INDUSTRIAL - RETAIL - LAND - OFFICE - DEVELOPMENT - BUSINESS BROKERAGE |
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Featured Listings Available Now |
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511 Eichler Dr.
West Dundee, IL 60118
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SMALL OFFICE SUITES
105-420 SF, 6 suites available in this 2-story multi-tenant building, minutes from I-90. Full service gross with all utilities. $395-629/mo
Broker: Sharon Glasshof
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721 Dundee Ave.
Elgin, IL 60120
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ELGIN OFFICE SPACE
5165 SF divisible on 2 floors. Ideal for attorney, CPA, insurance, real estate, etc. Close to I-90 and Rt. 25. Only $15 psf Gross.
Broker: Brian Cowell
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1301 Pyott Rd.
Lake in the Hills, IL 60156
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UNUSUAL INVESTMENT / USER PLAY
Lake in the Hills – Multi-tenant office building with empty former bank space and 28 mostly leased smaller offices. Tenant mix is mostly professional. Assessed by Algonquin Township at $2.9 million. Asking only $1,995,000
Brokers: Bruce Kaplan & Heather Schweitzer
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1258 North Rose Farm Rd.
Woodstock, IL 60098
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WOODSTOCK INDUSTRIAL CONDO
Woodstock – 6,000 SF pre-enginered steel industrial condo with 15-18’ ceilings, 3 12x14 DIDs, 2000 SF 2-story office. Triple basin drains. For lease or sale. $7.50 psf Gross or $399,000
Brokers: Kevin Kaplan & Bruce Kaplan
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650 E. Terra Cotta Ave.
Crystal Lake, IL 60014
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CRYSTAL LAKE RETAIL/OFFICE SPACES
3 spaces available including 2 endcaps. 1065 sf, 1580 and 2808 sf. At signalized corner across from Casey’s General Store on Rt 176 and Terra Cotta. Great signage. $12-16 psf net.
Broker: Mike Deacon
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3810 McCullom Lake Rd.
McHenry, IL 60050
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MCHENRY DEVELOPMENT LAND
McHenry – 5.42 acres adjacent to Meijer and 2 residential subdivisions. Ideal location for multi-family, assisted living, or professional office complex. Need to be annexed and re-zoned. $1,200,000 ($5.02 psf)
Broker: Heather Schweitzer
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New Owner Seeks Tenants For Former Motorola Facility
The 1.5 million sqft. former Motorola manufacturing and distribution facility has been purchased by Pinnacle Fund Management, LLC, an affiliate of Las Vegas-based CAI Investments, LLC. The company is not an end user but a vertically integrated developer which possesses significant experience in developing property and the capital needed to fund and complete projects. In the coming weeks, the City of Harvard will meet with representatives of the buyer to come to a mutually agreed upon phased revitalization plan to resolve any life-safety issues at the facility, bring it back into compliance and enable occupancy.
The new owners have already started marketing the property for tenancy with the goal of “creating jobs and generating tax revenue for the local economy”, according to a company spokesman. Targets include data centers, cold storage distribution, third party logistics, light to heavy manufacturing, micro chip manufacturing and cannabis grows. The company’s development/buildout timeline will be determined by needs of the tenants it attracts.
Completed in 1997, the property boasts 1.5 million sqft. throughout four interconnected buildings designed for manufacturing distribution, office and administrative uses. An integrated material handling system serves more than 974,000 sft. of manufacturing space. Other features include an 1,100-person cafeteria, on-site daycare facilities, a 500+ person auditorium and two heliports. The property is located on 300 acres of land finished with ponds and biking and running trails and with the potential for further development.
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Rights of First Refusal: Important Do's and Don'ts
A Look At Leasing & Contracts
In 2016, we wrote about Rights of First Refusal (ROFRs), Rights of First Offer (ROFOs), and Purchase Options. In this later article, we focus on ROFRs as they apply to commercial property purchase, sale agreements, and leases and offer some tips to follow to ensure that your buyer, tenant, or landlord client achieves the greatest benefit possible from such rights.
Let’s review: ROFR is the right extended to a buyer or tenant, in a contract or lease, to acquire certain property OR expand into or take additional space in existing leased property, if and when a third-party extends a bona fide offer to the landlord or seller (which the landlord or seller is willing to accept) regarding the subject property.
If the holder of the ROFR exercises its right and matches the third party’s offer, the property or space must be sold or leased to the holder of the ROFR.
DO’S:
- The more significant the property, such as an investor buying a major industrial or office property from one or more other co-investors, the longer the period should be allowed for exercising the ROFR. This permits, for example, the ROFR holder to obtain financing to close the purchase transaction successfully. BUT having said this, beware that the longer the exercise period for the ROFR, the more risk each party accepts as to market volatility and property value fluctuations, including the risk that the initial offeror will choose not to proceed. More on this below in DO #5.
- For a tenant with the ROFR to expand into additional, unoccupied space in a leased property, be sure that: (a) the terms are very clear regarding the specific notice requirements which must be met by the tenant; (b) the lease rate is specified for the additional space acquired; and (c) there is an ample amount of time in which the ROFR holder can exercise its right.
- The manner by which notice is conveyed has expanded due to technology. Therefore, it is critical that the method(s) of notice transmittal are specified in the contract or lease document so that the ROFR can be both workable and exercised properly.
- In a multi-tenant property configuration, be sure to specify the particular units of unoccupied and/or adjacent space covered (or burdened) by the ROFR. Once this broker co-author specified the unit size, but not the specific unit, for which the ROFR was intended. When the tenant subsequently tried to exercise the ROFR, the landlord responded that the ROFR applied to several units within different buildings in the complex, but none were the unit that the tenant wanted in the first place!
- In the current market, where construction pricing is skyrocketing, a tenant’s ROFR from even two years ago may be inadequate to limit the tenant’s rent and/or tenant improvement costs on the new/additional unit. For planning purposes, build in some sort of cap on rent and TI costs in the event of the tenant’s exercise of the ROFR for an adjacent or other unoccupied unit.
DON’TS:
- Generally, ROFRs favor the tenant/buyer, and not the landlord/seller. With this in mind, keep the ROFR simple. In other words, don’t attach so many constraining conditions that inhibit the landlord/seller in its ability to otherwise convey the property to other parties, or the landlord/seller simply won’t grant the ROFR.
- In joint-venture real estate transactions, rights of first refusal are commonly used, such that the joint venturers generally possess the right of first refusal to buy out the stakes held by other joint venturers who leave the venture. Do not skimp on details here, as once friendly joint venturers may find themselves locked in litigation when, in a rising market, the property values leave one party on the short end of the deal.
Remember, ROFRs are extremely effective in accomplishing planning objectives of the tenant, buyer, or joint venturers. If and when properly worded, a ROFR could also encourage doubtful landlords and sellers to board the ROFR train.
By: James Hochman & David Liebman
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Bruce Bossow x 12 / C: 847-732-3462
Bruce Kaplan x 20 / C: 847-507-1759
Heather Schweitzer x 15 / C: 815-236-9816
Heide Casciaro x 26 / C: 847-774-5660
Joe Billitteri x 21 / C: 847-833-5004
Kevin Kaplan x 13 / C: 309-261-0920
Sharon Glasshof x 14 / C: 847-533-6974
Brian Cowell x 18 / C: 815-529-7890
Mike Deacon x 28 / C: 815-814-6500
9225 S. IL Route 31
Lake in the Hills, IL 60156
847-854-2300
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