"City within a City" Celebrates 100 Years

realtycapital, 06 November 2006, No comments
Categories: The Institute

Chicago, November 7, 2006 — One of the most famous commercial complexes found within the City is celebrating 100 years — The Sears, Roebuck & Co. Catalog Plant.  Now known as Homan Square, this Complex was home to one of the largest companies in the world at the time.  The Complex earned several titles over the last century including “The World’s Largest Store”, “A City within a City” and “The Works”. 

Originally erected between 1905 and 1906 as the Sears Roebuck & Co. world headquarters and mail order catalog operations center, a substantial portion of the buildings and surrounding area still exist in the heart of the City’s West Side.  The Complex is located about ten minutes from the Loop. 

Nat Zvislo, the research director of the Real Estate Capital Institute (a company located in the area), notes “The Sears Catalog Plant is a fascinating national/local landmark rich in history and tradition.  On its completion and for nearly two decades, the Complex ranked as one of the most famous commercial buildings in the United States.”

Other important highlights of the historic Sears Catalog Plant include:

1) Employed over 20,000 people in the 1920s – the largest private employer in Chicago.

2) Birthplace of WLS Radio, one of the most famous stations in the country. 

3) Home of the oldest skyscraper outside downtown Chicago — The 1st Sears Tower.

4) Birthplace of Allstate Insurance Co. (1931).

5) Home of the first major Chicago skyscraper built after World War II (1949).

6) Pioneer of advanced life/safety systems – completely sprinklered.

7) Known as a state-of-the-art facility that was toured by many celebrities of the era including Henry Ford, Charles Lindbergh, Gene Autry and others.

8) Winner of the coveted ULI Award for Excellence for the Community Center (2002).

9) Among one of the most successful commercial buildings in continuous use by the same company for more than 80 years.

10) One of the first communities in the city to offer residents free WiFi (2002).

The Real Estate Capital Institute will be one of the sponsors hosting a Centennial exhibit honoring the Complex.  The exhibit will display pictures, postcards, books and other artifacts.  For further information, contact director@reci.com.

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Las Vegas, NV - February 6, 2010 - According to industry leaders gathering in Las Vegas this week, debt capital is readily available for 2010.  Optimism is in the air and the mortgage lenders are starting to offer more generous terms and conditions.  In summary, timing is excellent for select borrowers in securing debt based on the following conditions:  (1) Recovering economy, (2) Ample supply of capital and (3) Limited supply of financeable real estate assets.  The following highlights summarize the 2010 state of the realty capital markets including an overall outlook and overall funding program offerings:  Back to Basics:  As lenders workout of their legacy problems, new funding goals surface which are clearly more ambitious than 2009. Still underwriting of actual numbers w/o projections, yet inflation fears exist. Most lenders are Indifferent to spreads, but not competition. Valuing real estate properties in a declining market still a challenge. More allocation of funds available above target amounts if deal flow is of sufficient quality Underwriting Dynamics:  As has been the case last year, high-quality projects in major markets backed by excellent sponsorship and cash flow characteristics are most desired—especially based on low leverage of 65% of value.  Location/Property Types: Major MSAs strongly preferred for optional pricing and leverage.  Otherwise a substantially most costly financing with lower leverage. Preferred property types ranked in order:  (1) Multifamily, (2) Credit-Tenant lease of all property types, (3) Industrial, (4) Retail, (5) Office - however medical office ranks equal to Industrial and (5) Lodging. Pricing (Permanent Fixed-Rate Loan): Agency pricing for apartments starts in the low to mid-5% range for 5 year or greater term. Life company pricing starts mid-5% to 6% for 5 years or more term mostly targeted for commercial property pricing (agencies are more competitively priced) More entrepreneurial funds start at 7% or more targeting secondary markets, smaller fundings, older properties and lodging assets. Add a pricing premium of 25 to 50 basis points for loans below $5 million. Yield differential disappearing - typical ($5 to $50 million) vs. larger loans. Forward funds available up to a year based on 6 o 8 basis points premium per month.  Leverage: Above 65% LTV on a select basis combined with lower spreads. Values based on the lower of: (a) purchase price, (b) appraised value or (c) lender imposed capitalization rate.