TODs Are Opening up New Parts of Chicago

The aftermath of the 2009 recession has led to a significant shift in how developers view the outskirts of Chicago.

While the Second City remains one of the strongest draws between the coasts, interest isn’t solely focused on Wacker Drive.

McShane Construction EVP & Regional Manager Mathew Dougherty tells Bisnow multi-family development honed in on high-rise projects in the heart of the city immediately following the downturn.

But as the product began to develop and the market matured, a need for residential housing grew outside of the metro area.

The past few years have seen a steep rise in demand for condos and apartments set against a small town, walkable, suburban backdrop.

The most appealing communities are stocked with trendy bars and restaurants as well as a town center with the local train station at the epicenter.

This modern suburb, a transit-oriented community has created new opportunities for Chicago-area developers. “If you asked a developer in the suburban market who their target demographic was 15 or 16 years ago, you’d get a very quick and pointed response,” Mat says. “They’d point to new grads that want to move into a place of their own while staying close to home.”

The demographic pool has changed quite a bit, with a diverse range of residents looking to set down roots outside of Chicago proper.

Mat tells us the rise in TOD popularity isn’t quite a revitalization of urban sprawl, but rather a reflection of how desirable proximity to the city is.

“Chicago is still a big magnet; a lot of the jobs are still in the metro area,” he says, pointing to employers such as McDonald’s and Motorola that are relocating to the city. Mat says a “good portion” of Chicago’s workforce wants to live in the city and within shouting distance of the office, but others would rather live near a train station and commute. The suburbs allow those workers to enjoy life far from the main drag after work, while providing them with a relatively simple commute.

Mat mentioned Park 205, a development in Park Ridge. Trammell Crow tabbed McShane to provide the construction services for the LEED-certified apartment residence. The residential units themselves echo the upscale suburban lifestyle that Mat says more demographics are pursuing. The 115 units in the three-story complex are stocked with quartz countertops, stainless steel appliances, and in-unit washers and dryers. The parking lots are set against well-landscaped lawns.

Midtown Square, a four-story mixed-use development in downtown Glenview, required the demolition of four buildings. In their place, McShane constructed a 137-unit residential structure above 11k SF of retail space.

In Evanston, M&R Development also called upon McShane, this time tasking it with the construction of Central Station Apartments.

In addition to the residential units, McShane built an exercise room, cyber café, lounge, patio spaces, integrated parking and a green roof on the second floor. Mat tells Bisnow developers are excited about the opportunity to develop these type of projects in the more rural areas surrounding the main hub of the city. TODs are attracting everyone, including young adults just starting life on their own, established professionals and senior citizens who are looking to downsize but maintain their lifestyle.

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Jonathan Bagnall, Vice President of McShane Construction Company’s Western Region, is pleased to announce that the firm has broken ground on the design/build construction of a 240,000-square-foot distribution center for a prominent undisclosed client. The build-to-suit is situated on a 31-acre parcel off of Baumberg Avenue in Hayward, California, within the popular East Bay industrial submarket. The firm began construction in May with final completion scheduled for Q2 2017.

The state-of-the-art distribution center is being constructed in a rear-load format providing an optimal layout to accommodate the client’s extensive distribution operation. The tilt-up concrete building features a 32′ clear height and 61 dock doors together with a 5,340-square-foot office component and separate 1,500-square-foot security building.

McShane Construction will complete the facility in accordance with California Title 24 and LEED Certification standards. Environmentally-friendly and sustainable features include energy-efficient HVAC, LED lighting, skylights, water-efficient landscaping and a construction waste management program implemented by the firm.

“Our team worked closely with our respected client to develop a design and construction plan that would meet their needs, and we are excited to be turning the vision into a reality with the onset of construction,” remarked Bagnall.

The client initially approached McShane Construction with plans for a pre-engineered metal panel building. McShane successfully converted the initial design into a tilt-up concrete facility that maintains the desired performance requirements of the client while adding cost and lifecycle advantages to the overall building.

All sitework for the assignment will be completed by McShane including paved parking for 536 vehicles and 256 trailers, sidewalks, landscaping and extensive retaining walls needed to build up the site.

Ware Malcomb is providing the architectural services for this comprehensive warehouse/distribution assignment.

Milt Elmer, Vice President of McShane Construction Company’s Southwest Region, is pleased to announce that the firm is making on-time progress at the new Medline distribution center in Phoenix, Arizona. Currently under construction on a design/build basis on the southwest corner of 87^th Avenue and Buckeye Road, the facility will allow the firm to consolidate its existing operations into one contemporary and fully-equipped space upon its scheduled completion in September 2016.

The 630,000-square-foot medical supplies distribution center will feature a 9,000-square-foot main office together with a sizable 604,000-square-foot distribution area in a cross-dock configuration. The sophisticated warehouse/distribution component will boast a 37′ clear height, 60 dock doors and an ESFR sprinkler system. A 16,956-square-foot temperature controlled room will also be incorporated for the storage of medical supplies requiring the building to be fully redundant on generated power in case of electricity loss.

The new facility is being constructed of site-cast concrete panels supporting a contemporary design scheme with space for future expansion. A 195′ truck court and on-site parking for 307 vehicles and 144 trailers will also be completed.

Designed and constructed to achieve LEED certification, a variety of sustainable features will be incorporated throughout the facility such as numerous skylights in the warehouse/distribution area, LED lighting fixtures at the high bays and exterior, and a heavily insulated roof deck for greater temperature control.

“We are very pleased with the construction progress at the new Medline medical supplies distribution center,” remarked Elmer. “Our project team continues to apply McShane’s standards of quality and focus on budget and schedule to ensure that the project delivery aligns with our client’s goals. We look forward to turning over this Class A facility to help this fast-growing medical supply company continue its commitment to supporting customers across the continuum of care.”

Ware Malcomb is providing the architectural services for this distribution facility.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce the recent completion of Merrillville Memory Care – a 50-bed housing residence that offers high-level care for individuals suffering from memory loss. The firm was selected by Dete Development to complete the comprehensive new construction assignment on behalf of Whiteco Industries, the land owner of the memory care facility.

The 33,760-square-foot, single-story complex is located on a nine-acre site at 7900 Rhode Island Street, adjacent to Interstate 65 and U.S. 30 in Merrillville, in northwest Indiana. Merrillville Memory Care incorporates 48 units designed and constructed to maximize the comfort, safety and security of memory care patients. A welcoming entrance highlighted by a porte-cochère and high ceilings leads residents and guests into a soothing and comfortable environment. In addition to individual living spaces, residents enjoy fully-outfitted amenity areas including a living room with a see-though fireplace, dining area with a full-service kitchen, activity center, relaxation room, spa and salon. Two nurse stations support medical staff caring for residents in either wing of the building.

McShane constructed the wood frame residence with an artfully clad exterior incorporating fiber-cement siding, masonry, and imitation stone accents. An enclosed central courtyard serves as the property’s focal point and outdoor recreation area visible from the building’s window-lined interior. The courtyard is complete with generous patio space, seating areas, and a custom artistic sculpture installation surrounded by elegant walkways and landscaping.

All sitework for the project was completed by McShane Construction including landscaping, sidewalks and on-site parking.

“Our project team successfully drew upon our many years of experience in the construction of memory care facilities to deliver this first-class environment that supports the needs and well-being of individuals suffering from memory loss,” remarked Raday. “I’m confident that the final product provides a place of comfort and security for the residents of Merrillville Memory Care and their loved-ones.”

Architectural Design Consultants, Inc. provided the architectural services for this new memory care property.

Milt Elmer, Vice President of McShane Construction Company’s Southwest Region, is pleased to announce that the California-based partnership of Griffin Opportunities, Adam Norvell and Walter Cale, has awarded the firm the comprehensive construction of Desert Gateway – a two-building speculative industrial development located in Phoenix, Arizona.

The project is under construction on a 10-acre parcel at 909 West Pinnacle Peak Road situated just east of Interstate 17 and north of Loop 101 in the Deer Valley submarket. The site offers convenient access to both major transportation corridors and the greater local, regional and national markets. The construction team broke ground on the project in mid-March and is currently pouring concrete for the tiltwalls. Final completion is slated for October 2016.

Desert Gateway consists of two Class A speculative buildings designed in a rear-load configuration providing an optimal environment for light industrial users. Building A offers 80,776 square feet with Building B at 91,976 square feet. Both facilities incorporate a variety of contemporary amenities including a 32′ clear height, nine drive-in doors, 16 overhead dock doors, generous skylights, ESFR sprinkler systems and a sizable shared truck court. Building A and B can accommodate a single user or up to six tenants with flexible office space to suit individual requirements.

McShane is constructing the facilities utilizing tilt-up concrete panels that will be painted to achieve a contemporary design. The entryways will be highlighted with decorative concrete tilt panels, elegant storefront windows and metal canopies. The firm is also completing the sitework for the development including sidewalks, landscaping and paved surface parking for 273 vehicles.

“McShane Construction offers extensive experience in successfully completing industrial projects of similar scope throughout Arizona, the Southwest Region and on a national basis,” remarked Elmer. “We will apply our expertise and high quality workmanship to serve Griffin Opportunities in meeting their development goals through our commitment to schedule, budget and quality.”

Cawley Architects is providing the architectural services for this two-building speculative industrial assignment while Carl Johnson, Chris Rogers and Trevor McKendry of Daum Commercial Real Estate Services are representing the development team in leasing the buildings.

For information regarding leasing at Desert Gateway, please call (602) 575-2309, email info@desertgatewayaz.com, or visit the property’s website at www.desertgatewayaz.com.

In our time, food and beverage distribution—already a complex and multifaceted system—is being completely reinvented by market forces, government regulation, and the relentless drive for efficiency in getting edible goods from Point A to Point B. And it so happens that at Point B, there are ever-demand retailers and consumers, who are used to ever-faster delivery times, thanks to Amazon and the like.

To sort out all the changes, we spoke with McShane Construction food and beverage business development director Charlie Stone, whose food and beverage expertise stems from more than 30 years in the business, with significant experience in sustainable, LEED-certified facility design and construction, food supply chain management, workflow optimization, and streamlined warehousing and distribution.

In fact, Charlie and his equally experienced colleague, Pat McConnell, allow McShane to bring an almost unmatched level of expertise to the table among construction companies in the specialized field of food and beverage facilities. The construction industry is eager to offer that kind of expertise, Charlie tells us, because it’s seen as a growth industry (for reasons we’ll get into shortly).

Major construction firms are actively recruiting talent from the food and beverage industry, a strategy that wasn’t common until recently. With Charlie and Pat, McShane is well ahead of the curve.

The Rapid Rise of Automation & Green Tech

The $15/hour minimum wage has food and beverage distribution space users planning for greater automation than ever before, Charlie says. “Automation technology such as automatic storage and retrieval (ASRS), satellite pallet vehicle, automatic truck loaders, robotic palletizing and automatic guided vehicles (AGV) are being implemented in facilities that never would have been considered in the past.” But it isn’t always easy for a food and beverage distribution company—whose expertise is food and beverage, after all—to determine the best automation for its facility. “When a client asks about more advanced automation for their facilities, we speak their language,” Charlie says. “We can talk about processes that can lead to efficiencies in their business that don’t have anything directly to do with construction. We can be a resource for their business, advising them about improvements that allow them to achieve a better return on their investment, because we understand food and beverage, not just construction.” The impact of automation on all of the distribution business is going to be far-ranging, Charlie predicts. For one thing, it impacts the configuration of buildings.

Often a more highly automated facility can have higher ceilings with an overall smaller footprint, and the extra cost will be justified through better efficiencies. When automation allows distribution facilities to be smaller, that can offer the advantage of putting the distributor closer to end users. Amazon, with its cutting-edge tech, is a prime example of the trend. The giant online retailer is now occupying new, smaller facilities in urban areas because they’re closer to the last mile of distribution. They need to get the product out, because people don’t want to wait.

Sustainable practices can also cut client costs, and a water- and energy-intensive facility’s environmental footprint as well. As a national organization, McShane employs successful green tech from across the country to make facilities more sustainable without breaking the bank. California, for example, is ramping up solar energy after companies there worked out best practices and lowered its overall cost, and McShane followed suit by introducing solar panels and natural lighting techniques to clients—ultimately saving them money. Energy management systems for refrigeration equipment are also worth the investment, Charlie adds, and a lot of refrigeration systems even offer apps and temperature probes that can send alerts of maintenance and operational issues straight to smartphones, tablets and other mobile devices. “One innovative idea from our Golden State Foods project was the creation of a dehumidification room for the employee freezer gear,” says Charlie. “The design of the room assists in removing the perspiration from the gear between uses.” McShane’s Golden State facility also uses an underground cistern to collect the water from the roof for irrigation, and its truck wash system has a water reclamation system that reduces fresh water consumption by 75%. Other green options include recycled materials and hydrogen fuel cells—the Golden State facility even uses a byproduct of its hydrogen fuel cells, deionized water, to scrub floors, all but eliminating the need for cleaners.

The Impact of The Food Safety Modernization Act

A major driver in the development of new food and beverage distribution facilities is the FDA Food Safety Modernization Act (FSMA), signed in 2011 and slowly coming into force. It’s the most sweeping reform of the nation’s food safety laws in more than 70 years, with the FDA receiving a mandate to require comprehensive, science-based preventive controls across the food supply. The law is spurring the construction of new food and beverage distribution facilities, much more than a wave of retrofitting older facilities, Charlie tells us. “You don’t know what’s been in an older building, what you’re exposing your brand to, and with a new facility it can be easier to meet the requirements of the law.” New facilities will also give companies the opportunity to avail themselves of the most advanced technology, to promote efficiency and keep a competitive edge. One such tech, notes Charlie, is the increasing utilization of raw data. He says the mining and managing of data—especially the level at which it’s being done now—is unprecedented in this industry. Computers can even track inbound loads and deliveries to keep customers posted on the status of their order in real time.

Looking farther down the line (though not too much farther), Charlie mentions driverless trucks as a tantalizing possibility. And with the evolution of audio/video applications, facilities can evolve their camera capabilities from just high-level security to identifying selection errors, assisting with near-miss injuries and accident investigations.

But the potential applications of these new technologies should be considered before construction begins.

“Technology like this should be given consideration when designing any new facility,” Charlie says. “So we guide our clients to consider new technology given the efficiencies and savings to be gained.”

The biggest key to a successful project, Charlie says, is upfront planning to create clear objectives. By defining the facility’s objectives, functions and potential expansion plans, you can not only meet client expectations, but ensure a long life span for the facility. On top of that, clarifying individual and team roles reduces inefficiencies, saves time and money for the client, and ensures a much smoother project overall.

“Direct access to decision-makers keeps a project on schedule,” Charlie tells us. “Ideally, you should complete a review of the processes, equipment being used and ROI analysis for every appropriate aspect. Once the analysis is complete, someone needs to be in a position to make the decision to implement the idea. This is where McShane Construction’s years of experience in food and beverage construction comes into play, providing our clients with confidence and assurance that their project will be completed on time, within budget, and in accordance with their requirements and overall goals.”

Charlie says all parties—from client representatives to architects to industrial engineers—should be integrated into the process from the get-go, so that all perspectives are heard and no problem (or solution) is overlooked. In many projects, he says, this integrated product delivery has solved issues that clients didn’t know existed.

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Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm was selected to provide the comprehensive design/build construction services for the new U.S. Department of Veterans Affairs Outpatient Clinic in Mishawaka, Indiana. Ambrose Property Group of Indianapolis awarded McShane Construction the LEED-Silver medical clinic that will be leased to the U.S. Department of Veterans Affairs upon its completion in July 2017.

The single-story facility will be situated on a 14.87-acre site at the corner of Trinity Place and Fir Road, just east of St. Joseph Regional Medical Center, and will replace the VA’s existing clinic located in downtown South Bend. The community based outpatient clinic will offer new and expanded services to Veterans such as mental health and laboratory capabilities.

The 88,109-square-foot state-of-the-art facility has been designed around three clerestory atrium entrances providing an abundance of natural light within the contemporary interior space. Each entrance will efficiently direct patients to the various services offered within the clinic including primary care, audiology, endoscopy, cardiology, podiatry and mental health, among others. The east and west entrances will also serve as ambulatory access for non-emergency patients.

Numerous sustainable features will be incorporated throughout the project meeting the requirements for LEED-Silver certification such as an energy-efficient HVAC system, natural light optimization, recycled/reused materials and organic landscape management.

The exterior facade features an elegant combination of brick and Indiana Limestone together with aluminum storefront and curtainwall systems complementing the striking clerestory windows at the entrances. Sitework provided by McShane Construction will include a 535-vehicle parking lot surrounding the facility, attractive water feature at the main entrance, sidewalks and nearly two acres of park space with a natural cold water creek serving as a buffer while offering peaceful natural views.

“McShane Construction Company is committed to delivering a contemporary community based outpatient clinic to expand the U.S. Department of Veterans Affairs healthcare services presently available to the veteran population in the Northern Indiana area,” remarked Raday. “Our firm’s extensive expertise in constructing medical office facilities will provide our respected Veterans with a comfortable and efficient environment to receive medical care and services.”

MKC Associates, Inc. is serving as project architect for the new clinic.

Scott J. Hoppa, Senior Vice President of McShane Construction Company’s Southeast Region, is pleased to announce the recent construction award of Solstice Apartments, a 308-unit luxury rental complex on behalf of developer, South City Partners.

Solstice Apartments is under construction at 1111 Oakley Industrial Boulevard in Fairburn, Georgia, just 13 miles from Hartsfield-Jackson Atlanta International Airport and 20 miles from downtown Atlanta. The property also provides close proximity to State Route 403.

This sizable rental development will be comprised of seven residential buildings with 188 one- and 120 two-bedroom floorplans situated throughout the 20-acre site. Each apartment will be outfitted with granite countertops, stainless steel appliances, vinyl plank and ceramic tile flooring and in-unit washers and dryers. Select residences will also feature outdoor balconies and attached parking garages. The complex features a craftsman-style design incorporating an elegant blend of stone veneer and fiber cement siding and panels on the exterior façade complementing an asphalt shingle roof and classic window lines.

Additional property amenities include a fully-equipped fitness center, on-site leasing and management building together with a variety of outdoor recreational spaces. Tenants will enjoy a resort-style, beach entry swimming pool with surrounding seating, fire pits, outdoor grills and pavilions. The property also has a bocce court, sand volleyball court, secured dog park and substantial paved walking paths throughout the complex and to the neighboring wetland.

“McShane Construction’s proven track record of success within the multi-family housing market allows us to be selected by quality developers like South City Partners,” remarked Hoppa. “We are committed to providing construction solutions that will contribute toward the successful leasing efforts of this new premier Fairburn development.” The project broke ground in early February with the leasing and management building on track for an October 1^st turnover. Final completion is scheduled for August 2017.

McShane will complete the project’s sitework such as landscaping, paved sidewalks and parking. Dallas-based Womack + Hampton Architects is providing the architectural services for Solstice Apartments.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm recently completed the design/build construction services of the new 105,500-square-foot corporate headquarters and manufacturing facility for Design Ready Controls (DRC). The build-to-suit is located on a six-acre parcel at 9325 Winnetka Avenue North in Brooklyn Park, Minnesota, just 10 miles away from downtown Minneapolis. The project represents the initial phase of Capstone Business Center, a 20-acre development of Capstone Quadrangle that selected McShane Construction for the comprehensive design/build assignment.

DRC was founded in 1989 and is a premier supplier of control panel solutions for Original Equipment Manufacturers (OEMs) serving the HVAC, oil and gas, water, and alternative energy market sectors. The new corporate headquarters offers 105,500 square feet of fully customized spaces allowing DRC to strategically consolidate its existing facilities in the Minneapolis area and streamline production and operation efficiencies.

The build-to-suit features an 83,200-square-foot state-of-the-art production and warehouse area with a 28′ clear height, two drive-in doors, six dock-high doors, LED lighting and an ESFR sprinkler system. Accessed through the main entryway, a two-story corporate office component integrates numerous open and private offices, conference rooms, a break room and areas for research and development.

The facility was constructed utilizing precast concrete panels and incorporates energy-efficient features such as an in-floor radiant thermal mass heat system that energizes during off-peak hours. In addition, the infrastructure was designed to accommodate the future addition of solar panels. McShane Construction also completed the sitework for the assignment including generous surface parking and a sizable infiltration basin complemented by native and prairie landscaping that requires less water usage.

“McShane Construction Company is thrilled to deliver this best-in-class corporate headquarters facility to Design Ready Controls,” remarked Raday. “Our skilled and professional team implemented a fast-track construction program that met the schedule and quality requirements of DRC together with the development goals of Capstone Quadrangle. We are pleased to have served both highly-regarded organizations by completing this contemporary and attractive build-to-suit facility that provides an exceptional environment to support the continued growth and success of DRC.”

Archideas was the architect for this comprehensive build-to-suit assignment.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm has been awarded the 67,000-square-foot Park Ridge fitness center assignment on behalf of owner, Fitness Formula Clubs (FFC). The full-service health, sports, fitness and spa facility is located at the intersection of Cumberland and Touhy Avenues at 826 West Touhy Avenue, within steps of the Metra station and downtown district of Park Ridge, Illinois.

The Park Ridge Fitness Formula Club will be constructed atop a cast-in-place concrete podium over a street-level parking lot. The building’s exterior facade will boast a modern design incorporating a stylish mix of masonry block, metal panels and aluminum curtains. Adding to the contemporary look will be several Terracotta and fiber cement rain screens and harmonious glass curtainwalls located at the main entrance and along Cumberland Avenue.

Inside, the fitness club will feature well-appointed finishes complementing the facility’s wide range of fitness and social spaces. FFC Park Ridge will consist of two stories and a mezzanine level providing abundant space to support a wide selection of fitness opportunities within its general cardio and strength training areas, group exercise rooms, and studios for Pilates, heated Yoga, Spin and other specialty classes. An indoor basketball court, six-lane lap pool and three-story climbing wall will also be completed, along with an outdoor recreational pool accompanied by an expansive sun deck, lounge and bar area. In addition, members will enjoy fully-equipped locker room facilities, Kids Club center, retail sports shop, café and day spa.

McShane Construction is prepared and qualified to meet the requirements of schedule, budget and the high-quality standards that are indicative of the strong consumer demand of this popular health club provider.

As part of the assignment, McShane Construction will also complete the project’s sitework consisting of landscaping, sidewalks and expansive surface parking. The Park Ridge location represents McShane Construction’s seventh assignment for Fitness Formula Clubs.

“We are thrilled to be serving Fitness Formula Clubs as they expand their upscale fitness facilities into the Chicago suburb of Park Ridge,” remarked Raday. “Through our long-standing relationship with Founder and CEO, Gale Landers, McShane Construction is prepared and qualified to meet the requirements of schedule, budget and the high-quality standards that are indicative of the strong consumer demand of this popular health club provider.”

Antunovich Associates is providing the architectural services for FFC Park Ridge that broke ground this month with a scheduled completion in the 2016 – 2017 winter season.