Lodge of Northbrook Phase IV

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm was recently awarded Phase IV of The Lodge of Northbrook by developer and long-standing client, Essex Communities. Phase IV represents the final phase of construction at this desirable senior living community located at 2244 Founders Drive in Northbrook, Illinois.

Following the firm’s successful completion of the original 58-unit Phase I, 20-unit Phase II and 18-unit Phase III, McShane will complete the highly anticipated final phase incorporating 60 independent living apartments and eight assisted living units. The new component will be constructed on the north end of the property and will complement the existing building utilizing the same masonry and shake-style siding facade.

New private residences will be offered in one- and two-bedroom and two-bedroom plus a den configurations incorporating spacious layouts and upscale fixtures and finishes that are signature of this luxury development. Each unit features open kitchens, a private patio terrace, large closets, and in-unit washers and dryers together with granite countertops, hardwood flooring in the kitchen and foyer and stainless steel appliances.

The 150,000-square-foot Phase IV will incorporate added amenities within a single-story common area including an expanded fitness center and an additional dining room, commercial kitchen and salon. It also provides expanded parking with 66 garage spaces and 42 surface parking spaces.

“We are thrilled to be continuing this tradition of success for the final phase of The Lodge of Northbrook,” remarked Raday. “The success of this development is a tribute to the trusted relationship enjoyed by McShane and Essex Communities together with the dedication to quality and excellence that both firms share.”

Omaha-based Avant Architects is providing the architectural services for Phase IV of The Lodge of Northbrook that is scheduled for completion at the end of May 2018.

To learn more about the property, visit www.lodgeofnorthbrook.com.

Milt Elmer, Vice President of McShane Construction Company’s Southwest Region, is pleased to announce the construction delivery of Desert Gateway – a two-building light industrial development for a joint venture between Griffin Opportunities, Adam Norvell and Walter Cale.

Located within the growing Deer Valley submarket in Northwest Phoenix, Arizona, Desert Gateway is prominently positioned on a 10-acre parcel at 909 West Pinnacle Peak Road just east of Interstate 17 and north of Loop 101. The site offers easy access to both major transportation corridors and the FedEx Distribution Center and a variety of retail amenities.

The 173,235-square-foot speculative development consists of two rear-load buildings providing an optimal environment for light industrial users. Both facilities incorporate a variety of contemporary features including a 32′ clear height, nine drive-in doors, 16 overhead dock doors, generous skylights, ESFR sprinkler systems and a sizable shared truck court. Desert Gateway can accommodate a single user or is divisible up to six suites per building.

McShane constructed the Class A development utilizing tilt-up concrete panels that have been painted to achieve an attractive yet efficient exterior. The entryways are enhanced with decorative concrete tilt panels, striking storefront windows and metal canopies. The firm also completed the interior build-out of four speculative offices, a tenant suite in Building B, and sitework including sidewalks, landscaping and paved surface parking for 273 vehicles.

“The growth of the Deer Valley submarket has increased demand for high-quality and functional industrial space,” Elmer remarked. “Desert Gateway was thoughtfully designed and constructed to satisfy current demands in the area while meeting the goals of our respected client.”

Cawley Architects provided the architectural services for Desert Gateway. Carl Johnson, Chris Rogers and Trevor McKendry of DAUM Commercial Real Estate Services comprise the exclusive marketing team.

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

Photo courtesy of Cawley Architects.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm was selected by Cristo Rey St. Martin College Prep, a member of the national network of Cristo Rey schools, to complete the renovation and construction assignment for its new high school campus in Waukegan, Illinois. The project requires the comprehensive transformation of a vacant retail development, previously anchored by Kmart, into a contemporary educational facility serving over 400 students.

“We are so pleased to be partnering with McShane Construction on this important project for talented and deserving youth in Waukegan,” said Preston Kendall, President of Cristo Rey St. Martin College Prep. “This project is more than simply transforming a vacant big box store into a vibrant and innovative college prep high school, it is a significant investment in our collective future. McShane understands this and has been an important, trusted supporter of Cristo Rey students in the greater Chicago area for many years.”

Situated at Belvidere Road and South Green Bay Road, Cristo Rey purchased the 115,300-square-foot complex to accommodate its current student base along with the options for future expansion. The school is leasing its current space in Waukegan and will relocate to the new campus early next year.

McShane Construction began the extensive interior demolition in February making way for the build-out of the initial 55,000-square-foot high school. The state-of-the-art facility will incorporate 18 classrooms, three science laboratories, offices, a cafeteria and a library commons area for students. The building will be modernized with a new HVAC system controlled by web-based building automation technology for added security and convenience.

The exterior will be enhanced utilizing painted CMU block masonry, fiber cement, a new aluminum curtainwall and partial roof replacement featuring 29 skylights for a source of natural light. McShane will also update a 2,000-square-foot patio area providing outdoor learning and gathering space.

“McShane’s extensive experience with renovation and educational projects provides the expertise necessary to deliver a first-rate school building for Cristo Rey St. Martin College Prep,” remarked Raday. “Our assignment to convert this vacant retail center into a contemporary high school will repurpose and return an existing neighborhood property into a vibrant learning environment serving high school students with limited economic means.”

JGMA Architects is providing the architectural services for the new high school that is slated for completion at the end of January 2018.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce the completion of Heartis Village of Peoria for respected client, Caddis Partners. The new 108-unit assisted living and memory care property is located on seven acres at 8201 North Illinois Route 91 in Peoria, Illinois.

The comprehensive assignment required the new construction of two adjoined components totaling 97,000 square feet including a single-story, 36-unit memory care building and a three-story residential building offering 72 assisted living apartments. Both portions of the residence integrate seamlessly utilizing the same exterior finishes including cement board, siding, clad stone veneer and masonry.

Located at the west side of the complex, the 36-unit memory care residence was carefully designed and constructed to maximize the care and well-being of people living with the challenges of Alzheimer’s disease and other forms of dementia. Each unit offers a comfortable studio layout incorporating a private bathroom and direct access to dining and common areas. The building is also equipped with multiple therapy rooms, an activities center, sun room, salon and secured outdoor space.

The assisted living component features 72 luxury apartments in a mix of studio, one- and two-bedroom layouts. Residents enjoy numerous interior and exterior gathering areas, a spacious dining room with adjacent commercial kitchen, library and computer room, a bistro bar and a salon.

“Constructing senior living communities that support a continuum of care requires a skillful and detailed approach,” remarked Raday. “McShane Construction utilized its experience in constructing these specialized environments to deliver a Class A property that will support the individual needs of its residents while meeting the standards of quality that are a hallmark of our client, Caddis Partners.”

The community is owned by Caddis and managed by Pathway, a senior living operations management company headquartered in Chicago.

All sitework for the project was completed by McShane including three landscaped courtyards, walking paths and outdoor seating areas together with generous on-site parking.

The firm is currently underway on its second assignment for Caddis Partners. Heartis Village of Orland Park, a 94-unit assisted living and memory care residence, is being constructed in Orland Park, Illinois. Texas-based Katus, the project architect for Heartis Village of Peoria, is also serving on the latest assignment in Orland Park.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm recently completed the construction of the latest Fitness Formula Clubs (FFC) location in Park Ridge, Illinois, two months ahead of schedule.

The project represents the seventh assignment that McShane has completed on behalf of FFC. McShane also provided comprehensive construction services for several premier FFC locations in the West Loop, Gold Coast, Lakeview, Wrigleyville and South Loop neighborhoods of Chicago, as well as its signature facility at the former Chicago Mercantile Exchange building at Union Station.

FFC’s new full-service location is conveniently situated at the intersection of Cumberland and Touhy Avenues at 826 West Touhy Avenue, within steps of the Metra station and downtown district. The striking 67,000-square-foot building was constructed atop a cast-in-place concrete podium over a street-level parking lot. The exterior finishes enhance the contemporary design incorporating a stylish mix of masonry block, metal panels and aluminum curtains together with several terracotta and fiber cement rainscreens and glass curtainwalls.

FFC Park Ridge consists of two stories and a mezzanine level providing optimal space for a wide selection of fitness and social areas. Club members enjoy fully-outfitted general cardio and strength training spaces, group exercise rooms, and studios for Pilates, heated Yoga, Spin and other specialty classes, in addition to an indoor basketball court, six-lane lap pool and three-story indoor climbing wall.

The fitness center also features well-appointed locker room facilities, a Kids Club center, retail sports shop, café and day spa. Situated on the elevated exterior deck, a lounge, bar area and elegant sundeck surround a luxurious outdoor recreational pool.

“Infill sites can present a unique set of scheduling, delivery and safety challenges. McShane’s right mix of expertise in recreational construction, coupled with our long-standing relationship and experience with FFC, resulted in the early delivery of this dynamic assignment,” remarked Raday.

McShane completed all sitework for FFC Park Ridge including landscaping, sidewalks and surface parking for 260 vehicles. Antunovich Associates provided the architectural services.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm was selected by Interforum Holdings for the construction of its new luxury rental community called Lakeside Village of Oak Brook. The 315-unit complex will be constructed on a six-acre parcel off of Royce Boulevard in Oakbrook Terrace, Illinois.

The four-story development will feature an urban Texas Donut design requiring the residential component to be constructed around a central core parking garage. This strategic configuration provides added convenience for residents allowing them to live and park on the same level. Furthermore, it eliminates the visibility of the parking structure to showcase the elegant exterior design that will utilize a mix of fiber cement siding, fiber cement lap and masonry.

The property will consist of 40 one-, 263 two- and 12 three-bedroom floorplans. Each unit will be complete with high-end features such as quartz countertops, stainless steel appliances, in-unit washers and dryers, walk-in closets and a private balcony or patio.

In addition to upscale fixtures and finishes, residents will have access to an array of best-in-class amenities including a fitness center, business center, swimming pool, playground, dog park and dog washing station. On-site management and concierge services will also be available.

“McShane Construction is looking forward to completing this luxury multi-family project for Interforum Holdings,” remarked Raday. “There is growing demand for Class A rental properties in Oak Brook and throughout DuPage County, and I’m confident that our firm’s high-end construction solution will contribute towards the successful leasing efforts of this premier suburban development.”

Construction will be completed in phases with move-ins beginning in early 2018. The entire development will be completed in late 2018.

Sitework for the project including sidewalks, landscaping and the completion of two amenity-rich interior courtyards will be completed by McShane. Baranyk Associates, Ltd is providing the architectural services.

After the housing market crashed, demand to rent increased across the country and the construction industry has enjoyed a surge in multi-family building ever since. Economists and industry experts alike continue to wonder how much longer this upward trend can last. Isn’t it true that all good things must come to an end? Well, the data is in.

According to The State of the Nation’s Housing 2016 from the Joint Center for Housing Studies, there are 9 million more renters than a decade ago. Last year 36% of U.S. households opted to rent, marking the largest share since the 1960s. The number of U.S. households increased by 1.9 million with 1.6 million of those being new renter households compared to 300,000 new homeowners.

Occupancy rates have reflected the demand and preference to rent in 2016. A report by Axiometrics showed occupancy rose to 95.2% and annual effective rent growth hovered above 3.7% in the second quarter, indicating a healthy appetite for multi-family at mid-year.

Here in the southeast, we are feeling far from a cool down. The region has gained notable attention for an increase in multi-family construction this year. In fact, JLL reported that the Southeast Region has seen the greatest multi-family construction acceleration in the country. Atlanta is a top southeast performer driven by strong inbound migration amid steady job growth. Colliers International predicts the Metro Atlanta will see 13,700 units come online in 2017. Our Southeast Regional Office currently has 1,546 multi-family units underway in the region with nearly 700 units under construction in the Metro Atlanta area alone.

Still, some experts say that an impending cool down could be upon us. Data from REIS suggests that high construction levels and weak economic conditions at the beginning of the year resulted in a softening in the rental market in Q3 2016. Construction exceeded absorption for the sixth quarter in a row, but the margin between new construction and net absorption tightened. In REIS’s estimates, the third quarter’s new construction level marks a decline from Q2.

In truth, the strong performance we have experienced in the multi-family sector cannot be sustained in the long-run for a thriving economy. The FreddieMac Multifamily Mid-Year Outlook 2016 explains that there are many factors that indicate the market remains healthy including job growth, wage increases and household preferences. However, a slight deceleration is natural and a sign that the market is adjusting appropriately to this phase of the economic cycle. The report suggests that multi-family performance will moderate but remain above average in 2016 while performance will rebound in 2017.

Regardless of where the winter months and new year brings the multi-family market, McShane Construction continues to be called upon by clients to serve their multi-family construction needs. We are grateful for the trust they instill in our experience and expertise, and are prepared to serve whatever the climate changes in the market might bring.

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Jim McShane, CEO, The McShane Companies, will be honored this evening, December 1, 2016 at the 22^nd Annual ULI Chicago Lifetime Achievement Award Dinner. The Urban Land Institute’s Chicago District Council (ULI Chicago) annually recognizes an industry leader who has had significant influence in the growth and development of Chicago’s real estate community, as well as pursues positive civic, charitable, and philanthropic endeavors.

“Jim’s demonstrated leadership, influence, and high ethical standards represent the best of the best in Chicago commercial real estate,” remarked David Friedman, President, Conor Commercial Real Estate and Host Committee Co-Chair, 22^nd Annual ULI Chicago Lifetime Achievement Award. “His honesty, dependability and focus on giving back to others formed the foundation of The McShane Companies over three decades ago and continues to be a hallmark of our national operation today. I cannot think of a more deserving recipient of this prestigious honor than Jim McShane.”

Since founding The McShane Companies 32 years ago, Jim McShane has consistently guided with innovation and an innate understanding of the industry. His leadership has propelled the company, an integrated real estate development and construction firm, to achieve recognition and success on a local, regional, and national level. Additionally, Mr. McShane invests his time leading a variety of professional and philanthropic organizations, including Concern Worldwide U.S., a global humanitarian organization that helps those living in the world’s poorest countries to achieve lasting improvements in their quality of life, where he serves as Vice-Chairman.

The criteria for the award is a lifetime of professional, personal and civic commitments to the real estate profession and to the Chicago community at large. Nominations are solicited from the ULI membership and a Lifetime Jury is convened to identify the recipient. Jim McShane joins an accomplished list of past recipients, including: Marshall Bennett, Marshall Bennett Enterprises; the late Bernie Weissbourd, Metropolitan Structures; the late Charles H. Shaw, The Shaw Company; the late Richard J. Brown, Cambridge Homes; Lester Crown, Material Service Corporation; the late William A. Alter, The Alter Group; Edward R. James, Edward R. James Partners, LLC; the late Kenneth J. James, Kenneth James Builders, LLC; the late Matthew Bucksbaum, General Growth Properties, Inc.; Richard A. Stein, Mesirow Stein Real Estate, Inc.; Stuart L. Scott, Jones Lang LaSalle; Douglas Crocker II, Equity Residential; Robert A. Wislow, U.S. Equities Realty; Norman R. Bobins, LaSalle Bank Corporation; Richard A. Hanson, Mesa Development, LLC; James R. Loewenberg, Magellan Development Group; John S. Gates, Jr., PortaeCo, LLC; John A. Buck, The John Buck Company; Eugene Golub, Golub & Company LLC; Penny Pritzker, U.S. Department of Commerce; Neil G. Bluhm, JMB Realty Corporation and Walton Street Capital, LLC; and Lynn C. Thurber, LaSalle Investment Management.

“We are honored to recognize Jim with this prestigious award. His impact on the Chicago real estate industry and his dedication to giving back to the larger community represents all this award stands for,” said Doug Lyons, Managing Principal, Pearlmark Real Estate; ULI Trustee and Governor; and Chair, ULI Chicago Lifetime Achievement Award.

The award honors individuals who embody the spirit and mission of ULI. The proceeds from the Awards event support the many community outreach programs and initiatives coordinated by the Chicago District Council.

Scott J. Hoppa, Senior Vice President of McShane Construction Company’s Southeast Region, is pleased to announce that the firm has been selected to provide the comprehensive construction services for a new cold storage and beverage distribution facility on behalf of Adams Beverages.

The 71,820-square-foot build-to-suit is under construction on a 12.5‑acre parcel at 2800 Wyndham Industrial Boulevard in Opelika, Alabama, conveniently located just one mile away from Interstate 85. McShane broke ground in August with final completion scheduled for second quarter 2017.

Established in 1937, Adams Beverages is a family owned and operated wholesaler of Anheuser-Busch. The continued growth and success of the firm has necessitated a larger and more contemporary facility to house its beer and non-alcoholic beverage distribution operation in the state of Alabama.

Designed to accommodate future expansion, the build-to-suit will feature 10 truck docks, a side bay loading area accommodating two trucks, and 61,220 square feet of 26′ clear warehouse space. A 3,605-square-foot walk-in/drive-in cooler area will also be incorporated within the warehouse. Business operations will benefit from a 10,600-square-foot fully featured office component with modern open work spaces, private offices, conference and hospitality rooms.

McShane will complete the exterior of the office with elegant masonry cladding while the warehouse will boast a painted tiltwall finish. The firm will also complete the sitework for the project including landscaping, sidewalks, truck courts, and paved parking for 79 vehicles.

“The Adams Beverages assignment requires a skilled team of construction professionals with a depth of experience with beverage distribution facilities,” remarked Hoppa. “We look forward to applying our proficiency in constructing this product type to deliver a facility that will maximize efficiencies and support our client’s current and future needs.”

HDA Architects is serving as the project architect while Gabriel Project Management is providing the program management services for this build-to-suit assignment.

Recent years have seen a flurry of industrial development across the Midwest. Much of it has been speculative.

McShane Construction Company VP Tom Beres tells Bisnow that while this sector is sustaining the growth, there is no escaping the cyclical nature of the market.

“Some developers are worried about the long-term sustainability of the increasing amount of new product, while others are embracing the uptick and looking for ways to differentiate,” Tom says. “Fortunately, we are seeing more optimism than not.”

Tom says it can be difficult to determine when the market will plateau, and while it’s not time to cool off on industrial growth just yet, it’s important to always look to the future.

After speculative industrial product floods the market, will there be enough tenant activity to fill it? There may be a lull, but Tom believes it will be strong enough to hold investors over until the pool of interested tenants restocks.

Tom says the possibility of a future cool-off has yet to deter the equity side of development, which is still very interested in funding industrial projects.

So there may be more vacancies than would be ideal across America’s industrial heartland in the years to come, but the correction will be a natural part of a healthy real estate cycle.

But for projects delivering now, a potential tenant shortage is worrisome, regardless of positive forecasts on the horizon.

Tom says industrial properties are beginning to diversify and rely more on design/build construction expertise to enhance their amenity packages, much like their office counterparts.

“For the most part, industrial users—especially on the distribution side—are looking for a contemporary space to house their product with easy access to transportation. Many have not put a focus on amenities. However, tenants like Amazon have shifted the emphasis to amenities and employee satisfaction.”

Tom says many of the industrial buildings McShane Construction Company has constructed have kept modern tenants with an appetite for amenities in mind and those developments remain an enticing option, even as competition tightens.

“There’s an upward drive on the technology side,” he says, pointing to an increase in these types of companies turning to the Midwest for their industrial and warehousing needs. “We’re finishing up five speculative buildings right now and tech tenants are expected to make up a large portion of the rent roll.”

McShane Construction Company developments, such as Fountain Square Commerce Center and Northwest Pointe II, are equipped with optimal truck courts for easy maneuverability, efficient lighting, ESFR sprinkler systems, and flexible office and employee space to suit each user’s unique needs. Some also include well-appointed outdoor spaces and open green areas for employees and community residents.

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