JOE CAHILL: Why are corporations so bad at one of their favorite tactics? PAGE 4
CONDOS: Big-dollar buyers coming back to downtown. PAGE2 CHICAGOBUSINESS.COM | JULY 26, 2021 | $3.50
U OF C’S NEXT TEST: CRIME AND PUNISHMENT After two students were killed in o -campus shootings this year, the Hyde Park university faces a twin challenge that few of its rivals at the uppermost end of the higher education market must overcome BY ELYSSA CHERNEY
DESPITE ITS DOMINANCE as one of the country’s most elite institutions, the University of Chicago must battle a perception that looms over the entire city: rampant and rising crime. For some prospective students, the thrill of going to college in an urban environment is part of the al- lure. But after a year in which gun violence claimed the lives of two U of C students—and in which the city’s broader reputation for crime became the stu of national and even international headlines— U of C faces a twin challenge that few of its rivals at the uppermost range of the higher education mar- ket must overcome: reassuring nervous parents of students who have their pick of top- ight schools while avoiding the sort of heavy-handed security tactics that have ared tensions with the university’s neighbors in the past.
See UCHICAGO on Page 18 JOHN R. BOEHM R. JOHN This billionaire is A $4.7B firm flies bullish on Chicago under the radar While other moguls launch themselves into space, But not for long: The old Hewitt, now dubbed Alight, Joe Mansueto
Joe Mansueto’s focus is closer to home HENSON ALYCE is about to get more visible due to a huge federal deal
BY DANNY ECKER War” to help pass the time. mind as well.” BY STEVE DANIELS e Hewitt deal never real- “We’ve learned so much from Call it a mantra for a billion- ly worked out for Aon, and the While many people were the Greeks—democracy and aire’s second career. For the last 11 years, since Aon global commercial insurance binge-watching TV and what is a good life, and thinking Four and a half years after acquired Lincolnshire-based brokerage sold most of Hewitt stress-baking bread in home more broadly,” he says. “Sound he stopped calling the shots Hewitt Associates, there have to asset manager Blackstone in con nement during the early mind and sound body, I think, at the publicly traded compa- been thousands working away in 2017. New York-based Black- days of the COVID-19 pandemic, is a great philosophy. You want ny he created, the founder of that northern suburb while their stone then opted to take the Joe Mansueto reread ucydides’ to take care of your body, but employer has churned through “History of the Peloponnesian you’ve got to take care of your See MANSUETO on Page 21 di erent owners. See ALIGHT on Page 18
NEWSPAPER l VOL. 44, NO. 30 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED Learn about the impact Tax changes of proposed tax legislation changes at may be coming. bmoharris.com/commercial Make sure
you’re ready. BMO Harris Bank N. A. Member FDIC.
P001_CCB_20210726.indd 1 7/23/21 4:16 PM 2 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS Big-dollar buyers return to downtown condos A $6.7 million purchase at the St. Regis Chicago tower is one of several signs tory that built up during the crises. e unit Murillo’s clients bought that a uent purchasers are con dent enough to live in and around the Loop for almost $6.7 million was listed at $7.2 million in early 2019. BY DENNIS RODKIN ey are not the only ones. In the seven months this year. is suburban couple’s purchase past couple of months, seven condos More to the point: Five of the was the second at St. Regis over $6 A suburban couple paid almost have sold for $4 million-plus condos eight sold in 2020 were already un- million. e rst was in May, when $6.7 million for a condominium at in downtown neighborhoods where der contract before the pandemic buyers paid $6.36 million for a con- the St. Regis Chicago on Wacker the buyers put them under contract hit. After the pandemic spawned do on the 66th oor. ey had put Drive, another sign that big-mon- in 2021. ey include a Lake Shore shutdowns of oces, restaurants their contract in four years ago when ey buyers are coming back into the Drive penthouse that sold in early and cultural amenities that con- the 101-story tower was under con- downtown condo market. July for $11.25 million. It had been tribute mightily to the allure of struction. eir names do not yet e couple, who bought a for sale since mid-2019, but the buy- downtown neighborhoods, the appear in public records. four-bedroom unit on the 51st ers put it under contract in May. high-end market showed a signif- Rob Pontarelli, a media repre- oor of the undulating glass high- icant tilt toward suburban buying. sentative for Magellan, the St. Re- rise formerly known as Vista Tow- STILL SELLING e recent run of high net worth gis’ developer, said in an email that er, are not yet identi ed in public ese high-end sales are a sign people buying upper-end units another condominium in the tower records. e agent who represent- that a recent wave of crime in “evidences a strong resurgence of recently went under contract at a lit- ed them, Rafael Murillo of Com- the downtown area has not sup- the downtown condo market,” says tle more than $7 million.
pass, declined to identify them but pressed condo sales, at least at Susan Miner, a Premier Relocation PASSE/FLICKR JOE Since November, when Magellan says they are a suburban couple the very upper end of the market. agent. She represented buyers who St. Regis Chicago on Wacker Drive shook o its old deal with Chinese casting “a vote of con dence in Lately, some real estate agents paid $6.75 million last week for a rm Wanda, rebranded the tower Chicago’s real estate market.” who specialize in downtown con- 22nd- oor condo at No. 9 Walton. “ ere’s an appetite for new lux- and inked a deal to ll the hotel at While several multimillion-dol- dos have openly worried that while ey put it under contract in May. ury condominiums of this caliber,” its base where Wanda was to have lar units at the recently completed the market’s post-COVID recovery Miner declined to identify the Murillo says. It’s in part because of been, 29 buyers have put condo- tower designed by Studio Gang have has been strong, it could have been buyers or say where they’re from. the high level of amenities at the St. miniums under contract, Pontarelli been under contract since years stronger were it not for a steady Murillo says he had one oth- Regis and other relatively new build- says. e total value is $61 million, before the twin 2020 crises of pan- drumbeat of negative headlines. er client put a multimillion-dollar ings like No. 9 Walton, he says, but according to Pontarelli. demic and social unrest walloped In all of 2020, eight downtown unit at the St. Regis under contract also because “money is cheap right If and when all those sales close, the downtown condo market, these condos sold for $4 million or more. this spring, in April on a 70th- oor now” thanks to low interest rates. they alone may account for a con- buyers put the unit under contract at’s one more sale in 12 months two-bedroom. e sale closed July Prices are appealing downtown, siderable chunk of the downtown in April, as recovery was taking root. than there have been in less than 16 at slightly over $2 million. too, thanks to the backlog of inven- market’s recovery. 13 rays of hope in a dark time t’s easy to overlook signs of people, like my students, to vote and As the rst African American as- hope amid daily reports of gun determine the future of their city.” sistant director of civic engagement Iviolence, COVID-19 creep and Social worker and organizer Drea at the School of the Art Institute, corruption. But there’s progress in Hall is a longtime Chicagoan who getting involved might have come MADELEINE DOUBEK groups of committed Chicagoans got involved because she believes naturally for North Lawndale resi- ON GOVERNMENT working to address community more people need to get engaged. dent Apriel Campbell. She’s chaired needs, from police oversight to im- “I love the community. I love several public hearings already and proving the redistricting process. the people. I really feel like when it wants to keep listening and learn- Campbell said. reside with the people.” It’s worth cheering that, in a comes to political representation, ing from Chicagoans. “I believe it is important for as month’s time, 430 residents ap- our voices need to be at the table. “How the district boundaries are many people from dierent back- Madeleine Doubek is the executive plied to serve on an independent And when we’re not at the table, it con gured can make the dierence grounds, geographies, and skills director of Change Illinois, a non- committee to forge a new ward means that resources may not be between empowering and maxi- to be engaged in this process,” she partisan nonpro t advocating for map for Chicago. A small group of where we need them,” Hall said. mizing the voters’ voices or mini- said. “We are the voters, we are ethical government. It is supporting volunteers painstakingly reviewed “I’m in Bronzeville. I love my com- mizing and muting those voices,” the people and the power should the work of the Chicago commission. applications and conducted inter- munity. We have good representa- views with dozens of applicants. tion, but I think more voices need to Now, 13 diverse Chicagoans are be at the table and we need to know investing hours upon hours looking a little bit more details about what’s at neighborhood maps, talking to needed in our community, what’s Let us get to know your business. residents and starting to draw a new maybe missing and what’s good that path toward representation. No one we could do more of?” on the Chicago Advisory Redistrict- rough the summer, these 13 BE WINTRUST.COM/PRIORITY ing Commission knows for certain if commissioners from the North, their eorts will be accepted by City South and West sides are gathering Council, but they’re not deterred. to get insight from their fellow Chi- GET ASSURANCE. Sravan Suryadevara, a South cagoans. ey’re drawing wards and Loop resident, teaches engineering, will readjust them after Census data robotics and computer science in arrives mid-August. Once they settle McKinley Park. His students moti- on a nal map, City Council mem- vated him to work on remapping. bers may consider it. If at least 10 YOUR “As someone who is passionate of them support the map, that will about voting, it was disheartening trigger a special election next spring, GET COMMITMENT. to hear young people dismiss this which would allow Chicagoans to important privilege and respon- choose the map they prefer. sibility, but I understand their Commissioners like Hall are indierence,” Suryadevara said. encouraging their neighbors to “Unfortunately, not all votes are come describe the hallmarks of their BANKER’S equal in our democracy.” neighborhoods, what binds their “Even a city like Chicago, one community and the characteristics that leans heavily to one side of of the people in them. GET ATTENTION. the political spectrum, can bene- “ e formation of boundaries, t from a citizen-led redistricting that empowers people,” Hall said. process,” he said. “My goal is not to “When you’re empowered, you drastically alter the city’s political want to do better. You want to take landscape; it’s to show and advocate care of the community. Here’s an TOP PRIORITY for an independent process that opportunity for you to come out and ensures every vote is important weigh in on where you think you’re and equal. My hope is that bringing represented, where do the resources Banking products provided by Wintrust Financial Corp. banks. fairness, transparency and inde- need to go and representation. Let’s pendence will motivate more young talk about that some.”
P002_CCB_20210726.indd 2 7/23/21 2:51 PM CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 3
Andy Gagliardo opted to join Compass and take advantage Dud deal of the larger company’s technical prowess. smudges Hillrom’s makeover Hospital gear maker tries to ditch tech acquisition
BY STEPHANIE GOLDBERG
Hill-Rom Holdings hit an un- expected obstacle in its path from hospital bed-maker to dig- ital medical device and analytics company. e Delaware Court of Chancery won’t let Chicago-based Hill-Rom, which now goes by Hillrom, out of its $375 million deal to buy Bardy Diagnostics, despite Medicare’s decision to sig- ni cantly cut payments for Bardy’s wearable cardiac monitor. Hillrom intends to appeal the ruling, but the episode under- scores the perils of acquisitions in an industry that’s heavily depen- dent on the public and private in- surers that pay for medical prod- ucts and services in the U.S. And
JOHN R. BOEHM R. JOHN it comes at a pivotal time in the company’s digital transformation. e Bardy acquisition was supposed to advance CEO John Boutique real estate firms say Groetelaars’ strategy for rekin- dling growth after years of slug- gish sales in Hillrom’s largest business unit, which includes hos- pital beds. Aside from a one-time technology points them to Compass bump during the depths of the COVID-19 pandemic last year, de- As the industry evolves, local legacy agencies hitch their futures to a New York-based national mand for beds slowed as hospitals provided more services on an out- rm to keep up with the digital demands of homebuyers and sellers BY DENNIS RODKIN patient basis. As a result, Hillrom’s revenue grew just 2 percent to $2.9 WHEN JOSEPHINE GAGLIARDO opened a real estate a big brokerage could o er something his small, “THEY HAVE A 50 billion in 2019. agency in River Forest with her son, Joseph, in family-owned operation couldn’t. Traditional equipment sales 1958, she felt she could o er something the bigger “Being small, I’ve got to pay much more to have OR 100 PERSON are expected to resume their pre- local brokerages couldn’t. all the technology at our ngertips that you need COVID trajectory as the pandem- “A woman knows what a woman needs when it in this business now,” Gagliardo said. “I was al- MARKETING TEAM. ic ebbs. To compensate, Hillrom comes to buying a home,” Gagliardo told a news- ways paying for new technology to keep up.” I HAD ONE PERSON continues to add more digital ca- paper reporter several years later, after entering a On July 14, Gagliardo folded his grandmother’s pabilities, including smart prod- business that in the late 1950s was largely sta ed rm, now with 37 agents, into Compass, a DOING MARKETING.” ucts that collect and transmit pa- by men. New York-based business founded in 2012 as, tient information. Sixty-three years later, Josephine’s grandson, Andy Gagliardo, whose small Andy Gagliardo, reversed course, deciding that See COMPASS on Page 21 realty rm joined Compass See HILLROM on Page 20 Moto is rolling as growth strategy starts to show promise But will video change the way investors view a company known for police radios? MOTOROLA’S STOCK IS BACK ON TOP lockdowns, is on the mend. But e stock’s future prospects Shares have been trading at record levels recently, rising twice as fast as the S&P 500 this BY JOHN PLETZ what’s really paying o is a push hinge on investors’ willingness year. (Stock price adjusted for splits and dividends.) Motorola Solutions’ stock has into video surveillance equip- to value Motorola more like a WEEKLY STOCK PRICE CLOSE shaken o COVID-19 to reach ment and software, which is grow- high-growth software company Jan. 1, 1999, to July 16, 2021 Pre-COVID record levels. e Chicago-based ing at double-digit rates. and less like a slow-growth seller $250 high: $181.63 company’s share price is up 30 Now CEO Greg Brown faces a of police radios. Today, Motoro- percent so far this year to about high-wire act: keeping the stock la’s stock trades at about 22 times 200 $220, nearly twice the 16 percent price aloft as the company navi- next year’s projected earnings, $160.66 gain of the S&P 500. gates multiple business lines and up from a ve-year average of 18, 150 Rebounding revenue is fueling geographic markets that don’t according to Morningstar. But it the rise. Sales slumped 6 percent always move in sync. In February trades at a discount to the multi- 100 Low: to $7.4 billion last year as COVID 2020, just a month before COVID ple of 30 times earnings enjoyed $10.38 ravaged global markets but rose 7 hit the U.S., the stock peaked at by peers in related industries, 50 COVID low: percent to $1.8 billion in the rst $181.63. Within two months it says Louie DiPalma, an analyst $123.53 0 quarter. Motorola’s core business was down by nearly one-third. It at Chicago-based William Blair. ’99 ’00 ’09’08’07’06’05’04’03’02’01 ’10 ’19’18’17’16’15’14’13’12’11 ’20 of selling public-safety equip- took Motorola a year to claw its Source: Yahoo Finance ment, crimped by the coronavirus way back. See MOTOROLA on Page 22
P003_CCB_20210726.indd 3 7/23/21 4:13 PM 4 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS CHICAGO COMES BACK JOEJOE CAHILLCAHILL ONON BUSINESSBUSINESS For lessons in leadership, Why are companies try talking to the animals so bad at buybacks? Residents of the Lincoln Park Zoo have something to teach us about creativity, Buybacks are recovering from out e ectiveness can blame it at collaboration and what it means to be social in a post-shutdown workplace COVID-19. least in part on COVID’s impact on BY EMILY DRAKE AND TODD CONNOR In the rst quarter of 2021, stock their business and share price. But repurchases surged 98 percent buyout e ectiveness also lags at Chicago Comes Back is a weekly series on ChicagoBusiness.com providing leadership insights to help your from the previous quarter, accord- some that were helped by the pan- business move forward, written by leadership consultants Emily Drake and Todd Connor. ing to Fortuna Advisors. Buyback demic. For example, auto insurer Drake and Connor facilitate Crain’s Leadership Academy. Drake is a licensed therapist, owner of the Col- announcements hit the highest Allstate’s -4.8 percent BER on $8.6 lective Academy and a leadership coach. Connor is the founder of Bunker Labs and the Collective Academy level since 2018 in the second billion in buybacks came despite and is also a leadership consultant. quarter. e rebound follows a 27 a decline in claims as lockdowns Check out previous installments at ChicagoBusiness.com/comesback. percent drop last year as compa- reduced trac and accidents. nies hoarded cash during pan- Local companies with above-av- While we’ve been talking about demic lockdowns. erage BERs included Abbott Lab- humans in leadership, it turns out e numbers suggest a return oratories at 4.1 percent, Fortune that the animals living in our city to the pre-COVID popularity of Brands Home & Security with 4.0 have some insights to o er on corporate America’s favorite capital percent and Mondelez Internation- collaboration, creativity and what allocation tactic. Companies spent al at 3.7 percent. ose numbers it means to be social. e director $710.3 billion repurchasing shares can make a big di erence. of the Lincoln Park Zoo joins our in 2019, far more cash than they Fortuna found that companies discussion this week: Welcome, devoted to capital expenditures, with above-average e ectiveness Megan Ross. acquisitions or dividends. rates had annual total shareholder Execs have long relied on return of 17.6 percent, compared TODD CONNOR: Lincoln Park Zoo is buybacks to prop up stock prices; with 9.1 percent for those with such an incredible outdoor space taking shares out of circulation subpar BERs. and resource available to Chica- elevates earnings per share, lifting It’s true that many companies goans, and you hold a complex stock values based on EPS. produced positive investment responsibility for leading that cul- Trouble is, companies aren’t returns on their buybacks despite tural institution, your employees very good at buybacks. Local negative BER. at’s largely due and the animals who call it home. rms are even worse. A Fortuna an increasing share price over How did you experience lead- study of 359 U.S. companies that the measurement period. But ing the Lincoln Park Zoo this last
repurchased at least $1 billion in poor timing cost those compa- year? Anything surprise you? ISTOCK shares or 4 percent of their market nies plenty. For example, Fortu- capitalization during the ve years na calculates that better timing MEGAN ROSS: To put things in per- plans going forward? we connect wildlife and people to- through 2020 revealed a median of buybacks could have saved spective, until last year, Lincoln gether so they can thrive into the McDonald’s as much as $1.6 Park Zoo had only closed for ve MR: Our tagline is: “For wildlife, future? We’re really focused on POOR TIMING ON BUYBACKS billion. days since 1868: for President period. For all, period.” Over the how we can be advocates for wild- Why aren’t companies better Kennedy’s funeral; for Sept. 11, pandemic, it’s been strange for us life in the city and how we connect COSTS COMPANIES PLENTY. at buybacks? Psychology plays 2001; and three weather events, to require reservations, which we residents to the wildlife that live a role; CEOs are predisposed to including a polar vortex. Normal- know can be a barrier for certain here. We know greener cities tend “buyout e ectiveness rate,” or consider their stock undervalued ly, we’re open year-round, and the individuals to get here. So when to be areas where people are thriv- BER, of -0.25 percent. in the market, so they reexively animals see the public every day. we got to Phase 5, the joy that we ing, so the overall health of the city e median for Illinois-based resort to buybacks to correct an It’s their routine too. So when we all felt here at Lincoln Park Zoo, at is at stake without safe, accessible companies was -1.3 percent. imagined discrepancy. closed our doors last year, we not opening those gates with no table outdoor spaces. Illinois’ best performer was Abbott “An underperforming share only had to think about how we’re there to stop you walking in, no Laboratories, ranked 58th with price can seem like an attractive protecting people but how we are one has to check in with you, no ED: We talk a lot about how we’re 4.1 percent. Top 20 companies time to repurchase shares, but for protecting the animals. We have a barriers, really made us feel like connected not only as neighbors nationally all exceeded 8 percent, most this is a subpar value creation whole division of scientists here we were coming back home. Hav- but last year in particular as global with No. 1 Lennar coming in at 20.8 strategy,” Fortuna says in its report. at the zoo called the Animal Wel- ing people come back to the zoo citizens. We are living in and con- percent. en there’s continual pressure fare Science Team, and we collect feels like we’re having a big family tributing to an ecosystem, and col- Fortuna’s BER assesses buyouts for buybacks from big institutional behavioral data on our animals reunion. We’ve missed all of Chi- laboration is essential. I’m wonder- as investments by comparing investors. Companies also turn to to see how and where they’re cago, and Chicago is all coming ing, if we zoom out even further, in the return on a buyout with the buybacks when they’re ush with spending their time. Our African back to the Lincoln Park Zoo. So the conservation community, what company’s total shareholder cash and don’t know what to do Penguins were really into their it’s not just the place that we have does collaboration look like now? return. Buyouts that produce a with it. But cash often overows own thing before the pandemic— in Lincoln Park; we also have pro- return above TSR make better when share prices exceed long- focused on each other, jockeying grams in Little Village and North MR: Working on conservation is investments. term trends, a bad time to buy for positions and getting mates. Lawndale, and we’re starting to collaborative by nature. No single Companies generate positive back stock. When the pandemic happened, resume those programs, where individual, no single institution BER by repurchasing shares when e real problem: Too often, they were acting the same way. we co-create opportunities with is going to save all of the species they’re undervalued compared executives don’t think about buy- But now that people are coming di erent partners in those com- of the world. at’s just not pos- with long-term price trends. backs as investments of sharehold- back, they are actually starting munities. It’s been great to have sible. You have to collaborate. So, Buying at those levels boosts TSR er’s money, which is what they are. to attend—meaning their focus new momentum for growth, both collaboration is second nature to by bringing in more shares for the “Companies aren’t really devot- is on visitors. e public went on the zoo campus and also in the us. For example, we have things same amount of money, or spend- ing a lot of e ort to analyzing these away, and now it’s as though the community of Chicago. called Species Survival Plans, ing less to retire the same number capital outlays as an investment,” penguins are saying, “I’m going which are programs that look at of shares. says Fortuna Associate Michael to watch you to see what you’re TC: Reopening better than before one species of animal, and at Lin- Some of the Chicago area’s most Chew. doing, because you haven’t been seems doable but also a process, coln Park Zoo we house the pop- proli c buyback artists struggle to at’s inexcusable, considering here in a while.” It’s interesting of course. You’ve been with the ulation biologists who act as the get the timing right. Aerospace gi- the billions companies spend to watch and correlate it to how zoo for more than two decades, Match.com for doing mathemat- ant Boeing, which spent $29 billion repurchasing shares. Buybacks we’re reopening as humans. leading an institution that has ical modeling to gure out how on buybacks during the ve-year deserve the same level of due dili- been around a long time and, I to make that species thrive. We period, produced a dismal -8.4 per- gence management would require EMILY DRAKE: Penguins have lead- think we can presume, will be can say things like: ose lions cent BER. McDonald’s had a -1.1 before making an acquisition or ership lessons for us, too. Who around for a long time. From should come to Lincoln Park Zoo, percent BER on $26 billion worth launching a new product line. For- knew? Curiosity is one of those where you sit, what’s your fore- and they should breed. Or: ose of buybacks. Drugmaker AbbVie’s tuna recommends that executives traits we are interested in explor- cast for the future of civic institu- lions should go to Detroit Zoo BER on $21 billion in buybacks considering a buyback conduct a ing in leadership, so it sounds tions in Chicago? and they should not breed. We’re was -3.6 percent. Pharmacy chain disciplined, objective analysis of like a trip to the zoo might need making decisions collaborative- Walgreens Boots Alliance had a their company’s intrinsic value. If to be on the agenda for a team’s MR: Chicago has an amazing land- ly across the zoo and aquarium -7.1 percent e ectiveness rate on the share price is below that level, reopening plans. Speaking of scape of cultural institutions and world based on how we can make $16.9 billion in buyouts. it’s a good time to repurchase stock. reopening, can you tell us how other institutions, and that’s what sure these species thrive into the Some companies with low buy- If not, it’s time to pass. your commitment to equity will makes Chicago so fabulous to live future. Working for the collective inform your reopening and your in. e question we ask is, how can good is part of who we are.
P004_CCB_20210726.indd 4 7/23/21 4:43 PM Building stronger communities in Chicago
Bank of America is helping to meet the need for more affordable housing in neighborhoods across the country. Through Community Development Banking, we’re deepening our commitment to create more communities for people to call home. Working together In 2020, we committed $5.87 billion for affordable housing and economic We’re also collaborating with development financing, resulting in over 13,000 housing units for people and organizations that are supporting families in need — many of which were constructed by diverse developers. affordable housing options That includes over $79 million to create approximately 200 housing units here in Chicago. They include: right here in Chicago.
In addition, we’re joining Enterprise Community Partners to invest $60 million Spanish Coalition for Housing in capital to support minority developers and their work to build inclusive Chicago Urban League communities. Neighborhood Housing Services My teammates and I remain dedicated to helping more people find a place to live The Resurrection Project they can both love and afford. What would you like the power to do?®
Paul Lambert President, Bank of America Chicago
Go to bankofamerica.com/chicago to learn more about the work we are doing with our incredible partners.
Bank of America, N.A. Member FDIC. Equal Housing Lender © 2021 Bank of America Corporation. All rights reserved.
tab doc.indd 1 21cb0314.pdf RunDate 7/26/21 FULL PAGE Color: 4/C 7/15/21 2:35 PM 6 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS DON’T WAIT UNTIL IT’S TOO LATE!
Deduct the Full Cost of Fire Sprinkler Systems in Qualified Property COSTAR GROUP COSTAR Parkline Chicago at 60 E. Randolph St. Near Millennium Park, new apartment tower enters the market The developers of Parkline Chicago are ready to cash Install or retrofit fire sprinklers today! out and move on to their next project in Fulton Market
BY ALBY GALLUN Roszak and Moceri are eager to sell, as well. ey’re ready to move 708 710 1448 FIREPROTECTIONCONTRACTORS.COM e rst residents of a brand- on to their next rental project: a new 189-unit apartment tower 375-unit tower four blocks west steps from Millennium Park have of the McDonalds headquarters barely moved in, and the build- in Fulton Market. ey expect to ing’s developer is already putting it break ground on the development up for sale. in October or November, Roszak e venture including Tom Ro- said. szak and Dan Moceri have hired e development duo typically LUXURY HOME OF THE WEEK CBRE to sell the rental units in sell their buildings soon after leas- Advertising Section Parkline Chicago, a 26-story build- ing them up, cashing out of Jef- ing at 60 E. Randolph St. that just fJack, a 190-unit tower in the West opened its leasing o ce in Febru- Loop, in 2015 and Linea, a 265- ary. e property is almost com- unit high-rise in the Loop, in 2018. pletely leased, another sign that the downtown multifamily market FILLED UP is bouncing back from a severe Given the sorry state of the pandemic-induced slump last downtown market at the beginning year. of the year, Roszak gured it could “I’m pleasantly surprised,” said take a while to ll up Parkline, but Roszak, partner at Moceri + Ro- it didn’t. e building is 80 percent szak. “It’s turned out well and peo- occupied but 96 percent leased, ple love the building.” with the occupancy rate set to rise e tower also includes 24 con- as many tenants move in over the dominiums on oors 20 through next month, Roszak said. 26 that are not part of the sale. e developers have pricing Roszak declined to say what he power, too. ey started out rent- expected the property to fetch. A ing Parkline’s apartments for about CBRE executive did not respond $3.10 to $3.20 per square foot and N Geneva Terrace to a request for comment. Only a oered tenants two months rent- few big high-end downtown mul- free, Roszak said. Apartments Elegance at its Finest tifamily properties have changed there now lease for about $3.75 per hands in the past couple of years, square foot with one month of free but prices of the handful that have rent, he said. sold ranged from about $380,000 “Apartments are hot,” he said. to $480,000 per unit, according to “We’re happy about that.” Real Capital Analytics, a New York- Parkline’s condos, meanwhile, based research rm. aren’t so hot, at least not yet. e developers have yet to sell any MARKET REMERGES of the 24 for-sale units but have e downtown apartment in- not completed construction of vestment market has begun to perk them, Roszak said. up as occupancies and rents have e condos range from $1.4 rebounded and investors have million for a 2,136-square-foot grown more con dent about the three-bedroom unit to $3.2 million future. A San Francisco investment for a 3,555-square-foot four-bed- rm recently acquired McClurg room penthouse, according to the Court Center in Streeterville, the Parkline website. CHLOÉ IFERGAN second-biggest apartment com- Designed by Roszak, who start- plex in downtown Chicago, with ed his career as an architect, 312.636.4994 1,061 units. e Bernardin in River Parkline features amenities typical North, the Shoreham and Tides in of a high-end apartment building, [email protected] Lakeshore East and 1407 on Mich- including a two-story sky lounge, igan in the South Loop have all hit an indoor/outdoor pool, tness the market in recent months. and yoga studio, and media room.
P006_CCB_20210726.indd 6 7/23/21 2:48 PM CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 7 Mesirow picks woman to be next CEO ‘within two years’ President Natalie Brown is money management rm’s scribed as a retirement. From what pandemic-induced market up- rise. Brown has been spending time he said was a mountain location heaval in March of that year, she learning about employee needs in heir apparent; Larry Richman is named outside director last week, Mondi declined to elab- said Mesirow, without citing a g- Mesirow’s disparate businesses, orate. “I’ve been retired for a num- ure, reported record pro t in the 12 according to Wilson. “She’s great at BY STEVEN R. STRAHLER ers “forever,” Price said. “He was ber of months. I’m just enjoying months ended in March 2021. in-the-moment feedback, whether well-acquainted with our senior Denver right now.” Brown grew up in northwest In- it’s good or bad. A lot of CEOs ar- Mesirow Financial Services has leadership.” Price, who joined Mesirow in diana, the daughter of Ernie Nims, en’t good at that.” put a woman on track to be its next Mesirow, which manages mon- 1972, says that once Brown be- once a sportscaster for Channel 7 Richman, 69, is a familiar gure CEO. Natalie Brown, named presi- ey for institutional investors and comes CEO he’ll revert to executive and now a nancial adviser, and on Chicago’s banking and broader dent last month, will succeed Rich- wealthy individuals while pursuing chairman, his title during Mondi’s Sharon Kramer, a homemaker. Af- business landscape. He was among ard Price as CEO “within two years,” advisory, capital markets (includ- CEO tenure. He pressed the board ter one of her grandfathers advised acolytes of Norman Bobins after Price said in a joint inter- ing public nance) and to add an outside director, a move her to be a CPA, she majored in ac- joining American National Bank view with Brown. real estate investment he said Tyree had resisted because counting at Indiana University and and moving in 1981 to Exchange Brown, 50, is an alum services, has been any- of the rm’s privately held, employ- got an MBA from the University of National Bank. At LaSalle Bank, of accounting rm thing but placid lately. ee-owned status. Chicago’s Booth School of Business. which acquired Exchange 1989, KPMG, Kraft Foods and It reported a 5 per- Brown joined Mesirow, she said, “You could see this happening,” Richman rose to CEO before La- money manager Nuveen cent decline in reve- because of a better t with its inde- former Nuveen colleague Peggy Salle itself was acquired, by Bank of Investments, where she nue for scal 2020, to pendent stance after Nuveen was Wilson, a retired senior vice pres- America, in 2007, precipitating his spent 18 years before $317 million, after a 12 acquired in 2014 by money manag- ident of nance, said of Brown’s move to PrivateBank. joining Mesirow in 2018 percent gain in 2019. A er TIAA-CREF. as CFO. Natalie Brown decade earlier, revenue Mesirow’s continued indepen- Mesirow is also break- was $526 million and in dence has long been in question ing with tradition in naming its rst 2015 $469 million, before Mesirow because of its smaller size relative Royal Bank offers commercial loans outside director, Larry Richman, sold its insurance business to Cal- to local rivals like William Blair the former CEO of PrivateBank. ifornia-based Alliant Insurance and Robert W. Baird, let alone Wall with attractive rates and terms. He stepped down in March as U.S. Services. At midyear Mesirow had Street competitors and behemoth region chair of CIBC Bank USA, $47.2 billion in assets under man- money managers like Blackrock. a unit of Toronto-based Canadi- agement, it said. Price, who said Mesirow is debt- Contact Andrew Morua, Senior Vice President an Imperial Bank of Commerce, Price, 74, was named chairman free, has long batted away takeover which acquired PrivateBank in and CEO in 2011 following the speculation. 2IƓFH Ř0RELOH 2017. death of James Tyree. In 2018 he Price said Richman “will assist (PDLO DPRUXD#UR\DOEDQNXV Price said his retirement in ceded the CEO role to Dominick our board in assessing new stra- %LOLQJXDOŧ(QJOLVKDQG6SDQLVK March as a CIBC Bank USA direc- Mondi, then co-head of the capital tegic business growth opportuni- Putting community first since 1887. tor, coupled with Richman’s retire- markets division, before stepping ties.” Brown said Mesirow would ment, opened the door to putting back into the role last September. eschew diversi cation in favor of him on Mesirow’s board. Mesirow Mondi remained president until “building on what we have.” De- royal-bank.us has had a banking relationship he left Mesirow in February (at 67, spite the revenue drop in 2020, Member FDIC /RFDWLRQVLQ&KLFDJR:HVWPRQWDQG1LOHV with Richman and his employ- Price said), a move the rm de- which she attributed mainly to the
Congratulations to our GEI team and everyone involved with the Bank of America Tower project for winning the Chicago Commercial Real Estate Awards’ 2020 Engineering Project of the Year
GEI Consultants, Inc. providing award-winning services for Chicagoland buildings from the ground up Ulivieri Photography © Nick • Deep Excavation and Foundation Engineering • Geotechnical Engineering • Construction Services • Contractor Support Services • Environmental Services • Instrumentation & DOWNTOWN CHICAGO Vibration Monitoring 312.985.0359 • Nondestructive Testing & VERNON HILLS Geophysics 847.984.3401 OFFICES NATIONWIDE www.geiconsultants.com
P007_CCB_20210726.indd 7 7/23/21 3:07 PM 8 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS Chicago schools a sore spot in survey While Mayor Lori Lightfoot fared better in the second edition of the quarterly Chicago Index, the school district she oversees is disappointing respondents. But the City Council overall and local aldermen saw a jump in their ratings. | BY A.D. QUIG
hoever takes over as Chicago Public Schools CEO will face a public that’s distinctly un- happy with schools now. W at’s the big takeaway from the second round of e Chicago Index, a quarterly survey that mixes traditional polling tech- niques with newer survey methods in an attempt to determine what residents think of their leaders and the challenges facing them. As was the case in the rst quarterly Chicago Index survey published April 7, schools were identi ed as a signi cant challenge in this second edition of the survey—just 25 percent of those respond- ing said they are satis ed or very satis ed with CPS, compared to 96 percent who ap- prove of the Chicago Fire Department, 90 percent of the Chicago Public Library and 43 percent of the Chicago Police Depart- ment, despite a continuing wave of street violence and heavy mistrust of police in some parts of the city. at is similar to re- sponses in the last survey. Meanwhile, 92 percent said improving the performance of Chicago’s schools was essential or very important. at’s a higher score than any other issue received in the survey, above curbing political corrup- tion, addressing pension shortfalls and reforming the police department. Just 34 percent indicated they believe Chicago is
a good place to raise a child. CAMERA/ISTOCK FAT e con dence in local schools is very low compared to similar surveys in other PRIORITIES FOR THE CITY OF CHICAGO parts of the country according to Polco, Respondents were asked to rate how important, if at all, they thought it was for the city to focus on each of the which puts together the survey for Crain’s following priorities in the next two years. The percentages below encompass those who think these priorities are and e Daily Line. at will undoubtedly “essential” or “very important.” School performance has only become more important since the last survey. be a major challenge to the next CEO cho- sen to lead the district in the wake of Janice Q1 Q2 Methodology Jackson’s resignation from the post, which Improving the performance of Chicago’s schools 88% 92% was announced in May. There were 812 respondents who e new survey also nds that Mayor Lori Investing in city infrastructure 85% 87% completed this quarter’s survey, Lightfoot gets somewhat better job perfor- administered by Polco. That num- mance marks than she did in the rst round Reducing political corruption 90% 87% ber is significantly lower than the of opinion-gathering. Asked their view of first survey, when more than 2,100 Making sure that public funds are equitably spent across the city how the mayor was doing representing 73% 75% participated. While the goal of the the residents of Chicago, 25 percent of city Addressing pension shortfalls 71% 75% index is to ultimately build a larger residents in the latest ndings said they continuing jury whose changes in “strongly” or “somewhat approve” of her Decreasing racism 74% 72% attitudes can be tracked over time, job performance. e improvement could only 115 respondents were “repeat” Reforming the police department 69% 70% be due to how the question was phrased. respondents who took the survey In the rst round, respondents were asked Reducing the city’s budget gap 69% 66% both quarters. This round was open to rate the mayor on a scale of “excellent,” between June 7 and June 25. The “good,” “fair” or “poor.” Sixteen percent rat- Implementing strategies to reduce climate change 59% 61% credibility interval for this survey is ed her excellent or good. plus or minus 4.1 percent. Working to solve labor conflicts 63% 59% ose numbers di er from a WGN poll Responses were statistically that was conducted from May 31 through reweighted to account for lower re- June 1. at poll gave the mayor a 48 per- QUALITY OF LIFE IN CHICAGO sponse rates among women, renters, cent approval rating on her job perfor- Respondents were asked to rate each of the following aspects of the quality of life in Chicago. Here’s how many people of color and young people, mance. Polco, which conducts e Chica- go Index research, attributes some of the Chicago residents rated each aspect as “excellent” or “good” for this quarter’s index. as well as for higher response rates di erence to how the two were conducted, among people downtown and on the As a place to visit including the scale used to rate the may- 75% city’s North Side. For this quarter’s survey, 2,500 Cook County house- or. e WGN poll, conducted via landline, Your neighborhood as a place to live 65% text and online, used a three-point scale holds were randomly invited to par- (approve, disapprove or no opinion) while As a place to work 57% ticipate—with more invites going to e Chicago Index used a ve-point scale areas that did not participate in the (strongly approve, somewhat approve, Chicago as a place to live 51% first round. Postcards were mailed to somewhat disapprove, strongly disap- those homes to invite them to fill out As a place to raise children 34% prove or no opinion). the survey online. Crain’s, the Daily In e Chicago Index, 51 percent of re- Line and WLS-TV/ABC-7 also invited spondents strongly or somewhat approved MORE ONLINE: See complete Chicago Index coverage at ChicagoBusiness.com/chicago-index readers and viewers to participate. of the job Cook County Board President Toni Preckwinkle was doing representing Chicagoans. It’s the rst time that question Sixty- ve percent strongly or some- visit. Sixty- ve percent of those who live headed in the right direction, with 72 per- has been asked in the survey. e Chicago what approved of the job Gov. J.B. Pritzker within the city said their neighborhood cent saying instead that things are on the City Council overall and respondents’ own was doing, overall. at’s virtually un- was a “good” or “excellent” place to live, “wrong track.” at nding is similar to the aldermen also got much higher ratings changed from the last survey. and 51 percent said the same about living last survey as well. than the last survey, rising by roughly 20 Respondents agreed with a 76 percent in the city overall. points each. majority that Chicago is a good place to But only 28 percent indicated Chicago is Greg Hinz contributed. FIND YOUR
ORGANIZATION Everything you need to find your focus, power up your productivity, and make INSPIRATION your workspace work for you.
We're here to help Chicago Keep Business Going! Visit us in store or 24/7 at officedepot.com
Free In-Store & Curbside Pickup.* FREE Next-Business-Day Shipping † Now in 30 minutes or get $5 off on qualifying orders of $45 or more your next qualifying purchase.** within our local delivery areas. *Curbside pickup is available in most stores, subject to state and local regulations. See below for details. Orders must be placed 2 hours before store closing. ** $5 coupon excludes tax. No cash back. Other restrictions apply. Free Shipping/Delivery: Minimum purchase required after discounts and before taxes. See email for coupon terms and conditions. Visit officedepot.com/pickup for details. Orders must be placed by 5:00 P.M. local time (in most locations) via phone/online or 3:00 PM †Same-Day Print Services are excluded from 30-minute pickup. via fax. Orders outside our local delivery area and most furniture, oversized, bulk items, cases of bottled water and other beverages and special order items do not qualify. Non-qualifying orders incur a delivery charge. Delivery fees will be noted prior to purchase. Other restrictions apply. See officedepot.com/delivery, call 800.GO.DEPOT or ask a store associate for details.
We reserve the right to limit quantities sold to each customer. We are not responsible for errors. Office Depot® is a trademark of The Office Club, Inc. OfficeMax® is a trademark of OMX, Inc. ©2021 Office Depot, LLC. All rights reserved. RU062821
tab doc.indd 1 21cb0279.pdf RunDate 7/12/21 FULL PAGE Color: 4/C 7/6/21 9:46 AM 10 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS READERS RESPOND How to address city crime Crain’s readers have their say on Facebook. Join the conversation: Facebook.com/CrainsChicago. EDITORIAL Re: “ ‘Until our residents feel safe, nothing else matters,’ ” July 15: So if these criminals did not have access to handguns, they would magically transform Time for employers to mandate vaccines into ne, upstanding citizens? is is a moral, cultural problem enabled by a government overnments may not be able to re- in their homes, and yet vaccine distribu- unwilling to put responsibility where it actual- quire people to get vaccinated, but tion has essentially atlined. ly belongs. it’s beginning to look like employ- As case counts rise nationwide, Los An- JAMES IVAN MCCARTHY ers can. And it’s in the business geles has reinstituted mask mandates, a Gcommunity’s interest to do so. path no major metropolitan area should Yes, I agree with the mayor: Safety comes Another surge in COVID-19 cases will want to go down now that we’ve tasted rst, whether it’s the Gold Coast or Englewood. do widespread damage to an economy the freedom of breathing fresh air without A feeling of wild license now reigns, even that’s only just recovering from the worst hindrance. e good news is, we have the downtown. We feel that anything can happen phases of the pandemic. With the highly tools at our disposal to avoid L.A.’s fate. We and our safety is just a matter of chance. We transmissible Delta variant now circulat- have safe and eective vaccines. ing widely and other variants emerging, e time for enticing vaccine refuseniks COVID case counts, hospitalizations and with lottery tickets and Little Dipper rides deaths are moving in the wrong direction nationwide, particularly in regions where vaccination rates are stubbornly low. THE TIME FOR ENTICING VACCINE Chief executive o cer KC Crain e only way to avoid a nancial, social Group publisher/executive editor Jim Kirk and, frankly, emotionally devastating re- REFUSENIKS WITH LOTTERY TICKETS Associate publisher Kate Van Etten turn to lockdown is to get the maximum AND LITTLE DIPPER RIDES AT * * * number of people possible immunized. Editor Ann Dwyer Vaccine resisters may think they are put- GREAT AMERICA SHOULD BE OVER. Creative director Thomas J. Linden ting no one but themselves at risk, but Assistant managing editor/ Joe Cahill they are in fact walking variant factories, at Great America should be over. Of course, columnist and even if they’re skeptical of the guid- there are people with medically defensi- Assistant managing editor/digital Ann R. Weiler ance coming from doctors and scientists, ble reasons to take a pass on the jab. For Assistant managing editor/ Cassandra West they should be able to trust the evidence everyone else, the excuses are starting news features before their own eyes: More than 162 mil- to wear a little thin, and their hesitancy Deputy digital editor Todd J. Behme lion people in this country have received threatens to tank the economy again. In Digital design editor Jason McGregor Associate creative director Karen Freese Zane COVID-19 vaccines. ose people are BOEHM R. JOHN New York, Mayor Bill de Blasio is calling pretty much able to live their lives now on private employers to impose vaccine Copy chief Scott Williams without fear of being hospitalized or killed status. e gures show that as of that that number rests at 50.3 percent. at’s a mandates. Chicago Mayor Lori Lightfoot Copy editor Robert Garcia by the virus. writing, no COVID-related deaths had better level than many areas of the coun- can and should do the same here. Deputy digital editor/ Sarah Zimmerman e virus now is almost exclusively kill- been reported among the vaccinated pop- try, but still far short of the 70 percent For the sake of our shared economic audience and social media ing people who haven’t been vaccinated. ulation in July, and more than 95 percent threshold that’s widely considered to be well-being—not to mention the well-be- Contributing editor Jan Parr As Crain’s Stephanie Goldberg reported of COVID hospitalizations and deaths in the goal of public health o cials seeking ing of our beleaguered health care work- Political columnist Greg Hinz July 22, the Chicago Department of Pub- Chicago were among unvaccinated resi- herd immunity. e city and the state have ers—Chicago’s business leaders must Senior reporters Steve Daniels lic Health has begun releasing the rates dents. tried every form of incentive to get people declare they’re on the side of science and Alby Gallun of infections, hospitalizations and deaths Here in Chicago, only 51.7 percent of vaccinated, from handing out amusement require employees returning to the o ce John Pletz among residents based on vaccination residents are fully vaccinated; statewide, park tickets to oering to vaccinate people to get these lifesaving vaccines. Reporters Elyssa Cherney Danny Ecker Stephanie Goldberg YOUR VIEW Ally Marotti A.D. Quig Dennis Rodkin Steven R. Strahler Aordable housing is a crucial part of infrastructure Contributing photographer John R. Boehm Researcher Sophie H. Rodgers ong before the pandemic, rising hous- ment, not a single state in the country aord the combined costs of renting an time and attention to their children. ey ing costs and inadequate incomes has enough aordable homes to meet the apartment, other monthly bills and every- are also better able to maintain steady em- * * * caused many of America’s lowest-in- need. In Illinois, based on data from the day living expenses for herself and her chil- ployment and nancial security. Director of digital strategy Frank Sennett L Director of custom media Sarah Chow come households to live with a severe hous- National Low Income Housing Coalition dren. e long-term stress that comes from By providing housing assistance, we can ing cost burden—or, in the worst-case sce- and Housing Action Illinois, there are only years of not being sure of being able to pay reduce poverty, increase stability for vul- * * * nario, no place to call home at all. 39 aordable and available rental homes next month’s rent hurts the entire family. nerable households and help avert home- Production manager David Adair Children in the critical developmental for every 100 extremely low-income rent- ree key solutions to America’s housing lessness—while also creating good-paying Account executives Claudia Hippel ages of birth to 6 years old experience life- er households. Waiting lists for Housing crisis that the federal government should jobs in construction and freeing up house- Christine Rozmanich long negative consequences from unsta- Choice Vouchers are years long—and na- commit to include expanding rental as- hold budgets to spend their incomes else- Bridget Sevcik ble housing. Numerous studies show that tionally, only 1 in 4 households who qualify sistance to every eligible household, in- where. Laura Warren housing insecurity aects children’s brain for housing assistance receives it. creasing the supply of aordable housing A home is the most basic unit of infra- Courtney Rush development, health and educational at- for people with the lowest incomes and structure. e pandemic has been a re- Amy Skarnulis tainment. e long-term eects of child- FALLING BEHIND providing emergency housing assistance to minder of this, as we were all encouraged People on the Move manager Debora Stein hood homelessness include higher risk for Surveys of Illinois renters conducted by help stabilize families in a crisis. to stay at home as much as possible. Crit- Project manager Joanna Metzger adult chronic diseases and earlier death. the U.S. Census Bureau during the pan- Building and preserving more aord- ical investments in housing have a proven Marketing manager Jessica Dalka ese severe repercussions to children are demic consistently show that Black and able homes, plus guaranteeing housing track record of reducing homelessness and Digital designer Christine Balch a heavy cost to not just aected families but Latinx households more often report be- assistance to those who need it, will have a poverty and are vital for helping the low- Crain Communications Inc. society at large. ing behind on rent than white households. broad, positive impact on child health and est-income families aord decent, stable Keith E. Crain Mary Kay Crain Senators negotiating a bipartisan federal Families with children are also more likely wellness and result in economic mobility homes. Chairman Vice chairman infrastructure bill just missed an oppor- to be behind on rent. and poverty reduction. KC Crain Chris Crain tunity to address the nation’s aordable People with lived experience who are Research repeatedly shows that having Chief executive o cer Senior executive vice president Lexie Crain Armstrong Robert Recchia housing shortage. Investment in aordable leaders in the First Steps: Improving Child a stable, aordable home as a child pro- Dr. Nancy Heil, FAAP, is co-chair and Secretary Chief nancial o cer housing must be included in the larger eco- Health & Housing initiative of the Illinois motes learning achievement in school, bet- Amanda Henley is a community expert Veebha Mehta Chief marketing o cer nomic recovery package that Senate Dem- chapter of the American Academy of Pedi- ter high school graduation rates and higher at First Steps: Improving Child Health & * * * ocrats are now working on—with enough atrics consistently share long-term strug- educational attainment as adults. Housing, a project of the Illinois Chapter G.D. Crain Jr. Mrs. G.D. Crain Jr. Founder Chairman funding to ensure even those with the low- gles trying to nd aordable rental housing Overall, aordable housing promotes of the American Academy of Pediatrics. (1885-1973) (1911-1996) est incomes can aord a home. for their families. One mother related that healthy, productive lives. Parents who live Sheila Sutton is housing policy organizer at For subscription information and delivery concerns Because of insu cient federal invest- even working two jobs, she was unable to in stable housing can devote more quality Housing Action Illinois. please email [email protected] or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations).
Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters Sound o : Send a column for the Opinion page to editor@ to Crain’s Chicago Business, 150 N. Michigan Ave., Chicago, IL 60601, or email us at [email protected]. Please chicagobusiness.com. Please include a phone number for veri cation include your full name, the city from which you’re writing and a phone number for fact-checking purposes. purposes, and limit submissions to 425 words or fewer.
P010-P011_CCB_20210726.indd 10 7/23/21 3:19 PM CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 11 READERS RESPOND How to address city crime Crain’s readers have their say on Facebook. Join the conversation: Facebook.com/CrainsChicago. EDITORIAL Re: “ ‘Until our residents feel safe, nothing need an emergency response to gun violence. Ordinance” is a step in that direction. His or- Some will argue that o enders won’t pay the else matters,’ ” July 15: Bring in the feds—great! And do what we can dinance will add strict nancial penalties to nes and that is certainly true, but the threat So if these criminals did not have access to do under our own power. o enses like illegal possession of a handgun, of nes and the nancial harassment for the handguns, they would magically transform DOUG VAN TRESS grati, looting and mob action or wilding. It failure of pay nes will deter many who might Time for employers to mandate vaccines into ne, upstanding citizens? is is a moral, should also hold organizations responsible for contemplate violating the public way. cultural problem enabled by a government Is the City Council nally prepared to get the actions of their members. It’s high time for the City Council and the in their homes, and yet vaccine distribu- unwilling to put responsibility where it actual- tough with those who disrupt the public way, City Hall continues to nickel and dime Mayor to get serious with those who would tion has essentially atlined. ly belongs. damage property, incite mob action and Chicagoans . . . with petty nes, nancially violate the public way. Alderman Napolitano’s As case counts rise nationwide, Los An- JAMES IVAN MCCARTHY loot? I strongly urged the mayor and the City punitive penalties and harassing collection ordinance is very good start. geles has reinstituted mask mandates, a Council in my Sept. 14, 2020, post that if Cook agencies. Time to unleash the similar nancial PAUL VALLAS path no major metropolitan area should Yes, I agree with the mayor: Safety comes County State’s Attorney Kim Foxx is not going abuse on those who really deserve it. want to go down now that we’ve tasted rst, whether it’s the Gold Coast or Englewood. to prosecute those individuals to the full extent ere needs to be a Special Litigation Divi- And again, criminals will not follow laws. So the freedom of breathing fresh air without A feeling of wild license now reigns, even of the law, then it is up to the mayor and City sion created within the city Law Department all these “programs” will only hurt the good hindrance. e good news is, we have the downtown. We feel that anything can happen Council to take action. Ald. Anthony Napol- whose sole function is to seek to recover dam- people. tools at our disposal to avoid L.A.’s fate. We and our safety is just a matter of chance. We itano’s “Chicago Criminal & Accountability ages done by such criminal activities. CARYN LINDAUER MCKAY have safe and e ective vaccines. e time for enticing vaccine refuseniks with lottery tickets and Little Dipper rides
Chief executive o cer KC Crain THE TIME FOR ENTICING VACCINE Group publisher/executive editor Jim Kirk REFUSENIKS WITH LOTTERY TICKETS Associate publisher Kate Van Etten * * * AND LITTLE DIPPER RIDES AT Editor Ann Dwyer Creative director Thomas J. Linden GREAT AMERICA SHOULD BE OVER. Assistant managing editor/ Joe Cahill columnist ... at Great America should be over. Of course, Assistant managing editor/digital Ann R. Weiler there are people with medically defensi- Assistant managing editor/ Cassandra West ble reasons to take a pass on the jab. For news features everyone else, the excuses are starting Deputy digital editor Todd J. Behme to wear a little thin, and their hesitancy Digital design editor Jason McGregor threatens to tank the economy again. In Associate creative director Karen Freese Zane New York, Mayor Bill de Blasio is calling on private employers to impose vaccine Copy chief Scott Williams mandates. Chicago Mayor Lori Lightfoot Copy editor Robert Garcia can and should do the same here. Deputy digital editor/ Sarah Zimmerman For the sake of our shared economic audience and social media well-being—not to mention the well-be- Contributing editor Jan Parr ing of our beleaguered health care work- Political columnist Greg Hinz ers—Chicago’s business leaders must Senior reporters Steve Daniels declare they’re on the side of science and Alby Gallun require employees returning to the oce John Pletz to get these lifesaving vaccines. Reporters Elyssa Cherney Danny Ecker YOUR VIEW Stephanie Goldberg Ally Marotti A.D. Quig Dennis Rodkin A ordable housing is a crucial part of infrastructure Steven R. Strahler Contributing photographer John R. Boehm time and attention to their children. ey Researcher Sophie H. Rodgers are also better able to maintain steady em- ployment and nancial security. * * * By providing housing assistance, we can Director of digital strategy Frank Sennett reduce poverty, increase stability for vul- Director of custom media Sarah Chow nerable households and help avert home- * * * lessness—while also creating good-paying Production manager David Adair jobs in construction and freeing up house- Account executives Claudia Hippel hold budgets to spend their incomes else- Christine Rozmanich where. Bridget Sevcik A home is the most basic unit of infra- structure. e pandemic has been a re- Laura Warren minder of this, as we were all encouraged Courtney Rush to stay at home as much as possible. Crit- Amy Skarnulis ical investments in housing have a proven People on the Move manager Debora Stein track record of reducing homelessness and Project manager Joanna Metzger poverty and are vital for helping the low- Digital designer Christine Balch est-income families a ord decent, stable homes. Crain Communications Inc. Keith E. Crain Mary Kay Crain Chairman Vice chairman KC Crain Chris Crain University of Illinois Dr. Nancy Heil, FAAP, is co-chair and Chief executive o cer Senior executive vice president Lexie Crain Armstrong Robert Recchia Siebel Center for Design Amanda Henley is a community expert Secretary Chief nancial o cer at First Steps: Improving Child Health & Veebha Mehta Chief marketing o cer Champaign, Illinois Housing, a project of the Illinois Chapter * * * of the American Academy of Pediatrics. G.D. Crain Jr. Mrs. G.D. Crain Jr. Sheila Sutton is housing policy organizer at Founder Chairman We see our work through the eyes of the people who will use them every day. Through their (1885-1973) (1911-1996) Housing Action Illinois. For subscription information and delivery concerns eyes, we see places of innovation, industry, technology, healing, research and entertainment. please email [email protected] The result? Powerful structures with impacts that reach far beyond these walls. or call 877-812-1590 (in the U.S. and Canada) Sound o : Send a column for the Opinion page to editor@ claycorp.com chicagobusiness.com. Please include a phone number for veri cation purposes, and limit submissions to 425 words or fewer. 12 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS
YOUR VIEW e next step to cut red tape for restaurants ixteen months after our lives has already passed the majority were rst disrupted, Chi- of the Chi Biz Strong Initiative, Scago’s independent restau- which, among other items, has rants are still feeling the devas- extended the cap on fees that de- tating e ect of the COVID-19 livery services can charge restau- pandemic. From the shared pain rants and made it easier to open of a full shutdown last year to restaurants in recently vacated more than 30 regulatory chang- spaces. Passing the Expedited es, our restaurants have gone Sign Initiative will build on this through hell and back. and send a clear message to the Finally, after so much uncer- Sam Sanchez is restaurant community that City tainty and pain, most restaurants owner of ird Hall is doing everything possible are reopened and ready to serve Coast Hospitality to support our businesses. locals and visitors again. But we in Chicago. Currently, restaurateurs and are not out of the woods yet. Far other business owners need from it. Like all other restaurant owners, I to wait for an individual ordinance to be am facing workforce shortages, increasing passed by the entire City Council—which debt, and very real uncertainty about the meets once a month—just to put a basic future of my business and the industry as sign or awning on their business. When a whole. you plan to open a new restaurant and Restaurateurs are eternal optimists, your alderman has already approved your
however. We are on a path to rebuild, but sign, an operator still needs to wait anoth- BROWNING/UNSPLASH MICHAEL we still need help from local ocials to get er 60 days to install it. Without a sign, you there. at is why I am joining my fellow can’t promote your business, it makes it rants—from Little Village to Rogers Park, restaurants open and further invest in the restaurateurs and calling on Chicago’s City that much harder for diners to nd you, Pullman to Austin—have no time to spare city. Council to rise to the moment and pass the and you lose critical revenue. is pro- if they are to stay in business, keep people I own four restaurants in Chicago, and Expedited Sign Initiative, part of Mayor cess is unnecessary bureaucracy—in fact, employed and continue serving our com- as I look to the future I plan to continue Lori Lightfoot’s Chi Biz Strong Plan. Chicago is the only big city in the country munities. growing my restaurant group in this great One of the best things about Chicago is with this archaic rule, and it can absolute- Over the last year and a half, the city took city. Like many of my colleagues, I can only the thousands of independent restaurants ly make or break a restaurant. Even during action to alleviate restaurants’ daily strug- expand if I know the city has my back. e across our 77 neighborhoods. It’s why the best of times, 95 to 97 cents of every gles by making it easier to operate outside, Expedited Sign Initiative is the kick-start we’re the culinary capital of the United dollar a restaurant takes in goes right back extending licenses and cutting red tape. we need to rebuild better than ever before. States. To help our neighborhood restau- into the food, sta and everything else that e Expedited Sign Initiative is the next A vote for this initiative is a vote for the fu- rants recover from COVID-19, the city goes with running the place. Our restau- critical step we need to streamline the way ture of our city and its restaurants. The Midwest can propel the energy transition .S. states are answering the Biden ad- ministration’s call to address climate Uchange and re-establish the United States as a leader in the energy transition. States along our nation’s coastlines—like California, New York and Texas—are set- ting ambitious goals to limit greenhouse gas emissions, promote clean energy invest- ment and achieve midcentury climate goals. Petros Sof- James Tim Lindsey is But America’s heartland has the oppor- ronis is the Stubbins is a senior tunity to truly be the driving engine of the James W. the Don- adviser at U.S. energy transition. Bayne pro- ald Biggar the Uni- e Midwest’s robust manufacturing fessor in the Willett versity of capabilities, extensive renewable and Grainger professor Illinois’ traditional energy infrastructure, and College of in the Smart long-standing intellectual capital make it Engineer- Grainger Energy uniquely placed to serve as a hub for the ing at the College of Design
deployment and acceleration of innova- University Engineer- Assistance ISTOCK tive energy solutions. of Illinois. ing at the Center. And many of those technologies de- University gies as well. For instance, St. Louis-based of chemical processes for fertilizers would veloped in the Midwest are already be- of Illinois. Anheuser-Busch placed an order for more enable major reductions in emissions. ing deployed. e region has some of than 800 hydrogen-electric delivery trucks e Midwest has all the ingredients to be the highest wind, solar and carbon-free hydrogen contains about the same energy in 2018 and completed its rst beer deliv- a leader in the emerging hydrogen econ- nuclear generation in the nation. Illi- as a gallon of gasoline.) ery using one a year later. Hyzon Motors omy, and private investment is beginning nois, for instance, has the most nuclear And that’s why the University of Illinois announced in March it plans to open a to recognize the potential in the region, capacity of any other state, with 11 nu- at Urbana-Champaign partnered with Ar- new facility near Chicago for high-volume but we must accelerate the development clear reactors accounting for more than gonne National Laboratory to launch the production of membrane electrode assem- of road maps for how to integrate and take half of its electricity generation. ese Midwestern Hydrogen Partnership. As one blies, key components of fuel cell stacks. advantage of the emerging hydrogen econ- carbon-free technologies combined with of the nation’s top research and engineering Iron ore miner and steelmaker Cleve- omy. e Midwestern Hydrogen Partner- abundant water supplies from the Great schools, UIUC has the talent pool to help land-Cli s, the largest at-rolled-steel ship is actively working in this area, to help Lakes are the major resources required grow the economy with clean energy jobs. supplier in North America, is beginning realize an expanded economy as a result. to produce hydrogen, making the region In the Midwest, we are also uniquely to integrate hydrogen in its production of According to one study, hydrogen is ex- an ideal production, distribution and capable of manufacturing fuel cells and hot-briquetted iron in order to meet its pected to support 700,000 jobs by 2030 and storage center for this technology that fuel cell electric vehicles, or FCEVs, and greenhouse gas reduction commitments. 3.2 million by 2050, generating more than can help decarbonize the transportation, deploying hydrogen solutions across our General Motors and Honda established $750 billion in revenue by midcentury. industrial and power generation sectors. industrial sectors. e Midwest is a major the rst joint venture to mass produce an With our leaders focused on creating a Last month, Secretary of Energy Jennifer manufacturing powerhouse for several ve- advanced hydrogen fuel cell system at a more sustainable future, the Midwest has Granholm launched the Department of hicle lines, with 75 percent of cars and 60 facility in Michigan in 2017. And in 2019, the potential to build on its success and Energy’s “Energy Earthshots” initiative to percent of light-duty trucks currently as- Indiana truck-engine manufacturer Cum- be at the forefront of the nation’s e orts accelerate breakthroughs of more abun- sembled in the region. Automakers—like mins announced its collaboration with to combat climate change with its ample dant, a ordable and reliable clean energy General Motors, Honda, Hyundai and Toy- Hyundai to develop fuel cell technologies. low-carbon energy assets. To accomplish solutions within the decade. e rst En- ota—with large manufacturing presences Low-carbon production of hydrogen is that, we will need a smart strategy, careful ergy Earthshot—Hydrogen Shot—seeks to in the Midwest are betting big on FCEVs. also key to transforming the vast agricultural planning and policy support to transform reduce the cost of clean hydrogen by 80 A number of companies in the Midwest activities in the Midwest. Fuel cell options for America’s heartland into the low-carbon percent to $1 per kilogram. (A kilogram of are already deploying hydrogen technolo- powering farm equipment and the evolution powerhouse it’s capable of becoming.
P012_CCB_20210726.indd 12 7/23/21 3:14 PM CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 13 Big warehouse proposed across from Goose Island The project is a bit retro for the longtime industrial neighborhood, which is poised to become more residential because of zoning changes approved about four years ago
BY ALBY GALLUN feet, the Logistics Property building sits within a planned manufactur- would be among the biggest indus- ing district, or PMD, a zone that’s A Chicago developer plans trial developments along the North o limits to nonindustrial uses. something near Goose Island that Branch of the Chicago River in de- Ald. Walter Burnett, 27th, who the area hasn’t seen in a while: a cades. e 12-acre development represents the neighborhood, said big industrial project. site sits within a stretch of river he supports the warehouse pro- Logistics Property has led a historically dominated by factories, posal. proposal with the Chicago City cement producers, metal shredders “I think it’s ne,” he said. “It’s
Council for a huge two-story ware- and other heavy industries. over in the PMD area. It’s right next EARTH GOOGLE house at the corner of North Elston to the expressway. Hopefully it will Amazon has shown interest in purchasing the property at Elston and Division owned by Peoples Gas. and West Division streets. It’s a bit RESIDENCES bring a lot of jobs to the city.” retro for the longtime industrial e city opened the door to It could also bring truck tra c which is owned by Chicago-based two oors totaling about 255,000 neighborhood, which is poised to more residential builders when and pollution to the area, con- Peoples Gas, according to people square feet, with mezzanine space, become more residential because it lifted longtime restrictions on cerns that residents and environ- familiar with the property. It’s un- including o ces, covering about of city zoning changes approved housing and other commercial de- mental groups have raised about clear if the e-commerce giant is 90,000 square feet, according to about four years ago. velopments there in 2017. With the other warehouse developments in still interested in the property. An the zoning application. But big sites close to dense ur- area’s proximity to downtown and the city. Activists rallied against a Amazon spokeswoman declined e multi-story warehouse is ban neighborhoods have become wealthy residential neighborhoods proposed Amazon warehouse in to comment. Burnett said he be- still a relatively new idea in the a hot commodity for warehouse like Lincoln Park and Bucktown, Bridgeport and the Target project in lieved Logistics Property planned modern United States, and it’s un- developers in recent years. ey’re residential developers have moved Little Village, but economic factors to develop the project without lin- clear whether it will turn out to be hunting for locations to satisfy in. Lincoln Yards, a $6 billion ultimately carried the day and the ing up a tenant in advance. popular among tenants. Wheth- distribution and e-commerce ten- mixed-use development planned city approved the developments. Logistics Property is betting on er it is or isn’t, the industrial real ants like Amazon that want to be north of the Logistics Property site, Logistics Property declined to a new idea in industrial construc- estate market is booming amid as close as possible to customers, would include as many as 6,000 comment. Founded in 2018, the tion: the multi-story warehouse. strong demand from logistics and allowing them to speed up deliv- homes. Another big project pro- Chicago-based company is devel- Most big industrial buildings are e-commerce industries. at’s true eries of products ordered online. posed on the south end of Goose oping warehouses in Chicago, At- sprawling one-story structures, for suburban and rural proper- Amazon plans to open a delivery Island would include nearly 2,700 lanta, Houston and other U.S. cit- sometimes covering dozens of ties, and so-called in ll markets in station in Bridgeport and recently units. ies with an estimated end value of acres, often in places where land is more urban locations. acquired sites in Humboldt Park e city, however, did not scrap $2 billion, according to its website. plentiful. “ ere’s never been a better and Gage Park for two more ware- longtime industrial-only restric- In Kenosha, Wis., the developer But land is scarce in cities, and time for industrial developers and houses. Target is opening a huge tions on most of Goose Island built a 748,300-square-foot ware- some developers have responded investors for in ll real estate,” said distribution center in Little Village and properties just to the west, house leased to Amazon last year. by building up, with trucks access- industrial broker Mike Senner, ex- that will employ 2,000 people. between the river and Metra train Amazon also has shown interest ing upper oors by ramps. e Lo- ecutive vice president in Rosemont Totaling nearly 601,000 square tracks. e Logistics Property site in the site at Elston and Division, gistics Property proposal includes o ce of Colliers International.
LEADING TO THE FUTURE
Savills congratulates the Joe Learner and Robert Sevim brokerage team on winning Oce Broker of the Year at the 33rd annual Chicago Commercial Real Estate Awards and commends the Chicago oce for its extraordinary eorts and dedication throughout 2020.
JOE LEARNER ROBERT SEVIM JON AZULAY ADAM SOUTHARD ALEX GREEN CULLEN HURLEY BERNICE RAMOS Vice Chairman, Vice Chairman, Corporate Managing Corporate Managing Assistant Director Associate Executive Assistant Director, Central Co-Head Chicago Director Director RRegionegion LLeadead RRegion,egion, DiDirectorrector
+1 312 595 2900 I savills.us
P013_CCB_20210726.indd 13 7/23/21 2:58 PM 14 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS
MANUFACTURING Advertising Section Berlin Packaging, Chicago PEOPLE ON THE MOVE To place your listing, visit www.chicagobusiness.com/peoplemoves Berlin Packaging, the or, for more information, contact Debora Stein at 917.226.5470 / [email protected] world’s largest Hybrid Packaging Supplier®, is pleased to announce that ACCOUNTING / ADVISORY CONSULTING DESIGN / BUILD FINANCIAL SERVICES INDUSTRY HEALTH CARE Jared Burk has joined the company as General Floyd Advisory LLC, Chicago Clayco, Chicago LGIM America, Chicago Gateway Foundation, Chicago Manager of E-Commerce. Burk will lead the Berlin Packaging Floyd Advisory LLC is Charu Bhat has joined LGIM America continues Illinois’ largest Online commercial team and further pleased to announce Clayco as senior process to attract top talent with addiction treatment develop its omnichannel experiences that Gregory Wolski, engineer in the rm’s the recent hires of Patrick nonpro t, Gateway for customers and suppliers. Burk a nationally recognized integrated design and Arey and David Budka Foundation, welcomes joins Berlin Packaging after 12 accounting expert in engineering group. as Senior Investment Ciuinal Lewis, Ph.D. years at W.W. Grainger, where he M&A disputes and Most recently he led Directors/De ned as Senior Executive led continuous improvement and arbitrator, has joined the processing and packaging Contribution Specialists. Director for its Chicago operational effectiveness efforts, rm as a Partner in capital projects for Mars Wrigley and As part of the De ned Arey centers. Dr. Lewis will most recently as Director of Sales Chicago. Greg was a partner in EY’s Greencore. In his new role, he utilizes Contribution (DC) Sales help expand our existing community Execution & Operations. Forensic & Integrity Services practice his operational understanding to team, Patrick and David partnerships, build upon proven and has over 40 years of experience deliver processing, packaging and will establish and maintain pathways to addiction treatment, MANUFACTURING in due diligence, litigation, FCPA, facility solutions to manufacturing, signi cant relationships and strengthen citywide recovery private equity anti-corruption food, beverage and consumer with key DC Investment support services. With over 30 years Berlin Packaging, Chicago compliance, purchase price disputes, product clients. Charu holds an MS in decision makers and of experience delivering health care accounting and auditing and other mechanical engineering from Purdue in uencers - global to diverse communities, she brings Berlin Packaging, the advisory services. He served as and an MS in industrial engineering consultants, national a history of professionalism and world’s largest Hybrid EY’s global practice leader for the from Oregon State. aggregators, retirement compassion in behavioral health and Budka Packaging Supplier®, is Transaction Forensics practice and specialist advisory rms education management. pleased to announce that has served as an independent and managed account providers – Rebecca Gummerson has arbitrator or as an expert on over 500 as well as other signi cant industry been promoted to Vice mergers and acquisitions matters. specialists across the DC landscape. President of Marketing Greg’s addition to the rm will further Both professionals have more than 20 from her prior role as Senior Director enhance our growing transaction years of experience within the nancial of E-Commerce. Gummerson will advisory practice. services/de ned contribution industry. EDUCATION MANUFACTURING lead Berlin Packaging’s marketing efforts across its online and traditional Loyola University, Chicago Berlin Packaging, Chicago channels and will help ensure a seamless omnichannel customer Loyola University Berlin Packaging, the experience. Gummerson joined Berlin ARCHITECTURE / DESIGN Chicago announces that world’s largest Hybrid Packaging in 2016. Goutham Menon, PhD, Packaging Supplier®, is GREC Architects, LLC, Chicago dean and professor of pleased to announce that MANUFACTURING the School of Social HEALTH CARE Ben Adams has joined GREC Architects is Work, was appointed the company as Chief Berlin Packaging, Chicago pleased to announce Board President of the Ann & Robert H. Lurie Children’s Digital Of cer. Adams that Katherine Putnam Network for Social Work Management Hospital, Chicago will partner with Berlin Packaging’s Berlin Packaging, the and Kate Pedriani have (NSWM), effective July 1. In addition industry-leading commercial team to world’s largest Hybrid been named Interior to NSWM, Menon has been actively develop and execute the company’s Lurie Children’s has Packaging Supplier®, Design Directors. In this involved in various leadership global digital strategy and lead the recruited a top senior is pleased to announce capacity Katherine and roles across notable social work leader, Audrey next phase of digital transformation. Putnam that Balaji Jayaseelan Kate will have leading organizations, including the Council Williams-Lee Adams joins Berlin Packaging with , as the has joined the company roles in the rm’s on Social Work Education, National more than 20 years of experience in Chief People Of cer. as Vice President of corporate, residential Association of Deans and Directors, digital strategy and e-commerce. She brings impressive Sustainability. Jayaseelan will be and hospitality projects. the International Consortium for experience leading a responsible for re ning and executing Their commitment to Social Development, and husITa. diverse, service-oriented workforce the studio’s wide array LAW Berlin Packaging’s sustainability in major companies, such as the strategy and working across the of clients and project Hyatt Hotels Corporation and Rope & Gray LLP, Chicago enterprise to fortify its Environmental, types will elevate the McDonald’s Corporation. In addition Social, and Governance (ESG) experiences created by FINANCE to her experience with Hyatt and GREC. Pedriani Global law rm Ropes framework. Jayaseelan joins Berlin McDonalds, Ms. Williams-Lee is & Gray is pleased to Sycamore Advisors, LLC, Chicago Packaging with over 15 years of passionate about child health and announce the arrival experience leading sustainability wellbeing; some of her community of Nichole Lopez- CONSTRUCTION Sycamore Advisors, LLC, programs for B2B and B2C rms. involvement includes working with Tackett, counsel in the an independent organizations to help kids heal from rm’s leveraged nance Leopardo Companies, Chicago municipal advisory rm, trauma. practice, to its 100-lawyer NON-PROFIT has expanded by adding Chicago of ce – a team known for Leopardo is proud to two staff members to “talented, sophisticated problem Chicago Zoological Society, Chicago announce the addition further strengthen the solvers,” who “understand what is of Justin Behm as Vice rm’s national municipal important to clients,” writes Chambers Cherryl Thomas has President of Tenant advisory practice. Lamendola USA in its 2021 guide. Nichole been elected Chair of Interiors. He brings a Joining Sycamore HEALTH CARE represents corporate borrowers, private the Chicago Zoological decade of experience are seasoned muni equity sponsors, investment funds and Society’s Board of and joins from Executive professional Jessica Sinai Chicago, Chicago lending institutions in a wide range of Trustees. The rst woman Construction, where he played an Lamendola (senior elected in the Board’s integral role in the company’s success. complex nancing transactions. vice president) and Sinai Chicago is pleased 100-year history. She His addition to Leopardo serves as Lucien Harlow-Dion to announce the addition has served on the Board since 2000 further investment in serving Chicago’s (quantitative analyst). of Dr. Gina Walton TECHNOLOGY along with various other nonpro t tenant interiors market, along with Both bring a fresh as Vice President of boards over the years. Cherryl the quality of service and capabilities analytical capacity and Harlow-Dion GME Diversity and Discovery Partners Institute, brings 40+ years of experience offered to clients and partners. In his unique perspectives Inclusion/Assistant DIO. Chicago administering high-pro le projects in new role, Justin will oversee all aspects as the rm continues providing Dr. Walton is focused the Chicagoland area. She founded of Leopardo’s tenant interiors work. independent advice for high on the recruitment, retention and Discovery Partners Ardmore Associates in 2003 and priority municipal projects for well-being of minority physicians in Institute (DPI) is pleased merged with The Roderick Group in clients in the Midwest and CONSULTING residency programs and fellowships to announce that Olivia 2017 to form Ardmore Roderick, where Northeast. Sycamore Advisors, LLC at Sinai Chicago. She graduated from Palid and Stephanie she serves as Chief Strategic Of cer. is a Women Business Enterprise Werner have joined Kearney, Chicago the UIC College of Medicine. She has (WBE) registered with the U.S. held clinical and academic positions at the DPI team. Olivia Securities and Exchange Commission Palid joins as a Visiting NON-PROFIT Rich Besen has been Vanderbilt Medical Center in Nashville and Municipal Securities Rulemaking Research Associate. Palid appointed as Head of and volunteered for Black Achievers Board and provides services to state Olivia supports the The Joffrey Ballet, Chicago Innovation for Kearney’s YMCA and the Student National and local governments and leading Pritzker Tech Talent Lab Product Excellence and Medical Association. not-for-pro ts. as part of their Research The Joffrey Ballet is Renewal Lab (PERLab), Team. pleased to announce the a division in the Stephanie Werner elevation of former Chief management consulting joins the team as a Marketing Of cer Brian rm. He has worked at a diverse Postdoctoral Research Smith to the new role array of companies including L’Oréal, Associate with IWERC. of Chief Advancement OXO, and Apple, focusing on driving Stephanie’s research Of cer. Smith’s tenure innovation and devising roadmaps Werner focuses on examining at the Joffrey, which began in 2011, to bring product concepts from start the participation and retention of has been marked by record box to nish. With experience in product marginalized groups in STEM using a of ce and attendance numbers. In his design and strategic management, To order frames or plaques lens centering on justice and equity. new role, Smith will oversee a newly Rich will work with PERLab to of profiles contact integrated Advancement team that discover hidden value in products to Lauren Melesio at focuses on contributed and earned better meet customers’ needs. [email protected] or revenue goals while supporting the 212-210-0707 Joffrey’s commitment to diversity, accessibility, and education. CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 15 Fulton Market tower would rise 26 stories Chicago developer Je Shapack is among a growing pack of builders marching west in search of land in the neighborhood as its core lls up
BY ALBY GALLUN Shapack plans his project at 1353 rus pandemic, and landlords and W. Fulton St., a 27,200-square-foot developers are growing increas- Nearly three years after buying parcel he bought for $8.5 mil- ingly con dent about the future. a site at the west end of the Fulton lion in August 2018. Designed by Shapack, founder and CEO of Market District, Je Shapack has Skidmore Owings & Merrill, the Chicago-based Shapack Partners, revealed what he wants to build building would rise 270 feet and did not respond to requests for there: a 26-story residential high- include 200 parking spaces, ac- comment. Shapack’s zoning attor- rise. cording to the zoning application. ney, Katie Jahnke Dale, a partner e Chicago developer, one of in the Chicago oce of DLA Piper, the most active in the booming AFFORDABLE UNITS referred a reporter to Shapack. neighborhood, has led plans for To comply with the city’s A ord- Fulton Market has been the 316-unit project at the corner able Requirements Ordinance, the Shapack’s turf since the neigh- of Fulton and Ada streets with the project would include 63 units af- borhood started to take o nearly
Chicago City Council. fordable to residents below certain a decade ago. Ventures involving GROUP COSTAR Shapack is among several devel- income levels. e ling does not Shapack recently have developed Chicago developer Je Shapack plans to build a 316-unit residential tower on this site at Fulton opers to march west in search of say whether Shapack plans apart- the 182-room Hoxton Hotel at and Ada streets. It would be his second residential project in the Fulton Market District. land in Fulton Market as the neigh- ments or condominiums there, 200 N. Green St., which opened in borhood’s core lls up. Housing but apartments are the preferred 2019, and a 645,000-square-foot dential project in Fulton Market million in December 2017. developers in particular also have choice for most downtown hous- oce building at 167 N. Green St. after the Parker Fulton Market, a Shapack needs the City Coun- started to move north after the city ing developments these days. e that opened late last year. 227-unit apartment high-rise at cil’s approval of his proposal and lifted a ban on residential projects downtown multifamily market is e building at Fulton and Ada 171 N. Halsted St. A Shapack joint construction nancing before he north of Lake Street this year. bouncing back from the coronavi- would be Shapack’s second resi- venture sold that property for $113 can begin building the project. Cullerton backing new Wrigleyville golf venture The former Illinois Senate president is part of a group aiming to open an X-Golf America simulator franchise and bar across from Wrigley Field
BY DANNY ECKER events, Garritt Cullerton said. is owned by a family trust of late Other Chicago-area locations Wrigleyville real estate investor Former Illinois Senate Presi- have opened in north suburban James Petrozzini, according to dent John Cullerton has his sights Glenview and Libertyville. the zoning application. set on golf more than a year into The Wrigleyville plan is a bet on Jim Saccone, who manages the
his retirement from public ser- a strong comeback for post-pan- property on behalf of the trust, GROUP COSTAR vice. It’s just planned for a bar. demic entertainment options con rmed the owners are nal- The two-story building at 3549-3551 N. She eld Ave. has been vacant since Starbucks closed its The longtime state legislator around Wrigley Field, an area izing a lease with the Cullerton shop there in 2019. is part of a group of investors that has been flooded with them venture and said X-Golf seems like seeking city approval to open an in recent years as the owners of a good t for the neighborhood. firm Thompson Coburn, was first in 1978 and served in the Senate X-Golf entertainment venue at the Chicago Cubs redeveloped “I’m trying to put something back elected to the state Legislature from 1991 until January 2020. 3549-3551 N. Sheffield Ave. in the area around the stadium. in there, and I think the concept Wrigleyville, according to a zon- should go over well,” he said.
ing application being introduced FANS RETURN Garritt Cullerton, who grew up ADVERTISING last week to the City Council. Restaurants and retailers there just blocks from Wrigley Field COMPANIES ON THE MOVE SECTION If the city signs off, the virtual endured a debilitating gut punch but prefers the Chicago White golf franchise could open as soon in 2020 with COVID-induced re- Sox to the North Siders, said the To place your listing, visit www.chicagobusiness.com/companymoves as late this year in the two-sto- strictions on gathering and the plans germinated last fall as the or contact Debora Stein at 917.226.5470 / [email protected] ry former Starbucks across from Cubs playing a partial season in pandemic wreaked havoc on bar Wrigley Field, said Garritt Culler- front of no fans, but the crowds owners, devastation he deemed NAME CHANGES MERGERS & ACQUISITIONS ton, who’s working on the project have returned over the past temporary. on behalf of his former state sen- month, with Wrigley Field back “I was starting to think people ator father. to full capacity. should start buying up bars that The venue would be the first in “We just thought that Wrig- are struggling,” he said, noting that the city of Chicago for Los Ange- leyville was just the right neigh- he and his roommates began pur- les-based X-Golf America, which borhood for it,” said Garritt Cul- suing X-Golf in early 2021. “I was offers golf simulators in bar and lerton, a real estate agent for thinking the timing would work PKF Mueller PKF Mueller restaurant settings and has been residential brokerage Compass out well. And hopefully it does.” Elgin, IL Elgin, IL and whose former Other X-Golf locations charge 847-888-8600 847-888-8600 “WHAT CUBS OWNERSHIP AND OTHER DePaul room- between $35 and $55 per hour to www.pkfmueller.com www.pkfmueller.com mates are co-in- rent simulator bays, depending DEVELOPERS HAVE DONE TO THE Mueller CPA is rebranding to PKF Mueller & Co., LLP dba PKF Muel- vestors in the proj- on the day and time and the size Mueller effective July 1, 2021. This ler, a Chicago area-based Certi ed NEIGHBORHOOD IS PRETTY INCREDIBLE.” ect with his father. of a party. X-Golf also offers dig- change will better align the rm’s Public Accounting and Business “What (Cubs ital leagues for players to com- market presence with the strength Advisory rm, has announced that Garritt Cullerton, son of John Cullerton ownership and pete against each other locally of the PKF International network, they have acquired Slupik and other developers) and club-fitting services. Culler- allowing PKF Mueller to leverage Associates, LTD., a Naperville, growing quickly this year through have done to the neighborhood ton said his group has yet to de- the talent of 20,000 professional IL-based Certi ed Public Account- new franchise agreements. The is pretty incredible,” Cullerton termine pricing for the planned members of the global network. ing and wealth management rm, Wrigleyville space, which at added. “I think post-pandemic Wrigleyville location. Additionally, having marketed effective July 1, 2021. Slupik and different points was home to it’s going to be a hub of entertain- John Cullerton unexpectedly itself in certain niches with the Associates staff will be operating PKF name for the last four years, under the PKF Mueller name and Hi-Tops, Harry Caray’s Tavern, ment and people will be itching announced his retirement from this change will help provide will continue to serve clients from O’Malley’s Liquor Kitchen and a to get out. I think it will come the Illinois Senate in November clarity to our clients and business their Naperville location. Starbucks that shuttered in 2019, back well.” 2019, saying publicly that it was colleagues. Read the full press Visit www.pkfmueller.com for more would include eight golf simula- Cullerton said X-Golf Wrig- driven by plans to spend more release at www.pkfmueller.com. information. tor bays and a golf pro on staff to leyville would sign a 10-year time with his family. Cullerton, offer lessons and work corporate lease for the full building, which who is also an attorney with law
P015_CCB_20210726.indd 15 7/23/21 2:57 PM 16 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS Tiny sushi bar could give hotels a path to recovery Sushi Suite 202 opened in Hotel Lincoln just before the pandemic. Now the hidden, six-seat restaurant is generating buzz—and a welcome revenue stream.
BY ALLY MAROTTI posed to just checking into a giant box and eating at the hotel restau- ere’s a suite on the second rant.” oor of the Hotel Lincoln that e company that runs Sushi used to generate about $80,000 in Suite 202 is looking to open addi- annual revenue. is year, it’s pro- tional restaurants in Chicago hotels, jected to bring in about $1 million. said co-founder Michael Sinensky. It wasn’t posh decor or a com- e rst Sushi Suite was opened er bed that boosted the suite’s in New York about two years ago, performance; it was a tiny sushi and there’s a third location in the restaurant. former Versace Mansion in Mi- Sushi Suite 202 is an omakase ami. Sinensky said he doesn’t plan sushi restaurant that opened in to open more than one suite per February 2020 in a 750-square- city, but the company is planning foot suite in the Lincoln Park ho- to open three of its Sushi By Bou tel. e suite, once used mainly as restaurants in Chicago by the fall. a staging area for brides, is now a Sushi By Bou is a more casu- restaurant that serves six people at al, faster and larger version of a time. Patrons check in at the ho- Sushi Suite. It serves omakase,
tel and use a keycard to enter the but it does 12 courses in 30 min- BURGER JOHN NEIL BY PHOTOS restaurant. It’s 17 courses of sushi utes for $50. It seats up to 12 at a Sushi Suite 202, which occupies a 750-square-foot suite at the Hotel Lincoln, serves 17-course omakase meals. for $125, plus tax, gratuity and a la time, depending on the location. carte sake. ere’s a little lounge Sushi By Bou locations are set to nue lost to the pandemic. Down- area in the room, too, for pre- or open in Hotel Lincoln and Clar- town hotel occupancy hit 50 per- post-dinner drinks. idge House in the Gold Coast, a cent during the week ended July e hotel treats the sushi like spokesperson said. 10 for the rst time since before room service. Daily shipments of the pandemic, said Stacey Nadol- seafood are delivered to the front PROFIT SHARING ny, managing director of hospital- desk, and the sushi is prepped in Sushi Suite splits its pro ts ity consulting rm HVS Chicago. the hotel’s kitchen and brought up down the middle with Hotel Lin- Typically this time of year, occu- to the suite. coln. at means Sushi Suite pancy is 80 to 90 percent. It’s a novel concept, a speak- doesn’t pay rent, either, which Everything is trending in the easy-style sushi joint, and hotel helped it weather pandemic clo- right direction, but there’s still a general manager Dan White said sures—and COVID-caused aver- long way to go, she said. at’s it has created a lot of buzz and sions to intimate dining spaces— likely part of the reason why oper- drives trac to the hotel’s other better than other restaurants. Still, ators are pushing for more lucra- rooms. at’s exactly what Hotel the restaurants could ultimately tive revenue streams to ll unused Lincoln wants, he said. Before the aid its partner hotels’ pandemic space in their hotels. For several pandemic struck, Chicago hotels recovery, Sinensky said. “We’re years, hotel operators have been relied on restaurant and bar con- creating revenue for them in plac- getting creative in that respect, but cepts to help drive trac and set es that generally had none or were the pandemic is the rst time that them apart in a crowded market. underperforming,” he said. they have repurposed the hotel ample. Others are pushing harder win-win situations for the hotel Post-pandemic, as Hotel Lincoln White from Hotel Lincoln rooms themselves. on nding more lucrative uses for and business that opens within, looks to recover from months agreed. e hotel did about $11 “It’s all about for these hotels space beyond the guest rooms. said Olivier Gompel, executive of lost nights, the sushi restau- million in revenue in 2019 but saw what makes the most sense,” she e Chicago Athletic Associa- vice president of commercial real rant has become a vital revenue a 70 to 75 percent revenue drop said. “Now that this accepted con- tion, for example, swapped out its estate rm CBRE’s hotel advisory. stream—and one the hotel is look- in 2020. White expects next year’s cept of day use in the rooms is ground oor gift shops for indoor “It’s a competitive environment ing to replicate. revenue to be about 85 percent of there now as well, it opens up” a golf simulators in its new Topgolf out there, and guests are very de- “ e more people talk about 2019’s. “2023 is maybe the year we lot more options. Swing Suites. Getting a group to manding,” he said. “ ey have a what’s happening at Hotel Lincoln, stabilize,” he said. at means that It’s not the norm yet, but smaller spend $1,000 over three hours of lot of options, so anything you the better for us,” White said. “ e $1 million Sushi Suite is expected to and independent hotels are more eating, drinking and gol ng like- can do to create more desirable additional PR and buzz it creates bring in will be a big help, he said. frequently converting their suite ly tops the nightly rate of a hotel amenities is great in terms of posi- is something that I think a lot of Indeed, the hotel industry in space, she said. Some are using suite, Nadolny said. tioning your property. And you get travelers are looking for now as op- Chicago is still hurting from reve- them as conference rooms, for ex- Such partnerships are usually revenue to go with it.” Out-of-state weed firm makes a move on Illinois It’s the latest weed company With a brand-new law about to open 185 more retail to move into Illinois, one of the licenses here, look for the trend to continue largest cannabis markets in the country. to close later this year. Atlanta-based Parallel, a mar- BY JOHN PLETZ More out-of-state companies ijuana operator led by Wrig- Days after a new law dramati- are expected to look for a way ley chewing gum heir William cally expands Illinois’ $1 billion into the Illinois market by win- “Beau” Wrigley, bought six Illi- cannabis industry, a New York- ning, acquiring or investing in nois weed shops in a deal that based marijuana company has 185 new licenses that are sched- could be worth up to $155 mil- entered the market. It won’t be uled to be awarded in three lot- lion. the last. teries over the next month. New York-based Ascend Well- New York-based Ayr Wellness, ness, which entered the Illinois a large publicly traded marijua- GROWTH PATH market in 2019, added to its pres- na company, is buying two dis- Ayr grew out of a special-pur- ence by acquiring three Chicago pensaries in Quincy. Ayr, which pose acquisition company, or dispensaries over the past year. operates in seven other states, SPAC, formed in 2017. Most of its It bought Midway Dispensary said July 20 that it’s buying Herb- operations are in the fast-grow- on the South Side and MOCA
al Remedies Dispensaries for $30 ing Florida medical-marijuana Modern Cannabis stores in River NEXT WAVE/UNSPLASH GREEN million in a deal that is expected market. North and Logan Square. Illinois is one of the largest cannabis markets in the country.
P016_CCB_20210726.indd 16 7/23/21 4:36 PM WHERE LEADERS CONNECT AND LEARN
ȁȌȁȯȲȌ˛Ɉة0ȁǐƊǐƵɩǞɈǘǞȁȺȯǞȲǞȁǐƦɐȺǞȁƵȺȺ and public sector leaders, learn from experienced facilitators, and develop life- long professional relationships. Together, you and your fellow future leaders will experience executive education that transforms you professionally and personally.
Chicago Live Sessions Fridays October 1 - October 29
New York Virtual Sessions › Learn more and apply at Tuesdays September 28 – December 14 CrainsAcademy.com
tab doc.indd 1 21cb0319.pdf RunDate:7/26/21 FULL PAGE Color: 4/C 7/23/21 8:00 AM 18 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS The University of Chicago’s latest crime challenge: Reassuring nervous parents UCHICAGO from Page 1 concerns, even when they’re from upper- to middle-class backgrounds “Every year, we have students who who aren’t familiar with large cities. initially have University of Chicago “You’ve got the kids who are truly on their list, and they go to visit and interested in an urban experience, shortly thereafter take it o of their and they recognize that crime may list because of safety-related con- be part of that, but the ip side may cerns,” said Andrew Belasco, chief be increased internships or research operating o cer of College Transi- opportunities or the sophistication tions, an Atlanta-based admissions of life in a city,” said Ponnusamy, company that advises high school chief academic o cer at national seniors. education consulting company Col- Located in Hyde Park, U of C has legewise. “ ere’s a trade-o .” long combated the image that its at evaluation could change, campus is more dangerous than however, if students are spooked by its suburban competitors such as the news this year, Ponnusamy said. Northwestern University. ough the university points to its police STUDENTS KILLED force of about 90 sworn o cers Both U of C students killed by along with its network of surveil- gunre in 2021 were random targets. lance cameras and emergency Max Lewis, a third-year student, phones to deter crime, changing died July 4 after he was shot in the attitudes about the role law enforce- neck while riding a CTA Green Line ment should play on campus pres- train back to campus from a down- ent a new challenge, especially given town internship. A bullet red from
past complaints from Black South outside the train penetrated a win- BOEHM R. JOHN Side residents about racial proling. dow and hit Lewis, 20. In January, U of C employs one of the largest police departments among private universities, a recent source of contention with some student groups. Even if the renewed attention on doctoral student Yiran Fan, 30, was Chicago crime, which is surging af- killed in the parking garage of his grams, “including expanding trans- ifornia in Los Angeles and the Uni- according to the university. e ter months of pandemic lockdown East Hyde Park apartment building. portation options for students and versity of Pennsylvania in Philadel- university data, however, does not and protests over racial justice, de- Fan was the rst victim of a gunman others on campus,” but could not phia face similar challenges since denote nonfatal shootings in its ters future students from selecting who went on a shooting spree and share details yet. It already provides they’re located in urban settings crime summary, instead lumping U of C, the university known for died in a confrontation with Evan- a shuttle to the South Loop during with a history of crime. He recom- it into the category for aggravated its quirky essay questions and in- ston police o cers hours later. the school year and o ers discount mended that universities publish battery or aggravated assault. It also tellectual intensity can weather a U of C declined to make an ad- programs with Lyft and ZipCar, campus crime data online to as- doesn’t include information about slump. With an endowment of $8.6 ministrator available to discuss its though students have called for ad- suage worried parents. Woodlawn, which is south of U of C billion, U of C is not only one of the safety strategies. In a written state- ditional shuttles after Lewis’ death. U of C shares some of that infor- and not fully included in the police country’s wealthiest universities, it’s ment, the university said that it was In the last year, the university con- mation on its website but only be- department’s jurisdiction. also among the most selective. “deeply saddened” by the deaths of ducted more than 40 meetings to gan releasing details about tra c School o cials said violent crime e university, which will Lewis and Fan and that it’s commit- discuss public safety with campus and foot stops by its police o cers in the area is generally down “over charge undergraduate tuition of ted to partnering with the city and and South Side residents, the state- in 2015 after a push by the student more than a decade,” but more re- $59,256 for the coming academic local groups to improve safety. ment said. body. e university said it discloses cent data paints a bleaker picture. year, drew more than 34,000 un- “We consider safety and security U of C also described “extensive data “beyond what Illinois law re- UCPD gures shows violent crime in dergraduate applications in recent to be a paramount priority and con- reforms” made to its police force, quires of police departments at pri- Hyde Park and South Kenwood in- admission cycles and accepted 7.3 tinue to strive to make our public one of the largest among private uni- vate institutions.” By contrast, public creased 3 percent from 2011 to 2020 percent of them to the Class of 2024, safety practices a model for higher versities, in recent years to increase records laws apply to the state’s pub- and 4 percent from 2016 to 2020. according to school data. Statistics education and the law enforcement transparency, add specialized train- lic police forces. ough U of C often highlights on the incoming freshmen class community,” the statement said. ing and revise policies based on the police department, it’s also weren’t yet available. “Violent crime is an urgent problem feedback from public o cials, South BY THE NUMBERS generated controversy. Student Arun Ponnusamy, a former assis- across the U.S., and we do not accept Side residents and a national task From 2016 to 2020, robbery was groups calling for the force’s abo- tant director of admissions at U of the toll that violence has taken in our force on policing ordered in 2014 the most common crime report- lition conducted a 19-hour sit-in C who now privately advises stu- city and in American cities nation- by then-President Barack Obama, a ed in the Hyde Park and South at the department’s building last dents, said he hasn’t seen evidence wide.” former U of C law professor. Kenwood neighborhoods that summer and demonstrated outside that students considering U of C de- e university said it’s exploring Belasco, of College Transitions, border campus, accounting for the university provost’s home for cline to attend because of safety ways to improve existing safety pro- said the University of Southern Cal- 61 percent of all violent incidents, seven days. Remember Hewitt Associates? Meet one of Chicago’s newest public companies.
ALIGHT from Page 1 digital transformation of its work- launched by big-name investors sions,” he said. tion with such highly competitive er-benets platform. Alight handles have given the companies’ owners So Alight needs more software contracts is always the same: How redubbed Alight Solutions public payroll, health care and retirement a more e cient way to take their engineers and tech workers. For the protable is the deal? at won’t be via a special purpose acquisition benets for much of corporate investments public than the tradi- rst time in years, he said, the com- known for another couple of years. company, or SPAC, early this year. America, and soon it will manage tional initial public o ering. pany is recruiting at local campuses Otherwise, Scholl is looking Meet one of the larger publicly retirement-fund record-keeping For now, Alight has little analyst like Northwestern and DePaul uni- abroad. Alight has penetrated the traded companies in the Chicago for the nation’s largest employer of coverage, and Scholl appears eager versities. “ e pedigree of students U.S. market well. It provides ben- area that you’ve probably never all—the federal government. to raise its prole. has been amazing,” he said. ets services for 70 of the Fortune heard of. A multiyear contract Alight won “ e reason I joined last year in With all that hiring, growth will 100 corporations and about half of Alight employs more than 2,000 late last year to manage those ben- the middle of a pandemic is that need to accelerate. Revenue in the Fortune 500, he said. in the area—most of those in Lin- ets for all 6 million U.S. govern- you can see employees are really 2020 was more than $2.7 billion, Only about 10 percent of Alight’s colnshire—and about 15,000 ment workers, including military, struggling with staying healthy and up 7 percent from $2.6 billion the business is from outside the U.S., worldwide. Its market capitaliza- takes e ect next year. When it does, staying nancially secure,” he said. year before. e company report- and that’s the target for a lot of the Alight will be educat- ed a $103 million net loss, but cash company’s future growth. Acqui- ing 36 million workers ‘IMPORTANT DECISIONS’ ow—earnings before interest, sitions will play a part in gaining “EMPLOYEES ARE REALLY STRUGGLING on what their employ- Scholl’s background is in soft- taxes, depreciation, amortization more toeholds around the world. WITH STAYING HEALTHY AND STAYING ers provide them in ware, having been a senior exec- and a $77 million restructuring Wage growth—and the di cul- some or all benets. utive at PeopleSoft and Oracle, expense—was $564 million, ac- ty many companies are having in FINANCIALLY SECURE.” Alight debuted on among other roles. His goal is to cording to a Securities & Exchange hiring now that the economy is re- the New York Stock transform the employee experi- Commission ling. e rst quarter opening—leads Scholl to say, “ is Stephan Scholl, CEO, Alight Exchange on July 6, ence with benets into something saw revenue close to even with the is the decade and the era of the em- shortly after its SPAC engaging. Few workers would use year before—$689 million versus ployee. We need to do a lot more for tion is $4.7 billion, making it easily deal closed. It became the latest in a that word to describe the way ben- $693 million. employees.” a top 50 publicly held company in string of new publicly traded names ets are presented, but the choices Where will that growth come Alight is positioned to benet the area. in the Chicago area, some privately employees make in terms of health from? Obviously, the massive from that trend. It’s Scholl’s job to CEO Stephan Scholl, 49, who took held for decades, that turned to the insurance and retirement planning federal contract—the company take advantage, or Chicago’s lat- over the company 15 months ago, “blank check” approach of going are critical to their lives and fami- doesn’t disclose a dollar gure for est independent, publicly traded said in an interview that Alight is public. Acquisitions of rms like lies. the deal—will boost revenue sig- headquarters likely won’t stay that hiring aggressively to continue the Alight by shell companies often “ ese are such important deci- nicantly in 2022. But the ques- way for long.
P018_CCB_20210726.indd 18 7/23/21 4:13 PM CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 19 Microbe-meat startup becomes billion-dollar company Nature’s Fynd, based in the Back of the Yards neighborhood, raised another demand and need for sustainable protein.” $350 million and plans to have products on grocery store shelves this fall SoftBank saw the “tremendous global opportunities in front of” BY ALLY MAROTTI ly showed that we can meet our shelf-stable products,” she said. Nature’s Fynd and wants to help consumers’ expectations for deli- “Our challenge is going to be the company scale, Angela Du, Nature’s Fynd, a Back of the cious meat and dairy alternatives managing how we launch that investment director at SoftBank Yards-based startup growing with no trade-o s.” pipeline and what’s the strategy Investment Advisers, said in the meat from a microbe, just be- e company plans to release for what comes rst.” press release. came a Chicago unicorn. its rst products at retail loca- “Nature’s Fynd is combining e company had already se- tions this fall, Rawal said. Its GROWING its unique fermentation tech- cured big-name investors, in- breakfast items will likely be rst, Nature’s Fynd employs about nology with robotics to develop cluding rms backed by Al Gore, she said, with other products to 100 people and plans to dou- protein-rich foods that are sig- Je Bezos, Bill Gates and ADM. follow. ble headcount over the next few to expand into other regions. Jo- ni cantly more sustainable to Its latest round of funding is $350 “We’ve done a pretty wide quarters, Rawal said. e com- nas said in the press release that create and produced in a fraction million, bringing its total funding range of meatless products, pany recently added teams in there will be a special focus on of the time as animal– and soy- raised to more than $500 million. dairy-free products and even Singapore and India and plans Asia, “where there is substantial based proteins,” she said. e round was led by a new in- vestor, the latest fund from Soft- Bank, and drew new and repeat investors, according to a press release. Nature’s Fynd isn’t disclosing its exact valuation, but chief mar- keting ocer Karuna Rawal said the new round of funding puts Nature’s Fynd “ rmly in the uni- corn status.” Unicorn is industry jargon for a startup that is valued at $1 billion or more. Nature’s Fynd marks the 10th Chicago company to reach the status this year, according to World Business Chicago. e new funding will help fuel Nature’s Fynd’s nal push to get its products to market and expand globally, Rawal said.
ORIGIN e protein Nature’s Fynd pro- duces is made from a microbe in the fungi kingdom found in a Yellowstone National Park hot spring more than a decade ago. e microbe was discovered on a NASA-supported research mission with the initial goal of guring out what type of extreme environments could foster life on other planets. e protein is called Fy and is grown through a fermentation Exploring solutions to the biggest challenges facing Chicago and Illinois process. It is a complete protein, with all 20 amino acids, and is Crain's Forum discussions bring together thought leaders to discuss the sustainable to produce. It is also critical issues a ecting the city and state, as well as the local economy. versatile. In the company’s test kitchen, it has been made into meatless chicken nuggets, sau- Topics sage patties and hot dogs; crafted August 12. Healthcare's New Moment into dairy-free chocolate mousse The pandemic exposed signicant gaps in healthcare delivery both locally and nationally. Our terric panel will explore how and cheese dips; smeared on ba- the last year could fuel a rethinking of the healthcare system. What are the models that are working and how can we redesign gels; and put inside pot stickers. the system to be more equitable? Experts say Nature’s Fynd could tap into a rapidly growing August 19. Capitalism Redened meat-alternatives market that As a new generation of investors consider their investment “footprint,” how is capital power changing the world around us? has picked up speed as consum- Our panel is at the forefront of this change and will explore how capitalism’s future will be reshaped by a new mindset. ers sought to reduce their meat consumption and buy sustain- August 26. Water Equity able foods during the pandem- Achieving water equity across the Great Lakes has been an auspicious goal. Water mismanagement together with climate ic. But some wondered whether change and political stasis have combined to make equity e orts even more challenging. Our panel looks at the latest consumers would be ready for a ambitions to protect the vital resource while making sure all are treated fairly in those e orts. protein grown from a microbe. New topics will be discussed every month. e products would need to taste good and mimic meat if Nature’s Fynd wanted to target the broad- er pool of consumers looking to Read more at ChicagoBusiness.com/CrainsForum reduce meat intake instead of eliminate it. Nature’s Fynd released its rst products directly to consumers earlier this year. e $15 break- Presented by fast bundle, which included veg- an cream cheese and breakfast patties, sold out in 24 hours. In the press release announcing the new funding, CEO omas Jonas said the response “clear-
P019_CCB_20210726.indd 19 7/23/21 2:56 PM 20 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS
æ`ÛiÀÌÃ}-iVÌ CLASSIFIEDS To place your listing, contact Claudia Hippel at 312-659-0076 or email [email protected] .www.chicagobusiness.com/classi eds
BASEBALL TICKETS CAREER OPPORTUNITIES CUBS SEASON TICKETS LEO BURNETT COMPANY, INC. Ticket holder since 1980s seeks partner to split has an opening for approx. 35 to 45 dates per season, plus some SENIOR ACCOUNT EXECUTIVE In games this year. is pair of seats are in the Chicago, IL. Oversee client relationship Club Box Home Plate area where Chicago’s management & develop sound business business elite entertain clients.Location is relationships with client counterparts. arguably the best in the park for viewing Apply at: https://jobs.smartrecruiters.com/ action at Wrigley: between dugout and home PublicisGroupe/743999760922228- plate on the 1st base side on the aisle. senior-account-executive. Sec. 21, row 13, seats 11, 12. 2 seats; face value. Please refer to JOB #6630.5245.3 Je [email protected]
CAREER OPPORTUNITIES BUSINESS FOR SALE Interested candidates send resume to: BUSINESS FOR SALE Google LLC, PO Box 26184 San Francisco, Successful Full Service Restaurant CA 94126 Attn: V. Cheng. Please Established in 1995 REFERENCE JOB # BELOW: In Michigan City, IN PRODUCT SPECIALIST CALL 2198737101 (Chicago, IL) Perform market research, fi nancial, & technical analysis in connection w/ growing Google products & services. #1615.52420 Exp Inc: value advisory, web research, technology markets, or
CAREER OPPORTUNITIES mgmt consulting; value databases, data BOEHM R. JOHN warehousing, or SQL; & technology-based CEO John Groetelaars aims to rekindle growth after years of sluggish sales in Hillrom’s largest business unit, which includes hospital beds. TELNYX LLC seeks business presentations. GROWTH OPERATIONS MANAGER in Chicago, IL to leverage BI tooling & internal dashboards, drive data-driven Medicare scrambles Hillrom’s digital dealmaking decisions & process improvements across REAL ESTATE sales & marketing teams. Telecommuting HILLROM from Page 3 including its German hospital bed expected to inuence rates paid permitted. Applicants may apply LOOKING FOR LAND? business, and rebranded with the by commercial payers in the short https://www.jobpostingtoday.com/ CALL JAMES “In the med-tech world you’re tagline “advancing connected care.” term, a ects about one-third of REF # 97989. 7733681977 valued based upon the growth rate e diversi cation “became even Bardy’s revenue. of your company,” says KeyBanc more relevant when the pandemic “For Hillrom, the amount of our Capital Markets analyst Matthew hit, (highlighting) the importance revenue that’s actually exposed Mishan. “With its new product of connectivity, virtual interactions to reimbursement from commer- portfolio and acquisitions, (Hill- and using technology to elevate cial payers or Medicare is relative- OUR READERS ARE 125% rom) is attempting to improve and traditional medical devices,” Groet- ly low—it’s less than 10 percent MORE LIKELY TO sustain a more durable level of rev- elaars says. of our total revenue,” Groetelaars INFLUENCE enue growth.” says. “But having an expert network Hillrom’s third-quarter earnings RECURRING REVENUE and having a very clear working OFFICE SPACE DECISIONS report due July 30 will give a clearer As part of its strategy to “advance knowledge of the process around picture of the company’s post-pan- connected care,” Hillrom in January establishing reimbursement and demic growth prospects. Inves- agreed to pay $375 million for Bar- sustaining reimbursement is really Find your next tors are bracing for a slowdown dy and its Carnation Ambulatory important. We do have those capa- from third-quarter 2020 revenues, Monitor, which was priced at $365 bilities.” corporate tenant or leaser. which included roughly $130 mil- per patch. In a statement announc- Hillrom has been focused on lion in one-time COVID-related ing the deal, Groetelaars said the buying high-growth businesses like sales. acquisition would provide “an at- Bardy that can increase total reve- More telling will be results from tractive recurring, high-growth nue by 1 or 2 percentage points, an- Hillrom’s newer business lines. revenue stream and gross margin alysts say. Strong sales of advanced products pro le.” Even though Bardy is a relative- and services have helped drive Hill- at was before a Medicare con- ly small deal overall, it “could be a rom shares up 17 percent to $115.20 tractor cut the price it pays for the headwind now if they have to move year to date. Groetelaars has pre- device by 64 percent. e cut sent forward with it,” Matson says. dicted more of the same. Bardy’s rst-quarter revenue down Still, Hillrom’s connected-care “Despite a tougher comparison 11 percent. portfolio is on track to represent in our third quarter, we are on track Hillrom went to court, arguing roughly 30 percent of total revenue to exceed our objective of $620 mil- the change constitutes a “material this year, or nearly $1 billion, Groet- lion in new-product revenue for the adverse e ect,” entitling it to cancel elaars says, noting that devices that scal year,” Groetelaars said during the acquisition. e the latest earnings call, noting that judge disagreed, nd- “ HILLROM IS ATTEMPTING TO the company planned to launch 10 ing the cut doesn’t new products in 2021. have a “materially IMPROVE AND SUSTAIN A MORE Revenue from new products, like disproportionate im- a digital device that helps clinicians pact” on the compa- DURABLE LEVEL OF REVENUE GROWTH.” diagnose ear and eye conditions, ny compared with its Matthew Mishan, KeyBanc Capital Markets grew 20 percent to $160 million rivals. in the second quarter. Connected Additionally, Hillrom acknowl- collect and transmit patient data care and digital products account edged the reimbursement rate risk are the company’s fastest-growing for nearly one-third of the business when it structured the deal to in- products. today, Groetelaars says in an inter- clude a risk-shifting earnout with Growth stalled during the early view. a lower upfront purchase price, days of the pandemic as doctors is isn’t the rst time Hill- down from an earlier o er of $450 postponed nonemergency vis- rom, which spun o casket-maker million, the ruling said. its and people avoided medical Hillenbrand in 2008, has reinvent- “ ere’s going to be a lot of lob- care, but the segment is recovering ed itself. e company started to bying by (extended home-care quickly. shift beyond hospital equipment monitoring) companies to try and “Now we’re re ning our strate- when it bought point-of-care diag- get the payment back up, but that’s gy and making sure we’re clearly nostics company Welch Allyn for $2 a couple years away and it’s unclear pointed to where the public is go- billion in 2015. It looked to further if it will happen,” says Needham an- ing in the future and that we’re po- Connect with Claudia Hippel at shed its reputation as a health care alyst Mike Matson. sitioned to come out even stronger [email protected] for more information. furniture maker in 2019 when it di- Groetelaars says the Medicare than we came into the pandem- vested a host of “noncore assets,” reimbursement change, which isn’t ic,” Groetelaars says.
P020_CCB_20210726.indd 20 7/23/21 4:11 PM Caption CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 21 Joe Mansueto is keeping his feet firmly planted in Chicago MANSUETO from Page 1 are making a sizable imprint on the up Foxtrot Market, a chain of up- them make those projects happen,” Chicago landscape. And he’s doing scale convenience stores that just he says. Chicago-based investment re- it all while some investors in real announced plans for a national search giant Morningstar has had estate and other sectors are wary expansion; Lisle-based medical BACKSEAT EXEC no shortage of new ventures to of channeling money into a city device maker Endotronix; and Mansueto has spent far less time sharpen his focus, becoming an of- wrestling with long-standing issues Tovala, a Chicago-based maker of focusing on Morningstar since be- ce and apartment landlord, a pro- of violence and scal instability as smart ovens that’s now regularly coming executive chairman and fessional sports team owner, a ho- well as new challenges brought on advertising on TV. handing the chief executive reins to telier and a community developer, by COVID-19. Mansueto says he’s like other in- Kunal Kapoor in 2017, but he stress- among other new business roles. “I love Chicago. It’s a world-class vestors who are concerned about es that he hasn’t lost his pull at the Not even a global health crisis has city,” Mansueto says while sipping the weight of local property taxes, company he started out of his living slowed down his recent streak of green tea during a wide-ranging in- underfunded pensions, gun vio- room in 1984. high-pro le investments. Since buy- terview with Crain’s at the Wrigley lence and a perpetually unsettled Mansueto remains the rm’s ing the Chicago Fire FC—the city’s Building, a city landmark he bought public school system, but he calls largest shareholder, with nearly 45
Major League Soccer franchise— in 2018 for $255 million. “I think it’s his recent real estate plays a “long- percent of its common stock, and FC FIRE CHICAGO in 2019, Mansueto has purchased got a bright future, despite some of term bet on Chicago” and hopes trades emails multiple times each Joe Mansueto had a turbulent opening with the Waldorf Astoria Chicago hotel, the challenges.” that other well-heeled Chicagoans week with his successor, “who is the Fire, but he says he’s in it for the long run. bankrolled a $50 million o ce re- will follow his lead in helping re- doing an even better job than I
JOHN R. BOEHM R. JOHN development in Humboldt Park and PAID UP vive both downtown properties that was doing,” he says. e compa- for the logo selection, revealed a recently unveiled a plan to build a Mansueto has backed up that have been stung by the crisis and ny’s stock price soared to an all- new iteration of the emblem that roughly $90 million training com- sentiment with his wallet be- those in heavily disinvested com- time high in April, helping push has been far better received and plex and headquarters for the soc- fore. In 2011, he was part of a munities. Mansueto’s net worth north of $5 says he didn’t anticipate “just how cer club on 32 acres in the Belmont group of deep-pocketed investors “ ese neighborhoods over time billion, according to a recent Forbes deeply a sports team connects with Cragin neighborhood. His latest who helped rescue the Chicago will get a lift up, and hopefully this estimate. a city and how passionate fans are pursuit, though further from home, Sun-Times from nancial ruin. investment will be a catalyst for His rst 22 months owning the about a sports club.” is just as attention-grabbing: He’s And since the pandemic upended making that come on a faster time- Fire, meanwhile, have been far Mansueto will have another kicking tires on buying another soc- the economy 16 months ago, Man- table,” he says. more turbulent. e pandemic be- chance to make a highly visible cer club overseas that could serve as sueto has continued to plow money Few high-net-worth investors gan just eight days before the club brand move for the team again after into Chicago-centric projects. have been willing to place big wa- was scheduled to make a highly this season when its jersey sponsor- He paid nearly $55 million in gers on such projects in local neigh- anticipated return to Soldier Field, ship deal with Motorola Mobility “I THINK CHICAGO’S GOT A November for the Waldorf, borhoods, which is what has made the centerpiece of Mansueto’s e ort expires. And though he describes which was half the price it sold Mansueto stand out as a partner, to relaunch the Fire brand in the his exploration of purchasing a for- BRIGHT FUTURE, DESPITE for ve years before but a bold says IBT Principal Gary Pachucki. city after 14 seasons playing home eign soccer club as nascent, Man- SOME OF THE CHALLENGES.” wager on a sector that could Mansueto was the rst prospective games in suburban Bridgeview. sueto says he’s received a number be years away from returning nancial backer for the Terminal to Gov. J.B. Pritzker called Mansueto of overtures from franchises in Eu- Joe Mansueto, Morningstar founder to pre-pandemic levels of de- walk the gritty property and not dis- directly to ask him to postpone the rope looking for new investors and mand, if it ever does. Mansue- miss it as too risky or overhaul his home opener, thwarting months envisions an overseas a liate he an a liate for the Fire, a farm team to took another gamble that same plan, he says. of marketing and buildup to what could “integrate” with the Fire to of sorts to help develop future MLS month when he and Chicago-based “A lot of times when you work was likely to be a sell-out crowd. “It swap players during the season. talent. developer IBT Group kicked o with partners, especially partners was the right thing to do,” Mansueto Whether or not that pans out, e mix of ventures amounts to a work at the Terminal in Humboldt that are really well-heeled, and says. e team eventually debuted he’s not sweating the possibility semiretirement that has been any- Park, a transformation of a dilapi- they (believe) they are the smart- at an empty lakefront stadium in of making mistakes as he nds his thing but quiet for the relatively un- dated, 250,000-square-foot cluster est guys in the room,” says Pachuc- August. footing as an owner. assuming 64-year-old. of former locomotive headlamp ki, who describes Mansueto as a It also didn’t help that one of the “For me, this is a project for the Mansueto is traversing a path that factory buildings and warehouses “quiet” personality with an under- club’s rst moves under his own- long run. I don’t really view this as few of his contemporaries with 10 into creative o ce space in a wholly stated mission “to do some good” ership—tweaking the name of the (an investment) that I’m looking to gures of net worth have followed, unproven location for companies. in Chicago. team and overhauling its logo— buy and sell. It’s something I want plowing large sums of his wealth His other local investments are “Joe is generally aligning with didn’t go over well with its most to own forever,” he says. “You ap- into not only charitable e orts but as varied as his interests, includ- people that he has con dence in dedicated fans. Mansueto, who has proach things di erently if that’s high-pro le business ventures that ing major stakes in Chicago start- what their vision is, and he’s letting said publicly he deserves the blame the mindset.” Local real estate agencies join national firm to keep up with digital demands
COMPASS from Page 3 rm’s founder, calls the arrange- “We didn’t have the capital to of small rms; teams of agents Reedy is president of 90-agent ment a “strategic alliance.” With- have engineers on sta to be con- switched from other brokerages LW Reedy Real Estate, a still-in- essentially, a tech company that out selling their rm, Andersen stantly improving the search en- to Compass, and new-to-the-busi- dependent brokerage founded in does real estate. said, they connected to “an incred- gines,” said Joanne Hudson, who ness agents signed on as well. 1951 by his grandfather, who was “ ey have a 50- or 100-per- ible marketing and technology folded her 18-year-old Winnetka e boutique rms that come also named Larry. son marketing team” at Compass, platform.” rm into Compass in 2018. “You over, Broude said, “are attracted Reedy said people often drop by Gagliardo said. “I had one person Using Compass’ purpose-built can’t be a mom-and-pop shop to Compass’ technology package, the rm’s o ce on York Road in LIFT OR QUOTE doing marketing.” By folding into technology portal, Andersen said, anymore because the demand yet they wanted the opportunity downtown Elmhurst to show o Name & title Compass, he said, “We got acces- an agent who uploads photos of for information and the demand to hold on to their very well known an old yellow LW Reedy giveaway sibility to all their marketing, all her newest listing can quickly cre- for speed has increased. In order local identity.” T-shirt they found in a box or to their technology.” ate branded sales brochures and to keep your clients satis ed, you reminisce about buying a house Homebuyers long ago switched ads. e portal also includes a have to be state-of-the-art.” COACHING in Elmhurst 40 years ago with the from shopping for homes via the comprehensive CRM, or customer For Compass, picking up bou- Along with easily assembled help of an LW Reedy agent. plush seats of a local real estate relationship management system, tique rms is a way to grow its marketing materials and promo- at connection, he said, is agent’s sedan to conducting much for every aspect of relationships business with “established play- tion of their listings, agents at “consistency, familiarity.” of their search online, and the in- with home buyers and sellers. ers who are well-known names Compass can get coaching and Reedy said he’s trying to keep dustry evolved rapidly in the same in their communities,” said Fran advice at almost any hour on the rm up to date on technolo- direction. Compass set out to capi- LEGACY BRANDING Broude, a longtime Chicago real how to push a home out on social gy, and “it hasn’t been without a talize on the change, and rms like By retaining a name that has estate brokerage executive who media or how best to advertise fair amount of research.” He uses Gagliardo Realty Associates are more than a century of equity built joined Compass in August to drive a home’s particular amenities, one rm for digital marketing, nding they have to choose wheth- up in the Lake Forest and Lake its growth in Chicago. Broude said. social media and other exposure er to ride along. Blu communities, Andersen said, Based on an industry tool called “It’s very compelling for them for home listings and another for Gagliardo was the second they hang onto their “legacy brand Broker Metrics, Compass reports, to be able to connect to that talent the LW Reedy website, where cli- deep-rooted suburban real estate as the local market experts.” in the rst half of 2021, it was sec- pool,” Broude said. ents can search for a listing or an rm to sign with Compass this Other suburban boutique agen- ond in market share in the Chica- Not all boutique firms are agent. spring. In May, the fourth-gen- cies that have joined Compass in- go-area real estate market, up from convinced. “Technology is very Independence runs in the Reedy eration family members running clude Smothers Group Realty in fth in 2020. important, but there’s also the family. Another boutique subur- Gri th, Grant & Lackie, found- La Grange in 2020 and the Hudson Compass, which went public in brand familiarity and the per- ban rm that has not a liated ed in Lake Forest in 1903, joined Co. in Winnetka in 2018. In the March, reported in July that it now sonal connections our agents with Compass is JW Reedy Realty Compass as the 27-member Grif- city, Compass acquired Conlon has about 1,400 agents in the Chi- are out there making,” said Lar- in Lombard, founded by a di er- th, Grant & Lackie Group. Christie’s International Real Estate cago area, up from about 860 in ry Reedy. “It’s an agent-driven ent branch of the Reedy family in Brad Andersen, whose grandfa- in 2018 and Property Consultants 2020—a 63 percent increase. e business, not a technology-driv- 1928 and now run by his grandson, ther’s uncle, John Gri th, was the Realty in 2020. growth was not all by acquisition en business.” John Reedy.
P021_CCB_20210726.indd 21 7/23/21 4:13 PM 22 JULY 26, 2021 • CRAIN’S CHICAGO BUSINESS Can Moto keep its stock price aloft while navigating multiple lines and markets?
MOTOROLA from Page 3 alyst at Northcoast Research in Motorola will play catch-up for Cleveland. He estimates about 40 the rest of the year. Brown told Axon Enterprise, the largest mak- percent of Motorola’s revenue is investors that Motorola expects er of body cameras, trades at 95 recurring, compared with rough- to bene t from the Biden admin- times its projected 2022 earnings. ly 30 percent before the Avigilon istration’s $1.9 trillion coronavi- Investors are buying into recov- deal. rus-relief program, the American ery of Motorola’s legacy business “ ey made a bet on video sur- Rescue Plan, which includes $350 and growth in new areas such as veillance with Avigilon, and it billion for state and local govern- video, which began three years was the right bet at the right time, ments and $170 billion for schools. ago with the $1 billion acquisition starting with Chinese competitors “Fixed video is likely the big- of Vancouver-based Avigilon. e getting banned in the U.S. and gest bene ciary of the American company has made three acquisi- U.K.,” Housum adds. “With the Rescue Plan,” Brown told inves- tions since then, adding new capa- bolt-on acquisitions like Open- tors when the company reported bilities. On July 13, Motorola said path, people see they’re in these rst-quarter results May 6. it would buy Openpath Security, nascent industries with great a California-based startup whose growth rates. I think you’re getting ADDED UPSIDE software is used to monitor and a little more trust from investors in Openpath could give Motorola control access to buildings, for an Greg Brown’s story.” additional upside in corporate, undisclosed price. Brown was named CEO in 2008, government and education mar-
e company has moved sev- the low point for Motorola when kets. “Our vision is video securi- ALAMY eral of its traditional public-safety the company’s misfortunes in the ty and access control are better Motorola Solutions’ revenue is rebounding after a COVID-induced slump. products, such as dispatch and cellphone business collided with together,” says John Kedzierski, the Great Reces- who leads the company’s video Latin America remain challeng- are no red ags, but “that’s a lot sion. e stock security and analytics business. ing. Motorola will have to keep of turnover. Is your bench deep “PEOPLE ARE CATCHING ON TO THE slumped as low “ ere’s a lot of doors that need to expanding the customer base for enough?” RECURRING REVENUE SIDE OF THE STORY.” as $10.38 on a be access-controlled. Security is a Avigilon’s xed video equipment In more than a decade at the split-adjusted ba- need-to-have, not a nice-to-have.” and ramp up sales of body camer- helm, Brown has replaced mem- Keith Housum, analyst, Northcoast Research sis before he spun But Motorola will have to con- as, taking share from Axon, which bers of his leadership team several o the phone unit tend with supply-chain issues dominates the space. times. records management, to a cloud- in 2011, keeping the public-safety for semiconductors that resulted With Motorola’s products per- DiPalma says he’s encouraged so based o ering in which customers business. from the coronavirus pandem- forming well, analysts are paying far. “We think the successful launch pay Motorola a monthly fee to host In recent years, he’s focused ic. Motorola said shortages re- close attention to personnel. In of 911 call management in the and manage the technology for on adding software and services, sulted in lower sales of some of the past year, three top executives cloud following Mark’s departure them. It also started selling body which now account for 43 per- its public-safety equipment in have announced plans to retire: and other recent new products will cameras as a service, tied to its ev- cent of revenue. Brown has prom- the rst quarter. A resurgence in Gino Bonanotte, chief nancial enable Motorola to take advantage idence-management software. ised Wall Street that software and COVID because of a new vari- ocer; Andrew Sinclair, senior of improved government spending “People are catching on to the services will grow 20 percent this ant heightens concerns wheth- vice president for software; and conditions for public-safety solu- recurring-revenue side of the sto- year, but growth was just 13 per- er supply-chain constraints will Kelly Mark, who oversees software tions and help the company stave ry,” says Keith Housum, an an- cent in the rst quarter. ease. Sales in parts of Asia and and services. Housum says there o competition.”
YOUR VOICE. OUR AUDIENCE.
Join a Select Group of Thought Leaders Our print and digital written roundtable features provide a unique opportunity to present Crain’s audience with compelling insights around the most important business issues. Secure your spot at an upcoming Roundtable and take a seat at the table with other thought leaders in your industry.
Upcoming Roundtable Topics: Q M&A Trends Q Wealth Management: Strategies for Self Employed Q Labor & Employment Q Healthcare: Benets of High Performing Networks Q Future of Work
To nd out about full bene ts, rates and how to reserve your spot, contact Sarah Chow at [email protected] or (312) 280-3172
P022-CCB_20210726.indd 22 7/23/21 4:11 PM CRAIN’S CHICAGO BUSINESS • JULY 26, 2021 23 Views highlight $6 million Lincoln Park condo The two-level unit has four east-facing balconies that overlook the green park; there’s also a big terrace on the west side BY DENNIS RODKIN WHEN ALL OF LINCOLN PARK is stretched out below your windows, the con- do interior needs to “look just as good,” Stuart Kipnes said. When he bought this unit on two oors of a mid-rise in 2005, it wasn’t quite up to the comparison, he said. Nicely done when it was new ve years earlier, it was nev- ertheless “ at, not a lot of texture.” Kipnes, who was in the options brokerage business at the time, had the entire 6,000-square-foot inte- rior and much of its 2,000 square feet of outdoor space redone. e work included sleek wall paneling that in some rooms, including the living room, morphs into built-in shelving, a complete kitchen rehab and wrapping a contemporary see- through staircase with more tradi- tional wood-paneled walls. It resulted in an elegant, time- less look strong enough to hold its own against panoramic park and lake views but restrained enough
to provide the feeling of calm pres- PHOTOS STUDIOS VHT ence that Kipnes wanted as a hav- en from his busy workdays. e condominium, on the fth and sixth oors of a Lincoln Park West building that was built in 2000, “feels more like a house than any condo I’ve ever lived in,” Kip- nis said. at’s in part because of the multistory layout. It’s also be- cause the condo has a “front yard,” four balconies on the building’s east-facing facade, and a “back- yard,” a terrace on the west side that includes room for cooking, dining and lounging in either sun or shade. Kipnes said the space, where he often hosted family and oth- er groups, is now more than he needs. He’s putting the ve-bed- room condo on the market priced at a little under $6 million. e list- ing agent is Joanne Nemerovski of Compass.
MORE PHOTOS ONLINE: ChicagoBusiness.com/residential-real-estate
HOW TO CONTACT CRAIN’S CHICAGO BUSINESS Vol. 44, No. 30 – Crain’s Chicago Business (ISSN 0149-6956) is published weekly, except for the last week in December, at 150 N. Michigan Ave., Chicago, EDITORIAL ...... 312 649 5200 CLASSIFIED ...... 312 659 0076 IL 60601-3806. $3.50 a copy, $169 a year. Outside the United States, add $50 a year for surface mail. Periodicals postage paid at Chicago, Ill. Postmaster: CUSTOMER SERVICE ...... 877 812 1590 REPRINTS ...... 212 210 0707 Send address changes to Crain’s Chicago Business, PO Box 433282, Palm Coast, FL 32143-9688. Four weeks’ notice required for change of address. © Entire ADVERTISING ...... 312 649 5492 [email protected] contents copyright 2021 by Crain Communications Inc. All rights reserved.
P023_CCB_20210726.indd 23 7/23/21 2:50 PM THIRD MILLENNIUM GROUP SALUTES THE BROKERAGE COMMUNITY, OUR COLLEAGUES AND TENANTS WHO HAVE PERSEVERED DURING THE RECENT CHALLENGING TIMES.
THE FUTURE IS BRIGHT, IT IS HERE FOR US.
540 West Madison 300 South Riverside Plaza
New York: 212-557-4040 Florida: 561-995-7955 THIRD MILLENNIUM
GROUP [email protected]
tab doc.indd 1 21cb0304.pdf RunDate 7/26/21 FULL PAGE Color: 4/C 7/15/21 12:22 PM