June July 2022 Illinois Real Estate Journal by RE Journals

MARKETPLACE (pg 9): ASSET/PROPERTY MANAGEMENT FIRMS ECONOMIC DEVELOPMENT CORPORATIONS(EDCS) CONSTRUCTION COMPANIES/GENERAL CONTRACTORS BROKERAGE FIRMS FINANCE & INVESTMENT FIRMS

A remarkable recovery for suburban retail By Mia Goulart, IREJ Staff Writer

Portillo’s opened its first ever pick-up-only, triple drive-thru location in Joliet. Mid-America represented Portillo’s and the landlord in the lease transaction.

Things are brighter in the suburbs. That’s according to Marget Graham, Principal, Lease/Sale at Mid-America Real Estate regarding the current state of Illinois’ retail market. And it’s true. The vacancy rate for non-mall retail was 11% prior to March 2020 and peaked at nearly 15% at year-end 2020. That rate fell to 12.5% by the end of 2021, and experts expect that number to hit below 10% by the end of Q2 2022. In fact, Mid-America is seeing a return to pre-pandemic lease rates across suburban markets, as well as strong sales. In some areas, sales are returning to levels unexperienced since 2017–2018.

A pretty remarkable recovery — and it makes sense. Suburban Chicagoland was allowed to thrive with fewer restrictions on operations during COVID-19, and it affords more opportunity (including more space) for related adjustments like patio seating and drive-thru availability. As for new development, Mid-America is seeing a high volume of new retail, restaurant and entertainment entries. Retailers who survived have emerged ready to invest in existing stores and continue infill and repositioning. Established grocers thrived during COVID, but entries like Amazon Fresh have, too, fueled a number of new developRETAIL (continued on page 6)

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Healthcare Real Estate Mid-Year Outlook: Opportunities for Developers, Investors, Retail and Office Brokers

Patient convenience, cost-effective delivery of care, employee retention drive increase in new outpatient centers in busy retail-office corridors.

By Curt Pascoe, Ryan Companies US, Inc.

riven by advancing technology, increasing competition and pricing pressure, healthcare delivery is rapidly evolving to become more consumer-centric, moving off the hospital campus to an ambulatory setting. With this in mind, there is great opportunity for real estate developers to partner with healthcare providers to deliver facilities that align with these ongoing changes in medical care delivery. In short, the healthcare real estate landscape is being reconstructed to: HEALTHCARE (continued on page 7)

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A REMARKABLE RECOVERY FOR SUBURBAN RETAIL Mid-America is

seeing a return to pre-pandemic lease rates across suburban markets, as well as strong sales. In some areas, sales are returning to levels unexperienced since 2017–2018.

CRE ACTIVITY CONTINUES TO GROW, AS DOES DEMAND FOR COMMERCIAL FINANCING As activity in the industry continues to rise, commercial lenders are seeing more requests for construction loans, acquisition loans and refinances.

HEALTHCARE REAL ESTATE MID-YEAR OUTLOOK: Patient convenience, cost-effective delivery of care, employee retention drive increase in new outpatient centers in busy retail-office corridors.

SELF STORAGE CONTINUES TO STABILIZE AFTER PANDEMIC-INDUCED SURGE The

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industry is considered by experts a solid investment, and one that retains its value, even when faced with economic variability.

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CRE activity continues to grow, as does demand for commercial financing By Mia Goulart, IREJ Staff Writer

VICE PRESIDENT OF SALES Frank E. Biondo frank.biondo@rejournals.com VICE PRESIDENT OF SALES Marianne Grierson mgrierson@rejournals.com CLASSIFIED DIRECTOR Susan Mickey smickey@rejournals.com SUPPORT SPECIALIST, MEDIA & EVENTS Hayley Myers hayley.myers@rejournals.com

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s activity in the commercial real estate industry continues to rise, commercial lenders are seeing more requests for construction loans, acquisition loans and refinances. But what kind of properties are developers and investors most interested in? Why are investors so interested in commercial real estate? And what do commercial lenders consider when deciding whether to approve a financing request? Illinois Real Estate Journal spoke with Dan Charleston, Vice President at Colliers Mortgage, and Patrick Tuohy, Senior Vice President at Marquette Bank, to find out. Are you still seeing a steady stream of financing requests for commercial financing? If so, are you seeing mostly acquisition or development requests? Charleston: Colliers Mortgage is primarily active in the multifamily business, including Agency lending and community bank lending platforms. Quoting activity is still robust despite higher interest rates, but deals are getting harder to underwrite. We have been seeing both acquisition and development requests, as well as refinancing requests. On the acquisition business, loans are more commonly constrained

Dan Charleston

Patrick Tuohy

these days by DSCR (Debt Service Coverage Ration) metrics rather than LTV/ LTC forcing borrowers to bring more equity to a transaction. With interest rates having moved from the mid to high 3% range to the high 4% and low 5% range on stabilized apartment assets, the math just gets harder on acquisitions. And on development loans, there is a fair amount of uncertainty about construction costs. On refinancing activity, owners who are

interested in keeping their assets longer term are finding attractive loan proceeds based on values today. Tuohy: We are still seeing a steady stream of acquisition transactions in multifamily as well as the other asset classes. New development in multifamily has slowed down due to construction costs but there are still a number of new multifamily properties under construction and just

J U N E / J U LY 2 0 2 2 I L L I N O I S R E A L E S TAT E J O U R NA L breaking ground. Current inflation cost to replace and add new apartment stock has made “quality affordable housing” in the class “B” and “C” very attractive for owners/operators and investors for both local and out of state operators and investors. Chicago has been on the radar screen for some time for out of state investors and continues to be a value play compared to the East and West Coast including Florida and Texas. For which commercial sectors are you seeing the most financing requests? Why are those sectors so hot right now? Charleston: We are particularly active in the Affordable Housing, Market Rate housing, Seniors Housing and Manufactured Housing spaces right now. All of the most active multifamily spaces are seeing especially strong rental growth and investor demand due to their ongoing strength and performance both pre and post pandemic. Agency lenders such as ourselves are also seeing a lot of activity around Affordable housing efforts in all markets nationwide. Our clients are actively seeking acquisition and development activities given the strength of housing markets and the demand for both affordable and market rate housing. Tuohy: Over the past year a significant increase in the number of owner/operators and investors have opted to retire/ sell and trade into class “A” and class “B” single tenant triple net 1031 exchange investments. Depending on the submarket and tenant mix, e-commerce and changing work/life demands continue to put pressure on retail strip centers and office properties resulting in accelerated vacancy making underwriting these properties a challenge. For exchange buyers, triple net class “A” and “B” retail single tenant is very strong with available product limited. This has compressed CAP rates in the low to 5% range. What are investors so interested in investing in commercial real estate? What makes it such a safe investment type? Charleston: Investments in the multifamily space create both current cash flow and value-added growth opportunities for investors as owners/sponsors, and for investors in mortgages, overall returns have been outstanding with significantly less volatility and risk than other asset classes in the current market environment. In light of what’s happening in the stock and bond markets today, the more predictable nature of real estate returns, especially in multifamily assets, is becoming even more attractive. Much of that has to do with the reality that the US needs millions of additional housing units to meet both current and future demand. Well managed assets can create excellent returns in those types of conditions. Tuohy: Over the past year the number of multifamily buyers far exceeds the available product in both Chicago and

suburban submarkets. This has resulted in multiple offers on any single opportunity pushing values to a record high. I continue to see a decline in the number of listings over the past year which has made this market highly competitive and difficult for the smaller operators to compete and purchase. We continue to see an increase in the amount of out of state buyers which have moved from larger properties and are now competing for smaller properties using local management firms such as Peak Properties and Cagan Management to operate. Depending on the submarket, astute owner/operators and investors are looking at rental rates running from 5% to 20% above

5 current market rates giving the proforma opportunity justification to pay the current asking prices. There is an increased demand in the multifamily market for rental units that have been upgraded with new finishes and amenities in the class “B” and “C” submarkets. Higher rental rates justify improvements to existing rental stock. Single tenant credit-based investments in the industrial submarkets have been red hot for the past two years and continues to be so. What factors do you look at when considering financing requests? Charleston: We are very focused on the strength of our sponsorship/borrowers,

their experience in the market and asset class they’re looking to finance, and the quality of the project they’re proposing, both in terms of location and overall management strategy. The saying in real estate is often “location, location, location”, and that much is true. But in larger scale commercial real estate investment, that should always be paired with “sponsorship, experience and strategy”. Tuohy: Factors we look at include location and submarket strength, income and expense operating history, upside potential, exterior and interior asset condition, and operator experience and history.

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6 RETAIL (continued from page 1)

ments and redevelopments. But grocery is just category of several that are, at last, blooming again. Entertainment, for example, has resurged at an unexpectedly fast pace. “There have been several new entries to the market,” Graham said, “along with very strong restaurant activity for both full-service and QSR concepts, as well as fitness uses. We’ve also seen significant expansion among home furnishings, that performed very well during COVID-19, and within the sporting goods, apparel and beauty categories.” It’s safe to say there’s growth across the board, but there are a few trends that stand out above the rest, and they’re all to do with the category that arguably suffered the biggest blow. That is, the traditional shopping mall. Mall retailers are having to reinvent the wheel, and Graham said many retailers are engaging in mall relocation, furthering the pre-pandemic trend of reinventing existing malls or de-malling weaker malls for eventual repurpose. “Essential businesses within malls that would have otherwise been permitted to operate during COVID-19 were not able to do so,” Graham explained. “Those tenants are rethinking their strategy going forward and looking for open air opportunities.” Optical is just one example. The business would not have been subject to limitations, but customers were unable to access in-mall storefronts. Tenants are more aware of open-air opportunities, and they’re seeking to open stores outside malls, close mall stores, or both. Furthermore, Mid-America is seeing increased ingenuity in terms of retailers strengthening their omnichannel platforms, and creativity has been accelerated in terms of how retailers serve their customers. There are several new development and redevelopment projects that are welltimed with current demand and more limited existing vacancy. Mid-America is also seeing a return to favor for retail for investors including several new-to-market owners with exciting redevelopment plans. But it hasn’t been smooth sailing. Various headwinds continue to pose a threat to the market’s steady recovery, despite its current high. Rising construction costs and supply chain delays have challenged landlords and tenants and continue to impact and delay tenant openings. These issues aren’t new, but they are worsening. Without near-term stabilization, Mid-America

Marget Graham

Sean Sharko

Austin Weisenbeck

“We’ve also seen significant expansion among home furnishings, that performed very well during COVID-19, and within the sporting goods, apparel and beauty categories.”

expects a pause in the current level of deal activity because of delays in the build-out of spaces. And Downtown Chicago is experiencing no different. Rising interest rates are causing an ever so slight pause in investment/ sales velocity, as confirmed by Austin Weisenbeck and Sean Sharko, Senior Vice Presidents of Investments at Marcus & Millichap. “Much of the transition is related to a disconnect between a portion of the buyer pool,” Weisenbeck and Sharko explained.

The Cooper’s Hawk restaurant group partnered with chef Luca Issa from Rome to open Piccolo Buco, a new restaurant at Oakbrook Center Mall. Mid-America and CBRE facilitated the lease agreement on behalf of Cooper’s Hawk.

“When rates rise like they have, a portion of the buyer pool expects an immediate adjustment in pricing or moves to the sidelines. But prices don’t adjust that quickly. The average escrow is about 75–90 days, and it takes time for comps and data to hit the open market to reflect a change in overall pricing.” It’s still a product constrained market, as there are still more buyers than sellers, with not a lot of quality inventory. Experts have not seen the price adjust yet, but it’s only a matter of time. More inventory is

coming online, and interest rates continue to trend higher. All things considered, though, Downtown Chicago is recovering at its own pace. Operations continue to do well, and tenants are recovering with fewer roadblocks. Tourism is also bouncing back, as is housing, and rents are stabilized. It’s a healthy market overall, with an abundance of capital chasing few opportunities, according to Marcus & Millichap.

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7 receive urgent care, behavioral health counseling, physical therapy, laboratory services and diagnostic imaging.

HEALTHCARE (continued from page 1)

Site selection, development in ideal locations

• improve patient accessibility and convenience by adding clinics and ambulatory surgery centers in neighborhood locations,

Finding large land parcels and building a new facility in an established community can present challenges. However, with some creativity, developers can find the perfect location for healthcare systems close to their customers.

• lower the cost of healthcare by increasing outpatient surgeries and procedures at ambulatory surgery centers, and • attract employees by creating amenity-rich modern spaces in easily accessible locations. Convenient locations for patients and employees Consumer preference for a convenient healthcare experience had large healthcare systems moving toward a “hub-andspoke” model of care over the past few decades. Under this model, the hospital campus serves as a hub while clinics and ambulatory surgery centers (ASCs) serve as spokes and are developed in locations near patients’ homes. Over the past few years, the pandemic accelerated the need to increase the number of “spokes” for healthcare providers as a large percentage of the population suddenly began working from home and placing an even higher value on convenience. In addition, outpatient centers helped patients feel more comfortable about seeking medical care at smaller facilities as hospitals and emergency rooms were perceived to have a higher risk of exposure to COVID-19. Selecting sites close to retail increases visibility for the provider while adding convenience for patients. Proximity to a fitness center, daycare or grocer integrates the site of care into a customer’s typical travel pattern, encouraging proactive and preventive care. The momentum in healthcare real estate development is resulting in creating new outpatient space within busy, visible retail-office corridors to bring healthcare closer to patients at lower costs. However, adaptive reuse of buildings in highly developed areas also offer possibilities for healthcare providers. The Chicago area has seen several vacant grocery and other “big box” retail locations converted into medical space in the past three years.

MRI scans and other diagnostic testing are increasingly part of new outpatient centers. Meeting demand for increased consumer convenience, Ryan Companies recently completed this 36,000-square-foot Edward-Elmhurst Health Center at the intersection of two busy roads in Woodridge, Illinois.

Properties formerly slated for retail use can also be ideal for outpatient clinics. For instance, Ryan developed the Edward-Elmhurst Health Center on a lot originally zoned for a corner retail store. Opportunities in healthcare real estate

Ryan Companies combined two former residential parcels, secured zoning changes and obtained multiple easements in Mequon, Wisconsin, a suburb of Milwaukee, to make way for the Froedtert & the Medical College of Wisconsin Community Hospital, a 17,000-square-foot micro-hospital that opened earlier this year.

“Selecting sites close to retail increases visibility for the provider while

Outpatient care facilities to meet demand for lower costs Locating clinics in communities encourages residents to see their doctor more regularly, making it a more convenient, routine part of life. Insurance companies have also shifted their reimbursements to encourage preventive health care and outpatient services to reduce long-term costs. Edward-Elmhurst Health, one of Illinois’ larger integrated health systems, has been adding clinics to meet these needs.

For example, Ryan recently combined two former residential parcels, secured zoning changes and obtained multiple easements in Mequon, Wisconsin, a suburb of Milwaukee, to make way for the Froedtert & the Medical College of Wisconsin Community Hospital, a 17,000-square-foot micro-hospital with eight in-patient beds and seven emergency room beds that opened earlier this year.

adding convenience for patients.” Curt Pascoe

Ryan is the developer, builder, property manager and owner of Edward-Elmhurst Health Center, which recently opened at the southwest corner of Route 53

and 75th Street in Woodridge. At the two-story, 36,100-square-foot health center, residents can see primary care physicians and specialists as well as

Many other factors are driving the development of outpatient facilities as well. The 65-plus population in Illinois is projected to increase 17% by 2030, according to the U.S. Census Bureau. The number of outpatient surgeries continues to rise thanks to advances in surgical techniques, anesthesia and pain management. Same-day surgeries performed at ASCs cost less and have a lower infection rate than having surgery in a hospital, while offering easier parking and access to the facility. As a result, Medicare, Medicaid and insurance companies are eliminating their inpatient-only procedures list and expanding the number of procedures that can be provided at ASCs. Patient growth at ASCs is expected to grow by 25% by 2029, according to Vizient, Inc., a healthcare performance improvement company. For all these reasons, Ryan is aggressively pursuing deals for healthcare real estate development. It is an attractive, stable segment of commercial real estate, and we look forward to continuing to help make the healthcare experience more modern, holistic and wellness-oriented. Curt Pascoe is director of real estate development for Ryan Companies US, Inc., providing solutions for healthcare systems and provider groups in Wisconsin, Illinois, Michigan, Indiana and Ohio. He advises clients in site selection and acquisitions, permits and approvals, and design and financing.

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Self storage continues to stabilize after pandemic-induced surge By Mia Goulart, IREJ Staff Writer

elf storage has long exemplified its resilience, and right now is no different. The industry is considered by experts a solid investment, and one that retains its value, even when faced with economic variability. The industry is doing better than ever. But like the rest of the industrial market, there aren’t enough existing facilities in Illinois to satisfy the steadily increasing demand, though with the number of projects under construction in both in and outside of larger metros like Chicago, the imbalance should be remedied soon. What makes it so highly demanded? It comes down to a few things, according to Steven Weinstock, First Vice President / Regional Manager / National Director, Self-Storage Division and Land and Redevelopment Division at Marcus & Millichap. It is first important to separate self storage facilities into two categories: non climate

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controlled and climate controlled. Non climate controlled are traditional, single-story buildings, only separated from outside by the units’ garage-like doors. Climate controlled facilities, by opposition, are enclosed and preferable in that users don’t

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have to worry about goods being ruined from exposure to excessive heat or rain fluctuations. Individuals are the primary users of self storage, utilizing space to not only preserve items they don’t use, but to store seasonal items, like kayaks and skis, that must remain accessible without occupying space in the home. In settings where living space is extra tight (Chicago, for example) people also utilize a climate-controlled space as an extended closet, swapping out clothing every few months. Businesses, like Amazon and FedEx, also rent space as general extended storage, as well as storage for inventory on a case-bycase basis. Because storage units are rented on a month-to-month basis, rents can be adjusted quickly, as is the case with hotels and multifamily buildings — just one of the reasons for their gradual, but steady recovery. And users? Weinstock said they prefer the comparatively low monthly price to the costly alternative of renting a bigger home, especially in today’s inflationary market.

Steven Weinstock

“The pandemic changed the nature of self storage. More people are seeing it as a favorable alternative and the new technology makes it easy to use.”

“The ongoing increases in the cost of housing makes the decision to externally store an easier one,” Weinstock said. “Most users would rather pay $60 per month for a 5x10 unit, as opposed to $250 per square foot for additional space in a condo or apartment. The choice can be rationalized from both a financial perspective and one of convenience, with the number of facilities both urban and suburban.”

Self storage continues to display its resiliency throughout uncertain times and it has proven somewhat recession proof given today’s market rates. Despite the low supply caused by the pause in development the last few years, developers have hit the ground running and there are many facilities scheduled for and currently being constructed throughout Illinois and the rest of the U.S., though this will impact prices.

Self storage has also advanced in terms of technology, and most newly constructed facilities include perks like online signup, contactless/keyless entry and advanced security.

“The pandemic changed the nature of self storage,” Weinstock explained. “More people are seeing it as a favorable alternative and the new technology makes it easy to use.”

JUNE/JULY MARKETPLACE AS SE T / P ROP E RT Y M A NAG E M E N T F I R M S

CENTERPOINT PROPERTIES

1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000 Website: centerpoint.com Key Contacts: Bob Chapman, Chief Executive Officer; bchapman@centerpoint.com; Nate Rexroth, Executive Vice President, Asset Management; nrexroth@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. 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.

FRIEDMAN REAL ESTATE

34975 W. Twelve Mile Road Farmington Hills, MI 48331 P: 888.848.1671 Website: friedmanrealestate.com Key Contacts: David B. Friedman, President/CEO; Gary Goodman, Sr. Managing Director-Brokerage Services Services Provided:Friedman offers a full range of real estate services including commercial and multifamily property and asset management, tenant and landlord representation, investment and loan sale advisory, space planning, design and construction and a unique platform of lenderfocused bankruptcy, receivership and distressed asset services. All services are provided inhouse, though a single point of contact, which guarantees that clients receive the most timely and efficient service available in the marketplace. Company Profile: Founded in 1987, Friedman Real Estate is one of the largest privately held commercial real estate organizations in the nation; currently managing over 15M SF of commercial space and more than 15,000 apartment homes located throughout the country. Friedman’s commercial brokerage team has over 800 current listings with $20 billion in closed transactions. Notable Transactions/Clients: • Hovis Light Industry Park – Dekalb • Poplar Creek Office Plaza – Hoffman Estates • 801 North Route 83 – Bensenville • Crystal lake Office – Crystal Lake • Broadway Village – Pekin • National Railway Equipment – Dixmoor • Daycare Building – Bolingbrook • Freeport Shopko – Freeport

LAKE COUNTY, INDIANA ECONOMIC ALLIANCE (LCEA)

440 W. 84th Drive Merrillville, IN 46410 P: 219.756.4317 Website: LCEA.us Key Contacts: Karen Lauerman, President & CEO, klauerman@LCEA.us; Don Koliboski, VP Economic Development, dkoliboski@LCEA.us Services Provided:The LCEA team provides economic development and site selection assistance; business expansion services; community connections with decision makers/elected officials; workforce analysis, demographics, cost comparisons and other critical information. Company Profile: LCEA is the Lake County Indiana Economic Development Organization representing 20+ communities just minutes away from Chicago. It is the one resource for developers, site consultants and company executives considering relocation or expansion opportunities in Lake County, Indiana.

MICHIGAN CITY ECONOMIC DEVELOPMENT CORPORATION

Two Cadence Park Plaza Michigan City, IN 46360 P: 219.873.1211 Website: www.edcmc.com Key Contacts: Clarence Hulse, Executive Director, chulse@edcmc.com Services/Demographic Info: Michigan City has recognized $1.5 Billion in capital investment over the last 8 years, with more deals - $300 Million Multi-family projects on the horizon. We are located on Lake Michigan with easy access to I-94, I-80 and we are 1 hour drive East of Chicago. Michigan City is home to 32,000 residents with 5.6 Million visitors annually. Incentives: Waterfront Opportunity Zone, 3 TIF Districts, Facade Improvement Program, Tax based Incentives, Start Up Assistance, and Workforce Training Funds. Recent CRE Activity: Double Track project ($500 Millions), Michigan City Central Station ($80 Millions), Workforce Apartments 125 units, Waterfront Condominiums 150 Units/Boutique hotel 180 units, 32 Single Family Homes, Shady Creek Winery Expansion - 9,000 SF ($3 Millions), Sullair Hitachi Expansion – 80,000 SF ($33 Millions), Shell-Criterion Expansion ($34 Millions), GAF Expansion – 200,000 SF ($30 Millions), Burn ‘Em Brewing Expansion - ($1.6 Millions), and 30 Independent Restaurants in our Downtown.

NAPERVILLE DEVELOPMENT PARTNERSHIP

22 E. Chicago Ave., Ste. 205 Naperville, IL 60540 P: 630.305.7701 Website: www.Naper.org Key Contact: Christine D. Jeffries, President, CJeffries@Naper.org Services Provided:The Naperville Development Partnership promotes the City of Naperville and its many businesses. Whether you are an existing business looking to relocate or a new company, we will take the time to show you what Naperville has to offer. Company Profile: The Naperville Development Partnership is a public / private economic development organization that promotes business interest in the City of Naperville. Our mission is to enhance the economic vitality of Naperville and maintain its outstanding quality of life. This is achieved through the retention and expansion of existing businesses as well as attracting new business to the community.

E C ONOM IC DE V E L OP M E N T C OR P OR AT ION S ( E D C S ) WILL COUNTY CENTER FOR ECONOMIC DEVELOPMENT

ECONOMIC ALLIANCE OF KANKAKEE COUNTY

200 E. Court St., Suite 507 Kankakee, IL 60901 P1: 815.935.1177 | P2: 815.355.4159 Website: kankakeecountyed.org OF KANKAKEE COUNTY Key Contacts: Timothy Nugent, President/CEO, tnugent@kankakeecountyed.org; Angela Morrey, Director, Marketing & Business Attraction, amorrey@kankakeecountyed.org Services/Demographic Info: The Economic Alliance of Kankakee County is a 501c6 public/ private partnership tasked with retaining industry within and recruiting industry to the Greater Chicago community of Kankakee County, Illinois. The Alliance leverages a number of business intelligence tools, providing current property availability, market data and other information on demand. Incentives: Based on location, projects may be able to take advantage of one or more of the following: Enterprise Zone, New Markets Tax Credits, Historic Tax Credits, Opportunity Zone financing, Tax Increment Financing, C-PACE financing and Special Service Area/Business District incentives. Recent CRE Activity: Multiple county-wide investments in 2021 including CSL Behring’s $83+ million, Rise Baking’s $34 million and Nucor Steel’s $8 million; 23 major investment projects and 350+ NEW jobs created. $1.6 billion in CRE investment activity in five years, Riverfront & Court Street TIF districts in Kankakee.

ECONOMIC ALLIANCE

203 N. Ottawa Street, Suite 100 Joliet, IL 60432 P: 815.723.1800 Website: WillCountyCED.com Key Contact: Doug Pryor, President/CEO, doug.pryor@willcountyced.com Services/Demographic Info: Since 1981 the CED has been a strategic partner for businesses looking to expand or relocate into Will County. The CED serves as the primary point of contact regarding available sites and buildings, economic data and research, project & program eligibility and analysis, and guidance and coordination with federal, state and local officials. Incentives: Guidance on Enterprise Zones, Will County Tax Abatement Program, Tax Increment Finance Districts, Opportunity Zones, Training Assistance and Energy Efficiency Programs. Recent CRE Activity: The Will County CED assisted in over 100 development projects in 2021 in a broad range of industries including automotive supply, food production, industrial control systems, chemical manufacturing, energy, entertainment, medical, pharmaceutical, lodging, distribution/TWL and durable goods manufacturing.

JUNE/JULY MARKETPLACE

C ON ST RU C T ION C OM PA N I E S / G E N E R A L C ON T R AC TOR S

ALSTON CONSTRUCTION COMPANY

1900 Butterfield Road, Suite 1020 Downers Grove, IL 60515 P: 630.437.5810 Website: alstonco.com Key Contact: Greg Kolinski, Director of Business Development, gkolinski@alstonco.com 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. 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.

KEELEY CONSTRUCTION

245 E Sidney Court Villa Park, IL 60181 P: 630.833.8600 | F: 630.833.9595 Website: keeley.com Key Contacts: Bill Keeley, President, bill@keeley.com Sean Keeley, Managing Director, sean@keeley.com Services Provided:Pre-construction, General Contracting, Renovation Services, Green Building, Design Build, and Construction Management Company Profile: As a design/build general contractor, Keeley Construction specializes in all types of new building construction including commercial, industrial, and cold storage/food service facilities as well as redevelopment and all aspects of renovation and tenant improvements of existing structures. Notable/Recently Completed Projects: Fountain Crossing 250k SF Spec – Hoffman Estates, IL; Tangent Technologies – Montgomery, IL – 925,000 SF Redevelopment of former Caterpillar Plant; Pure’s Food Bakehouse #3 – Bedford Park, IL – 65k SF of Institutional Bakery.

LAMP INCORPORATED

460 North Grove Ave. Elgin, IL 60120 P: 847.741.7220 | F: 847.741.9677 Website: lampinc.net Key Contact: Ian Lamp, President, ilamp@lampinc.net Services Provided:Design/Build, General Construction, and Construction Management services for additions, build outs, renovations, and new facilities for office, industrial, logistic, technology, and commercial buildings. Company Profile: Lamp Incorporated has been providing professional construction services for over 80 years. Our commitment of exemplary service to our clients creates projects that are completed early and with exceptional value. 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.

MCSHANE CONSTRUCTION COMPANY

9500 West Bryn Mawr Avenue Ste. 200 Rosemont, IL 60018 P: 847.292.4300 | F: 847.292.4310 Website: www.mcshaneconstruction.com Key Contacts: Mat Dougherty, PE, President, mdougherty@mcshane.com 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. 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. 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.

MERIDIAN DESIGN BUILD

9550 W. Higgins Road, Suite 400 Rosemont, IL 60018 P: 847.374.9200 | F: 847.374.9222 Website: meridiandb.com Key Contacts: Paul Chuma, President; Howard Green, Executive Vice President 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. 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.

PEAK CONSTRUCTION CORPORATION

9525 W. Bryn Mawr Avenue, Suite 810 Rosemont, IL 60018 P: 630.737.1500 | F: 630.737.1600 Website: peakconstruction.com Key Contacts: Michael P. Sullivan, Jr., CEO & Founder, msullivan@peakconstruction.com; John Reilly, President, jreilly@peakconstruction.com 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. 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.

SUMMIT DESIGN + BUILD, LLC

1036 W. Fulton Market, Suite 500 Chicago, IL 60607 P: 312.229.4630 | F: 312.229.1147 Website: summitdb.com Key Contacts: Adam Miller, President, amiller@summitdb.com; Deanna Pegoraro, Vice President, dpegoraro@summitdb.com; Larry Blouin, Vice President, lblouin@summitdb.com; Jon Silvers, Business Development, jsilvers@summitdb.com 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. Company Profile: Located in Chicago’s Fulton Market and with regional offices in Tampa, FL and Austin, TX, Summit Design + Build has been involved in the design and construction of over 330 buildings and spaces totaling more than 7 million square feet over the firm’s 17 year history. Notable/Recently Completed Projects: 1400 W Monroe (Luxury Multifamily Residential), 113 E Oak (Ground-up Retail), Open Kitchens (Industrial), Glen Oak Country Club (Recreational), 448 N LaSalle – WeWork (Co-working office), Elmhurst Hall (Restaurant) and La Galera Produce (Industrial), New Buffalo Retreat (Luxury Residence), Eli’s Cheesecake (Industrial) and 718 Main (Multifamily)

VICTOR CONSTRUCTION

2000 W ATT Center Dr., Suite East C219 Hoffman Estates, IL 60192 P: 847.392.6900 Website: victorconstruction.com Key Contact: Zak Schuttler, President, ZakS@victorconstruction.com 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. Notable/Recent Projects: Peppa Pig World of Play - 15k SF Childrens’ amusement center inside Woodfield Mall (former Rainforest Cafe space).

JUNE/JULY MARKETPLACE B ROK E R AG E F I R M S

CATON COMMERCIAL REAL ESTATE GROUP

1296 Rickert Dr., Suite 200 Naperville, IL 60540 P: 815.436.5700 | F: 331.333.1155 Website: CatonCommercial.com Key Contact: Amy J. Hall, CRRP, CRX, CLS, SLD, Chief Operating Officer, Amy@CatonCommercial.com Services Provided:The professional teams of commercial real estate brokers and property managers at Caton Commercial Real Estate and Caton Property Management represent the interests of landlords, tenants, investors and property owners on a local, national and global level. We provide Seller/Landlord Representation, Buyer/Tenant Representation, Investment Sales/ Acquisitions, Property Management and Consulting services. Company Profile: Caton Commercial is a family-founded regional commercial real estate firm established in 1984. With offices in Naperville, Aurora and Chicago, IL, Caton is strategically located in the Midwest’s largest and strongest commercial real estate market. Our team of experts provide trusted advisory and intelligent solutions that drive wealth creation for our clients through third party brokerage transactions and value creation through skilled property management services. Notable Transactions/Clients: Quarters Coliving, 171 N Aberdeen St, Chicago; Amy Morton’s Stolp Island Social, 5 E Galena Blvd, Aurora.

FRIEDMAN REAL ESTATE

34975 W. Twelve Mile Road Farmington Hills, MI 48331 P: 888.848.1671 Website: friedmanrealestate.com Key Contacts: David B. Friedman, President/CEO; Gary Goodman, Sr. Managing Director-Brokerage Services Services Provided:Friedman offers a full range of real estate services including commercial and multifamily property and asset management, tenant and landlord representation, investment and loan sale advisory, space planning, design and construction and a unique platform of lender focused bankruptcy, receivership and distressed asset services. All services are provided inhouse, though a single point of contact, which guarantees that clients receive the most timely and efficient service available in the marketplace. Company Profile: Founded in 1987, Friedman Real Estate is one of the largest privately held commercial real estate organizations in the nation; currently managing over 15M SF of commercial space and more than 15,000 apartment homes located throughout the country. Friedman’s commercial brokerage team has over 800 current listings with $20 billion in closed transactions. Notable Transactions/Clients: • Hovis Light Industry Park – Dekalb • Poplar Creek Office Plaza – Hoffman Estates • 801 North Route 83 – Bensenville • Crystal lake Office – Crystal Lake • Broadway Village – Pekin • National Railway Equipment – Dixmoor • Daycare Building – Bolingbrook • Freeport Shopko – Freeport

NAI HIFFMAN

One Oakbrook Terrace, Suite 400 Oakbrook Terrace, IL 60181 P: 630.932.1234 | F: 630.932.7258 Website: hiffman.com Key Contacts: Dave Petersen, CEO, dpetersen@hiffman.com; Michael Flynn, COO, mflynn@hiffman.com 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.

FOR ADVERTISING OPPORTUNITIES IN THIS SECTION, PLEASE CONTACT SUSAN MICKEY AT SMICKEY@REJOURNALS.COM OR 773.575.9030

PW COMMERCIAL REAL ESTATE

8725 W. Higgins Road, Ste. 800 Chicago, IL 60631 P: 773.714.9300 | F: 773.714.8253 Website: painewetzel.com Key Contacts: Jerry Sullivan, Principal, sullivan@painewetzel.com; Ed Wabick, Principal, ewabick@painewetzel.com Services Provided:Real Estate Strategy with dependable results in Brokerage, Consulting, TenantAdvisory, Corporate Services, Property Management, Development, Strategic Planning, Research and Construction Management. Company Profile: PW has been a leader in industrial, office and investment real estate since 1975. We pride ourselves on offering unparalleled brokerage services and superior market expertise to attain your real estate and business goals.

F I NA NC E & I N V E ST M E N T F I R M S

ASSOCIATED BANK

525 W. Monroe Street, Ste. 2400 Chicago, IL 60661 P: 312.544.4645 Website: associatedbank.com/cre Key Contacts: Gregory Warsek, Group Senior Vice President/Senior Regional Manager, greg.warsek@associatedbank.com 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.

CENTERPOINT PROPERTIES

1808 Swift Drive Oak Brook, IL 60523 P: 630.586.8000 Website: centerpoint.com 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. 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.

MARQUETTE BANK

10000 W. 151st Street Orland Park, IL 60462 P: 708-364-9135 Website: emarquettebank.com Key Contact: Mark Wojack, First Vice President, mwojack@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. 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.

UNION NATIONAL BANK

101 E. Chicago St. Elgin, IL 60120 P: 847.888.7500 | F: 847.888.2662 Website: unbelgin.com Key Contacts: Anthony Catanese, Business Development Manager, afcatanese@unbelgin.com; Jill Markowski, Director, jemarkowski@unbelgin.com; Jay Deihs, Sr. VP, jddeihs@unbelgin.com Services Provided:Loans customized to meet the individualized needs of our borrowers. Servicing investors and small business owners. 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. Service Territory: Chicagoland including NE Illinois collar counties