October November 22 Illinois Real Estate Journal

By Mia Goulart, Senior Staff Writer

By Mia Goulart, Senior Staff Writer

LESS IS MORE, ESPECIALLY WHEN IT COMES TO OFFICE SPACE IN TODAY’S MARKET

Suburban office is thriving. And Downtown Chicago? It’s getting there. Things are changing, though, and many are wondering whether or not the suburban rebound will continue.

OCTOBER/NOVEMBER 2022

ILLINOIS REAL ESTATE JOURNAL

BRICK-AND-MORTAR VERSUS E-COMMERCE? “BALANCED COEXISTENCE” IS THE KEY TO SUCCESS, ACCORDING TO NEWMARK

It was once believed that e-commerce would be the end to brick-and-mortar, but today’s narrative is a little different. The in-person experience is proving necessary to closing an online sale.

WHAT’S THE SCOOP WITH I-80?

Illinois Real Estate Journal consulted Adam Haefner, Principal and Industrial Broker at Avison Young, and Steve Connolly, Executive Vice President, Industrial Services at NAI Hiffman.

MORE PEOPLE ARE RENTING THAN EVER. BUT WHAT CHICAGO ZIP CODES BOAST THE HIGHEST SHARE OF RENTERS?

With the cost of building a home at an all-time high, renting is at the highest level in half a century, with 43.7 million U.S. households are currently making do in rented apartments.

LIFE SCIENCE IS ON THE RISE IN CHICAGO. BUT HOW DOES THE MARKET COMPARE TO OTHERS ACROSS THE U.S.?

The life science sector has continued to gain traction in recent years, and Chicago has been highlighted as one of the best markets for this kind of venture.

CRE MARKETPLACE

For over 45 years, DarwinPW Realty/CORFAC International has been a leader in industrial and commercial real estate. The company specializes in brokerage, property management, investment and development services primarily in the Midwest. DarwinPW Realty’s highly qualified professionals are problem solvers and utilize a breadth of tools and knowledge to serve our

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What’s the scoop with I-80?

By Mia Goulart, Senior Staff Writer

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EDITORIAL

TODD ANDRLIK

JAMES CONNOR

Realty

GEORGE KOHL

JERRY KRUSINSKI

Construction

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JOHN M.

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Industrial along I-80 is still booming.

For an in-depth look at what’s driving activity, and the submarket’s current proj ects, Illinois Real Estate Journal consulted Adam Haefner, Principal and Industrial Broker at Avison Young, and Steve Con nolly, Executive Vice President, Industrial Services at NAI Hiffman.

Illinois Real Estate Journal: What makes the I-80 Corridor such an attractive spot for industrial end users?

Haefner: The I-80 Corridor provides access to the Chicago metro area and the I-80 expressway provides east/west access for regional distribution. In addition, the I-80 Corridor provides proximity to the UP and BNSF intermodal yards. While the labor pool is stretched, the corridor also provides access to quality workers. These amenities are attractive to ware housing, distribution, trucking, and man ufacturing companies.

Connolly:

• Availability of large land sites for big box requirements—50+ acres is readily available in the I-80 submarket;

• existing infrastructure—access to I-80 and I-55, truck rated roads, highway interchanges;

• entitled business parks—users are often looking for “shovel ready” sites;

• proximity to inland ports—BNSF and UP inland ports drive global container traffic;

• available labor;

• good local amenities—restaurants, hotels, truck stops and truck maintenance facilities have been developed as the market has matured over time.

Illinois Real Estate Journal: Is industrial activity—including new leases and devel opments—still going strong along I-80? What is fueling this activity?

Haefner: Activity is still strong in the cor ridor. Vacancy rose slightly in Q3 from a record low of 3.2% to 5%, but this is still a historically low number. With the activity that we are tracking, it is likely that only one existing speculative warehouse over 700,000 square feet will be left by year end.

Connolly: The eastern portion of the mar ket remains strong. Projects in proximity to I-80 and I-55 crossroads and within Centerpoint Intermodal Center continue to develop and lease. Rental rates have

increased in conjunction with rising con struction costs. The western portion of the I-80 Corridor—Minooka, Morris has sev eral entitled land sites, but no speculative development in the current cycle.

E-commerce continues to drive the need for more warehouse space along with large retailers leasing facilities to build inven tories in the U.S. to better control future potential supply chain disruption.

Illinois Real Estate Journal: What types of amenities are users looking for when leasing new industrial space along I-80?

Haefner: Attractive, functional buildings, and access to labor is usually the priority when choosing a site. Other amenities that users are looking for include 40-foot clear height, abundant car and trailer parking, proximity to expressways and amenities, and access to utilities.

Steve Connolly

Adam Haefner

Crow Holdings Industrial (Courtesy of Avison Young)

Connolly: Distribution users look to maximize truck docks and trailer parking for their use. Large I-80 sites allow for this with little pushback from the surrounding communities. Larger proposed projects in densely populated areas are seeing increased opposition to truck traffic and trailer parking. Highway access is also important to increase the efficiency of lo gistics operations; getting to and from the building is often as important as the inside operation.

The new Houbolt Road Bridge at Route 6 and Houbolt Road is a multi-year develop ment nearing completion with a planned Q1 2023 opening. This project will provide a much needed northern access point to the Burlington Northern Santa Fe (BNSF) and Union Pacific (UP) intermodal facilities in Joliet and Elwood and will further drive development activity in the surrounding area.

Illinois Real Estate Journal: Is demand still outpacing supply in the submarket?

Haefner: The vacancy rate did increase in the I-80 Corridor in Q3. However, leasing activity and net absorption more than doubled compared to Q2. Again, if the transactions that we are tracking are con summated in the Q4, we expect vacancy to decrease and net absorption and leasing activity to increase in Q4.

Connolly: Supply/demand in I-80 can be somewhat subjective based on timing and delivery of projects. If you’re a 3PL and need to move into a one-million-squarefoot building in the next 60 days, you would currently only have one option. At the same time, if you look at the develop ment pipeline, there is over seven million

square feet of speculative projects under construction, with four buildings over one million square feet. The 3PL would consid er the market supply constrained, while a prospective developer might feel the mar ket is overbuilt in this cycle. Demand is outpacing supply today, but in six months the opposite might be true.

Illinois Real Estate Journal: How are de velopers building new space while dealing with the challenge of supply shortages and the rising costs of construction materials?

Haefner: Some developers are struggling raising equity right now because of uncer tainty with interest rates, causing multiple projects in the corridor to stall. On the bright side, we think that this may start to reduce lead times and allow buildings to go up quickly. In addition, while building material costs are still up dramatically year-over-year, we are starting to see many

of those prices come down month-overmonth. Even with the challenges, there are eight speculative warehouses over 600,000 square feet currently under construction further south. These buildings are in the I-80 Corridor, the I-57 Corridor, and Northwest Indiana. If activity continues at current levels, most of those buildings should be leased prior to the end of 2023.

Connolly: In terms of material shortages and lead times, some developers will get aggressive and commit to precast and steel orders early in the process to lock in pricing. Rising construction costs in this post-COVID cycle have been offset but increased rental rates—there is a new price of occupancy and tenants are willing to pay the premium to secure space. Tenants in search of space are finding limited options and experiencing historically low vacancy rates. If they stay in their current building they are very likely seeing a rental increase,

and these market fundamentals translate into rising prices for new construction.

Illinois Real Estate Journal: Have the interest rate hikes had any impact on in dustrial activity?

Haefner: Interest rates have slowed down development, and we expect that it may push some users to look at leasing instead of purchasing. This could help to keep leasing activity stable. Less new product and more tenants in the market may keep upward pressure on lease rates.

Connolly: The current uncertain interest rate environment has put some lenders on the sidelines for the balance of 2022. For developers, higher interest rates increase project costs. Financing projects via a con struction loan or capital partner become more expensive and will require higher rents, the same as rising material costs.

“Even with the challenges, there are eight speculative warehouses over 600,000 square feet currently under construction further south. These buildings are in the I-80 Corridor, the I-57 Corridor, and Northwest Indiana.”

Clarius Park Morris Building (Courtesy of Avison Young)

The interest rate increase has created un certainty in the capital markets with devel opers struggling to identify where exit cap rates will land in the next six to 12 months.

Illinois Real Estate Journal: Current/up coming listings/projects?

Haefner: Our team currently represents the following projects:

• Crow Holdings Industrial, The Silos at Sanders Farm in Merrillville, Indiana, which is a 190-acre industrial park with 263,864-square-foot and 1,001,162-squarefoot buildings currently under construc tion;

• Clarius Partners, Clarius Park Morris, Morris, Illinois, which is a 384-acre in dustrial park that can accommodate users from 200,000–2,000,000 square feet;

• Transport Properties, The Majestic Star Site, Gary, Indiana, 123-acre project that can support up to a 575,000-square-foot building or a 236-door truck terminal;

• We are also working on two infill projects in the city that will come to market in the next six months.

We specialize in the landlord representa tion in the I-55 Corridor, the I-80 Corridor,

and Northwest Indiana. We also provide tenant representation services in Chicago and around the country.

Connolly: We’re currently working on future development projects in Joliet (160 acres) and Morris (145 acres). The Joliet land is next to the Chicagoland Speedway along Route 53 and will see future big box speculative development. The Morris site is fully entitled and zoned for immediate

industrial development. We’re currently marketing in partnership with Seefried Properties to pursue build-to-suit projects and can offer outright land sales.

We have a unique project at Route 6 and Houbolt Road in Joliet—a 22 acre specula tive truck maintenance and trailer parking development that will deliver next year. Our client, Ketone Partners, is developing a 57,600-square-foot maintenance facility

with the ability to park over 600 trailers. The site is fully zoned and approved for trucking/transportation uses and available for a single tenant with flexible design to accommodate two to three tenants. In vestor and user demand has increased in recent years for low-coverage industrial fa cilities that support the growing industrial base.

Transport Properties, The Majestic Star Site (Courtesy of Avison Young)

Cresa Senior Vice President Rick Morris said companies that don’t have leases roll ing in the next few years, and have excess space, are putting space on the sublease market. In fact, there’s been a total of about 20 blocks of sublease space of 20,000 square feet of more that have come on the market within the last 90 days, which means negative absorption. Overall net absorption ended 1H2022 with negative 155,666 square feet.

Smaller, private companies, of course, can make these decisions easier than public companies, but the trend of negative ab sorption is expected to continue for the foreseeable future as businesses continue to reshape their footprint.

“We’re seeing some companies go com pletely hybrid,” Morris said.

But there’s no one-size-fits-all game plan, and firms are working to help clients navigate the appropriate course of action, including the right time to pull the trigger.

The ongoing battle to get employees back to work (at least part-time) lends itself to an interesting question. Is there a correla tion between property type and the num ber of employees returning to the office? Are businesses occupying Class A having greater success getting people back than those in Class B or Class C?

Yes, according to Morris. Well-located and well-amenitized Class A buildings are leading the market in terms of occupancy. Many proactive landlords are looking at ways to draw tenants back to the office by upgraded amenities like lounges, cafés, health clubs and outdoor space. The

Shuman (263 Shuman Boulevard) in Na perville, for example, was one of the most active buildings during the pandemic, he said, due to the complete renovation of the building.

Concerning the lower-class buildings, ownership is doing what they can to upgrade, but there’s no certainty it’ll be enough to attract users.

“You can’t make the windows bigger or make the floor plate more efficient,” Morris added. “They can upgrade the amenities, but that might not be enough to compete with the newer product.”

400 Skokie Blvd., Northbrook,

Jon Connor

Rick Morris

Jon Connor, Senior Vice President with the Colliers | Chicago Suburban Office Adviso ry Group held the same opinion and added that these decisions differ from building to building and their specific location.

“Some of the more challenged Class B and Class C assets need to see significant capital infusions in order to make them more competitive in the market or you’re looking at a race to the bottom in terms of economics and rental rate,” Connor said. “If there’s nothing setting a building apart from the competition, price is the only thing that will drive activity.”

There are also several office buildings that have been redeveloped and converted for a different use: a seemingly preferable in vestment.

With the way the office market is looking now, Chicagoland might hit a bit of turbu lence heading into 2023. We might start

to see more company layoffs, considering companies have already started to cut their workforce in anticipation of a future recession, but that’s not to say the forecast is entirely bleak.

Rents have started to decrease and will continue to do so as more vacancy hits the market and landlords try to attract users, and Connor is “cautiously optimistic”— Colliers has seen an increase in activity in terms of the number of tours and letters of intent within the last month to month and a half, which will hopefully continue through Q4 2022. And if businesses con tinue to rent space in the market—regard less of size—a chain reaction of leasing activity is anticipated into 2023.

“I’m optimistic that we’re starting to dig our way out of the pandemic era,” Connor said. “It will be a slow grind, but things are improving in the market.”

It’s true that COVID-19 boosted online sales, but the tide has started to change— people are again yearning for the in-per son experience, though businesses must strike an equilibrium between brickand-mortar and e-commerce to survive, and the most successful have done just that.

We’re seeing it more and more. A compa ny may not have the size or color a cus tomer is looking for in store, but a wider selection is offered online. Businesses like Warby Parker and Away have store fronts, or showrooms, for customers to come in and “try before they buy”. Cus tomers can find the product that works for them but must then place the order online.

“Retailers need to have both [a brickand-mortar and online presence] to effectively compete,” Schutter said. “For a company to only offer storefront might put them at a disadvantage relative to competitors who are able to offer both avenues. Traditional retailers should have an online presence, and vice versa.”

This strategy has unintended benefits, too. Customers might need to go to a storefront to return or exchange a product purchased online. While there, there’s a chance that they’ll purchase an other product they happened to see on display, a transaction that wouldn’t have occurred if the company was not maxi mizing their strategy.

Malls were struggling long before the onset of COVID-19. Post-pandemic, stores traditionally found in regional shopping malls were having to shift in case something like that were to happen again. During 2020, Schutter said most of his time was spent working with existing clients, trying to figure out how to struc ture a deal to keep the retailers open. What kind of rent reductions could we put in place that would give them a break right now and maybe a longer lease term at the end of the day? How do we restruc ture? What would make sense for both the owner and the tenant at that time?

Businesses were concerned with in cluding a precautionary COVID clause into new leases, but this has changed. Many are looking at COVID-19 as a stand-alone event, and things seem to be looking up for the future of the shopping mall—even in Chicagoland—which is something that couldn’t be confidently said in, say, January of 2022.

Oakbrook Mall, for example, has an out door concept that works well regardless of climate. Crowded and vibrant, it offers a mix of affordable and high-end stores that, too, maximize sales with a com plementary online presence. The secret sauce to a thriving mall is made with two ingredients: (1) a central, bustling

location and (2) innovative, adaptable tenants.

Secondary malls with weak anchors, on the other hand, may go by the wayside soon. Department store anchors, in some cases, are being converted to senior housing, medical facilities or other an cillary uses. A few well-located regional malls in Chicagoland have already been demolished to make space for non-retail development, and this will continue to be a trend.

A similar trend is known as “medtail”, which refers to medical facilities located in retail shopping centers—Aspen Den tal, Heartland Dental, Athletico. Many of these businesses have been occupying remaining retail shopping malls, which wouldn’t have been the case 10 years ago.

All of this begs the question. It’s no secret that Downtown Chicago has faced more of a challenge getting on its feet in the last few years, compared to suburban re tail, but how do the two markets compare today in terms of strength of the market?

Suburbia still going strong. There’s been a decent amount of activity in 2022, but not as much new construction as seen in previous years.

“The cost of new construction is very high right now,” Schutter said, “so it’s hard to build new retail cost effectively. Due to vacancies generated after the pandemic and because of the normal life cycle of retail, retailers are signing leases in existing retail.”

As for Downtown Chicago, Michigan Avenue and State Street leasing is still pretty slow, due to workers still not hav ing fully returned to the office and the slow return of convention business, but Schutter remains optimistic.

“I have always enjoyed retail because of its ever-changing dynamic,” he said. “Just when you think you’ve seen the latest retail concept, somebody comes out with something new that’s interesting and entertaining.”

James Schutter

“I have always enjoyed retail because of its ever-changing dynamic. Just when you think you’ve seen the latest retail concept, somebody comes out with something new that’s interesting and entertaining.”

More people are renting than ever. But what Chicago zip codes boast the highest share of renters?

With the cost of building a home at an all-time high, the dream of homeownership is taking a back seat for many people in America. Renting is at the highest level in half a century, with 43.7 million U.S. households are currently making do in rented apartments.

But how does renting affect the structure of urban areas at a local level? RentCafe analyzed the renter/owner mix of the 50 largest U.S. cities and identified the zip codes that switched to a renter-majority population during the decade.

Perhaps not surprisingly to locals, Chicago holds three zip codes where living in a rented apartment became the new sta tus quo, with an additional 28 further reinforcing their renter status.

No. 2 on the list of “Zip Codes Where Renters Became the Majority in the Last Decade” is Chicago’s 60606, or the West Loop. The number of renters in this area

By Mia Goulart, Senior Staff Writer

surged by two and a half times in a de cade—151%. Now boasting a 63% renter population, the zip code’s residents are mostly business-minded Millennials and Gen Zers, based on the report.

Downtown areas became more popular for renters in 2020 compared to 2010 across the U.S. And because of the transformation Downtown Chicago has experienced in the last decade, 60606 has blossomed into one

of the best neighborhoods to live in Chicago, making it the fifth fastest-growing renter zip code nationwide, surpassed only by Columbus, Ohio, Miami, Florida and Minneapo lis, Minnesota.

Another zip code to transition to renter-majority this past de cade is 60661. A renter magnet, according to RentCafe, the rent er population grew by 84% in the past decade, totaling 66.3% renter majority. Considerably larger zip codes, like 60611 and 60659, also switched to rent er-majority this past decade, thanks to a 45.5% and 33% surge in the number of renting households.

According to the latest Census Data, Chicago is home to a total of 31 renter-majority zip codes, with 60637 boasting the largest share of apartment dwellers at over 75%. Following behind are 60649 and 60626, with a 74% and a 73.3% renter share.

Life science is on the rise in Chicago. But how does the market compare to others across the U.S.?

Not as flashy as other sectors, life sci ence must not be overlooked when considering new opportunities. The sector has continued to gain traction in recent years, and Chicago has been high lighted as one of the best markets for this kind of venture.

Despite turmoil in the public markets, a slowdown in VC funding and volatility in interest rates, Chicago remains well-posi tioned for future growth, according to a recent report by Newmark.

Still an emerging life science market com pared to others across the U.S., Chicago is home to 11 research universities and several hospital systems as well as phar maceutical and medical device companies

By Mia Goulart, Senior Staff Writer

including Abbott Labs, Abbvie, Baxter, Hospira (Pfizer), Tempus, Akorn, Frese nius Kabi, Astellas Pharma, and Horizon Therapeutics.

Leasing has remained strong throughout 2022, based on the report, and many tenants have expanded existing leases like Portal Innovations, a life science investment and incubation company, or signed new ones, like Celadyn Technologies—both in Fulton Market. And a major plus? Challenges that continue to affect tenant demand for con ventional office do not exist for laboratory product—life science landlords can rely on research and development being done onsite and not remotely.

And with new leases comes more jobs. Life science job growth in Chicago continues to be strong, with the number of data and medical scientist roles increasing the most. In fact, Newmark said the number of recent graduate degrees being earned for biological and biomedical sciences has doubled in the last 15 years.

Market Stats:

• Market Size: 1,527,910 SF

• Rent: $35-$60 PSF

• Vacancy Rate: 12%

• Under Construction: 543,454 SF

• Proposed: 1,950,000 SF

• 1H22 Venture Capital Funding: $326M

• 12-Month Sales Volume: $131M

Compared to Texas, another major play er in the sector, Chicago sits just below Austin in terms of market size, 1.5 million square feet versus 1.6 million square feet, respectively.

Austin’s market has continued to benefit from demographic tailwinds, based on the report, with life science employment expanding nearly 74% in the last few years and expected to grow at 6.5% through 2025. Life science VC funding for health care and life science companies has also reportedly increased 47.8% year-over-year in 1H2022, making it among the top per forming cluster markets.

BROKERAGE FIRMS

BARBERMURPHY

1173 Fortune Blvd.

Shiloh, IL 62269

P: 618.277.4400 | F: 618.277.4407

Website: barbermurphy.com

Key Contacts: Wayne Barber, Jr., SIOR, Principal, Wayne@barbermurphy.com; Paul Murphy, Managing Broker, Principal, Paul@barbermurphy.com; Steve Zuber, SIOR, CCIM, Principal, Steve@barbermurphy.com; Collin Fischer, CCIM, Principal, CollinF@barbermurphy.com

Services Provided: BARBERMURPHY is a full service Commercial Real Estate firm offering their clients on the ground market knowledge and experience in the disposition and acquisition of commercial, industrial, land, retail, and investment properties.

Company Profile: BARBERMURPHY is the largest Commercial Real Estate firm focusing on downstate Illinois and St. Louis. Our growing firm has 19 Licensed Brokers and more than 500 exclusive listings.

Mission Statement: Achieving total client satisfaction through exceptional people providing the best possible Commercial Real Estate Solutions.

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, designbuild 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.

LAMP INCORPORATED

460 North Grove Ave. Elgin, IL 60120

P: 847.741.7220 | F: 847.741.9677 Website: lampinc.net

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.

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

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.

CONSTRUCTION COMPANIES/GENERAL CONTRACTORS

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.

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.

MULTIFAMILY FINANCE FIRMS

ASSOCIATED BANK

525 W. Monroe Street, Ste. 2400 Chicago, IL 60661

P: 312.544.4645

Website: associatedbank.com/cre

Key Contacts: Gregory Warsek, Executive Vice President, 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.

M&T REALTY CAPITAL CORPORATION

Chicago, IL

PRINCIPLE CONSTRUCTION CORP.

9450 West Bryn Mawr Ave., Suite 120 Rosemont, IL 60018

P: 847.615.1515 | F: 847.615.1598

Website: pccdb.com

Key Contacts: Mark E. Augustyn, COO, maugustyn@pccdb.com James A. Brucato, President, jbrucato@pccdb.com

Services Provided: Principle specializes in commercial and industrial property and is committed to providing clients with the highest level of design/build construction services with an absolute dedication to each project.

Company Profile: Design/Build General Contractor established in 1999 specializing in the design and construction of Build-to-Suit, Speculative, Retail, Food Processing, Expansions/ Additions, Tenant Improvements, & Specialty Facilities. Principle also has extensive experience in interior improvements, site evaluation, due diligence, and value engineering.

Recently Completed Projects include: CV Tek, a relocation and expansion of a 78,000 SF warehouse and office building at 440 South McClean Boulevard South Elgin, IL • Kitamura Machinery, renovation of showroom and training facility at 451 Kingston Court, Mt. Prospect, IL

• A new $11 million, 17,730 SF service center, located on nearly 23 acres for Highway Transport, a leader in the safe transport of liquid chemicals.

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; 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, Austin, TX and North Carolina, Summit Design + Build has been involved in the design and construction of over 400 buildings and spaces totaling more than 10 million square feet over the firm’s 17 year history.

Notable/Recently Completed Projects: 2032 N Clybourn (Adaptive Reuse Apartments), 1436 W Randolph (Adaptive Reuse Hotel), Eli’s Cheesecake (Industrial), 718 Main (Multifamily), 1400 Monroe (Multifamily), 113 E Oak (Retail), Prenuvo (Medical TI), New Buffalo Retreat (Luxury Private Residence), 448 N LaSalle – WeWork (Coworking Office TI)

VICTOR CONSTRUCTION

2000 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: Owens + Minor Distribution – 600K SqFt distribution facility that involved a full LED lighting upgrade, new HVLS fans, 200K SqFt section that required new cooling for medical distribution, an office renovation of 20K SqFt, and a new exterior employee pavilion.

P: 312.203.5410

Website: mtrcc.com

Key Contacts: Monty Childs, Managing Director, mchilds@mtb.com

Services Provided: Multifaceted Affordable Housing Specialists. Debt financing and loan servicing. Fannie Mae DUS® lender, Freddie Mac Optigo® Lender, FHA/HUD Healthcare & Multifamily lender. Correspondent with life companies and CMBS lenders. Bridge loan program for qualified borrowers.

Company Profile: M&T Realty Capital Corporation® is a wholly-owned subsidiary of M&T Bank—one of the 20 largest US-headquartered commercial bank holding companies. Full-service mortgage banking company that provides competitive financing nationwide for commercial real estate. In 2021, M&T Realty Capital originated $5.1 billion in loans, and currently services a portfolio of more than $24.4 billion. Please review our M&T Insurance Agency, Inc. real estate and construction insurance offerings on page 44.

Service Territory: Nationwide

MARQUETTE BANK

1628 W. Irving Park Road, Unit 1D Chicago, IL 60613

P: 708.873.8639

Website: emarquettebank.com

Key Contacts: Bill Hinsberger, Executive Vice President, bhinsberger@emarquettebank.com; Patrick Tuohy, Senior Vice President, ptuohy@emarquettebank.com

Services Provided: Multifamily/apartment building lending for all Chicagoland. Fast, local decision making. Dedicated local servicing staff. Simple, no-hassle paperwork. Quick close. Flexible terms. Clients enjoy ZRent – an automated, hassle-free, no-cost way to collect monthly payments from tenants.

Company Profile: Marquette Bank started in Chicagoland in 1945 and is still locally-owned/ operated. 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.

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