Duke Realty Corp. added to its Chicago and nationwide industrial portfolio with the acquisition of an 827,258-square-foot industrial building in Naperville that is completely occupied by Crate and Barrel, one of the largest retail home furnishing companies in the United States, under a long-term lease.

The acquisition of the Crate and Barrel building is the fourth industrial purchase that Duke Realty has made in Chicago since September 2011, raising its total industrial portfolio in the market to more than 10 million square feet and more than 107 million square feet nationwide.

“Our most recent acquisition in Chicago is in line with Duke Realty’s strategy to increase its investment in class A, well-leased, modern industrial assets in top distribution markets,” said Steve Schnur, senior vice President of Chicago operations. “This building meets all of our criteria for the type of industrial assets we want to own, making it an excellent addition to Duke Realty’s portfolio.”

The acquired property, which was built in 1998 and expanded in 2000, is used by Crate and Barrel as a fulfillment center for Internet sales and a distribution center for a large percentage of the United States. Located in the I-88 Corridor submarket, the building is easily accessible and close to several other Duke Realty industrial properties.

The seller of the property, DB Real Estate West Jefferson Partners L.P., operated by RREEF, was represented by Jeff Devine, Steve Disse and Jeff Kahan with Colliers International in the transaction.

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In a move that impacts just about every major market in the Midwest, C-III Capital Partners has completed its acquisition of NAI Global.

The NAI Global network includes NAI companies across the Midwest, including such familiar names as Chicago’s NAI Hiffman, NAI Ruhl & Ruhl Commercial Company in Iowa, NAI DESCO in St. Louis and NAI Daus in Cleveland.

Commercial real estate services company C-III specializes in primary and special loan servicing, loan origination, fund management, CDO management, principal investment, title services and multi-family property management.

Andrew Farkas, the chief executive officer who leads C-III, was also the founder and chairman and chief executive officer of Insignia Financial Group. C-III is based in Irving, Texas, with additional offices in New York; Greenville, S.C.; McLean, Va.; Chicago; Dallas; and Nashville.

The acquisition doesn’t appear likely to change the way NAI affiliates across the Midwest will operate. NAI Global will continue to operate as a separate company under its current management. C-III officials, though, did say in a press release that the company will look to grow NAI Global by exploring business opportunities in strategic locations, including New York, London, Singapore and other primary global business centers.

“The completion of this transaction represents a significant step forward in our strategy to build a fully diversified commercial real estate services company,” Farkas said in a written statement. “With the NAI Global acquisition, we are gaining the world’s leading commercial real estate network and a tremendous foundation for future growth.”

Officials with NAI Global also expressed excitement over the new arrangement.

“We are thrilled to be joining forces with C-III and excited about the opportunity to deliver an even broader range of services to our members and add greater value to our collective corporate and investment clients,” said Jeffrey Finn, president and chief executive officer of NAI Global, in a written statement. “We look forward to tapping into their extensive resources and expertise to assist all of our clients in strategically optimizing their commercial real estate assets.”

NAI Hiffman chief executive officer Dave Petersen said that he expects the benefits of the transaction will translate to new real estate assignments for the company’s local office and will create added opportunities for existing clients and shareholders.

“The best aspect of this transaction is that its greatest value will be seen at the ground level in the form of property management, leasing and investment sales opportunities,” Petersen said.

Founded in 1977 by Gerald Finn, NAI Global has grown from covering 15 countries in 1999 to a network that now boasts 350 offices in 55 countries, with more than 300 million square feet of commercial space under management.

C-III started its operations when it purchased Centerline Capital Group’s institutional real estate debt fund management and commercial mortgage loan servicing businesses in March of 2010. Since that time, C-III has launched mortgage origination, investment sales and title insurance businesses, and expanded its principal investment, loan origination, fund management and primary and special loan servicing businesses, including acquiring the special servicing and CDO management businesses of JER Partners in August of 2011.

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Venture One Real Estate LLC, through its acquisition fund, VK Industrial I LP, has closed on a 146,959-square-foot building at 3940 Stern Road in St. Charles.

The property was built in 1987. It features 7,668 square feet of corporate offices, 16 truck level docks and a 3,000 amp power service. Venture One purchased the building in a sale-leaseback transaction with Colony Inc., which signed a lease for the entire facility. Colony designs, manufactures and delivers fixtures and point-of-sale products for national retail chains in the U.S.

The seller was represented by Nick Eboli, John Sharpe and Mike Androwich of Lee & Associates of Illinois. VK was represented by Shaun Burke of H and B Realty. 

Venture One’s VK Industrial fund has acquired more than 822,000 square feet of industrial property in 13 separate transactions in the Chicago market since opening in September of 2010. 

“Over the past 16 months we have been actively expanding our industrial portfolio through acquisitions in the Chicago market. We continue to find opportunities that meet our investment criteria and plan on expanding at a similar pace in 2012,” said Matt Goode, a principal at Venture One.

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Grandbridge Real Estate Capital, from its Milwaukee office, recently originated and closed debt and equity financing for the acquisition of two adjacent office buildings in the Chicago suburb of St. Charles, Ill.

Grandbridge worked with an affiliate fund of Chicago-based Adams LaSalle Realty to close the deal.

Grandbridge senior vice president Jim Cope and vice president Justin Nelson arranged the financing through one of Grandbridge’s insurance company correspondents. The financing is secured by the St. Charles Executive Park Office Center.

Built in 2001, the two office buidings have a total of 74,274 square feet. Adams LaSalle Realty acquired the distressed properties, which are about 50 percent occupied.

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Venture One Real Estate, LLC, through its acquisition fund, VK Industrial I, LP, has closed on a 44,104 square foot industrial building at 2011 Swanson Court in Gurnee, Ill.

The property was built in 1976 and added on to in 1988.  It is a food grade distribution and production facility that is fully air conditioned and has land for expansion.  Venture One purchased the building in a sale-leaseback transaction with Woodland Foods who signed a lease for the entire facility.  Woodland Foods processes, packages and sells dry specialty foods to service distributers, food manufacturers, and retail outlets throughout North America.

Woodland Foods was represented by Sam Badger, Brad Weiner and Whit Heitman of Paine/Wetzel.

Venture One’s VK Industrial fund has acquired 750,000 square feet of industrial property in 12 separate transactions in the Chicago market since opening in September of 2010.

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Berkadia Commercial Mortgage originated $13,000,000 in floating-rate debt for the acquisition of a student housing property located at the University of Illinois. The loan features a three-year term to allow for the repositioning of the property.  The borrower is a joint venture between the Preiss Company of Raleigh, North Carolina and the Collier Companies of Gainesville, Florida. The Preiss Company, one of the largest owners and managers of student housing properties in the United States, will manage the property.

The loan marks the first interim bridge transaction completed under Berkadia’s expanded proprietary lending program, which launched in March. Berkadia now offers short-term bridge financing (6-12 months) and interim bridge loans (2-3 years) to borrowers in all core commercial property types seeking to acquire and reposition properties through non-recourse commercial mortgages.

“This deal is an example of a transaction where Berkadia can provide takeout financing through our longstanding GSE relationships and our new conduit business announced earlier this year,” said Managing Director Hugh Hall, in a released statement. “Under the stewardship of Preiss, we believe the property operations should stabilize and allow for refinancing through one of our multifamily lending programs.”

Located on North Moreland Boulevard in Champaign, Ill., the property was developed in 2007 with construction financing from Wachovia Bank. The Class-A garden style complex includes 240 units with 792 beds.

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ArrowRock Income & Growth Fund, an investment fund owned and managed by St. Louis-based Summit Realty Ventures,  recently closed on its second acquisition.

The fund purchased Westover Village, a more than 114,000-square-foot shopping center on more than 41 acres in Fort Worth, Texas, from Amegy Bank of Texas. The shopping center is located about five miles from downtown Fort Worth. Westover Village is shadow anchored by Target, and also includes such national tenants as Petco, Party City, Half Price Books, JPMorgan Chase, Arby’s and McDonald’s.

John Ross, Mark Billeaud and Scott Reese, three St. Louis-based commercial real estate executives, formed Summit Realty Ventures in April of 2009.  The investment entity has targeted distressed industrial and retail properties in Texas, Florida and Colorado.

“Westover Village fits the overall goal of our fund, which is to acquire class A assets at significant discounts to replacement cost in growth oriented locations,” said Billeaud, a 22-year industry veteran.

Specifically, the fund is targeting Class-A multi-tenant industrial/service center buildings and neighborhood/ community shopping centers. Its goal is to achieve a portfolio that balances the two sectors.

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