September/October Illinois Real Estate Journal by RE Journals

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TAX INCENTIVES ASSET/PROPERTY MANAGEMENT FIRMS CONSTRUCTION COMPANIES/ GENERAL CONTRACTORS FINANCE & INVESTMENT FIRMS LAW FIRMS/RE ATTORNEYS

Chicago law firm office leasing remains one bright spot in downtown pandemic woes By AJ LaTrace, Managing Editor

The skyline view from the Nixon Peabody office. Steve Hall, Hall + Merrick Photographers.

hese last two years have undoubtedly been tough for commercial real estate investors and professionals whose business focuses primarily on office space. The ongoing pandemic has not only added more time to the clock and delayed countless businesses’ plans to return to the office, but it’s also changed the perspective of many employees and job seekers who now see a workfrom-home or hybrid model as a necessity going forward.

However, one industry that has been a shining light in the eyes of office brokers and landlords throughout the pandemic is big legal. Large and small law firms alike have posted big numbers in the last 12 months as corporate transactions and deal-making continued at a blistering pace during the momentous Wall Street bull run last year.

Pullman National Monument visitor center is ‘just the start’ to site development and investment By AJ LaTrace, Managing Editor

LAW FIRMS (continued on page 8)

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fter standing idle over the Pullman community for decades, the former Pullman Company’s Clock Tower & Administration Building is ready to begin its new life and career as the visitor center for the Pullman National Monument. The overhauled and reimagined building opened to the public during Labor Day weekend. The ongoing preservation, and plans for the renovation of the historic building, became increasingly crucial after the late ‘90s when it was severely damaged by a fire. However, a proclamation by President Obama in 2015 paved the way to NaPULLMAN (continued on page 12)

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S E P T E M B E R / O C T O B E R 2 0 2 1 I L L I N O I S R E A L E S TAT E J O U R NA L

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ILLINOIS REAL ESTATE JOURNAL

PULLMAN NATIONAL MONUMENT VISITOR CENTER IS ‘JUST THE START’ TO SITE DEVELOPMENT AND INVESTMENT

After standing idle over the Pullman community for decades, the former Pullman Company’s Clock Tower & Administration Building is ready to begin its new life and career as the visitor center for the Pullman National Monument.

JONATHAN F.P. ROSE DISCUSSES THE ONGOING NEED FOR AFFORDABLE HOUSING, HOW TO CREATE MORE OF IT, AND SAVING WHAT’S LEFT

Last month, affordable housing developer Jonathan F.P. Rose of Jonathan Rose Companies was awarded the ULI Prize for Visionaries in Urban Development by the Urban Land Institute

CHICAGO LAW FIRM OFFICE LEASING REMAINS ONE BRIGHT SPOT IN DOWNTOWN PANDEMIC WOES The industry that has been a shining light in the eyes of office brokers and landlords throughout the pandemic is big legal.

BIG SUBURBAN OFFICE CAMPUS 10 ANOTHER IS BEING UNLOADED. NOW WHAT? The pandemic-induced changes to the economy leading to a larger evolution that is seeing the concept of remote work becoming permanent.

OF SUBURBAN OFFICE 14 STATE CONFERENCE PANELS HIGHLIGHT FLEXIBILITY, FLIGHT TO QUALITY, AND GOOD DESIGN

Abrupt shifts in trends or volatility in the marketplace can often times present unique opportunities. Such is the case in the suburban office market.

16 MARKETPLACE The Illinois Real Estate Journal (ISSN 08932255) is published bimonthly for $59 per year by Real Estate Publishing Corporation, 1010 Lake St. #210 Oak Park, IL 60301. Periodicals postage paid at Chicago, IL. POSTMASTER: Send address changes to Illinois Real Estate Journal, 1010 Lake St. #210 Oak Park, IL 60301. Single copies $7.00. Back issues $7.00. Subscriptions are non-refundable. Phone: 312-933-8559. © 2021 Real Estate Publishing Corporation. No part of this publication may be reproduced without the written permission of the publisher.

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F ROMT H EE DI TOR “Sterling Bay hosted its official PUBLISHER Mark Menzies menzies@rejournals.com

groundbreaking at Lincoln Yards.

MANAGING EDITOR AJ LaTrace alatrace@rejournals.com

The project will take years to

VICE PRESIDENT OF SALES & MW CONFERENCE SERIES MANAGER Ernie Abood eabood@rejournals.com

complete, and it’s not the only mega-

VICE PRESIDENT OF SALES Frank E. Biondo frank.biondo@rejournals.com VICE PRESIDENT OF SALES John Mickey jmickey@rejournals.com VICE PRESIDENT OF SALES Marianne Grierson mgrierson@rejournals.com CLASSIFIED DIRECTOR Susan Mickey smickey@rejournals.com SENIOR EVENT & MARKETING COORDINATOR Alyssa Gawlinski agawlinski@rejournals.com

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development underway. ”

n these last few months, we’ve finally been able to get out of the house and congregate in person for a handful of important events.

At the beginning of September, the National Park Service and a long list of local stakeholders celebrated the grand opening of the new visitor center at the Pullman National Monument. The project has been years in the making, but a collaboration between local, state, and federal agencies and leaders made it happen. And it is certainly one of the most exciting new developments in 2021. Towards the end of September, we held the State of Suburban Office Conference out at the new Bell Works Chicagoland center in Hoffman Estates where experts in the regional CRE world discussed numerous themes about the suburban office market. It was my first time seeing what was formerly the AT&T campus, and now a “metroburb.” The workplace is changing and this new idea for retired suburban office campuses could become a case study for obsolete or unwanted office campuses throughout the country. And then more recently, Sterling Bay hosted its official groundbreaking at Lincoln Yards, its ambitious mega-development that will one day overhaul a former industrial section of the city into a buzzing new mixed-use neighborhood. The project will take years to complete, and it’s not the only mega-development underway. But then there’s the question about the Chicago Bears: What will happen with the city’s football team? The organization announced a formal purchase agreement for Arlington Park race track and appears to be a serious effort to relocate the team out to the suburbs. Only time will tell in that situation, but it’ll be exciting to watch from the stands — or our home offices.

JAMES CONNOR Duke Realty Corp. GEORGE KOHL Savills JERRY KRUSINSKI Krusinski Construction Co. RONALD C. LUNT Hamilton Partners JOHN M. MOYSEY Avison Young NANCY A. PACHER CBRE STEPHEN A. SMITH The Telos Group JONATHAN STEIN Inland Real Estate Group GREGORY T. WARSEK Associated Bank CHRIS WOOD Cushman & Wakefield

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Jonathan F.P. Rose discusses the ongoing need for affordable housing, how to create more of it, and saving what’s left By AJ LaTrace, Managing Editor

ast month, affordable housing developer Jonathan F.P. Rose of Jonathan Rose Companies was awarded the ULI Prize for Visionaries in Urban Development by the Urban Land Institute, the D.C.-based nonprofit housing and development policy organization. Along with a $100,000 prize, the prestigious award’s aim is to highlight and honor those who are blazing new trails and setting a high standard for quality in the land use and development field. Based out of New York City, Jonathan Rose Companies has acquired a number of high-profile affordable housing developments in and around Chicago in recent years, and has plans for continued investment in the midwestern metropolis. Rose recently spoke with REjournals about the current need for affordable housing, the process of maintaining existing affordable housing, and how Chicago developers and elected leaders are working to build housing for all. IREJ: In this current moment, when we look at the big stories in commercial real estate, we see a lot of news about how certain submarkets are booming. But when we talk about affordable housing, it seems like there may still be a bit of a void there. What’s your take on that theme and how it relates to Chicago? JFPR: So, obviously multifamily is booming all over the United States, but the affordable subsector is booming too. There is a tremendous amount of investment money seeking to buy, but it’s a very limited supply. And one of the reasons is because affordable housing can have very consistent cash flows and we’re seeing that in Chicago as well as markets all around the country. IREJ: When we talk about Chicago, there’s always this idea or perspective that for a big city, rents or home prices are going to be much lower than New York or San Francisco or other places. But at at the same time, there’s a lot of other pressures on the housing market here, whether that’s appreciation, inflation, or stagnant wages. How do we look at this general need for affordable housing in Chicago? And how does it relate to other, more expensive markets? JFPR: We find that every city — literally almost every city in America — has a desperate need for affordable housing, so it’s not just Chicago, New York and Los Angeles, etc. We’ve got a need in North Carolina and Columbus, Ohio and a lot of places that you might not have thought of. We’re having

last recession was the institutionalization of big companies owning single family rentals. And the way they buy them — because they’re buying tens of thousands of units a year — is by buying in an automated way. So they’ll say, these are the 20 markets we want to be in, and they’ll have an algorithm that’ll just scan every home that’s on the market. It’s really just computers figuring out what the best deals are to bid on.

Jonathan F.P. Rose. Photo via Urban Land Institute

“We find that every city — literally almost every city in America — has a desperate need for affordable housing.” an affordable housing crisis, so the essential issue is that the cost of housing, and the construction costs, are high and incomes have not risen in alignment with the rising costs, so we’re seeing this issue everywhere. The area median income in Chicago for a family of four is at $93,000, which by the way is almost twice the national average, so the incomes are higher here in general, but it is not as evenly distributed as it could be. So there’s a substantial number of people who cannot afford the price of the housing that’s here. And also because of decades of under-investment, some of the housing stock that is affordable isn’t in great condition. And finally, affordable housing is great when it’s in conjunction with jobs and retail and other pieces to revitalize neighborhoods. Mayor Lightfoot has really focused on revitalizing the neighborhoods on the south and the west sides, which I think is a wonderful idea. And safe, affordable housing can be a very important contributor to that work. One of the things we’ve been very active in is affordable housing preservation; in buying existing affordable housing, particularly projects would probably be section

eight or other financing, that is at risk of going to market. We’ve been buying buildings to extend the affordability, and often these projects are under-invested and need new investment in things like roofs and windows. So we’ve been buying existing affordable housing and renovating it and seeing enormous demand and need for that in Chicago. IREJ: We’re seeing so much money out there looking for a home and there’s so much competition in certain submarkets and different product types, but I’m wondering how we’re looking at the housing market right now. JFPR: There’s an enormous amount of demand for investment in affordable housing. There are a lot of institutions and individuals who have raised funds but there’s probably more capital available than product, so the cap rates on affordable housing are getting bid down quite low. Good affordable housing projects are selling between a 3% and a 4% cap rate these days, including in Chicago. The second thing we’re seeing is the emergence of the single family home rental markets. One of the things that came out of the

So what this is doing is outbidding the regular buyers. Not only do we have a shortage of housing, we have a production shortage of affordable and workforce housing. We have investors who are buying what exists. Some of them are preservation buyers like we are, but many of them are buying [properties] to raise the rates, thus reducing the supply. And then on the affordable homes side, you also have an enormous amount of capital that’s buying up the existing affordable homes and taking them out of the market and driving up the prices too. IREJ: We’ve got a big push from the city and the Department of Planning and Development via the INVEST South/ West program to take some serious steps forward in these communities that really need the investment. Going forward, do we need to keep seeing the hand of local municipalities or leaders pushing for this type of development, or are we going to be or see a point where there’s naturally occurring affordable housing in the market? JFPR: Yes, there always will be a need because with affordable housing, the construction costs are too high and the rents are low. So there’s always going to be a need for subsidies and those subsidies are always going to be allocated in some way or another, based on public policy decisions. So, for example in Southern California, there’s such a major homeless crisis that most affordable housing funds are being focused on homeless housing. And in New York, there’s definitely a lot of funds focused on homelessness, but then there’s also an effort to create more mixed-income communities where the affordable housing dollars go farther. There are different strategies in different cities and each one is responding to its demographic and tenants. I believe that cities have to provide targeted affordable housing funds — pick a city in America today where the market itself can provide housing that is inexpensive enough to be affordable.

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more natural light and a lot of the file storage that we were really reliant on 10 or 20 years ago, just don’t matter so much anymore,” he says of the shift from paper to electronic records. “So we were able to dispense lots of that in favor of a more paperless workflow.”

LAW FIRMS (continued from page 1)

As the downtown office market has lagged behind other asset classes like multifamily and industrial real estate, office landlords have had to resort to concessions and flexible terms in order to lure new leases. The record amount of sublease space available has also been challenging for office property owners as they are now frequently competing with their own tenants for lease deals. And while some companies — particularly those in tech and marketing — have downsized their office footprint, others are seizing the moment to expand or upgrade their space. The current climate in the office world has led to a “flight to quality,” which has provided corporate tenants with a unique opportunity to move into a nicer office space or better location due to the sheer amount of space available, competitive pricing, and flexible terms. According to a report from Savills, legal office leasing was particularly strong in Q3. On a national scale, 2.1 million square feet of legal office leasing deals were completed in this last quarter. Of that total, 700,000 square feet of Q3 leasing activity was in Chicago. This most recent quarter was a dramatic uptick in activity compared to the first and second quarters of 2021, where there was less than 150,000

While the bulky file cabinets and storage systems are gone, law practices still have to keep a major focus and emphasis on the confidentiality of clients and in-person meetings. That means having areas that are clearly delineated as secure spaces but also public spaces that are inviting and welcoming, Brown suggests.

The kitchen and cafe at the Nixon Peabody office. Steve Hall, Hall + Merrick Photographers.

square feet of legal office leasing in Chicago in each quarter. For cash-flush law firms, the sluggish office rebound is not just a chance to stake a coveted claim, but it’s an opportunity to reimagine the look, feel and function of a legal office. One of the many law firms that made an office move in recent months is the Chicago practice of Nixon Peabody. With a

staff of 145 people based out of its Chicago office, the firm announced its lease of floors 51-53 at 70 W. Madison back in March, unveiled the reimagined space in the heart of the Loop in September, and then marked its official return to the office date on October 4. While the office move was the result of three years of planning and design, the pandemic did introduce some challenges that pushed the team to put even more emphasis on the themes of flexibility and efficiency, says David Brown, managing partner of the Chicago office. “What we decided was to try to plan for something that works now and is very flexible and would accommodate whatever the future of legal work looks like. That meant having lots of conference spaces that can be converted into training rooms, into places for receptions for clients, friends and community in the future,” Brown says of the new office.

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“And then we also had to take to heart some of the lessons of the remote work that everyone has been doing over the last 18 months in realizing just how important it is to have great video conferencing capabilities,” he adds. “It’s no longer a niche thing that a few clients want — all of us want it.” But planning a new legal office for the year 2021 and beyond means that technology not only plays a bigger role, but it also helps open up space. While the firm downsized from 85,000 square feet to 72,000 square feet, Brown says that staff frequently comment on how much more open and spacious the new office is. Perkins & Will, which served as the primary architect for Nixon Peabody’s Washington, DC and New York offices, also led design duties for the firm’s new Chicago office. “Frankly, it feels a lot bigger, just because there’s so much more glass there’s so much

But it’s not just the layout and technology that’s changing at the law office of 2021 — the role and purpose of the office itself is evolving, suggests Peter Randolph, an architect and director at Chicago’s Eastlake Studio, a practice that has designed numerous office suites throughout the city’s central business district. “The post-pandemic office is going to be about the culture and the collaboration. That’s the reason people come back to it; it’s not about leasing a lot of space for people to do work,” Randolph says. And for law practices, a big part of that culture and collaboration is mentorship, he adds. There are numerous reasons for legal professionals to go back to the office, whether it’s because of the confidential nature of the work, the need to discuss ongoing projects face-to-face with colleagues, or for newcomers to learn the ins and outs of the trade. “Another really important topic we discussed when we were talking to law firms was how mentorship is such an important part of the law practice. The office can be opened up both to the public and to your industry peers as a space for you to grow professionally,” Randolph says. “That’s something you can’t get at your house.” Even the physical hierarchy of the law office is changing, Randolph suggests. As collaboration, culture, mentorship, and opportunities for networking become the primary purpose for the office, the top-down nature of the legal office, where private offices and cubicles delineate rank or stature, has to be flexible in a way that also serves those new core functions. But despite the sluggish downtown rebound from the pandemic, the office is not going anywhere — especially for law firms, Randolph says. What is happening now is more or less an acceleration of office design trends that were happening before the pandemic. “There’s been a lot of talk about the death of an office, but I think it’s just more of an adjustment,” he says. “These are trends that were already kind of happening but they’re just faster and all at once, which feels very scary to some people that the whole way we work has changed.”

Think Beyond the Build.

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Another big suburban office campus is being unloaded. Now what? By AJ LaTrace, Managing Editor

he pandemic-induced changes to the economy and the nature of the workplace are not only challenging conventional business wisdom, but leading to a larger evolution that is seeing the concept of remote work becoming permanent.

interest in the suburbs than there has been in recent years among younger homebuyers. “I definitely think that the city has gotten more challenging, and the suburbs have gotten more attractive,” Zucker says of the current situation. “So I think that the offices are going to follow the people.”

In other words, welcome to the “new normal.”

And despite the tired tropes and negative headlines about the Chicago region, the Windy City is consistently ranked one of the best large cities for travelers, quality of life, aesthetic appeal, cost of living and overall desirability.

Employees no longer view remote work as a benefit or perk, but something that weighs heavily in career changes. Employers are adapting to the new environment by making workplace flexibility a built-in feature of a job and by downsizing the overall scope of and need for office space.

Every new beginning comes from some other beginning’s end

Another big suburban office campus exodus Enter Allstate, who has just announced intentions to offload its headquarters in suburban Northbrook. The insurance giant, which has long been one of the state’s largest employers, is fully embracing the hybrid work model, allowing flexibility to employees to determine where they reside and how much (or little time) they choose to work out of an office. “Allstate’s employees have more choice about where they work and many are choosing to work from home,” Allstate spokeswoman Mallory Vasquez said in an email to Chicago Tribune business reporter Robert Channick. “As a result, we will sell our office in Northbrook but plan to maintain our significant presence in the Chicago area.” Allstate’s sprawling campus, which spans nearly 2 million square feet over 122 acres, could be considered yet another casualty of the pandemic and the ongoing trend in recent years of legacy Chicago-area corporations abandoning suburban campuses for sleek new offices in the city. But is it? As the pandemic stretches into a third year, there is still much to be determined about the future of the workplace and when (or if) we’ll see a great migration back to the office. Many corporate heads see the potential exposure to risk in taking on big office leases, or by simply maintaining pre-pandemic real estate assets that had room for thousands of employees. A symptom, not the cause However, in Hoffman Estates, the former Ameritech (and later AT&T) campus has been totally overhauled and reimagined

One of the corridors in the new Bell Works Chicagoland. Photo by AJ LaTrace.

as a mixed-use destination for retail and compartmentalized office suites. Now dubbed Bell Works Chicagoland, the newly renovated office campus features 1.2 million square feet of office space, 60,000 square feet of conference areas, storage and amenities, as well as 60,000 square feet of space for restaurants and retail. Additionally, Somerset Development, which also repurposed the former Bell Labs campus in New Jersey as a contemporary office and retail development, plans new residences on the Hoffman Estates site in the coming years, which could bolster the retail offerings and demand for office space. Ralph Zucker, President of Somerset Development says that the current flight to quality trend — essentially, companies trading up to a nicer office or better location — is a symptom, not the cause. “The flight to quality is happening primarily because you need a reason to come into the office. It’s easy to work from home,” Zucker says. “The fact is that you could just be anywhere, so you need a reason to come to the office. You’ve got to be motivated; companies are looking to attract and retain talent.” As technology has allowed white collar workers to untether from desks at a centralized office, the hybrid model which allows employees the choice to work from home or the office, will likely remain well after the pandemic has concluded. “It was accelerated tremendously by the pandemic, but it was inevitable,” Zucker says about the hybrid model.

So, will the co-working model, where companies can rent as much or little space as they want with as long or short of lease terms, something that is likely to become more commonplace in existing office buildings? As landlords not only compete with one another, but compete with their own tenants who are offering a record amount of sublease space for rent, it’s moving in that direction. A brave new office world Additionally, the Bell Works hub-and-spoke foot print may further lend itself to the evolving office environment, which is likely to borrow from urban planning principles and look more like “neighborhoods” than the purely cost-conscious open environments of recent years’ past. Zucker has a term for this: the “metroburb.” In his own words, a metroburb is, “a small metropolis in a great suburban location.” It’s combining things you’d find in a city, such as office space, new residences, hospitality offerings, health and wellness, entertainment, and more, but packaging it into one footprint out in the suburbs. After completing the original Bell Works development in New Jersey, Zucker says that his company was inundated with development opportunities across the country as more corporations abandon suburban office campuses for decentralized offices or a location in the heart of the city. While the pandemic-inspired millennial flight to the suburbs may have been overblown to a degree, there is no doubt more

The evolving story of Allstate’s exit from its Northbrook campus could certainly be viewed as the end of a chapter, but there’s also a new beginning in the making. And then there’s the contrast with competitor insurer Zurich, which doubled down on its suburban presence in recent years by building and relocating to a new campus in Schaumburg in 2016. As the work-from-model has challenged the needs of overall office footprint, major companies are still expected to maintain a presence in the traditional workplace. And as more millennials approach their 40s, there could be yet a further shift in residential focus — and consequently, office focus — to the suburbs in the coming years. “I think that’s why you’ll see more growth in well-positioned and well-executed suburban offices,” Zucker says. “The fact of the matter is that some jobs are just going to stay home and not just shift from the city to the suburbs or vice versa. But I do think that the jobs that don’t stay home make places like Bell Works that much stronger and more relevant.” The model becomes more relevant and appealing to employers, Zucker says, because a development like Bell Works meets the new need and emphasis on flexibility while still also providing amenities, conference space, eateries, and more that one would find at major office towers in the central business district. So could we see another Bell Works at the former Allstate campus in Northbrook? “Who knows,” Zucker says. “The concept clearly has imitators. We’re happy to see this; you know, rising tides lift all ships.”

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The Pullman National Monument. Photo: AJ LaTrace.

PULLMAN (continued from page 1)

tional Monument status and stewardship by the National Park Service. The Victorian-era factory town played a pivotal role in U.S. labor and BSky_JanitorialSecurity_10x7_v3.pdf civil rights history, and this back-

ground is displayed and explored through installations at the new visitor center.

to renovate the clock tower building and its 12-acre grounds.

Teri Gage is the park superintendent for Pullman National Monument, Chicago’s first and only national park, and says that 10/22/21 PM moving parks and stakethere were a7:29 lot of holders involved in the $35 million effort

“The land here is owned by the Pullman State Historic Site, which is under the Illinois Department of Natural Resources, but the clock tower building is owned by the National Park Service,” she explains. “Con-

struction started about 17 months ago and it hasn’t really been occupied at all since 1958 when Pullman left.” But the new visitor center will have both a symbolic and tangible impact on the community, not only as a sign of new investment and rebirth, but also in fostering

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S E P T E M B E R / O C T O B E R 2 0 2 1 I L L I N O I S R E A L E S TAT E J O U R NA L

“We get the visitor center, but there’s still more to come. We need to

more to come. We need to build momentum around increasing visitorship, creating more attractions, and creating more assets for the community.” Doig’s team worked closely with construction general contractor GMA Construction Group, who performed the renovation of the historic structure and built-out the new visitor center space on the building’s first floor.

Performing the work on such a significant building had its challenges, GMA President and CEO Cornelius Griggs, says. From fine details such as matching the existing brick color to more intensive jobs like rearranging load-bearing steel supports to open up the space, the construction team had to overcome numerous obstacles for the overhaul. But beyond the technical aspects of the renovation, taking on the job was a professional and personal highlight, Griggs adds.

“It was a personal passion for me, as an African American contractor in the city of Chicago, in being able to put my company’s name and my name on the revitalization of the Pullman National Monument and what that means to my heritage, our culture, and to the Pullman Porters,” he explains. “For me, it’s the highlight of my career thus far, so I’m extremely excited about it, and can’t wait to see the grand opening.”

build momentum around increasing visitorship, creating more attractions,

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and creating more assets for the community.” Pullman and the far south side of Chicago as a destination for tourism and educational programming. Gage says that the National Park Service estimates that when the site is fully redeveloped, the park could expect upwards of 300,000 visitors each year. As of now, the 10,000-square-foot first floor of the visitor center is completed and ready for its debut, but there’s still a 10,000-squarefoot second floor, the sprawling erecting shop wing off the side of the building and the shell of the rear erecting shops which will also be built-out at some time in the future. Gage says it’s still to be determined how these spaces will be used. Chicago Neighborhood Initiatives (CNI), which has been involved in virtually all of the new industrial and retail development in Pullman over the last decade, served as the site developer, coordinating with the lead stakeholders — the State of Illinois, National Park Service, National Park Foundation, and the Historic Pullman Foundation — to oversee the construction of the project and coordination among contractors. David Doig, the President of CNI, says that there will also be new jobs and an increased economic output from the Pullman community, referencing a 2013 report conducted by the City of Chicago and CNI, which suggests that a national park presence in Pullman could help support the creation of 300 new jobs and over $40 million in annual economic impact for the neighborhood after the first decade. “I think the message is that this is just the start,” Doig says of the completion of the first phase of the national monument site. “We get the visitor center, but there’s still

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I L L I N O I S R E A L E S TAT E J O U R NA L S E P T E M B E R / O C T O B E R 2 0 2 1

State of Suburban Office Conference panels highlight flexibility, flight to quality, and good design By AJ LaTrace, Managing Editor

f there’s anything that Chicago area commercial real estate professionals have learned in the last 18 months, it’s that the market does adapt quickly to external pressures. And abrupt shifts in trends or volatility in the marketplace can oftentimes present unique opportunities. Such is the case in the suburban office market, which has the attention of brokers, developers and corporate tenant clients as we continue to collectively navigate the unknowns and challenges presented by the ongoing pandemic.

Nearly 75 professionals gathered on the morning of Thursday, September 23 at the Bell Works redevelopment of the former Ameritech campus in Hoffman Estates to discuss various topics related to the suburban office market for the 6th Annual State of Suburban Office Conference. Once a single-tenant occupier, the campus, reimagined by Somerset Development, will feature rows of ground floor retail with office suites on the above levels. Refreshed for today’s needs, the Bell Works site is expected to draw more attention from businesses who are taking a second or third look at a new office presence in the Chicago suburbs. There will be a flight to quality The event’s first panel featured Andy Bartucci, Senior Vice President with Foresight Realty Partners; Ken Gold, Vice President of Acquisitions & Development for Somerset Development; Andrea Van Gelder, International Director for JLL; and Steve Kling, Principal at Colliers. The discussion was moderated by Kevin Kramer, Director of Economic Development for the Village of Hoffman Estates. What are some of the biggest changes the suburban office market has witnessed in the last two years? One of the most noticeable differences is the focus of short-term transactions, said Van Gelder, highlighting the desire of many companies to either downsize their office capacity, seek shorter-term lease deals, or both. However, the flood of government assistance has caused the market to hold in a “static state,” with artificial stability, said Bartucci of the trillions spent through PPP loans, forbearance arrangements, and eviction moratoriums. With the major shifts in demographics, between Boomer-age professionals reaching retirement, Millennials moving to the suburbs, and Gen Z’ers just starting off in their careers, there are a lot of variables to consider when planning for future office space. “[Millennials] started looking into the suburbs before COVID, but the pandemic threw gas on the fire,” said Kling. “It’s

The speakers on the first panel of the State of Suburban Office conference. Photo: AJ LaTrace.

a shift that employers really have to keep their eyes on, because it’s real.”

— you need higher end facilities, but companies are still figuring out what they need.”

But with so much space available and bargaining power on the side of tenants, there has been a noticeable “flight to quality,” Van Gelder said, where some office tenants are moving into better spaces with newer amenities and prime locations because they can. And there’s more leverage to seek shorter-term leases or try a “hub and spoke” model where a company could have a number of small office spaces throughout the greater Chicagoland region.

Repurposing existing office structures for today’s needs

Ken Gold of Somerset Development says that it’s these Class A and Trophy Class office buildings that will fill up first and ultimately prevail in this market. “New York is similar to Chicago where the offices aren’t filled and big office leases aren’t being signed, but we have signed a lot of leases at Bell Works in New Jersey,” he said of the company’s first major corporate campus overhaul, the old Bell Labs building in Holmdel, New Jersey. “We signed a 20,000-square-foot lease for a major company. There’s a flight to quality

The second panel, which focused on design and construction trends in the current office market featured Roger Heerema, Principal at Wright Heerema Architects; Mike Harvey, VP and Director of Operations for ML Group Design & Development; Paola Zamudio, Creative Director & Lead Designer of Bell Works for Somerset Development; Floyd Anderson, Principal at Wight & Company; and Dirk Lohan, Partner of Lohan Architecture LLC. So, how does one go about reimagining and repurposing a corporate campus like the one in Hoffman Estates that was previously occupied by Ameritech (and then later, AT&T)? The design of the structure, with its long, open corridors that connect to a central atrium space just so happens to be ripe for such a transformation, said architect Dirk Lohan, who was the building’s original lead architect and designer.

“One of the amazing things that I realized and observed as this project proceeds is how wonderful and appropriate the original design was for the new purposes,” said Lohan. “One of the aspects is the three-story high, skylit — I like to call them, ‘streets.’” Lohan recalled discussions with the-then chairman of Ameritech about the design and how he pushed for the open space and natural lighting for the building. While the business leader did not initially agree with the design language, the heads at Ameritech did ultimately concede to Lohan’s recommendations. Additionally, Lohan discussed his strong belief in having the surrounding landscape be pleasant to look at and not be dominated by parking lots. “For a vibrant city, you need to have a space or area that is recognizable as what the community wants and for gathering,” said Floyd Anderson, Principal with Wight & Company, comparing the building’s floor plan and layout to that of a city or town. “The concept of a Metroburb really mapped out well in a building like this and there are

S E P T E M B E R / O C T O B E R 2 0 2 1 I L L I N O I S R E A L E S TAT E J O U R NA L other buildings like this around the country and I think it’d work well.”

In this moment when the office market is witnessing a major fluctuation, who is buying these assets? “High net-worth individuals and private equity buyers,” said Homsher. “It’s not institutional buyers. They’re not looking at Illinois; they’re looking at the southeast and southwest.”

But quality of construction materials matters too, said Zamudio. Despite the supply chain constraints and high cost of materials, Zamudio believes that it’s best to wait it out and do it right the first time. “We are in a hurry, but good design takes good materials and takes time,” she said. “I’d rather have something that is sustainable and good quality and last a long time.”

This is where the flight to quality matters from a portfolio perspective and ability to compete in a challenging marketplace, said Postweiler. “For the groups who are showing up to the offices we’re selling, it’s family offices, and that’s fine because there’s real money out there for it,” he explained. “But the outlook for office, especially on the institutional side, they’re looking at the national landscape and paying attention to markets like the Carolinas, Austin, Atlanta or Nashville.”

Making sense of the moment and numbers The conference wrapped up with a third panel featuring John Homsher, SVP at Colliers; Jim Postweiler, Executive Managing Director with Newmark; and Don Wenig, Founding Member of Blackacre Advisors LLC. The panel was moderated by Dan Deuter, Executive Managing Director with Cushman & Wakefield. As in all cycles, there will be panic selling and buying, said Wenig, but those who are looking to cash out in a time of turmoil need to be more strategic in decision-making. “Most of the time if an owner asks, ‘Should I sell right now?,’ our reaction is ‘Probably not.’” The reason being, Wenig explained, is that leases and revenue have a big impact on

Photo by AJ LaTrace.

property evaluations. Some owners would be best served focusing their efforts on signing leases and filling space before going to market. But there is still a tremendous amount of money out there for investment, said Homsher, and buyers are certainly discern-

ing. “Downtown occupancy is very low: around 25-30%,” Homsher said. “But in the suburbs, it’s probably more like in the 50% range. So I think we have a better story to sell to investors [in the suburbs] than the downtown community.”

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He adds that the Chicago area is a bit more touchy for institutional buyers, but there is still a path forward. “When considering Chicago, if you pull a report, it doesn’t look good. If you’re an out of town buyer, you ask, ‘Why do I want to go there?’ You really have to go past that to understand what’s coming next and this gets back to having the best in class properties in the market. We’ve been in these declines before and this is how people make a lot of money — it takes fortitude to do that and someone with capital.”

OCTOBER MARKETPLACE

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NAI HIFFMAN

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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 100.5 million square feet, encompassing more than 800 properties in 28 states. With more than 200 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.

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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 large rail, port and trucking 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

117 W. Willow Ave. Wheaton, IL 60187 P: 630.472.9800 Website: wavelandprop.com Key Contacts: Jonathan Swindle, President, JSwindle@wavelandprop.com; Conner Stout, Broker, CStout@wavelandprop.com Services Provided: Specializing in property management, property leasing, tenant representation, and consulting, Waveland is well-prepared to handle financial assignments, construction management, lease administration, market surveys, and receiverships. Company Profile: Waveland Property Group offers comprehensive real estate solutions. Our solid record of customer satisfaction is rooted in Waveland’s commitment to excellence in both service and quality. In real estate, trust and dependability are paramount. Our reputation is being formed with each and every transaction. Waveland continues to lead the industry. Notable Clients/Transactions: We have worked with a number of publicly-traded and private REITS including DOC REIT, Colony Capital, MLL, and Capital Crossing. We also cater to the boutique requirements of private investors.

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 is celebrating 35 years of excellence in 2021, and we believe our success comes from being a true partner. With 21 offices nationwide, we have market knowledge throughout the country, which provides clients with the best building methods and materials available. Our goal is to provide quality, cost efficient projects that leave a positive experience for our clients and their communities. 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.

CLAYCO, INC.

35 E. Wacker Drive, Ste. 1300 Chicago, IL 60601 P: 312.658.0747 Website: www.claycorp.com Key Contacts: Bob Clark, Executive Chairman & Founder, clarkb@claycorp.com; Kevin McKenna, President - Construction Group, mckennak@claycorp.com 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. 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

OCTOBER MARKETPLACE GILBANE BUILDING COMPANY

123 N. Wacker Drive, 26th Floor Chicago, IL 60606 P: 312.614.4100 Website: GilbaneCo.com Key Contact: Karrie Kratz, Vice President, kkratz@gilbaneco.com Services Provided: Gilbane provides a full slate of construction and facilities-related services - from preconstruction planning and integrated consulting capabilities to comprehensive construction management, close-out and facility management services - for clients across various markets. Company Profile: One of the nation’s oldest construction services companies, Gilbane Building Company began in 1870 and the fourth and fifth generations of the Gilbane family currently manage the company. Gilbane is recognized as an industry leader that delivers innovative construction services – from state-of-the-art sustainable buildings to the latest applications in construction technology for clients in a variety of market segments. Gilbane’s Notable/Recent Projects Include: • Fresenius Kabi Melrose Park Expansion | Renovation • The Orchard Condominiums • The Lumen at Playhouse Square • Purdue University Third Street North Residence Hall and Meredith South Residence Hall • R1VER Development

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 over 30 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 developments for the industrial, food processing, multi-family, senior and student housing, office, healthcare, retail, hospitality, recreational and institutional markets. 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: 4400 Grove – Chicago’s Bronzeville Neighborhood – Mixed-use, affordable fourstory development now complete totaling 84 rental units with commercial space on ground floor.

PEAK CONSTRUCTION CORPORATION

1011 E. Touhy Ave., Ste. 100 Des Plaines, 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 firm. For almost 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 NorthPoint Development’s Heartland 94 Logistics Center Building 1, IDI Logistics’ Gateway Romeoville, Janko Group’s Bristol Business Park and various tenant improvements throughout Chicagoland.

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 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, multi-family residential, office/tenant interiors, hospitality and institutional markets. Company Profile: Located in Chicago’s Fulton Market and with a regional office in Tampa, Florida, 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 16 year history. Notable/Recently Completed Projects: TLC Ingredients, 1400 Monroe, Method, 113 E Oak, 1111 W Addison and 448 LaSalle – WeWork.

VICTOR CONSTRUCTION

2000 AT&T 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).

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

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: otable/Recent Projects: HSA Shorewood, Shorewood, IL - 757,880 sf speculative industrial facility for HSA Commercial Real Estate. Banner Wholesale, Chicago, IL 75,000 sf wholesale grocery warehouse and corporate headquarters.

ASSOCIATED BANK

525 W. Monroe Street, Ste. 2400 Chicago, IL 60661 P: 312.544.4645 Website: associatedbank.com/cre Key Contacs: 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 and Dallas. Associated Banc Corp has total assets of $35 billion and is one of the top 50 financial services holding companies in the United States.

OCTOBER MARKETPLACE

18 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 large rail, port and trucking 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.

CHASE COMMERCIAL TERM LENDING

10 South Dearborn, Floor 19 Chicago, IL 60603 P: 844.853.7814 Website: chase.com/CTL Key Executives: David Fetter, Multifamily Lending Regional Manager; Jake Bade, Commercial Mortgage Lending Regional Manager Services Provided: Chase Commercial Term Lending provides real estate owners the best financing solutions for purchasing or refinancing stabilized apartment buildings, and industrial, office, retail, and mixed use properties. Description: Our Commercial Real Estate teams provide clients the insights, hands-on service, array of comprehensive financial solutions, and unrivaled certainty of execution they need to be successful throughout the cycle. Clients benefit from our no hassle loan process, simplified documentation, competitive pricing, low fees, exclusive industry insights, and excellent customer service from start to finish. Our goal is to provide the best, straightforward multifamily and commercial property loan financing experience in the industry. Call us today to learn how to put our resources to use on your next deal. Service Territory: Nationwide

L AW F I R M S / R E AT TOR N E YS MELTZER, PURTILL & STELLE LLC

1515 Woodfield Road, Ste. 250 Schaumburg, IL 60173 P: 847.330.2400 | F: 847.330.1231 300 S. Wacker Drive, Ste. 2300 Chicago, IL 60606 P: 312.987.9900 | F: 312.987.9854 Website: mpslaw.com Key Contact: William J. Mitchell, Managing Partner, wmitchell@mpslaw.com Services Provided: The firm provides an exceptionally wide range of real estate-related services, including commercial real estate and leasing; land use, zoning, and entitlement; construction and finance- including TIF and other development incentives and commercial litigation. Company Profile: Meltzer, Purtill & Stelle LLC is a business-to-business law firm with exceptionally strong capabilities in all areas of real estate law. The firm provides a full range of transaction and litigation services to real estate developers, financial institutions, and businesses engaged in corporate, industrial, and retail development as well as financing, leasing, and investment.

SARNOFF & BACCASH

Two N. LaSalle St., Ste. 1000 Chicago, IL 60602 P: 312.782.8310 | F: 312.782.8635 Website: sarnoffbaccash.com Key Contacts: James Sarnoff, jsarnoff@sarnoffbaccash.com; Robert Sarnoff, rsarnoff@sarnoffbaccash.com Services Provided: Sarnoff & Baccash is a leading and recognized law firm concentrating solely in the field of property taxation. We help client’s secure favorable taxes in Illinois through property tax appeals, incentives and consulting. Company Profile: Sarnoff & Baccash’s clients include Owners, Developers, Managers, REIT’s, Fortune 500 Companies, Private Equity Firms, etc., in connection with commercial property, high-rise and low-rise apartment buildings, condominium associations and single-family home portfolios.

SAUL EWING ARNSTEIN & LEHR LLP MARQUETTE BANK

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

161 North Clark Street Chicago, IL 60601 P: 312.876.7100 Website: www.saul.com Key Contacts: Kathleen Gilligan, Partner, Kathleen.Gilligan@saul.com; Roy Bernstein, Partner, Roy.Bernstein@saul.com; Barry Katz, Partner, Barry.Katz@saul.com; Jeff Friedman, Partner, Jeffrey.Friedman@saul.com; and David Yontz, counsel, David.Yontz@saul.com Services Provided: Our Real Estate attorneys help clients navigate complexities to realize their real estate vision. We serve a wide range of clients on local, regional and national levels, including developers, lenders, managers, purchasers, sellers, owners, landlords, tenants, investors, REITs, and regulatory authorities. Our attorneys provide a broad array of services, including assessing and resolving environmental issues, to address the unique needs and challenges that arise at every stage of an industrial real estate project or transaction. Company Profile: Saul Ewing Arnstein & Lehr LLP is a full-service law firm that offers clients the national reach and sophisticated experience of a large firm and the local connections and value of a boutique firm.

TAFT LAW

111 East Wacker, Suite 2800 Chicago, IL 60601 P: 312.527.4000 Website: taftlaw.com Key Contact: Kathryn Kovitz Arnold, Chair, Real Estate & Condominium Groups, karnold@taftlaw.com Services Provided: Experienced legal counsel is a critical component to delivering successful real estate transactions. Taft’s 90+ real estate attorneys leverage our skills and depth of industry knowledge to help our clients mitigate risk and avoid obstacles, and deliver results to our clients in a timely, cost-effective manner. Company Profile: As a leading example of a modern law firm, Taft honors how we work together as a diverse team to be the inclusive employer of choice across all of our markets. Each Taft team member is positioned to excel. Our 630 attorneys collaborate to meet and exceed client expectations.

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