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TreppWire - Don Shapiro named receiver

Tip of the Day: Donald Shapiro of Foresite Realty Advisors in Rosemont, Illinois has been named the receiver for the $26.7 million Studio Green Apartments loan. The loan was sent to special servicing in April 2016 and became delinquent in early 2018.

The loan makes up 2.65% of the remaining collateral behind WFRBS 2013-C12.

The collateral contains two properties in Newark, Delaware: the Studio Green student housing asset (662 beds) and the Park Place apartment property (429 beds).

 

Stevhanie Howard to Emcee Rejournals 5th Annual Health and Medical Office Conference

Save-the-Date

May 24th - University Club - 76 East Monroe, Chicago

7:30am - 10:45am

National Apartment Association Starts Tracking Industry Jobs...

The labor market is not very pretty right now for employers looking to hire.

WASHINGTON, DC–The National Apartment Association has recently begun publishing jobs in the apartment industry that were available in the last 30 days. It is doing this with the aid of a database by Burning Glass Technologies called Labor Insight. The association hopes to see the monthly report it issues — there have been two so far — used as a benchmarking tool for its members, Paula Munger, director of research for the National Apartment Association tells GlobeSt.com.

“One of the industry’s biggest pain points right now — and this is true for a lot of industries — is the war for talent,” she says. “Apartments are all competing for the same few candidates in what is a very tight labor market.

Fed Rate Bumps Could Mean It's Time to Sell

By Brian J. Rogal 

Cap rates are certainly going up this year, along with Fed rates, so experts are saying it's a good time to look for buyers of net lease investments.

CHICAGO—The Fed’s decision this week to push up its key interest rate, and the likelihood of several more hikes in 2018, has a lot of commercial real estate professionals advising clients that it’s time to think seriously about selling some properties. No one seems to be predicting any kind of real turmoil in the market, just that the direction is clear.

“Cap rates are not going to do anything but go up this year,” Camille Renshaw, chief executive officer and co-founder of Brokers + Engineers, a net lease brokerage, tells GlobeSt.com. “So, if you’re going to sell something, you’re going to want to get it on the market sooner rather than later.”

Foresite Realty Named to the Top Brokers for 2017.

Foresite Realty Named to the Top Brokers for 2017.

Building inspectors to work nights, Saturdays

Chicago-Politics

Fran Spielman

For years, Chicago aldermen have been pleading with the Department of Buildings to assign inspectors to work nights and weekends to crack the whip on the avalanche of work being done illegally without a permit.

 

Their pleas have fallen on deaf ears — until Thursday.

 

Buildings Commissioner Judy Frydland got a rare round of applause when she made the announcement while testifying at City Council budget hearings.

Frydland praised union leaders for cooperation that made possible the “alternate shifts” — covering weekday evenings and Saturdays — at no additional overtime cost to Chicago taxpayers.

 

The anticipated start-up date is Dec. 1.

 

“Some inspectors … could work 10 a.m. to 6:30 p.m. or 11 a.m. to 7:30 p.m. … Some may want to take their children to school in the morning and want to work later or have a day off during the week for family obligations … so we’re not paying overtime,” Frydland said. “We plan to keep this going. … It’s in the union contract. … I’m very excited about it because I know there’s a lot of unpermited work going on after hours and on the weekends, especially on Saturday.”

 

 

Chicagoans face another property tax increase in 2020

Fran Spielman - Chicago Sun-Times

 

hicago taxpayers face yet another property tax increase for police and fire pensions in 2020 — and another hike the following year in the tax tacked onto water and sewer bills to save the Municipal Employees pension fund, aldermen learned on the first day of City Council budget hearings.

Following five-year “ramp-up” periods, the additional increases will be needed to honor the city’s statutory promise to keep all four city government pension funds on the road to 90 percent funding by 2048.

By the city’s own estimate, police and fire pension costs will rise by $297.3 million, or 36 percent, in 2020. The Municipal and Laborers plan costs will grow by $330.4 million, or 50 percent, in 2022.

“We’ve done the biggest [property tax] increases,” Chicago Chief Financial Officer Carole Brown said Monday. “But there will be an increase in 2020 for police and fire. The increase for Muni and Laborers will happen a couple years later. . . .

“When this Council passed the water and sewer tax last year, there were assumed increases in the tax from the first year to correspond to increases in the ramp. We would anticipate that if those were the revenue sources assigned on a going-forward basis after we got to actuarial funding, there would need to be increases in those revenues.”

Molly Poppe, a spokesperson for the city’s Office of Budget and Management, insisted later that Brown had been referring only to the state-mandated increase in the city’s contribution to the police and fire pension funds. Brown “indicated that Police and Fire pension contributions will increase in 2020; she did not say property taxes will increase in 2020,” Poppe said in an email.

Later, Brown issued a statement of her own saying, “This budget is for 2018 and was just completed last week, and at no point did I say the City will increase property taxes in 2020. Plain and simple.”

But during the exchange with Ald. Joe Moore (49th), Brown was specifically asked where the city would find the money to pay for that higher contribution.

That’s when Brown replied that, although the worst of the property tax increases was the $543 million increase approved two years ago, another increase was inevitable.

This year’s contribution to all four city employee pension funds is $1.18 billion. By 2021, that actuarially required contribution will rise to $1.8 billion.

Chicago taxpayers have been hit with nearly $1.1 billion in property tax increases, primarily for police, fire and teacher pensions and school construction; a 29.5 percent tax on water and sewer bills to save the Municipal Employees pension fund; a 56 percent telephone tax hike in 2014 and another 28.2 percent next year for the Laborers fund; a new garbage collection fee; a bag tax; and increases in water, sewer and city sticker fees, hotel and parking taxes and parking fines, among others.

Ald. Pat Dowell (3rd) questioned the fairness of Emanuel’s plan to raise the monthly tax tacked on to Chicago telephone bills by $1.10 — from $3.90 to $5 — and apply it to every one of the 1.53 million cell phones and 733,893 land lines in the city.

The money will be used, in part, to overhaul Chicago’s 20-year-ol

BOMA Unveils New Office Measurement Standard

BY ERIKA MORPHY

“Tenants aren’t using office space the same way they were when BOMA International released its last office standard, and amenities like rooftop gardens and balconies are becoming much more common.”

WASHINGTON, DC–Balconies, covered galleries and finished rooftop terraces that are for the exclusive use by a tenant may now be included in the rentable square footage calculation. That is one of the updated standards the Building Owners and Managers Association has made in its latest update to its floor measurement standard for office buildings, BOMA 2017 For Office Buildings: Standard Methods of Measurement. BOMA released the update this week. The last time this guide was published was in 2010, and a lot has changed since then — including the now very popular amenity of an exclusive rooftop terrace.

Investor flips River North loft office building-215 W Ohio

A Missouri real estate company has sold a River North loft office building it seized through foreclosure four years ago, cashing in on a hot market for creative office space downtown.

Adding to a run of brick-and-timber buildings trading hands in the city, a venture of Kansas City-based Mission Peak Capital sold the six-story building at 215 W. Ohio St. last month for $9 million, Cook County records show.

4 takeaways from RE Journal's 2017 Student Housing Conference

RE Journal's hosted its 3rd Annual Student Housing Conference at the Gleacher Center in Chicago's Streeterville neighborhood on Thursday. Developers, principals and investors discussed the current trends and issues within the student housing sector.

April Pribe to speak at Chicago Student Housing Conference on June 8th

When Thursday, June 8, 2017 7:30 AM - 10:30 AM Where University of Chicago: Gleacher Center 450 N. Cityfront Plaza Drive Chicago, Illinois 60611

Perseverance, hard work continue to lead Foresite's Hadac to success

After a 19-year career, Jamie Hadac has earned her keep as an EVP at Foresite Realty Partners in Chicago. But the road from the University of Delaware wasn't always easy.

Recent Assignments - November

Recent Assignments - November

Foresite Named to the Best of the Best List

Foresite has been named to the Top Brokers and Property Management list in the Midwest for 2016.

Recent Assigments - October 2015

New Recent Assignments

Foresite Welcomes Patrick Toomey

We are pleased to announce that Patrick Toomey has joined the firm as Vice President,Multifamily Operations based in Rosemont, Illinois.

Court Decisions Extend Chicago's Transfer Tax Ordinance to Cover Mortgage Assignment

Earlier this month, in a case of first impression, the Circuit Court of Cook County, Illinois in the consolidated cases of City of Chicago v. KTCP 225, LLC, Case No. 13 L 050290, and City of Chicago v. Horizon Group XXI, LLC, Case No. 13 L 050291 (the"KTCP/Horizon Cases"), reviewed and analyzed the Chicago Real Property Transfer Tax Ordinance (the "Ordinance") to determine whether one who purchases a loan and mortgage through an assignment of mortgage acquires a "beneficial interest in real property" such that the parties are subject to transfer taxes on the assignment, and further whether the transaction qualifies under Exception C of the Ordinance, which exempts from taxation the granting of mortgages. Just last week the Circuit Court of Cook County again addressed these issues in Halsted West v. City of Chicago, Case No. 11 CH 19010, consolidated in the City of Chicago v. Elm State Property and Halsted West, Case Nos. 14 L 050273 and 14 L 050274 (the "Halsted West Cases").

Jamie Hadac, Executive Vice President named to the Women of Influence 2015 in Real Estate Forum

Jamie Hadac, Executive Vice President named to the Women of Influence 2015 in Real Estate Forum

Forsite Named to the 2015 Best of the Best

Foresite named to the Best of the Best in the Midwest for Management and Brokerage

MONDAY MORNING FOREFRONTS

MONDAY MORNING FOREFRONTS By Daniel I. Dorfman It was less than a decade ago that Don Shapiro sensed it was time to start a new chapter in his professional life. "I wanted to go on my own," remembered Shapiro, now a 30-year veteran of the real estate industry. That was the impetus in 2005, when Shapiro, working in conjunction with a number of partners all of whom had an Indiana University bond, formed Foresite Realty Partners, LLC.

You Won't Recognize the Office of the Future

With some companies achieving well below 100 SF/employee, will we be too close for comfort in tomorrow’s offices? (We better learn to get along because soon we'll be sitting on each other's laps.) That's why downsizing has to be done efficiently, we learned at Bisnow’s Property Management & Office of the Future event.

Three Ways To Keep Your Tenants Happy Featuring Don Shapiro

Tech is transforming the way office buildings retain tenants in today's market, so we're thrilled to be holding Bisnow's Property Management & Office of the Future summit next month to discuss new ways owners and property managers are keeping buildings competitive. Some tips:

Don Shapiro to Moderate Property Management and Office of the Future Conference

bisnow Thursday, August 28, 2014 Trump International Hotel & Tower Chicago

Grab the Wheel - Michigan's New Road to Receiverships Could Get Bumpy effective May 1, 2014.

Attorneys and clients seeking the appointment of a receiver often face the dilemma of uncertainty. The process can be riddled with questions: Will the court appoint the requested receiver? If not, will the court appoint a receiver with knowledge of, let alone specialization in, the subject matter of the receivership? Will the court even appoint a receiver? How long will it take to get the appointment, if ever? And, if the receiver appointed is other than the one requested, will the appointment add so much extra cost to the case that you will wish you had never asked? As if those uncertainties weren’t challenging enough, Michigan attorneys now face a new bump on the road to receivership beginning May 1. A 2013 proposal attempted to hedge some of the uncertainty in the appointment process by amending the court rules governing receiverships to, among other things, direct the court to "defer to the petitioner’s nomination of receiver. . ." That phrase, however, became not just a bump in the road, but a huge pothole filled by an avalanche of opposition to the proposed amendment. Opponents feared the phrase removed a judge’s discretion in the appointment process and would result in the appointment of receivers who were beholden to the party who sought the appointment. The final amendments, which take effect May 1, do not require the Court to defer to the petitioning party. Instead, the new rules make clear that, even if stipulated or not contested in a timely manner, "the court shall appoint the receiver nominated by the party . . . unless the court finds that a different receiver should be appointed." This language, combined with the broad grounds for disqualification set forth in the new rules, ensures that the court retains complete discretion over the appointment of receivers. There are other changes to Michigan Court Rule 2.622 as well which impose obligations on parties seeking the appointment of a receiver. For example, the petitioning party must now provide specific detail on how the nominated receiver has the requisite competence, qualifications and experience to serve as a receiver, after considering factors such as relevant business, legal and receivership knowledge, and ability to obtain a bond.

Foresite Named to NREI 2014 Top Brokers survey for 2013

It was another year of robust growth for commercial real estate brokerage firms. Increases in investment sales and leasing activity enabled many of the firms on our list to grow their transaction volumes by 15 percent or more, with some firms experiencing particularly robust growth rates. The top dog on our list remains CBRE Group Inc. It is the 11th consecutive year that CBRE has lead the industry in total transaction volume. The firm reported a total volume of $233.30 billion in 2013...

Appellate Court Opines On Propriety of Communications Between Condominium Board Members

On the heels of the long-awaiting reversal of the Spanish Courts II appellate decision, condominium associations have been hit again with a First District Appellate Court ruling which has the potential to drastically impact the operation of many boards. The Illinois Appellate Court’s March 21, 2014, order in Palm vs 2800 Lake Shore ("Palm II") interprets the open meeting requirements of the Illinois Condominium Property Act ("ICPA") and the authority of a condominium board to delegate in a manner which is inconsistent with how most boards currently operate. ICPA Section 2(w) provides that a "meeting of the board" occurs only when a majority of a quorum of the members of the board gather for the purpose of conducting board business. The original language of Section 2(w) defined "meeting of the board" as any gathering of a majority of a quorum of the members of the board held for the purpose of discussing board business. On January 1, 1994, Section 2(w) was amended to change the word "discussing" to "conducting." Conducting board business has since been generally interpreted to mean voting, and some associations adopted procedures to discuss matters at working sessions or otherwise outside of open, properly noticed board meetings. A "meeting of the board" entitles all owners to notice and the opportunity to attend the meeting.

Ohio’s HB 487 Presents Property Valuation Appeal Opportunities

In Ohio, recent purchasers may soon be able to prevent increases of their newly acquired property to the purchase price when extenuating circumstances are present in the underlying transaction. Anyone who has purchased a property in Ohio is aware that if a school board attorney wants to increase the property from market value to the purchase price, all he or she needs to do is file an Increase Complaint.

Emanuel's pension deal would cost taxpayers much more than advertised.

Mayor Rahm Emanuel's proposed pension deal with city unions representing about half of its workforce would cost property owners much more than the city initially admitted, with the city's gross property tax levy destined to rise almost a third by 2020 if the deal is implemented as proposed, city officials now are conceding. And the proposed deal does not include the potential cost of deals that have yet to be struck covering city police, firefighters and Chicago Public School teachers � or the cost of a recently finalized pact for Chicago Park District workers.

Freed, Bank of America settle bitter Block 37 foreclosure case

As he turns to fighting off federal fraud charges, beleaguered Chicago real estate developer Laurance Freed has resolved one of his long-running legal headaches. After nearly five years of proceedings, Mr. Freed and Bank of America N.A. settled the foreclosure litigation over the Block 37 shopping mall downtown, a court filing shows. The case was dismissed March 5, according to an order signed by Cook County Circuit Judge Margaret Ann Brennan, who handled the case and had pushed both sides to cut a deal. Charlotte, N.C.-based Bank of America brought the suit in October 2009 against a venture of Mr. Freed's real estate firm, Joseph Freed & Associates LLC, which developed the 275,000-square-foot shopping mall, setting off a court fight that resulted in the bank taking back Block 37 and selling it to Los Angeles real estate firm CIM Group two years ago for $84 million. Terms of the resolution between Mr. Freed and B of A weren't disclosed in court records. It's likely that Bank of America won't collect the full amount it claimed it was owed, however. As of last June, the lender claimed Mr. Freed and one of his affiliates owed at least $132 million, an amount that was increasing by $27,000 per day.

Foresite Named to Crain's Chicago's Largest Property Management Firms

Crain's Chicago's Largest Property Management Firms