In brief: Microscopic deal | Jones Lang | Aqua
German microscope maker jumps to Buffalo Grove
The North American headquarters of Leica Microsystems GmbH leased 63,610 square feet in a vacant, 188,215-square-foot industrial building in Buffalo Grove developed two years ago by Chicago-based Bridge Development Partners LLC and San Francisco-based investment firm McMorgan & Co. The building, 1700 Leider Lane, is part of the Aptakisic Creek Corporate Park, on Aptakisic Road west of Milwaukee Avenue in the northwest suburb. The deal includes 47,000 square feet of office space for the Wetzlar, Germany-based microscope maker, according to a news release issued by the Chicago office of CB Richard Ellis Inc., which brokered the deal. Leica is moving its local offices in April from 2345 Waukegan Road in north suburban Bannockburn, where it has 37,500 square feet, according to CoStar Group Inc. The Waukegan Road property is owned by Bala Cynwyd, Pa.-based Keystone Property Group.
Jones Lang stock at peak
Shares in Jones Lang LaSalle Inc. are trading near their highest level in almost 2½ years, a week after two investment banks launched coverage with positive outlooks for the Chicago-based real estate services firm. Shares closed at $83.10 Tuesday, their highest price since April 2008, but fell back to $82.82 in midday trading Thursday. The shares have risen 35% this year. Keefe Bruyette & Woods Inc. and Barclays Capital both started covering the company Sept. 16, with Barclays announcing a 12-month target price of $106 a share. "We think that JLL is well positioned to benefit from the cyclical recovery and structural change taking place in the commercial real estate markets," Barclays analysts Ross Smotrich and Michael Lewis wrote in a report.
Texas apartment REIT strikes second Chicago deal
A suburban Dallas apartment real estate investment trust earlier this month agreed to pay $189 million for a 75% stake in the apartment portion of the Aqua, an 82-story tower at 225 N. Columbus Drive, according to filings this month with the Securities and Exchange Commission. But Behringer Harvard Multifamily REIT I Inc. says the deal is subject to “substantial conditions,” including the completion of a pending deal to sell the hotel portion of the skyscraper by the Aqua’s developer, Magellan Development Group LLC. Behringer must also obtain about $100 million in financing. The REIT would receive a preferred annual return of 9% on its $89-million capital contribution. In June, the REIT paid $88 million for the 298-unit Burnham Pointe, 730 S. Clark St. in the South Loop.
Local construction contracts rise in August, but down for year
In a hopeful sign, the dollar value of Chicago-area construction contacts rose 16%, to nearly $529 million, in August compared to August 2009, according to McGraw-Hill Construction Research & Analytics. Residential contracts rose just 4% last month compared to August 2009, while non-residential projects rose 21%, according to the unit of Bedford, Mass.-based McGraw-Hill Cos. But through the first eight months of 2010, contracts are still down 10%, to nearly $3.7 billion, compared to the same period in 2009. Statewide, construction contracts are up 11%, to about $10.3 billion, during the first eight months of 2010, compared to 2009.
