rejournals.comMickey
10
SALES
CRE MARKETPLACE
DIRECTOR, NATIONAL EVENTS & Alyssa agawlinski@rejournals.comGawlinski
14
SALES
18
CONTENTS
no space, but is redevel opment the solution to the lack of available land? The rise in construction material costs, coupled with material and labor shortages and rising in terest rates, continue to plague the market.
Frank E. Frank.biondo@rejournals.comBiondo
1Still
MARKETING
VICE PRESIDENT OF & MW CONFERENCE
4
CLASSIFIED DIRECTOR
BROKERAGE FINANCEGENERALCONSTRUCTIONFIRMSCOMPANIES/CONTRACTORS&INVESTMENTFIRMS 9500 W. Bryn Mawr Avenue, Suite 200 Rosemont, IL 60018 www.mcshaneconstruction.com At the Forefront of Modern Industrial Construction. With more natural daylighting, greater ceiling heights, higher dock door density and more, our industrial facilities are built to exceed the needs of today’s users.
SERIES
“Northwest Indiana” is a buzz phrase itself. What’s the deal with the recent boom? North west Indiana is a desirable place to do business.
Warehouse sale in Joliet is Chicagoland’s biggest of the year. But what does this say about the sector? Industrial was strong in 2018, but nothing compared to today’s numbers, due to a booming logistics market and the steady rise of e-commerce.
Jeanne Rogers Arthur J. Rogers & Co. Corey Chase Newmark Jerry Rotunno Associated Bank Joe Pomerenke Arco/Murray National Construction Company, Inc Dan Fogarty Stotan Industrial Steve Schnur Duke Realty Adam Moore First Industrial Realty Trust Inc. Ron Behm Colliers International Adam Roth NAI Hiffman Mike Yungerman Opus Group Glen Missner The Missner Group 2022 EDITORIAL BOARD
16
Badger State has earned a spot next to Chicago and North west Indiana as the region’s most highly regarded. But why? Developers continue to flock to Southern Wisconsin because of its low taxes and business-friendly climate.
Logistics is especially popular right now as products move closer to the end consumer, and opportunities exist for ad vanced manufacturing due to the area’s access to Lake Michigan. And because the submarket is so heavily industrialized, Ennis said its grid can service people in a way that’s energy efficient — an increas ingly important element to a variety of
These are just a few of the pros that make Northwest Indiana a desir able place to do business. Somewhat of a hidden gem in past years, the market has recently become a highly demanded market for businesses to set up shop. Chicago Industrial Properties spoke with Northwest Indiana Forum President & CEO Heather Ennis to find out what’s behind the recent boom.
might have these things, too, but something the metro doesn’t have? Available space. Northwest Indi ana still offers plenty of opportunity for development for users willing to look a little further, and for a lower cost.
“We’ll be able to process data at a higher speed and incorporate more security to continue to attract research and develop ment companies that require an addition al measure of security,” Ennis said.
To start, Ennis said that also on the list of pros is the submarket’s strong infra structure. Several long- and short-line railways span across Northwest Indiana connecting many sites across the region, and more than half of the border is water, providing direct access to two major freight transportation hubs.
ly a handful of in-progress projects in Hammond, Indiana alone.
“People didn’t used to look further than I-65, but now they’re looking into Por tage and Michigan City,” Ennis said. “The marketplace is getting smaller as things fill up but there are still great sites, and more and more communities are partner ing on developing and redeveloping sites across the state.”
Sure,businesses.Chicago
Industrial is seeing the most activity, but the multifamily sector is another that’s prospering. Transit development districts along the commuter rail system have been set up to help facilitate growth and are attractive to people wanting to participate in a commuter lifestyle in a walkable community. There are current
regional economy — not just take busi ness from Illinois. Our assets our mighty, and banded together, there’s a lot of exciting opportunity to compete with the East and West Coasts.”
“Northwest Indiana” is a buzz phrase itself. What’s the deal with the recent boom?
By Mia Goulart, Senior Staff Writer
"Northwest Indiana is looked at because of its proximity to Chicago, but it doesn’t have to be a zero-sum game. We enjoy the opportunity that our proximity affords us, but we want to grow the regional economy — not just take business from Illinois."
As icing on the cake, Gary/Chicago International Airport (GCIA) is capable of serving general aviation, corporate, commercial and cargo users. And if that wasn’t enough, Ennis said they’re cur rently working on adding to what is being called the High Tech Corridor.
4 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
But those aren’t the only kinds of com panies that are focusing their gaze on the submarket. In fact, Northwest Indiana is experiencing a broad range of incoming businesses — including those that al ready exist in-region looking to expand and those from across the globe wanting their slice of the action.
“Northwest Indiana is looked at because of its proximity to Chicago, but it doesn’t have to be a zero-sum game,” Ennis said.
“We enjoy the opportunity that our prox imity affords us, but we want to grow the
L
ocation. Low cost. Labor.
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"There are a lot of systems out there, and with the lead times earlymanufacturergetit’sexperiencingwe’renow,importanttoalignedwithaveryon."
For now, Krusinski has several other projects in the works. The company has recently torn down a subdivision near O’Hare to build a four-building, 1,264,353-million-squarefoot industrial park in Bensenville, Illinois, in partnership with ML Realty and Prologis.
6 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
Krusinski has seen a heightened interest in this, and has even budgeted it for certain clients, but the current multistory being de veloped is the only one so far to pull the trig ger in Chicagoland. Why? The cost, mostly. To build even a single component of it, like rooftop parking, is a no-go for any company
Jeff Krusinski
“A lot has been picked through over the years, and we’re finding that land that was not suitable to build on fifteen to twenty years ago is now being developed due to those being the last remaining parcels,” Krusinski said. “There may be challenges that require additional attention from a geotechnical or structural standpoint, and will therefore cost more money, but there are few alternatives.”
to be determined, but for now, despite it all, the numbers have yet to trend backward.
But how much development is taking place, considering the lack of available land? Rede velopment of infill is just one solution that’s
Teamwork is a big part of the solution. De velopers and contractors are taking a more collaborative approach versus a design/bid/ build approach and reaching out to builders
Redevelopment continues to be a trend due to the lack of available land around Chi cagoland. Companies have no choice but to take advantage of unused property. Still, Krusinski said clients haven’t seized to ask if there’s available land.
The bottom line for construction? Pricing may continue to escalate in the near term, but the pace of the increase will likely begin to decline as production returns to normal. The pipeline for new projects is also expected to remain strong throughout the foreseeable future, regardless of continued challenges.
Bensenville project
For those not wanting a fixer-upper, there is another option to be considered: multistory.
It is also increasingly important to meet the needs of clients in terms of building features. For one, 40-foot clear height is the new standard on every building. The slab and the roof are also among the most important to give attention to, Krusinski said. Developers are trying to account for every kind of tenant that might move into a spec building.
“Developers, when doing an infill redevel opment, are maximizing the FAR and getting as much building footprint on those sites as they can. This is not out of the norm, but con versely, the further out you go, there doesn’t seem to be as much interest in maximizing that ratio because they’re building flexibil ity for auto and truck parking to please a larger market, specifically e-commerce and businesses with more employee needs. A lot more of the site is being left open.”
without a massive budget. Developers are therefore looking at what their rent yield can be to account for that in their pro-forma.
implications and long-lead times. Compa nies like Krusinski Construction are also trying to lock in pricing and schedule slots to the best of their ability well before drawings are completed — and in some cases, before they’re started — to get ahead of it.
“There are a lot of systems out there, and with the lead times we’re experiencing now, it’s important to get aligned with a manufac turer very early on.”
And because users are heavily dependent are on technology, new construction is built smarter and smarter — even though it comes with a higher price tag.
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Growth, growth, and more growth. But can we expect the same momentum in the years to come? Yes. Southern Wisconsin is likely to attract even more attention as projects are completed.
top-tier location is not the only asset that makes Southern Wisconsin one to watch. It’s a number of things. Availability of land for larger buildings. Business-driv en communities. Updated infrastructure.
HSA Commercial is currently working on a project called Bristol Highlands, which will be about 1.3 million square feet upon completion. The company developed them on a speculative basis, and the first two were leased prior to completion. Last year, HARIBO of America, Inc. executed a 157,656-square-foot, full-building lease at Bristol Highlands, which is located just
SOUTHERN WISCONSIN (continued from page
a few miles from the gummi manufactur er’s first-ever North American production plant. HSA Commercial leased the ad joining 470,000-square-foot building to a company based in Lake County, Illinois, that wanted to open an additional facility.
1) LakeView Industrial Park 10490 88th Ave (Crown) (Courtesy of JLL)
“A lot of buildings going up and a lot of space is being leased,” Smietana said.
8 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
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A lower cost of businesses. A strong labor force. The list goes on, and there’s been
no lack of attention from a wide mix of prospective users, both local and not.
Butthat.”its
The origin of
Some big companies have exhibited inter est in the market for a long time, Smietana said, specifically ULINE. Headquartered in Kenosha County, the national company has many facilities across the U.S. In fact, HSA Commercial has several companies like that occupying their buildings, includ ing XPO Logistics and Ryder Logistics.
excellence.
“HSA Commercial has been a big part of
All of the buildings are 400,000- to 500,000-square foot bulk distribution buildings, according to Kurt Sarbaugh, and are fully leased to big players like ULINE (60%). Distribution use and 3PLs make up the majority of the demand in the market.
• 8500 109th St., Pleasant Prairie, WI
In addition to the properties, the portfolio included six land sites — 144 acres — in Pleasant Prairie. Sarbaugh said the plan is to develop them one by one over time, and construction is expected to begin soon.
The portfolio is almost entirely located within LakeView Corporate Park close to Interstate 94, strategically located to provide connectivity to population hubs like Chica go and Milwaukee.
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“We’ve been in this market a long time,” Smietana said, “and therefore have a unique perspective on its con tinued growth and evolution. There’s a lot of development activity. Ten million square feet are proposed or under con struction in this submarket alone, and the numbers for absorption last year were just shy of six million square feet. Vacancy rates are still low, and demand for space remains high.”
Anotherveloped.
• 11559 80th Ave., Pleasant Prairie, WI
The properties include:
“This is one of the healthiest development markets,” Sarbaugh said. “At close to 75 million square feet, there’s a healthy number of projects in progress.”
RobertSarbaughSmietana
9SEPTEMBER CHICAGO INDUSTRIAL PROPERTIES
Good thing there’s more land to be de
• 3200 Skokie Highway, North Chicago, IL
• 11400 88th Ave., Pleasant Prairie, WI
Kurt
• 11290 80th Ave., Pleasant Prairie, WI
• 8123 116th St., Pleasant Prairie, WI
• 10490 88th Ave., Pleasant Prairie, WI
• 8495 116th St., Pleasant Prairie, WI
company that has their finger on the market pulse, so to speak, is JLL. They recently completed the sale of an eight-building portfolio of 3,825,589 square feet of in Pleasant Prairie, Wis consin, and North Chicago, Illinois, on behalf of CenterPoint Properties. EQT Exeter acquired the portfolio.
panies are having to adjust for in our post-pandemic world.
10 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
five to six years, per year. But to put it into perspective? There’s only about 300,000 square feet scheduled to be delivered by January of 2023, Goldwasser said. And it will be about 12 months after that — possibly even longer — before any new construction is delivered.
Larry Goldwasser
Photo via Adrian Sulyokfor Unsplash
Coupled with the delay in construction supply and an increase in construction
E-commerce demand is at an all-time high. The problem? Vacancy rate is at an all-time low, according to CBRE
“We’re going from 700,000 square feet of space getting absorbed every year to not even being able to provide 300,000 square feet of space for the next couple of years,” Goldwasser said. “Because of the struggle to find new product, e-com merce occupiers are starting to retrofit older product to fit their needs.”
E-COMMERCE (continued on page 12)
There’s been about 700,000 square feet of new construction absorbed in the last
There are several municipalities that are opposed to having last-mile tenants move into buildings in the neighborhood due to concerns regarding an increase in traf fic and “Projectspollution.areunder
-commerce continues to fuel the market as consumers continue to shop online. With businesses still reliant on both online and in-person shopping to attract and retain custom ers as they settle into a post-pandemic groove, one big issue remains…
As companies focus in on getting as close to the end consumer as possible, there’s an increased demand from e-commerce and last-mile tenants that wish to capi talize on population density. It’s increas ingly difficult, though, to find product — especially that of Class A.
E
a lot more scrutiny,” Goldwasser said, “which can add nine to twelve months to the process before a company is able to move in. We’re also still experiencing a delay in construction supply and an increase in construction costs, as well, that occupiers have to pay — and wait — for.”
By Mia Goulart, Senior Staff Writer
A lack of available product in Chicago, according to CBRE Executive Vice Presi dent Larry Goldwasser.
Location is the focus. Even though oppor tunity exists outside the metro (though, likely not much) users would rather settle for well-located, but less efficient product than move further from the end consum er. This is driving the lease rates of those buildings, some of which CBRE said have doubled within the last 12 months. New construction rates have also increased by 50–100% year-over-year.
But besides the lack of ideal space, there are a few other, smaller challenges com
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deterioration to your masonry façade from store fronts to skyscrapers, historical landmarks
costs, as well as the labor shortage every sector is facing, the outlook is pretty overwhelming. And difficult to deter mine. The good news?
12 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
Morement.
store, along with an infill site for fulfill
good news is that e-commerce clients believe e-commerce is positioned to remain strong, despite economic challenges, even if faced with another catastrophe like COVID-19. Construction
activity continued to increase in at 38.2 million square feet in Q2 2022, consist ing of 108 tracked projects underway. Among these developments 72% are being built on a speculative basis, while 28% are being constructed as build-tosuit projects.
“There’s a hardiness to e-commerce, and there will continue to be a demand for it,” Goldwasser concluded. “Businesses right now are just trying to keep up with customer demand.”
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e-commerce sale, in some cases, is getting a customer into the physical store. Some brands have a small retail footprint to allow for people to come in and test out their products, while others have a warehouse facility nearby so the customer can pick up the product immediately after purchase.
Call it a marketing tactic, but the sale is being made. More and more retail-type users are, in fact, interested in buildings to mimic that structure of a small retail
Completingonline.”an
It was once believed that online shopping would give way to the fall of brick-andmortar retail, but current research is proving just the opposite. In fact, CBRE suggested that brick-and-mortar retail is giving a boost to “Brick-and-mortare-commerce.retailismore of a catalyst for e-commerce, if anything,” Goldwasser said. “At the end of the day, people are still going home to place the order
Anotherchange.thing
14 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
Headwinds have gained steam locally, nationally and internationally, as profes sionals are concerned about construction costs, labor issues, inflation, interest rates and speculation of a recession. There’s also less confidence that related issues like crime and the effectiveness of the local political system can be resolved quickly or easily. But through it all, one asset class has remained largely untouchable. Industrial.
that is seeing a fair amount of change is the overall sentiment for CRE in Chicago. Last year’s DePaul Real Estate Center Mid-Year Report found that 60% of industry participants were generally opti mistic about the industry as they looked ahead. But in 2022? The DePaul-ULI Chi cago Report found that 65% are trending toward concern when looking at 2H2022.
CRG President Shawn Clark noted that, on a recent project in Country Club Hills, the increasing cost of steel prompted CRG to purchase the necessary steel for the 1,033,450-square-foot building before they closed on the 70 acres of land, based on the report. But if the steel had been purchased as typical, the cost would have been more than double.
According to DePaul, Hugh Williams, Prin cipal, MK Asset Brokerage, and Director Entrepreneurship/Strategic Relationships for Sterling Bay, when asked about the health of the market, pointed to Prologis’
So, while it is true that many harbor con cerns about the remainder of 2022, 50.9% said they are bullish or optimistic about market conditions in 2023, and despite headwinds, there are investors who con tinue to believe in the future of Chicago. DePaul said while it may be based, in part, on a “right corner, right project” viewpoint, there remains an appeal about Chicagoland and a belief that all issues will soon be resolved.
term, the strength of the market has only gone in one direction, and new baselines have been established.”
That’s not to say the market is exempt from concerns, though. Even the strongest mar kets must remain creative and be willing to approach issues a little differently.
I
Sunny with a chance of strong winds: CRE forecast, according to its leaders
From the perspective of Molly McShane CEO of The McShane Companies, “Going from just-in-time to just in case is a real strategy businesses are using, and it is driv ing demand. As long as that continues, the market is in a good place.”
By Mia Goulart, Senior Staff Writer
Photo via Stephan Cassara for Unsplash
initial offer to acquire Duke Realty. Prol ogis was offering a premium, plus upside.
“When you see that, and with vacancies in the sub 4% range, it signals strength and optimism,” Williams said. “We are at one of the high water marks. No one knows if we are at the top, but over the recent long-
f you don’t like the weather in Chica go, wait a few minutes…it’s likely to
Chicagoland’s Union Electrical Team LEARN MORE AT POWERINGCHICAGO.COM CMYCYMYCMYMCK ReJournal 10 x 13 print ad.pdf 1 12/21/20 9:14 AM
Staff Writer
"U.S. sinceincreasedvaluesmarkethave39%theonset of COVID-19. "
16 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
T
market’s momentum has experienced a bit of a slowdown the last
he owner of a Whirlpool distri bution center in Joliet recently sold the property in the biggest sale of a Chicagoland building this year.
The price for 3851 Youngs Road is the most paid for a single industrial building in Chicagoland thus far in 2022, which Crain’s said surpasses the $102.5 million
Bysector?MiaGoulart,Senior
Thoughexpires.the
Warehouse sale in Joliet is Chicagoland’s biggest of the year. But what does this say about the
sale a few months ago in Channahon by Denver-based Ares Industrial Real Estate Income Trust.
Industrial was strong in 2018, but noth ing compared to today’s numbers, due to a booming logistics market and the steady rise of e-commerce. Warehouse values have increased as the local vacancy rate has dropped to a record low — 4.58% in Q2, based on research by Colliers International — rents have risen, and businesses continue to invest in the market.
Whirlpool moved into the space in 2015, but it is unknown when the company’s lease
several months amid rising inflation and interest rates and supply chain issues, U.S. market values have increased 39% since the onset of COVID-19.
According to Crain’s, Nuveen has sold the one-million-square-foot warehouse at 3851 Youngs Road for a hefty $104.4 million to a Bank of America venture. The price represents a nearly-50% jump from the $71.5 million that Nuveen paid for the building in 2018.
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Notable/Recent Projects: 1.5M SF Distribution Center for General Mills. John Pennycuff Memorial Apartments 7-story, 88-units. Call Center with open offices with full-service café, gymnasium, and fitness center for Medline Industries. Freestanding Medical Office Building with 33 exam rooms, rehabilitation gym, and support service/diagnostic space for CHI Health and NexCore Group and a 1.4 million SF build-to-suit distribution center for Medline Industries in Grayslake.
P: 847.741.7220 | F: 847.741.9677
Company Profile: Headquartered in Rosemont, Illinois with regional offices in Auburn, Alabama, Irvine, California, Phoenix, Arizona, Madison, Wisconsin and Nashville, Tennessee, McShane Construction Company provides comprehensive construction services on a local, regional and national basis for a wide variety of market segments. The firm is recognized as one of the Chicago area’s most diversified and active contracting organizations with a reputation built on honesty, integrity and dependability.
Key Contacts: Jerry Sullivan, Principal, sullivan@painewetzel.com; Ed Wabick, Principal, ewabick@painewetzel.com
Key Contacts: Dave Petersen, CEO, dpetersen@hiffman.com; Michael Flynn, COO, mflynn@hiffman.com
Key Contacts: Mat Dougherty, PE, President, mdougherty@mcshane.com
ALSTON CONSTRUCTION COMPANY
BARBERMURPHY
Services Provided: Marcus & Millichap is a complete brokerage offering investment sales, financing, research and advisory services. Investment specialists represent investors of apartments, multi-tenant retail, single-tenant retail, office, industrial, affordable housing, student housing, seniors housing, manufactured housing, medical office, self-storage, hospitality, golf and resorts, and land.
Company Profile: BARBERMURPHY is the largest Commercial Real Estate firm focusing on downstate Illinois and St. Louis. Our growing firm has 19 Licensed Brokers and more than 500 exclusive listings.
Company Profile: NAI Hiffman is the largest independent real estate services firm in the Midwest, providing leasing, property management, tenant representation, capital markets, project services, research, and marketing services for institutional and private owners and occupiers of commercial real estate. NAI Hiffman currently leases and manages over 130.7 million square feet, encompassing more than 800 properties in 27 states. With more than 250 employees, NAI Hiffman is the Chicago-area representative for NAI Global, the world’s largest managed network of real estate service providers, with more than 6,000 local market professionals managing more than 1.15 billion square feet of property. NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific. For more information, please visit hiffman.com.
18 CHICAGO INDUSTRIAL PROPERTIES SEPTEMBER 2022
Services Provided: BARBERMURPHY is a full service Commercial Real Estate firm offering their clients on the ground market knowledge and experience in the disposition and acquisition of commercial, industrial, land, retail, and investment properties.
CIP MARKETPLACE
333 West Wacker Drive, Suite 200 Chicago, IL 60606
Services Provided: Clayco is a full-service turnkey real estate, architecture, engineering, design-build and construction firm.
Company Profile: Clayco specializes in “the art and science of building”, by providing fast track, turnkey design build solutions in North America for commercial, institutional, industrial and residential building types. Clayco looks “beyond these walls” focusing on helping our clients fulfill their mission.
Website: painewetzel.com
Company Profile: Marcus & Millichap is a leading firm specializing in commercial real estate sales, financing, research and advisory services. The firm has the largest team of investment specialists in the industry, dedicated to meeting the diverse needs of private and major/institutional investors throughout the United States and Canada.
Services Provided: Alston offers a diverse background of design-build experience, general contracting and construction management of industrial, commercial, healthcare, retail, and municipal projects. Company Profile: Alston Construction’s success begins and ends with our approach to planning, scheduling, and choosing the right team. We have been adhering to an open and collaborative approach since our founding more than 35 years ago.
1900 Butterfield Road, Suite 1020 Downers Grove, IL 60515
P: 312.327.5400
Key Contact: Greg Kolinski, Director of Business Development, gkolinski@alstonco.com
P: 618.277.4400 | F: 618.277.4407
Website: hiffman.com
Notable/Recent Projects: Mitutoyo America Corporation North American Headquarters, Aurora, IL. 96,000 SF warehouse addition; 63,000 SF, three-story office addition, which includes high tech showroom, two story atrium, corporate offices/conference room, cafeteria, and locker rooms.
1173 Fortune Blvd. Shiloh, IL 62269
CONSTRUCTION COMPANIES/GENERAL CONTRACTORS
BROKERAGE FIRMS
P: 630.932.1234 | F: 630.932.7258
Commercial Real Estate Solutions
Website: alstonco.com
Services Provided: Real Estate Strategy with dependable results in Brokerage, Consulting, TenantAdvisory, Corporate Services, Property Management, Development, Strategic Planning, Research and Construction Management.
Website: www.claycorp.com
Website: marcusmillichap.com
P: 630.437.5810
NAI HIFFMAN
Notable/Recent Projects: St. Louis – Centene Campus, 100 Above the Park, Benson Hill, Delmar Devine Chicago - Willis Tower Transformation Project, Macy’s Flagship Redevelopment, Fulton East, Upshore Chapter National – Blue Origin, Dominion, Centene East Coast HQ, Amazon E Commerce, Penn State.
PW COMMERCIAL REAL ESTATE 8725 W. Higgins Road, Ste. 800 Chicago, IL 60631
Services Provided: McShane Construction Company offers more than 35 years of experience providing design-build, design-assist and general construction services on a national basis. The firm’s diverse expertise includes build-to-suit and speculative warehouse, distribution and manufacturing facilities, as well as multifamily, commercial and institutional developments.
MCSHANE CONSTRUCTION COMPANY 9500 West Bryn Mawr Avenue Ste. 200 Rosemont, IL 60018 P: 847.292.4300 | F: 847.292.4310
CLAYCO, INC.
Notable/Recent Projects: Abt Electronics – the construction of a 430,000-square-foot addition to Abt Electronics’ warehouse and showroom facility in Glenview, Illinois, including two three-story office blocks and 407,000 square feet of warehouse space. Industry Center at Melrose Park – the new construction and interior buildouts of three speculative industrial buildings totaling 652,000 square feet in Melrose Park, Illinois.
Key Contacts: Wayne Barber, Jr., SIOR, Principal, Wayne@barbermurphy.com; Paul Murphy, Managing Broker, Principal, Paul@barbermurphy.com; Steve Zuber, SIOR, CCIM, Principal, Steve@barbermurphy.com; Collin Fischer, CCIM, Principal, CollinF@barbermurphy.com
LAMP INCORPORATED 460 North Grove Ave. Elgin, IL 60120
MARCUS & MILLICHAP
Key Contact: Michael Glass, Senior Vice President/ Midwest Division Manager, michael.glass@marcusmillichap.com.
Website: peakconstruction.com
Website: emarquettebank.com
Notable/Recently Completed Projects: 2032 N Clybourn (Adaptive Reuse Apartments), 1436 W Randolph (Adaptive Reuse Hotel), Eli’s Cheesecake (Industrial), 718 Main (Multifamily), 1400 Monroe (Multifamily), 113 E Oak (Retail), Prenuvo (Medical TI), New Buffalo Retreat (Luxury Private Residence), 448 N LaSalle –WeWork (Coworking Office TI)
9525 W. Bryn Mawr Avenue, Suite 810 Rosemont, IL 60018
PEAK CONSTRUCTION CORPORATION
Website: unbelgin.com
P: 847.888.7500 | F: 847.888.2662
525 W. Monroe Street, Ste. 2400 Chicago, IL 60661
Recently Completed Projects include: CV Tek, a relocation and expansion of a 78,000 SF warehouse and office building at 440 South McClean Boulevard South Elgin, IL • Kitamura Machinery, renovation of showroom and training facility at 451 Kingston Court, Mt. Prospect, IL • A new $11 million, 17,730 SF service center, located on nearly 23 acres for Highway Transport, a leader in the safe transport of liquid chemicals.
Website: victorconstruction.com
UNION NATIONAL BANK 101 E. Chicago St. Elgin, IL 60120
Key Contacts: Gregory Warsek, Group Senior Vice President/Senior Regional Manager, greg.warsek@associatedbank.com
Company Profile: Design/Build General Contractor established in 1999 specializing in the design and construction of Build-to-Suit, Speculative, Retail, Food Processing, Expansions/ Additions, Tenant Improvements, & Specialty Facilities. Principle also has extensive experience in interior improvements, site evaluation, due diligence, and value engineering.
SUMMIT DESIGN + BUILD, LLC 1036 W. Fulton Market, Suite 500 Chicago, IL 60607
MERIDIAN DESIGN BUILD
Key Contacts: Adam Miller, President, amiller@summitdb.com; Deanna Pegoraro, Vice President, dpegoraro@summitdb.com; Jon Silvers, Business Development, jsilvers@summitdb.com
2000 Center Dr., Suite East C219
Company Profile: Located in Chicago’s Fulton Market and with regional offices in Tampa, FL, Austin, TX and North Carolina, Summit Design + Build has been involved in the design and construction of over 400 buildings and spaces totaling more than 10 million square feet over the firm’s 17 year history.
Notable/Recent Projects: Owens + Minor Distribution – 600K SqFt distribution facility that involved a full LED lighting upgrade, new HVLS fans, 200K SqFt section that required new cooling for medical distribution, an office renovation of 20K SqFt, and a new exterior employee pavilion.
9550 W. Higgins Road, Suite 400 Rosemont, IL 60018
Key Contacts: Anthony Catanese, Business Development Manager, afcatanese@unbelgin.com; Jill Markowski, Director, jemarkowski@unbelgin.com; Jay Deihs, Sr. VP, jddeihs@unbelgin.com
Key Contacts: Michael P. Sullivan, Jr., CEO & Founder, msullivan@peakconstruction.com; John Reilly, President, jreilly@peakconstruction.com
Notable/Recent Projects: Clarius Park Joliet Building #2, Joliet, IL - 906,517 sf speculative industrial facility for Clarius Partners. Commerce Park Chicago Building B, Chicago, IL - 602,545 sf speculative multi-tenant industrial facility for NorthPoint Development. Halsted Delivery Station, Chicago, IL - 112.000 sf package delivery station on a 17-acre redevelopment site for Prologis.
VICTOR CONSTRUCTION
Services Provided:Loans customized to meet the individualized needs of our borrowers. Servicing investors and small business owners.
Key Contacts: Paul Chuma, President; Howard Green, Executive Vice President
Company Profile: Privately-held, Commercial Bank. 110 years old. Providing Personal service throughout the Chicago Metro area. Known for fast response time and experience in Commercial & Investment Real Estate lending.
Company Profile: Marquette Bank started in Chicagoland in 1945 and is still locally-owned/operated. Expect quick decisions, competitive rates, easy application and personal service. Personal/business banking and lending, home mortgages, land trust services, estate planning, insurance services, wealth management and multifamily lending.
10000 W. 151st Street Orland Park, IL 60462
Website: summitdb.com
Company Profile: Peak Construction Corporation is a privately-held, well-capitalized design/build general contractor. For 25 years Peak has delivered industrial, hospitality, office, healthcare, retail, multi-family and specialty construction projects on-time and on-budget. Notable/Recent Projects: Peak’s recent Midwest projects include Scannell Properties’ DuPage Business Center Phase II in West Chicago, Elgin Distribution Center, and Strongsville Commerce Center in Ohio, NorthPoint Development’s Bristol Building I and Janko Group’s Bristol Business Park, both in Wisconsin, as well as various tenant improvements throughout Chicagoland and Wisconsin.
P: 847.392.6900
Services Provided: Principle specializes in commercial and industrial property and is committed to providing clients with the highest level of design/build construction services with an absolute dedication to each project.
Key Contact: Zak Schuttler, President, ZakS@victorconstruction.com
ASSOCIATED BANK
Website: meridiandb.com
Company Profile: M&T Realty Capital Corporation® is a wholly-owned subsidiary of M&T Bank—one of the 20 largest US-headquartered commercial bank holding companies. Full-service mortgage banking company that provides competitive financing nationwide for commercial real estate. In 2021, M&T Realty Capital originated $5.1 billion in loans, and currently services a portfolio of more than $24.4 billion. Please review our M&T Insurance Agency, Inc. real estate and construction insurance offerings on page 44. Service Territory: Nationwide
Services Provided: Meridian Design Build provides construction and design/ build construction services on a national basis with a primary focus on industrial, office, medical office, retail and food and beverage work. Company Profile: With a team of in-house professional project managers, Meridian has extensive experience coordinating the design and construction of new buildings, tenant improvements, and additions/ renovations from 15,000 square feet to 1,000,000+ square feet. Meridian Design Build has been a Member of the U.S. Green Building Council since 2007.
Key Contacts: Monty Childs, Managing Director, mchilds@mtb.com Services Provided: Multifaceted Affordable Housing Specialists. Debt financing and loan servicing. Fannie Mae DUS® lender, Freddie Mac Optigo® Lender, FHA/HUD Healthcare & Multifamily lender. Correspondent with life companies and CMBS lenders. Bridge loan program for qualified borrowers.
Key Contact: Gene Malfeo, First Vice President, gmalfeo@emarquettebank.com Services Provided: Full line of Commercial, Business and Real Estate loans customized to your individual needs including: commercial and residential construction loans, commercial mortgages, equipment loans and working capital lines of credit.
Website: associatedbank.com/cre
P: 312.544.4645
Services Provided: Peak Construction Corporation offers design/build and construction management services through a strategically developed culture, highly regarded for dynamic problem-solving abilities and a network of alliances that allow Peak to bring in experts and partners from a wide spectrum of fields and roles.
PRINCIPLE CONSTRUCTION CORP. 9450 West Bryn Mawr Ave., Suite 120 Rosemont, IL 60018 P: 847.615.1515 | F: 847.615.1598
Hoffman Estates, IL 60192
Website: centerpoint.com
FOR ADVERTISING OPPORTUNITIES IN THIS SECTION, PLEASE CONTACT SUSAN MICKEY AT SMICKEY@REJOURNALS.COM OR 773.575.9030
Services Provided: Summit Design + Build, LLC is a provider of full service general contracting, construction management and design/ build construction services for the commercial, industrial, multifamily residential, office/tenant interiors, hospitality and institutional markets.
P: 630.737.1500 | F: 630.737.1600
Services Provided:Our clients include professional developers of income producing commercial real estate, including multi-family properties, retail, office, self- storage, student housing, industrial, and for sale housing. Company Profile: Commercial Real Estates offices are located in Chicago, Milwaukee, Madison, Green Bay, Cincinnati, Indianapolis, Minneapolis, Detroit, St. Louis, Dallas and Houston. Associated Banc[1]Corp has total assets of $35 billion and is one of the top 50 financial services holding companies in the United States.
P: 708-364-9131
P: 847.374.9200 | F: 847.374.9222
MARQUETTE BANK
Services Provided:Victor Construction Co., Inc. manages projects from ground-up site developments to interior build-outs, specializing in retail, industrial, and commercial markets. Company Profile: Victor Construction Co., Inc. remains a family-owned and operated General Contractor. Having been in business since 1954, our firm has extensive experience managing every aspect of interior construction for the corporate, manufacturing, industrial, and retail sectors.
Key Contacts: Mark E. Augustyn, COO, maugustyn@pccdb.com James A. Brucato, President, jbrucato@pccdb.com
P: 312.229.4630 | F: 312.229.1147
Key Contacts: Bob Chapman, Chief Executive Officer, bchapman@centerpoint.com; Jim Clewlow, Chief Investments Officer, jclewlow@centerpoint.com Services Provided:CenterPoint Properties is an innovator in the investment, development and management of industrial real estate and multimodal transportation infrastructure. CenterPoint acquires, develops, redevelops, manages, leases and sells state-of-the-art warehouse, distribution and manufacturing facilities near major transportation nodes. Our experts focus on rail and portproximate distribution infrastructure assets.
FINANCE & INVESTMENT FIRMS
Website: mtrcc.com
19SEPTEMBER CHICAGO INDUSTRIAL PROPERTIES
CENTERPOINT PROPERTIES 1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000
Company Profile: CenterPoint Properties continuously reimagines what’s possible by creating ingenious solutions to the most complex industrial property, logistics and supply chain problems. With an agile team, substantial access to capital and industry-leading expertise, we provide our customers with a competitive edge and ensure their success — no matter how great the challenge.
Website: pccdb.com
M&T REALTY CAPITAL CORPORATION Chicago, IL P: 312.203.5410
Service Territory: Chicagoland including NE Illinois collar counties.
unmatched expertise. Whether a ground-up speculative facility, build-to-suit, or tenant buildout, we work with developers and end users to find solutions, save costs and exceed expectations on a massive scale.
Thinkpdbgroup.com Beyond the Build. MIDWEST MARKET
