HSA to Develop Medical Office Building at the New Silver Cross Campus

HSA, through its health care real estate division, PrimeCare, has formed a partnership with Silver Cross Hospital to develop a 56,000 square foot medical office building at Silver Cross’ New Lenox campus off the new I-355 extension at Route 6. Located on the campus of the planned 600,000 square foot replacement hospital currently being constructed by Silver Cross, the 2-story facility will feature today’s latest medical technology.

Strong demand in the area has enabled HSA to pre-lease 31,544 square feet during the initial planning stages. Robert Titzer, Execu-tive Vice President, worked with a number of tenants including Children’s Memorial Hospital, Hinsdale Orthopaedic Associates, Silver Cross Women’s Health Center and several private practice physicians, in finalizing lease plans.

Completion is scheduled for August, 2009, and HSA’s John Wilson, who heads both the PrimeCare and Corporate Services divi-sions, said that HSA is looking forward to a long and fruitful alliance with Silver Cross.

Summer 2009 VOL.12 NO.1 www.hsacommercial.com

REAL ESTATE REPORTCelebrating 28 Years of Excellence in Commercial

Real Estate

HSA COMMERCIAL REAL ESTATE | 233 S. Wacker STE. 350 Chicago, IL 60606 | www.hsacommercial.com

Office Leasing Update

180 N. LaSalle Street, 37,940 SF—David R. Wilson, executive vice president and managing director, and Ryan Foran, vice president, represented Cremer Spina Shaughnessy Jansen & Siegert LLC in its sublease to DN Partners, a private equity firm, in downtown Chicago.

3903-3927 S. Halsted St., 23,000 SF—Roger Knigge, senior vice president, corporate real estate ser-vices, represented all parties in MW Transport System Inc.’s lease of a 15,950-square-foot warehouse and adjacent two-story, 7,220-square-foot office building.

1279 N. Milwaukee Ave., 17,245 SF—Brad Black, senior vice president, represented Neighborhood Housing Services of Chicago Inc. (NHS) in restructuring its office headquarters lease in Chicago’s Wicker Park neighborhood, enabling the housing and advocacy nonprofit to expand and renovate its premises. The property is owned by Joseph Freed & Associates, represented by David Kirshenbaum, senior vice president-operations.

Sullivan Center, 33 S. State Street, 10,896 SF—Wayne Shulman, senior vice president, represented ownership in lease negotiations with PSA-Dewberry, a national architectural firm. Shulman is exclu-sive leasing agent for the office portion of Sullivan Center on behalf of Joseph Freed & Associates, which restored the Louis Sullivan-designed landmark after Carson, Pirie, Scott vacated in 2007. New tenants include Freed headquarters; Gensler, the global architectural design firm, with more than 50,000 square feet; and a 32,000-square-foot gallery of The School of the Art Institute of Chicago on the seventh floor.

Our development division has two major industrial projects underway, and we are securing vacant land for future developments. Our property portfolio continues to grow, with several acquisi-tions in recent months. Our reputation for honoring our commitments has served us well through the current financial crisis, as our finance division has been able to obtain capital at favorable rates to fund our opportunities.

HSA Commercial is ready for the challenges ahead. We will continue to make sensible and enlightened decisions about where the market is heading. Knowledgeable and responsive service has always been our forte, and we promise that we will continue to provide reliable guidance for our clients in these troubled times. In other words, it is business as usual at HSA Commercial.

Business As Usual, Well Almost!by Bob Smietana, CEO and Vice Chairman

Unprecedented events in world financial markets have left most Americans won-dering where our country is headed. However, I believe that our country’s tradi-tion of innovation and entrepreneurialism will undoubtedly help our country emerge from this downturn even stronger than before.

Entrepreneurial spirit has always been a driving force at HSA Commercial, as demonstrated in our diverse activities. For example, we are at the forefront of one of the most thriving sectors in commercial real estate: medical office

development. HSA Commercial’s PrimeCare division now controls a portfolio of medical office properties totaling more than 700,000 square feet.

HSA ACQUISITIONS

Acquisitions Spotlight

Taking advantage of favorable prices, HSA Commercial has been aggres-sively expanding its property portfolio. The firm acquired more than 1 million square feet of industrial properties in 2008, the majority during the third and fourth quarters.

4219 Air Trans Road, Memphis, TN., 366,000 SF—This warehouse is located in Memphis’ dominant Southeast sub-market near Memphis International Airport and is fully occupied with a long-term lease to International Cot-ton Depot.

5321 Shelby Drive, Memphis, TN., 344,000 SF—Also in the Southeast submarket, this facility is fully leased by its previous owner, Crews, a manu-facturer/distributor of industrial safety gear.

1260 Brukner Drive, Troy, OH, 211,900 SF—HSA Commercial en-tered the Troy-Dayton area with the ac-quisition of a state-of-the-art industrial facility that has now been 75% leased to two tenants, Arett Sales and Ware-house Specialties, Inc.

Three New Industrial Developments UnderwayPark 94 at Mt. Pleasant: LEED Certified Industrial in SE WisconsinHSA Commercial has completed phase one of Park 94 at Mt. Pleasant, a 90-acre business park along I-94 in Southeast Wisconsin’s Racine County just 15 miles north of the Illinois-Wisconsin border. The two-building, 448,610-square-foot complex is designed for industrial users seeking high-image space with access to low Wisconsin taxes and an abundant labor force. Phase one is a 323,610-square-foot divisible warehouse, expandable to 664,610 square feet, that is among the first LEED Certified warehouses in the region. Phase two will be a 125,000-square-foot divisible facility. David Bercu and David Liebman of Colliers Bennett & Kahnweiler are leasing represen-tatives for the park. Delany Commerce Center: Multi-Tenant Space in Lake CountyHSA Commercial recently acquired one of Lake County’s last vacant parcels, a 23-acre site at the intersection of Delany and Blanchard Roads near the I-94 interchanges at Route 132 and Route 173 just north of Waukegan, Ill. One development option is a 475,000-square-foot complex with units ranging from 23,600 to 256,500 square feet in two buildings. Another option is a single facility with 125 truck docks, two drive-in doors and 80 trailer parking stalls. HSA Commercial’s Doug Reed and Tim Thompson are the exclusive leasing agents for the project.

New Lenox Commerce Center: Multi-Tenant Space in the SW Suburbs HSA Commercial recently acquired an 8.89-acre parcel with I-80 frontage next to Cherry Hill Business Park in New Lenox, Ill., near the new interchange of I-80 and I-355 in Chicago’s south-west suburbs. The site is slated for a 225,000-square-foot divisible industrial facility, with a 30’ clear-height ceiling, ESFR sprinkler system, 18 exterior truck docks (expandable), four drive-in doors, and parking for 103 cars and 25 trailers.

David Keady: Negotiated 4 leases on behalf of Potbelly Sandwich Works in South Elgin, South Barrington, Schaumburg and Rolling Meadows totaling 9,430 SF.

Shannon Pope: Represented ownership in a 56,529 SF lease to Treasure Island grocery at Hyde Park Shopping Center, Chicago, IL.

Michael Havdala, Shannon Pope: Represented National City Bank in negotiations for 5 new branch bank locations in Crystal Lake, Chicago, Oak Forest, Des Plaines & Antioch, IL.

RETAIL TRANSACTIONS

Finance Division Closes 14 Loans in Six Months

Despite the steady decline of the capital markets, HSA Commercial’s finance division closed 14 loans in the second half of 2008, securing a total of $68 million in financing for the firm’s prop-erty acquisitions and refinancing of current portfolio properties. The division closed 24 loans total in 2008 for $147 million in loans from the nation’s most stable lenders.

“Our strong lending relationships and balance sheet have allowed us to continue to finance new acquisitions and existing real estate assets during these difficult economic times,” said Melissa Pielet, executive vice president, finance, and a principal in the firm.

HSA COMMERCIAL REAL ESTATE | 233 S. Wacker STE. 350 Chicago, IL 60606 | www.hsacommercial.com

10277 Venice Drive, Sturtevant, WI., 192,000 SF. Located just off Interstate 94 near Racine, Wis., this property is fully leased to Allstates Trucking Inc. and Bway Manufacturing.

475 Pleasant Hill Road, Memphis, TN., 100,000 SF—This facility is fully leased to Baxter Healthcare.

15900 West 103rd Street, Woodridge, IL a 32,000 SF facility fully leased to GCS Supply.

21151 S. Northern Illinois Drive, Chan-nahon, IL., 28,680 SF—Fully leased to Commonwealth Edison.

1950 Duncan Place, Woodstock, IL., 28,680 SF— Fully leased to Common-wealth Edison.

HSA ACQUISITIONS(Continued)

Acquisitions Spotlight

AWARDS/ACCOMPLISHMENTS

Michael Havdala, Senior Vice President, Retail Brokerage Division, won the Silver Award for Tenant Representative - Retail Leasing, from the Chicago Commercial Forum group on November 13, 2008. These awards are given to industry practitioners who are recognized by their peers as the “best of the best” in the field. Michael joined HSA in 2001 and works out of the corporate headquarters in the Sears Tower in downtown Chicago.

Josephine Thomas, SPHR, Senior Vice President of Human Resources, Information Technology and Administration recently earned certification as a Senior Professional in Human Resources (SPHR). A Columbia College alum, Josephine holds a BA in Management with honors from Benedictine University. Josephine joined HSA in 1998 and works out of the corporate headquarters in the Sears Tower in downtown Chicago. The SPHR certification, awarded by the HR Certification Institute, signifies that Josephine possesses the theoretical knowledge and practical experience in human re-source management necessary to pass a rigorous examination demonstrating a mastery of the body of knowledge in the field.

ate Accounting Manager. Lisa joined HSA at the age of 20 and died exactly 13 years to the day she began work of a fatal pulmonary embolism. She left a loving family, including two beautiful young daughters, Kristina, age 13, and Samantha, age 9. No one can take the place of their mother, but HSA is helping to provide an assurance that their hopes and dreams can be realized by founding the Lisa Bone Children’s Fund to help meet their fu-ture educational needs.

For more information on how to help Kris-tina and Samantha, please call Grace Fill at

312.683.1270 or visit www.lbchildrensfund.org

On June 2, 2008, HSA suffered an immeasurable loss with the sudden tragic death of Lisa Bone, Our Corpor-

PROMOTIONS

Douglas K. Jones, to Assistant Vice President, Finance.Joseph A. Swojenski, to Vice President-Facilities Management, Property Management. Kenneth E. Verne, to Vice President-Asset Manager, Property Management.

HSA WELCOMES NEW TEAM MEMBERS:

Kelsey Blindt, Associate, Retail Brokerage Cecil Ford, Maintenance Associate, Property Management Ernesto Gonzalez, Jr., Maintenance Engineer, Property Management Ruth Johnson, Desk Clerk, Property ManagementLiane B. Jones, Property Coordinator, Brown Deer Business Park, Property Management Steven Kwong, Administrative Assistant, Administration, HR, ITDiana Morales, Administrative Assistant, Development, Finance, LegalStefan Polcyn, Assistant Vice President, Development Janet Risch, Property Accountant, Property Management AccountingCarlos Tenorio, Vice President, Tenant Advisory ServicesPeter Zeigler, Maintenance Associate, Property Management

Vertical” climb up 103 stories to benefit the Da-mon Runyon Cancer Research Foundation. Over $8,000 was raised by the HSA & Friends team for cancer research, and many of the climbers also raised money for the Lisa Bone Children’s Fund (see story below).

For the 2nd year in a row, a 56 member team of HSA employees and friends par-ticipated in the Sears Tower “ Go