From the Desk of Bruce Bossow
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When famous poet, T.S Eliot, wrote "April is the cruelest month", he wasn't thinking about the health and economic affects of a cruel virus during the pandemic in which we find ourselves. Although real estate is considered an "essential business" by Governor Pritzker, we have severely modified our daily routines and closed our office to the public and our brokers, who are working remotely. Believe it or not, people are still out looking at properties and many are putting properties on the market for sale or lease. We are doing our best to keep up communications with our clients while keeping the social distancing guidelines in mind.
Having lived through a number of crises in my 50 years in this business, I know this one will soon be in the rear view mirror. And what happens in any downturn, there is an inevitable uptick, sometimes a surge as the concept of pent up demand plays out. As millions of people put off buying, leasing or selling decisions for weeks on end, when the crisis ends, they pile up all at once and things go a bit crazy. If you have the stomach for it, you can jump in before the frenzy and get some extraordinary deals. Then for you, this particular month of April won't end up seeming so cruel. As they say, timing is everything.
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Premier Hires Two New Brokers
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Angela Pletz
is a new broker associate with Premier. Angela recently received her real estate license and is looking forward to a successful career leasing and selling commercial real estate. Angela comes from an educational background where listening and problem solving were a must. Angela has had success in her family business by listening to her client’s needs and providing them a solution. These skills will serve her well with clients who are looking to lease, buy or sell commercial real estate.
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Michael Deacon
has joined Premier as a Senior broker. Since 2001 Mike has worked in almost every facet of the commercial real estate industry — client representation (selling and buying), property searches, development entitlements, pro forma analysis, broker opinions of value, sale of businesses, appraisal consulting, and real estate tax appeals.
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We are excited to have both Angela and Mike join us at Premier Commercial Realty and look forward to their success!
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9200 Pyott Rd.
Lake in the Hills, IL 60156
8,200 SF
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8,200 SF one story frame retail/sales/service building on 1.27 acre. Formerly occupied by Hobby Town and completely refreshed. 60’x135’ clear span space with 10’ x 12’ DID, fully sprinklered, 400 amp 3 phase power, (2) baths and 14’ ceilings. Huge paved 37 car parking lot. Owner will consider leasing at $7.62 psf NNN.
Brokers: Bruce Kaplan & Kevin Kaplan
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2510 Rt. 12
Spring Grove, IL 60081
8,040 SF
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8,040 SF free standing frame building on busy US Route 12 in Spring Grove. Currently , approx. 5,773 SF built out as office/showroom and the other 2,267 SF as warehouse. This building can be broken up for a user/investor who may want to use 1/2 and lease out the other half (front/back). There are (2) 8×10 DIDs, zoned B2 (general business). Many retail type uses would be a perfect fit. A new user could also open it up to be more warehouse as needed. Located next door to Walgreens and across from Jewel, McDonalds and Chase Bank.
Brokers: Bruce Kaplan & Kevin Kaplan
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11416 Kiley Dr.
Huntley, IL 60142
3,000 - 6,000 SF
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(2) INDUSTRIAL CONDO’S
3,000 – 6,000 SF
(2) 3,000 SF adjacent industrial condos, each with small office, (2) bathrooms, 10’x10’ DID, mezzanine above office and 2,600 ± SF warehouse. Condos can be sold together or separate. Ideally located minutes from I-90 /Route 47 interchange. See layouts and photos. Priced at $255,000 Each
Broker: Heather Schweitzer
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1220 Armstrong St.
Algonquin, IL 60102
4,745 SF
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4,745 SF
(plus 787 SF mezzanine)
Free standing industrial building with 1,900 ± SF office with (3) privates, (2) baths, Kitchenette and open clerical. The 2,563± SF warehouse has radiant heat and (3) 10×14 DID’s, There is additional 787± SF mezzanine storage above the office. Ample parking and monument signage. See layout and photos.
Brokers: Angela Pletz & Heather Schweitzer
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2430 Harnish Dr.
Algonquin, IL 60102
9,600 SF
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Free standing brick 1-story 9,600 SF office building for sale or lease. The interior is a warm shell with 2 bathrooms and 1 office. Ready to be built out to suit new owner or tenant. Just one block from high traffic Randall Road corridor. There is 1 DID (8×8) on side of building. Clear ceiling height is 16’. City of Algonquin B1 zoning allows for a wide variety of commercial uses. Owner will consider all serious offers.
Broker: Mike Deacon
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804 Roundabout
West Dundee, IL 60118
5,278 SF
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Multi Tenant Office Building
2– Story with Full Basement
Ideal for owner/user/investor. Attractive office/commercial 2-story with versatile B3 zoning, allowing for multiple uses. Spacious built out professional offices on two floors. Each floor has a kitchenette, (2) baths and private offices. Full dry basement for storage with 7’6” drop ceilings and (3) sump pumps. (2) new furnaces and A/C units in 2019. Driveway and parking lot kept up along with monument signage. Current 2nd floor tenant lease thru June 2021, currently paying $2232/mo. gross.
Great location in the Old-World Market, just minutes from I-90 and Route 31 Interchange. See layouts and photos.
Broker: Sharon Glasshof
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0000 Cumberland Pkwy
Algonquin, IL 60102
2.23 AC
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(1.29 ac. Buildable & .94 ac. Retention)
Pad-ready industrial site off Route 62 with free on-site retention lot. Priced below market for quick sale. Build your fresh, new facility while rates are low. Only $1.82 psf. 1.29 acres buildable lot with .94 acres retention lot, totaling 2.23 acres.
Broker: Bruce Bossow
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Recently Sold and Leased Properties
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110 Woodstock St.
Crystal Lake, IL 60014
5,300 SF Leased
Heather Schweitzer
*Additional SF Still available for lease
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330 Terra Cotta Ave.
Crystal Lake, IL 60014
11,664 SF
$605,000
Heather Schweitzer & Joe Billitteri
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2314 N. Rand Rd.
Palatine, IL 60074
2,970 SF
$315,000
Kevin Kaplan & Bruce Kaplan
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11603 Rt. 47
Huntley, IL 60142
1,816 SF
$265,000
Heather Schweitzer
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ARE OFFICE CONDOS POISED FOR A COMEBACK?
As we monitor the actions of buyers and sellers in the current commercial marketplace, we can’t help but notice a lack of interest in the OFFICE CONDO property type. This comes at a time when prices for this type of property are at an all time low. Before the crash of 2008, the cost to build these office condos was in the realm of $150-200 per sq foot. A number of buyers paid that much at the time. We just sold one in Lake in the Hills for only $54 per sq foot, 1/3 to ¼ of what it originally cost to build it!
According to the Regional Multiple Listing Service (Midwest Real Estate Data), 12 of those office condos sold in McHenry County in the last year, one per month on average. 28 remain unsold (currently for sale). One can purchase an office condo for less money than a free standing building in many cases. There are even bank owned condos for sale where the banks are very motivated to get these assets off their books.
We hear objections to buying/owning this property type, some more than legitimate than others. The annual monthly dues is probably the biggest hurdle as all these condos are part of a Property Owners Association (POA). Most POA’s have professional management which is part of the dues structure. This is not necessarily a bad thing as good managers help maintain the overall quality and intrinsic value of the complex. If the Association dues are not high enough, you sometimes see shoddy landscaping or potholes in the parking lot. Also, the smart POA’s set up reserves for future capital expenses like new roofs, parking lots or exterior painting. If these expenses are not planned for, you can anticipate special assessments and nobody appreciates those. Asking to see financial statements, budgets and POA documents is a smart way to go about purchasing an office condo.
In addition to professional management , healthy financials and fair monthly assessments, most buyers look for various attributes of any office condo complex. Type of construction, location, whether it has a basement, crawl space or is on a slab (this affects ease of buildouts), internet access, adjacent owners or tenants, does it have private entrances, natural light, etc.
Using the Small Business Administration (SBA) loan to buy these condos is a commonly used financing mechanism. With as little as 10% down in most cases, you can own one of these units, which range in size from 625 sq ft to 5000 sq ft. or more. Timing is everything in life and it turns out that SBA loan interest rates have just dropped to all time lows (2.84-2.88% for their famous 504 program). You may also find conventional loan programs that are attractive.
The point is, if you are renting office space and plan to be in business for the foreseeable future, you should take a serious look at the office condo market while the pickings are still good. A good commercial broker can layout numbers for a prospective buyer to help decide if it is more economical to purchase or lease.
Bruce Kaplan is a Senior Broker Associate and Kevin Kaplan is a Broker Associate at Premier Commercial Realty in Lake in the Hills
They can be reached at brucek@premiercommercialrealty.com and kevink@premiercommercialrealty.com
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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
Angela Pletz
x 24 / C: 815-861-7124
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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