2017 Community Impact Award

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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James A. McShane, Chief Executive Officer of The McShane Companies, is pleased to announce that the firm has relocated its corporate headquarters to the Gateway O’Hare office complex in Rosemont, Illinois. The national design/build construction company now occupies the entire second floor of the Class A office facility situated in the heart of Rosemont’s popular business and entertainment district.

As of Monday, September 26, 2016, McShane Construction Company utilizes the following address:
9500 W. Bryn Mawr Avenue, Suite 200
Rosemont, IL 60018
847.292.4300

“We are pleased to relocate into a new office suite that was completed to our specifications by our own construction professionals. Our relocation to Gateway O’Hare supports the organization’s continued growth in capacity, projects, and personnel while providing a more modern working environment and greater efficiencies in space utilization,” remarked McShane.

The McShane Companies, headquartered in Rosemont, Illinois, with offices in Irvine, California; Phoenix, Arizona; Auburn, Alabama; and Austin, Dallas, Houston and San Antonio, Texas, provides comprehensive and integrated real estate development and design/build construction services on a national basis. For more information, visit the firm’s website at www.mcshane.com.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm is underway on the comprehensive new construction of Trumpf Smart Factory located within the Huntington 90 business park in Hoffman Estates, Illinois.

Based in Germany with more than 70 subsidiaries and 11,000 employees worldwide, Trumpf is a leading manufacturer of fabricating equipment and industrial lasers and offers products and solutions in sheet metal processing, laser-based production and electronic applications. The firm purchased the five-acre site adjacent to Interstate 90 for its latest expansion in what is considered the epicenter of the sheet metal industry in North America. The Smart Factory was designed by the Berlin-based architectural firm, Barkow Leibinger, and its official opening is planned for the summer of 2017.

The single- and multi-story build-to-suit consists of 56,297 square feet designed to be at the forefront of integrated automation, material and information flow utilizing machine tools. The industry-leading facility incorporates a 26,052-square-foot open showroom where visitors can observe live sheet metal production while a unique 150′ clear span truss system fabricated by Trumpf equipment elevates the brand identity. A custom catwalk with a balcony spans the mezzanine within the showroom showcasing the production process from above.

Trumpf Smart Factory also includes a three-story office component adjacent to the showroom and a separate single-story office located on the west side of the building totaling 30,245 square feet. The office areas incorporate an auditorium, multimedia room, open and private offices and meeting rooms. A center courtyard will offer a landscaped gathering area for employees and guests.

The exterior of the facility features a contemporary design with 40′ tall glass panels at the front of the building with a pitched roof system gradually declining to 15′ at the back. The facade will utilize corten steel panel cladding that will rust into place for an artfully weathered effect.

“The unique features of Trumpf Smart Factory requires a skilled team of professionals and careful coordination,” remarked Raday. “The McShane team is experienced in highly specialized build-to-suit construction that requires strategic material procurement and site logistics. We will utilize our expertise to meet the fast track timeline and ensure the highest attention to detail that is needed on this assignment.”

As part of the project, McShane will install eleven 150′ clear span custom trusses weighing 11 tons each that are being fabricated by Trumpf equipment in Atlanta, Georgia. Each steel beam is being shipped and assembled on-site prior to installation. The firm is also completing all sitework including landscaping, sidewalks and paved parking for 50 vehicles.

Heitman Architects is serving as Architect of Record for this comprehensive build-to-suit assignment.

James A. McShane, Chief Executive Officer of The McShane Companies, is pleased to announce that Bob Galante, CPA, has joined the firm as Chief Financial Officer. Galante offices at the firm’s Rosemont, Illinois headquarters and has assumed his role of managing its finances on a national basis.

Galante is an experienced financial professional contributing over 30 years of experience within the commercial real estate development and construction industries with a strong planning and analysis background. Galante joins The McShane Companies following the recent retirement of former CFO, Mel Meyer, who had been with the company since 1999. Galante has completed the seamless transition and is now overseeing the firm’s accounting, financial reporting, tax and treasury functions.

As CFO, Galante provides oversight of the annual financial audit and management of the company’s risk exposure and insurance programs. He periodically reports to the senior management team regarding the operations and long-term growth plans for the organization ensuring that its strategic goals are met. Galante also serves as the company’s primary liaison with banks, insurance companies, sureties and external auditors. In addition, he manages the human resources and technology departments and is a member of The McShane Companies Advisory Board of Directors.

Prior to joining The McShane Companies, Galante served as the CFO for several national real estate firms including Opus Development Corporation and Amli Commercial Properties. Most recently, he was the CFO of Zeman Homes in Chicago, Illinois.

“The selection of Galante for this pivotal role within the company was carefully evaluated to ensure that our vision and objectives would be under the leadership of a strategic and highly-experienced professional,” remarked McShane. “We strongly believe that his past track record demonstrates his ability to uphold our strong financial foundation and values as we continue to expand within new markets and product types nationwide.”

Galante earned a Bachelor of Science degree in Accounting from the University of Illinois at Urbana-Champaign and is a Certified Public Accountant. He is a member of the Illinois CPA Society and is on the Board of Directors for Norwood Crossing, an assisted living facility and senior network located in Chicago.

Jonathan Bagnall, Vice President of McShane Construction Company’s Western Region, is pleased to announce that PAMA Management has selected the firm for the construction of its new light industrial development, Upland Industrial Centre.

The three-building speculative development totaling 88,338 square feet is under construction on a 4.74-acre site at 1037 West 9^th Street in Upland, California, within a popular light industrial business district easily accessible to the I-10 and 210 highways. The firm began with the demolition of existing structures on the site in early August 2016 making way for the new construction of the contemporary development scheduled for delivery in March 2017.

Upland Industrial Centre incorporates Building A, a 41,488-square-foot facility designed to accommodate a single or multiple tenants with six dock-high doors and two drive-in doors; Building B at 26,535 square feet with three dock-high doors and two drive-in doors; and Building C encompassing 20,315 square feet, two dock-high doors and one drive-in door. Both Buildings B and C are being constructed to support a single user. As part of the project, McShane Construction will complete a portion of speculative tenant improvements on the first floor of each facility in addition to sizable mezzanines.

All three buildings will be constructed of tilt-up concrete panels with decorative formliner accents and architectural steel canopies at the office entrances enhancing the overall design. The facilities will also boast 30′ clear heights, substantial skylights, ESFR sprinkler systems and two-story offices to-suit.

Sitework will be completed by McShane Construction including all landscaping and paved parking for 184 vehicles.

“McShane Construction has earned a reputation as one of the foremost construction firms well-versed in the multiple phases of successful industrial facilities. Our approach includes working with our clients in the early stages assisting with design, permit and development issues and subsequent construction providing added value through the full real estate cycle of a project,” remarked Bagnall. “We are proud to have been selected by PAMA Management and look forward to showcasing our expert services to our client with this new addition to their portfolio.”

Ware Malcomb is providing the architectural services while Newmark Grubb Knight Frank is serving as the exclusive marketing team for Upland Industrial Centre.

Scott J. Hoppa, Senior Vice President of McShane Construction Company’s Southeast Region, is pleased to announce that the firm has been selected by developer, The Integral Group, for the new construction of The Veranda at Groveway – an affordable senior housing residence.

The 102-unit, four-story apartment building is under construction on a three-acre site at 735 Myrtle Street in Roswell, Georgia. McShane Construction formed a joint venture with IBG Construction Services to complete the new development that is slated for completion in July 2017.

The Veranda at Groveway will offer 109,714 square feet of well-appointed senior living space carefully designed to maximize the well-being and comfort of its residents. The complex features 102 private units with 85 one- and 17 two-bedroom floorplans incorporating contemporary fixtures and finishes and an emergency call system within each residence. Tenant amenities will include a wellness center, fitness center, yoga/aerobics room, business center, game room and sunroom together with a rooftop deck offering outdoor space for entertainment and relaxation.

The wood frame residence will incorporate an artfully clad exterior with brick and fiber cement siding, surface parking for 72 vehicles and lush landscaping. The complex is being constructed to meet EarthCraft Certification through the use of numerous sustainable design and construction features such as low VOC paint and flooring, energy efficient HVAC, and Energy Star appliances. Partial funding for the project is being provided by the U.S. Department of Housing and Urban Development (HUD) and Georgia Department of Community Affairs.

McShane Construction and IBG Construction will complete all sitework as part of the assignment.

The Veranda at Groveway marks the firm’s second affordable senior housing project for The Integral Group in partnership with IBG Construction Services. The venture previously completed Oasis at Scholars Landing, an affordable and assisted living residence for seniors located in Atlanta, Georgia late last year.

“We are thrilled to have been selected by The Integral Group for our second venture with IBG Construction,” remarked Hoppa. “Coupled with our proven track record in senior and multi-family construction, our winning partnership will serve the growing demand for high-quality affordable living options for seniors in the Roswell area.”

REES Architects is providing the architectural services for The Veranda at Groveway.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce the completion and grand opening of The Arts and Recreation Center at Ellis Park. The firm delivered the highly-anticipated 32,000-square-foot, two-story facility on behalf of The Community Builders, Inc. – a leading nonprofit developer of mixed income housing and commercial real estate – and Quad Communities Development Corporation. The project was a result of numerous public and private partners including the City of Chicago, Chicago Housing Authority, Chicago Park District and Chicago Public Schools.

Situated on a 3.1-acre parcel at the northern edge of Ellis Park at 3520 South Cottage Grove Avenue in Chicago’s Bronzeville neighborhood, the recreation center recently opened on schedule for summer programming offering a variety recreational, arts and community opportunities.

The facility was constructed of precast concrete and metal framing boasting a contemporary exterior aesthetic utilizing a mix of artfully designed precast and GFRC (glass fiber reinforced concrete) wall panels. The main entrance welcomes visitors into a window-lined lobby highlighted by an elegant, open staircase leading to a rooftop terrace and green roof system overlooking the surrounding park.

The Arts and Recreation Center at Ellis Park features numerous recreational spaces including a full-size gymnasium featuring basketball courts, five-lane indoor swimming pool with an ADA accessible ramp, fully-equipped fitness center and outfitted locker room facilities. Flexible spaces for art, education and community use are also available including space for music and theater performances.

As part of the assignment, McShane completed the relocation of a city sewer as well as the associated sitework for the project including landscaping, sidewalks and a parking lot utilizing permeable pavers.

“McShane Construction is proud to deliver this long-awaited recreational facility to the residents of Bronzeville,” remarked Raday. “The significance and necessity of this undertaking was recognized by our project team from the onset, and we ensured that the highest level of quality was implemented throughout construction in order to provide a finished facility that leverages the need for recreational, arts and community space within this urban neighborhood in close proximity to several schools.”

Booth Hansen served as Design Architect while NIA Architects, Inc. was the Architect of Record for this assignment.

Jeffrey A. Raday, PE, President of McShane Construction Company, is pleased to announce that the firm has completed Campus Circle for joint venture partners, The Bainbridge Companies and a subsidiary of Blue Vista Capital Management. The 524-bed, 276,000-square-foot, five-story apartment complex is located at 1010 West University Avenue in Urbana, Illinois, adjacent to the University of Illinois at Urbana-Champaign campus.

With a total of 181 units, students can select from one-, two- and four-bedroom configurations with all bedrooms incorporating a private bathroom. Each apartment is outfitted with today’s most desirable fixtures and finishes appealing to student renters such as open floorplans, granite countertops, high-end appliances and in-unit washers and dryers.

The assignment included 2,000 square feet of retail space on the ground floor and an adjacent five-story, 101,000-square-foot access-controlled parking garage accommodating up to 291 vehicles. McShane Construction also completed an expansive technology package providing Wi-Fi connectivity throughout the entire property.

Campus Circle incorporates an on-site management and leasing office and over 13,500 square feet of amenities such as a two-story club room with a communal kitchen, 90″ entertainment wall, various arcade games with two separate rooms equipped with the latest digital-gaming consoles, tanning bed facilities, a theater and 20 private study rooms. There is also a two-story fitness center featuring state-of-the-art strength and cardio equipment together with a yoga/dance studio.

The rooftop of the development’s communal area provides a sizable covered lounge, bar with outdoor television, fire pits and seating areas while the outdoor swimming pool and kitchen, located within the property’s courtyard, offers additional outdoor entertainment space.

“We utilized our depth of experience in delivering contemporary, Class A rental properties to augment the goals and objectives of this project. The finished property offers a balance of residential units and communal spaces that meet student lifestyles while aligning with the quality and budget of our valued clients, The Bainbridge Companies and Blue Vista Capital Management,” remarked Raday.

Charlan Brock & Associates, Inc. was the project architect for this off-campus student housing assignment. The property is being managed by Peak Campus.