CRE News: What We’re Reading the Week of September 15

By BOMA/Chicago

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of September 15.

Partial Sale of the Sullivan Center
Winthrop Realty Trust and Elad Canada Inc. are seeking buyers of their 76% stake in the Sullivan Center, located at 1 S. State. The CityTarget store currently serves as the anchor tenant to this 15-story, 943,944 square foot building and according to sources, the property would be worth about $250 million in an outright sale. However, a partial sale and the unusual ownership structure make it difficult to estimate a sale price.

Freedom Center Redevelopment
Tribune Media announced earlier this week that it plans to redevelop a seven-acre portion of its Freedom Center campus, located at 700 W. Chicago Ave., that contains a vacant, 115,000 square foot industrial building. Tribune Media, in attempt to gain revenue from its real estate holdings, will seek a development partner for this project and will soon issue a request for proposals.

Uber Signs Another Sterling Bay Lease
Uber Technologies Inc., a fast-growing ride-sharing company, has signed a lease for 58,000 square feet on the ninth floor of 111 N. Canal St. This property is owned by Sterling Bay. In March of this year, when Uber moved into another Sterling Bay building located at 370 N. Carpenter St., the firm stated that it planned to have 100 Chicago-based employees by the end of 2014 and 200 by the end of 2015.

Renewed Lease and Increased Space on Wacker Drive
Rise Interactive Inc., a digital marketing business, has expanded its space at 1 S. Wacker Drive by 19,000 square feet to a total of 35,000 square feet in a new 12-year lease. Harbor Group International purchased this 40-story tower in 2012 for $221 million.

Law Firm Takes Full Floor on LaSalle
Blatt, Hasenmiller, Leibsker & Moore, a Chicago-based law firm, has signed a 10-year lease for a full floor (23,000 square feet) at 10 S. LaSalle. The firm will take occupancy in October when it relocates 170 employees from its corporate headquarters at 125 S. Wacker.

What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.

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Educational Opportunities Abound – How Will You Take Your Career to the Next Level?

By Jaclynne Madden, BOMA/Chicago Marketing & Education Program Manager

Labor Day has come and gone. The September chill is in the air. Businesses are flooding the airwaves to tout backpack sales and notebook bargains.

All of the signs are here – fall has arrived and back-to-school season has kicked into fifth gear.

Given that educational offerings are one of the core BOMA/Chicago member benefits, it’s important to remember that back-to-school season is not just for the kids. Investing in education is a lifelong endeavor. Whether you are one of BOMA/Chicago’s emerging leaders or an experienced CRE professional, we have a multitude of 2014 and 2015 educational opportunities planned for you.

BOMA/Chicago educational programs are designed to incorporate adult-learning methodology and are organized in ways that increase skillsets with minimum disruption to your busy schedules. Classroom settings are fun, timely and unintimidating so that you can naturally hone your CRE knowledge while building relationships with instructors and fellow students. And what’s even better is that when you leave the BOMA/Chicago classroom, you will walk away with information and expertise that can be immediately applied to your job.

Below are the educational offerings that we have in store for you.

RPA/FMA Classes
Real Property Administrator (RPA) and Facilities Management Administrator (FMA) BOMI International designation programs are recognized on national and international levels as marks of distinction and excellence throughout the property and facility management industries. The successful completion of a designation program allows you to gain a deep understanding of how to increase the value of properties and/or operate facilities at peak efficiency.

BOMA/Chicago will be offering the following six RPA/FMA classes (five of which are required) through 2015:

  • Asset Management (Elective): October-November 2014
  • Real Estate and Finance (Required): January-February 2015
  • The Design, Operation, and Maintenance of Building Systems, Part II (Required): March-April 2015
  • Ethics is Good Business (Required): May 2015
  • Environmental Health and Safety Issues (Required): July-August 2015
  • Budgeting & Accounting (Required): September-October 2015

Learn more and view the schedule by clicking here.

High-Performance Classes
Additionally, two of the three High-Performance (HP) classes will be offered locally in 2015. These courses are part of BOMI’s High Performance Program that launched in June 2014 and they will give you the opportunity to earn an enhanced designation (RPA|HP or FMA|HP). Here are the two HP courses we will offer:

  • High-Performance Sustainability (Principles): March 2015
  • High-Performance Sustainability (Practices): September 2015

Now that you have an idea of our 2014-2015 schedule, here is an overview of the educational scholarship opportunities you can take advantage of now.

Three Scholarships You Should Consider
Through the BOMA/Chicago Foundation, those currently working in commercial real estate have a tremendous opportunity to receive a scholarship that will cover all (or part of) the cost of tuition toward earning the industry’s highest designations – the RPA and FMA. Below are the three scholarships you may be eligible for:

updated-fds-rr_0Full Designation Scholarship: This scholarship is valued at $10,000 and provides funding for all eight required RPA or FMA designation courses. Application season for this scholarship is now open and applications are due by November 7, 2014.

Ollie Scholarship: The Ollie Scholarship is designed to promote diversity within the CRE industry by allowing recipients to earn full tuition toward the RPA. Applications will be accepted from December 1, 2014 until February 13, 2015.

Single Course Scholarship: This scholarship is valued at approximately $1,400 and provides funding for one designation course. Applications are due a minimum of two months in advance of the start date of the course for which the applicant is requesting scholarship funds.

Achieving success goes to those who have the most knowledge, expertise and credentials…and also to those who leap at opportunities such as the ones we outlined above. Give yourself a competitive edge in this dynamic industry today by participating in our relevant and affordable educational programs and by applying for a scholarship that could propel your career.

How have BOMA/Chicago’s educational offerings enhanced your career? What educational programs would you like to see BOMA/Chicago offer in the future? Leave us your comments below.

For more information about educational courses offered by BOMA/Chicago and available scholarships, contact Jaclynne Madden at jmadden@bomachicago.org.

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CRE News: What We’re Reading the Week of September 8

By BOMA/Chicago

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of September 8.

Billion Dollar Pricetag for Several CBD Towers
Several downtown towers, with a combined value of about $1.8 billion, will soon be on the market. Here are several future sales predicted by Crain’s Chicago Business:

Portion of River North Office Space for Sale
Alter Group Ltd. plans to sell 141,957 square feet of office space located at 111 W. Illinois St. for $71 million. This sale would not include the three floors owned by the Erikson Institute, a non-profit graduate school, or the 10,000 square feet owned by the Roka Akor restaurant. Salesforce.com, a company that sells sales-automation software, has nine years remaining on a 116,819 square foot lease at this property.

Downtown Move After Three Decades
GlobeStreet.com reported on the growing trend of companies moving to the CBD from other Chicagoland areas – a trend that is attributed to the many amenities and conveniences that downtown offices provide. Newark element14, an electronics and engineering firm, is the most recent firm to make the move to the CBD after spending 34 years in Ravenswood.

Wacker Pricetag Disclosed
Last week, we reported the sale of 101 N. Wacker Drive, a property previously owned by Hines Interests L.P. The price paid for the property by the now-owner, LaSalle Investment Management, has been disclosed – $210 million. The 24-story tower is currently 90% leased.

What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.

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CRE News: What We’re Reading the Week of September 1

By BOMA/Chicago

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of September 1.

Acquisition and Sale for Hearn
Hearn Co. has sold 55 W. Monroe to John Hancock Real Estate for $241 million, which is $105 million more than Hearn and its partner, New York-based Mount Kellett Capital Management L.P., paid when they purchased the tower in December 2011. During the three years that Hearn owned 55 W. Monroe, vacancy decreased by 26%.

A Hearn Co. venture has acquired Three First National Plaza located at 70 W. Madison for $375 million with plans to spend upwards of $50 on future renovations. Hearn purchased the property from two investment partners, Chicago-based GEM Realty Capital Inc. and San Francisco-based Farallon Capital Management LLC.

More Financing for Riverside Development
A group of lenders has financed the 150 N. Riverside Plaza project with a $296 million loan. This 1.2 million square foot office tower, which is currently under construction and is expected to open at the end of 2016, is already 28% leased.

High Demand at GlenStar Property
GlenStar Properties has added yet another tenant to its renovated office space at 55 E. Monroe – Regus, the world’s largest shared office center operator. Regus signed a long-term lease for 21,000 square feet. The lease will start in January 2015. Tenants now occupy 88% of the office space at 55 E. Monroe.

Hines Sells Wacker Building
Hines Interests L.P. has sold 101 N. Wacker Drive to LaSalle Investment Management after spending $12 in renovations that include an updated lobby, a fitness center and a floor-to-ceiling glass curtain wall system. The 24-story tower is currently 90% leased. Hines will continue to serve as the property management company while JLL will serve as the building’s leasing agent. The purchase price has not yet been released.

What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.

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CRE News: What We’re Reading the Week of August 18

By BOMA/Chicago

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of August 18.

More Help for Yelp
Yelp Inc. has signed a lease for more than 50,000 square feet at the Merchandise Mart with plans to move into the space in January 2015. Most of the space will be filled with sales employees that Yelp plans to hire over the next 12 to 18 months. The Mart is owned by New York-based Vornado.

Move Along Wacker
Heath insurance company Aetna has signed a lease at 333 W. Wacker Dr. for 53,824 square feet that spans the 21st and 22nd floors. Aetna currently resides at 1 S. Wacker Dr. and plans to relocate in March 2015. 333 W. Wacker is owned and operated by Hines while 1 S. Wacker is owned and operated by Harbor Group.

Renewal and Expansion for Law Firm
Dale & Gensburg P.C., a Chicago based law firm, has renewed its lease for the 24th floor at 200 W. Adams and has also agreed to expand its space to accommodate growing operations. Sterling American Property and Lincoln Property Company own this property.

Glass Over the River
Zeller Realty Group, owner of the 35-story office tower at 401 N. Michigan Ave., has announced plans to construct a glass box on its southern edge. This box would overlook the Chicago River and would serve as an entrance to a new riverside restaurant below the plaza. Zeller recently took out a new $190 million loan and plans to spend $25 million in improvements for this property. The glass box is still awaiting city approval.

What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.

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CRE News: What We’re Reading the Week of August 11

By BOMA/Chicago

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of August 11.

Acquisition of Clark-Adams Building
A venture led by Chicago developer John Murphy has struck a deal to acquire 105 W. Adams for an undisclosed price. Sources close to the deal say that Murphy will pay more than the $48 million the seller, Musa Tadros, paid for it in 2006. According to Murphy, the plan is to reposition the Clark-Adams Building as a “high-quality, affordable office option in an outstanding location.”

Signal Signs Sublease on Canal
Signal, a software startup formerly called BrightTag, will be moving from 9,000 square feet at 440 N. Wells St. to 27,000 square feet at 111 N. Canal St. Signal will be subleasing this space from Braintree, as Braintree will be moving to the Merchandise Mart. The startup has grown to 115 employees from 76 within the past eight months and the company expects to have 150 employees by year end.

NORC Extends and Expands
NORC, an independent research organization at the University of Chicago, has signed an extension on its existing 88,000 square foot lease at 55 E. Monroe, a building owned by GlenStar Properties and Walton Street Capital. NORC has also agreed to a 30,000 square foot expansion. We last reported on this property when Punchkick Interactive, Inc., a mobile marketing company, signed a lease for 23,401 square feet of space at 55 E. Monroe.

Three Floor Lease on Jackson
Enova International, an online loan provider, has signed a 12-year lease at 175 W. Jackson Blvd. for 160,240 square feet. This lease includes the entire tenth floor along with more than 30,000 square feet on the fifth and sixth floors. The tower, also known as the Insurance Exchange Building, totals 1,452,390 square feet and is 23 stories high.

Seyfarth Shaw to Relocate to Willis Tower
Chicago law firm Seyfarth Shaw LLP will be moving into 200,000 square feet at the Willis Tower after it relocates from its current 300,000 square foot space at 131 S. Dearborn St., also known as the Citadel Center. Seyfarth Shaw has signed a 15-year lease for the Willis tower and is exercising an option for the early termination of its 15-year Citadel lease in 2017. Melissa Copley, Seyfarth’s broker and a managing partner at Mohr Partners Inc., declined to disclose what Seyfarth will pay to terminate the lease.

What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.

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CRE News: What We’re Reading the Week of August 4

By BOMA/Chicago

Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of August 4.

Moving Headquarters Across the Street
Online payday lender Enova International Inc. has signed a 12-year lease for 160,240 square feet at 175 W. Jackson Blvd. This is the fourth largest new lease in downtown Chicago for 2014. Enova will relocate from 200 W. Jackson, where it leases about 175,000 square feet, in early 2015.

Two Firms Move to Accommodate Increase in Workforce
Inventus LLC, an electronic legal services provider, has relocated from loft office space at 600 W. Fulton St. to the Citigroup Center located at 500 W. Madison St. The company is currently occupying 12,000 square feet at 500 W. Madison and will expand into 20,000 more square feet once construction on that space is complete. One of the reasons behind this move is due to the firm’s expectations to double its workforce within the next few years.

Chicago-based Valence Health plans to hire 500 new employees at its new West Loop headquarters located at 540 W. Madison St. The company signed a lease for 125,000 square feet and will move from its smaller headquarters located at 600 W. Jackson Blvd. later this year. Valence currently employs 325 people and plans to create 500 jobs in Chicago by 2019.

Fifth Purchase in the Chicago Market
Accesso Partners, previously known as Beacon Investment Properties, has purchased 230 W. Monroe St. for $122 million. The 623,564 square foot tower is currently 66% leased and received offers from 20 potential investors during the four months it has been on the market. This is the fifth office building Accesso Partners has purchased in the Chicago area within the past year.

Long Term Lease on LaSalle
Wintrust, a Rosemont, IL-based financial corporation, has signed a 20-year lease at 231 S. LaSalle St. The lease will start in 2015 and includes 179,332 square feet for the second, third, fourth and 13th floors. Other major tenants of this building include The Northern Trust Co. and the U.S. Army Corps of Engineers.

What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.

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