PRICIEST HOMES A look at how the luxury home market shifted in

2020. PAGE 13 CHICAGOBUSINESS.COM | FEBRUARY 8, 2021 | $3.50 fpo Citadel’s risk: Prying open the black box Reddit-fueled court action Ken Gri n could force disclosure of closely guarded intel

BY STEVE DANIELS

All it takes is one judge. Citadel remains caught in the swirl of anger and confusion of which de es easy prediction. over the would-be Reddit revo- Chicago-based Citadel (the lution in stock investing. As both hedge fund) and Citadel Securi- a participant in the short selling ties (the market maker) are de- that newly minted day traders fendants in at least 20 lawsuits attempted to combat and pro t around the country so far—most from as well as the leading mar- of them purported class actions ket maker for the trading app seeking to recover large trad- many of them used, Ken Gri n’s ing losses incurred by investors investment empire is a starring player in the drama, the ending See CITADEL on Page 17

Janet Hayes AbbVie sheds light AP IMAGES AP on life after Humira 5th time’s a charm? CEO predicts 2 new drugs will mostly ll the gap BY STEPHANIE GOLDBERG Richard Gonzalez told an in- Crate & Barrel has had a revolving door of CEOs in the past decade, vestor conference that sales will AbbVie is nally o ering an- decline when Humira copycats with Janet Hayes the latest. Her challenge: Ushering the retailer into swers to questions investors invade the U.S. market in 2023, have been asking since the drug- rise modestly in 2024 and reach a new era. BY ALLY MAROTTI maker spun o from Abbott Lab- high-single-digit growth in 2025 oratories in 2012: How badly will and beyond. FOR THE FIRST 50 YEARS of Crate & Barrel’s existence, ence, allowing it to capitalize on increasing home the loss of patent protection for  e prediction of a rapid re- the retailer only had two CEOs. In the past decade, furnishing sales. But Hayes will face challenges as AbbVie’s top-selling drug hurt bound dispels some of the un- however, it has churned through ve. the economy recovers, and must steer Crate into a and how long will it take to re- certainty that has hovered over  e current chief executive, retail veteran Janet new era of retail. cover? AbbVie as it nears the end of a Hayes, was quietly hired at the Northbrook-based Gordon Segal, who co-founded the compa- For the rst time, AbbVie last long exclusivity period for its retailer six months ago. Will she have better luck ny with his wife, Carole, in 1962 and was CEO month gave detailed projections blockbuster drug. Humira sales than her predecessors? until 2008, says Hayes’ strong background in for revenue trends after Humi- peaked at $19.9 billion in 2018, Industry observers are optimistic. Crate & Barrel ra loses protection from gener- entered the pandemic with a strong online pres- See CRATE on Page 17 ic competition in the U.S. CEO See ABBVIE on Page 23

NEWSPAPER l VOL. 44, NO. 6 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED GREG HINZ THE TAKEAWAY Some biz leaders The new head of the are starting to scout Chicago Association for an alternative to of Realtors honors Lightfoot. PAGE 2 her son’s life. PAGE 6 2 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS A new mayor? Some biz leaders are talking.

fter a brutal year in which industries are unhappy. ed, “ at doesn’t mean they agree Mayor Lori Lightfoot has “Condence in (Lightfoot’s) abili- with every decision she’s made.” Aseemed to stumble from ty to get things done has gone down e formal response from Light- crisis to crisis, an open debate has in the past year . . . signicantly,” foot’s political oce: “As she man- GREG HINZ begun in Chicago’s business com- says one top business leader who, ages and leads our city through a munity about whether to stick by like most others interviewed, de- series of unprecedented crises, the ON POLITICS the city’s embattled chief executive clines to be named for fear of hurt- mayor remains focused on the job as her presumed re-election bid ing his working relationship with to which she was elected. Politics nears—or instead seek someone the mayor. “It just doesn’t seem like will come later.” her sta, boost her fundraising— anything of the sort. It’s complete new. anything is working.” e crises indeed have been the mayor’s two campaign commit- nonsense.” With the election to be held “ ere is increased grumbling,” plentiful, from the COVID-19 tees pulled in less than $1 million But despite that and similar deni- two years from this month, active says another. “ ere is increased pandemic—clearly not Lightfoot’s last year—and above all “work to als, insiders with rsthand knowl- eorts to eld a business-friendly wondering about who (else) will fault—and its social and economic nd a common ground” with oth- edge tell me some business gures Lightfoot challenger so far are run.” fallout to a continuing spike in ers, that source says. “She seems to have begun to meet and reach out limited, and mostly concentrated Lightfoot political and govern- high-prole murder and carjack- want to ght all of the time.” to others. in the real-estate development and mental aides are pushing back hard ing cases, the plundering of North e names of several potential “I’ve been surprised about the on that narrative. Michigan Avenue, a looming Chi- contenders have surfaced, includ- level of interest in the development Among those I heard cago teachers strike, city scal woes ing businessman and former Rahm and restaurant community,” says THERE’S LITTLE DOUBT PEOPLE IN A from—unprompted— and continued discord with alder- Emanuel associate Michael Sacks, one person who has been contact- RANGE OF INDUSTRIES ARE UNHAPPY. was Mellody Hobson, men, with Lightfoot’s City Council county Commissioner Bridget ed. Restaurateurs are upset about co-CEO of Ariel Invest- oor leader, Ald. Gil Villegas, 36th, Gainer, and Alds. Villegas and Brian relatively tight reopening rules in restaurant industries. ments and vice chair of World Busi- recently leaving that post. Hopkins, 2nd. All tell me they’re not the city and the slow return of big “It’s in the initial phase,” says one ness Chicago, the city’s corporate Even people in the corporate running. For instance, Sacks, who trade shows. Some developers source familiar with what’s occur- recruitment arm. community who are backing Light- has a large interest in the Chicago say that despite good intentions, ring. “ ey’re starting to make it “ e people I talk to say they foot want to see change. Sun-Times, says in a statement: “I permitting and decision-making is clear that, if someone is interested know how hard (Lightfoot’s) job is “I’ve told my folks, don’t give am only interested in helping the going slower than under Emanuel. in running, there’s probably sup- now, and they understand her deci- up on Lori, ’cause you don’t know mayor in this challenging period ose business people “don’t port for them.” sion-making. ey feel like they’re what you’re going to get,” says one, and recently supported her nan- have a candidate,” says one elected In the meantime, there’s little being heard,” Hobson said in a fearing a sharp move to the political cially. I am unaware of any group ocial who turned down a request doubt people in a broad range of phone call. But even Hobson add- left. But Lightfoot needs to widen or groups or meetings to discuss to run. “ ey’re looking.” We’ll soon see if these three are serious about fair maps eadlines are serious busi- But don’t be distracted by such maps. e delays in census data ness. You don’t need to be a rhetoric. Instead, keep your eyes on heightens the urgency for Welch, Djournalist to know that. what really matters. e state’s three Harmon and Pritzker to put weight And one deadline in particular— key public ocials in the mapmak- behind their fair-mapping words. DAVID GREISING Dec. 31—was meant to have mean- ing process—new House Speaker eir best way forward would be ON GOVERNMENT ing. at’s the date by which the Chris Welch, Senate President Don to pass and sign a bill to establish an U.S. Census Bureau was required to Harmon and Gov. J.B. Pritzker—all independent public commission to tell the states how many residents say they oppose gerrymandered draw the maps. commit that districts will be drawn say he will consider signing a map should live in each congressional maps. What they do over the next If they won’t go as far as they without regard to where incum- only if it was drawn according to district. several months will tell us if they should, they could at least make bents live. While such an idea those two minimum standards. From that simple data point, really mean it. progress by committing to meaning- may be viewed by old Springeld the entire machinery of electoral If Pritzker, Harmon and Welch ful public hearings, with follow-up hands as a non-starter, it would be Crain’s contribu- mapmaking was supposed to jump are serious, they’ll need to change a hearings after the maps are drawn, a most eective tool in slaying the tor David Greising into motion. political system designed to thwart so the public can hold the mapmak- incumbents-rst approach that has is president of the But it didn’t happen this time. their fair-maps intentions. ers responsible for their work. distorted past maps. investigative watch- COVID-19 delayed the census Illinois is a “trifecta state,” where e legislative leaders should e governor, for his part, could dog Better Government Association. count. e rst batch of numbers one party controls both houses of won’t arrive until April, with more the Legislature and the governor’s granular data arriving even later. oce, too. For Democratic incum- If this were the world of our civics bents, this has turned the mapmak- textbooks, the delay in data would ing process into a Rube Goldberg be a problem. Public-minded perpetual re-election machine. ocials doing their best to draw fair Just how badly gerrymandered maps, designed to best represent are Illinois’ maps? In the elections the will of the voters, would be hard since the 2011 maps were drawn, At Wintrust, your banker knows you. pressed to absorb the late-arriving more than 95 percent of incum- data and meet the state’s constitu- bents seeking re-election were re- tional deadline of providing a map turned to oce. From 2012 to 2016, We understand you need by June 30 this year. more than half the incumbents in But this is Illinois, one of many the General Assembly faced no states across the country where general election contest at all. someone to rely on. mapmaking does not work that way It does not need to be this way. because fair representation is not When my organization, the Better the point of the exercise. Government Association, commis- In those states the parties in sioned a pair of fair maps, we point- power use mapmaking, a ritual ed the way toward what can happen that plays out once each decade, to if maps are not drawn by partisans. protect or even expand their hold Placed side by side with the current on power. In Illinois, the dominant ones, the BGA maps showed that Democratic Party does it; in Wis- fair-mapping practices produced consin, the Republicans do. more compact, geographically I was afraid that the loss of income And the U.S. Supreme Court has sensible boundaries. e districts due to this pandemic would be the end bowed out of any eort to address were more competitive, and they the problem, recently declaring it safeguarded representation for of my family owned business started by a political issue that state govern- minorities and other communities my parents in 1954. My employees and Start the conversation at ments should address. of interest. I have been given new hope. So, yes, the lack of timely data will e biggest change was that in- wintrust.com/meetus. make the process more dicult. cumbency was no longer protected: – Phil Stumme, A to Z Rentals ere may even be discussion of Voters would choose their represen- temporary xes and adjustments tatives, not the other way around that need to be made, by necessity, under the current system. Banking products provided by Wintrust Financial Corp. banks. because of the delay. ere still is hope for the 2021

P002_CCB_20210208.indd 2 2/5/21 2:12 PM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 3 Virus Ahead caption here please targets another Boeing business CEO warns COVID relief could squeeze defense spending

BY JOHN PLETZ After crippling Boeing’s com- mercial jet sales, the coronavirus now threatens its other major business. CEO David Calhoun is warning that virus relief e orts are likely to siphon government dollars away from defense spending, which would hurt Boeing operations that make  ghter jets, tankers, helicop- ters and other military equipment. COVID ERA’S NEW MATH: “ e scale of government spend- ing on COVID-19 response has the potential to add pressure to glob- al defense spending in the years ahead,” Calhoun told analysts Jan. 27 when Boeing reported its worst CALCULATING loss ever, $11.9 billion for 2020. Boeing counts on its defense unit to o set cyclical downturns in commercial aviation, and vice OFFICE SPACE NEEDS versa. Now it faces the worrisome possibility that both businesses will be declining at the same time. ZAC OSGOOD ZAC Defense has provided much- needed stability during the tailspin Taking stock of where employees want—and need—to work BY DANNY ECKER “WHEN WE DID that has engulfed the company for SURVEYS, VERY FEW the past 24 months, starting with WINNING OVER YOUNG, URBAN DWELLING talent in gling to both take time away from work and main- the 737 Max crisis and followed by a tight labor market drove many companies to tain personal connections to company culture. PEOPLE SAID ‘I COVID-19. Defense accounted for open downtown o ces over the past decade.  e Cushman report suggests the new normal 45 percent of Boeing’s $58.2 bil- Now those same companies are trying to  gure for many workers will be a “total workplace eco- DON’T PLAN TO EVER lion in revenue last year, roughly out where and how employees want to work in a system” that combines an employee’s home, of- double the share two years earlier. post-COVID-19 world.  ce and “third places” such as cafes and co-work- RETURN TO THE Still, defense hasn’t generated With vaccine distribution gaining traction, ing. OFFICE.’ . . .SOME anywhere near the growth need- business leaders pondering their future work-  e challenge for employers pondering future ed to make up for lost commercial space needs are taking stock of where their em- real estate needs: making long-term decisions EMPLOYEES ARE revenue. Sales of military aircraft, ployees live and who should be in an o ce every based on what they hope will be short-term cir- weapons and space equipment day. cumstances. But the feedback workers are pro- SAYING THAT THERE’S and services have been  at the A global survey of more than 40,000 people viding now could o er some clues about the best A DRAW TO HAVING past three years at about $26 bil- in the fall by real estate brokerage Cushman & way forward. lion, while commercial jet sales Wake eld showed 73 percent of respondents ex- Crain’s spoke to several companies about what A PLACE TO GO.” plunged by $41.3 billion. pect their companies to o er “ exible working they’ve learned from their workers so far. Rival defense contractors, practices” moving forward. But it also found that Jace Mouse, CEO, PerkSpot workers—particularly younger ones—were strug- See OFFICE SPACE on Page 21 See BOEING on Page 20 Springfield gets ready for reform iticians enrich themselves de- Tough proposals will test leaders’ commitment to eliminating corruption pends on how far leaders like for four decades, was forced to new Speaker Chris Welch are BY A.D. QUIG target-rich environment for fed- eral prosecutors. A widening step down as House speaker as willing to go. Spring eld lawmakers have dragnet snared Sen. Tom Cul- associates faced federal charges. Reformers hope to “create a new speaker, a clean legisla- lerton, former Rep. Luis Arroyo He hasn’t been charged with a culture of accountability in- tive slate and lots of un nished and former Sens. Martin Sando- wrongdoing. stead of a culture of impunity,” business. Near the top of the val and Terry Link, whose cases Good-government advocates says Alisa Kaplan, executive list: policing themselves. are still winding through courts. say the crackdown has awak- director of good-govern- On the table are proposed Sandoval and Link have both ened lawmakers to the need ment group Reform for Illi- ethics reforms aimed at curb- pleaded guilty. Cullerton and for change. But the chances of nois. “Ideally, you get to these ing practices that have made Arroyo pleaded not guilty. real reform that puts a stop to problems before they escalate

Illinois a byword for political Even Michael Madigan, the the methods—many of them WTTW NEWS corruption and Spring eld a dominant force in state politics perfectly legal—by which pol- See SPRINGFIELD on Page 22 Illinois House Speaker Chris Welch

P003_CCB_20210208.indd 3 2/5/21 4:34 PM 4 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS CHICAGO COMES BACK JOE CAHILL ON BUSINESS What will Mondelez do with all that cash? Dirk Van de Put’s appetite for term growth issues that plagued acquisitions is growing as cash Mondelez and other traditional piles up at Mondelez Interna- packaged-foods companies tional. before the pandemic. Sluggish- e giant snack-maker had ness may return when vaccines $3.6 billion in cash as of Dec. nally tame the virus, people 31, triple the amount it had a start eating more meals outside year earlier. Cash is pouring in the home again and grocery as consumers riding out the sales slip.

pandemic at home rediscover “ e robust growth rates are UNSPLASH VIA LOMIBAO M. JORDAN Oreos, Ritz crackers and other unlikely to persist” post-COVID, childhood favorites. Chica- warns analyst Erin Lash of go-based Mondelez is gen- Morningstar. erating even more cash from Concerns about future growth selling o its stakes in ancillary already weigh heavily on pack- Chicago can rebuild as a businesses to focus on cookies aged-foods shares. Mondelez’s and chocolate. stock is down 5 percent this year. “Last year, it was a remarkable Van de Put is counting on year in terms of cash ow,” CFO innovation, marketing and ex- global innovation capital Luca Zaramella told an inves- panded distribution to generate tor conference in December. much of the momentum Monde- “Hopefully this year we will do a lez will need over the long term. The city has an ambitious recovery agenda. World Business Chicago’s Abin Kuriakose little bit better than last year.” Feeding acquired product lines tells how that will accelerate economic opportunity. Naturally, folks are starting into the company’s vast network to wonder what Mondelez will of retailers also could turbo- BY EMILY DRAKE AND TODD CONNOR recently published Recovery Task do with all that cash. Zaramella charge those smaller brands. Force shares more. said acquisitions will be the Still, the rising cash pile gives Chicago Comes Back is a weekly series on ChicagoBusiness.com pro- No. 2 priority, after internal Van de Put plenty of ammo to viding leadership insights to help your business move forward, written by TC: It’s been interesting to hold up investment and before share hunt bigger buyouts. Along with leadership consultants Emily Drake and Todd Connor. inclusivity alongside everything buybacks. the $3.6 billion cash reserve, Drake and Connor facilitate Crain’s Leadership Academy. Drake is having changed in terms of how “ at is an area where we are Mondelez has a $7 billion a licensed therapist, owner of the Collective Academy and a leadership we work. We’re adapting to the vir- potentially going to be more ac- untapped credit line, and stock coach. Connor is the founder of Bunker Labs and the Collective Academy tual space, but we’re also exhaust- tive,” he said. “We are scanning worth a combined $8 billion in and is also a leadership consultant. ed by it. e Chicago Venture Sum- beverage makers Keurig Check out previous installments at ChicagoBusiness.com/comesback. mit is a keystone event for WBC VAN DE PUT MAY FEEL PRESSURE Dr Pepper and JDE that required rethinking, of course, Peet’s. Mondelez has Chicago has the opportunity to we’re driven by economic devel- but while we go virtual with expe- TO PURSUE A MEGADEAL. been selling those shares become a global center for inno- opment-focused programs, not riences, are there new practices for as it focuses on cookies vation in a post-pandemic world. empty mandates. We actively en- how we transact and network as a lot of targets.” and chocolate, and the proceeds How does the city’s ambitious gage the local ecosystem to build entrepreneurs and investors that Which raises another ques- could be used for deals. recovery agenda play into that? consensus to meet the needs of you expect to stick or evolve? tion: what kind of acquisitions? “ e company might use that We talk to World Business Chica- our local startup and entrepre- Since succeeding Irene Ros- liquidity for a large-scale trans- go Executive Vice President Abin neurial community. AK: Virtual fatigue is real. e pan- enfeld in 2017, Van de Put has action,” Bloomberg Intelligence Kuriakose. demic forced us to postpone the opted for smaller deals that analyst Hoai Ngo wrote Feb. 3. EMILY DRAKE: We talk a lot in the summit last year, but while that’s expand Mondelez’s cookie and When asked at the investor TODD CONNOR: As we enter the column about how our emotional true, so, too, is how COVID-19 chocolate franchises into fast- conference, Van de Put left the second year of a new normal, it and mental health—i.e., our abili- broke investors’ old habits: Cold er-growing niches. ere’s been door open to large deals while seems everything that once was, ty to lead—depends on the health emails and Zoom meetings re- a focus on higher-end brands noting some obstacles. Pointing as it relates to leadership, is being of our relationships, and it seems placed in-person summits and and healthier fare. out that few large food compa- edited and improved, something I like WBC is walking the walk in networking dinners, making deal Van de Put paid $500 million nies sell only snacks, he said “we nd really inspiring. For us, here that regard. It’s a simple principle, ow faster and cheaper. at’s for Tate’s Bake Shop in 2018, are focused on deals in attractive in Chicago, World Business Chi- but hardly easy. We have talked why we launched Startup Chi- gaining a foothold in premium spaces” but added “that doesn’t cago is supported as the econom- quite a bit about the ways in which cago, WBC’s new venture attrac- cookies. A year later, the $284 mean the deals necessarily have ic development arm of the city. 2020 was a challenging year. Can tion and startup growth program. million acquisition of Perfect to be small. ere’s a lot of in- Certainly, the economy has gone you give us a sense as to Chicago’s In 2021, we’ll be leading a series Snacks gave Mondelez a pres- teresting companies around the through its own editing process, position in the U.S., or the world of targeted virtual engagements ence in protein bars. He raised world that are quite sizable.” to put it mildly. When we think for that matter, as it relates to your connecting local entrepreneurs the ante last year, paying $1.1 If growth slows signicantly about Chicago coming back, what charter of driving inclusive eco- who are fundraising this year with billion for Give & Go, which over the next year or so, Van role does the city have in support- nomic growth? investors across the Midwest and sells baked goods to grocery de Put may feel pressure to ing entrepreneurs and small busi- around the country. Even with all store bakeries. Last month, pursue a megadeal like those ness? AK: So much of what matters to a the adjustment, 2020 was a banner Mondelez acquired the shares that reshaped the industry in comeback is context, and Chica- year for Chicago, where local start- of vegan chocolate maker Hu the last decade. If so, he’d better ABIN KURIAKOSE: Fortunately, go is a city with historic strengths ups (got) nearly $3 billion in VC that it didn’t already own for an be careful. e siren song of there’s some clarity here, at least and a city rich in diversity and investment, an all-time high since undisclosed price. “transformative” M&A has led for the role of WBC: We drive in- industry. For starters, we have we started recording the data. A Mondelez spokesman many CEOs astray, including his clusive growth and opportunity the most diverse economy in the conrms a preference for predecessor. Rosenfeld formed for entrepreneurs and their ven- country, abundant talent, strong ED: You’re giving us a lot to be “fast-growing bolt-on acqui- the company that became tures through our distinct and infrastructure assets, a global cor- optimistic about, Abin. Any nal sitions in the premium and Mondelez in the $19 billion impactful programs and initia- porate base, inspiring entrepre- thoughts on how WBC will sustain well-being areas, in segments merger of Kraft Foods with tives. More good news is we have neurs, innovative startups and a this ambitious charter? To sup- adjacent to snacking, and where British candymaker Cadbury, a model that works, especially central location. All of these attri- port economic growth and posi- we see opportunities in high- then jettisoned the Kraft grocery through ChicagoNext—WBC’s butes and assets have proven vital tion Chicago as a leading global growth international markets to businesses in a 2012 breakup. tech and innovation initiative, to our region’s recovery. We also city? close gaps in our portfolio.” Despite a stable of well- which I lead—where we’ve grown stand out because of our leader- Strategically sensible, the known brands, Mondelez never our own portfolio to include ag- ship. As our nation faced a long, AK: I know it’s cliche, but we’re all deals are nonetheless too small delivered the outsize growth ships like Startup Chicago, the overdue reckoning last year with in this together. e work we do at to drive growth at a company rates Rosenfeld promised. at’s Chicago Venture Summit, ink- the gravity of systemic racism, it’s WBC is grounded in that mission. with $26.6 billion in annual rev- something for Van de Put to Chicago and the Blackstone In- only reinforced our charter: Ra- If you are passionate about seeing enue. COVID-19 has provided contemplate as he decides how clusive Entrepreneurship Chal- cial equity must and will be the Chicago as a leading global city temporary relief from the long- to spend all that cash. lenge. We’re eective through cornerstone of any path to inclu- for technology and innovation, clarity and repeatability, because sive growth for our city. e city’s we’re ready to hear from you.

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21cb0053.pdf RunDate 2/8/21 FULL PAGE Color: 4/C 6 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS THE TAKEAWAY THE LUXURY COLLECTION: WINTER PORTFOLIO Nykea Pippion McGri Advertising Section Pippion McGriff in October became the first Black woman to head the Chicago Association of Realtors in its 137-year history. Pippion McGriff, who lives in Woodlawn, was a real estate agent at Dream Town for 15 years. She’s now Coldwell Banker’s manager of brokerage services in the Gold Coast. She declines to give us her age. By Dennis Rodkin

Welcome to >

You’re the mother of two sons, You lost Xavier to gun whose relationship you’ve said violence in 2017, in what is inspirational. was believed to be a Xavier and Artie were 10 years robbery of his cellphone. apart, but they were inseparable. You’ve said he inspired Artie was about 18 months when you to go after leader- we discovered he has autism. Xavier > ship roles. ISSUE 35 | JANUARY/FEBRUARY 2021 was the most amazing big brother. Xavier (who was in Ameri- He became Artie’s protector, Artie’s Corps, working with disad- What is your luxury? Discover friend, Artie’s go-to person. Xavier vantaged youth in Lawndale) the market’s latest o erings in was my role model in how patient was making our all new digital magazine, a he was with Artie. an impact refreshing showcase of the with Artie Chicago area’s fi nest residences. and with stu- dents. They would write him Explore the latest o erings at Six months after Xavier’s letters about his patience LuxuryCollectionMag.com death, you became the pres- helping them understand ident of the Women’s Council math. Fifth graders saying of Realtors Illinois. Following (he) had impacted their lives. that were roles at CAR that I was on committees, but culminated in you becoming < I wasn’t really involved (in the association’s president last service or leadership). A few fall. This was in part a tribute weeks before he was killed, to Xavier? I sort of ippantly told him I I absolutely had to make good on would get more involved. He my promise to him. In the Chicago said, “You absolutely need to.” real estate market, specically with larger brokerages, there are very few managing brokers who are women, and an even smaller number who are people of color. For many people of color who want to lead, they may only have the opportunity if they open their own brokerage. As I stepped into this role for Coldwell Banker Realty, it was important to me to be surrounded by a leadership team who support a diverse culture and is collaborative. >

How have you honored Xavier during your CAR presidency? Through the CAR Foundation, I founded the Xavier O. Joy Higher Education Scholarship, which provides an opportunity for young men in our commu- nities to attend Morehouse College. Xavier (who attended UNDER NOMINATE NOW Morehouse for a year) lived the You or someone you know could be Morehouse mission, which is to FORTY develop men with disciplined minds CRAIN’S CHICAGO BUSINESS 2021 in the next Crain’s 40 Under 40 class who will lead lives of leadership and service. ChicagoBusiness.com/40snoms >

And there’s more coming, you’ve said. The launch of the association’s lead- ership development hub, which will focus on leaders of color when it is launched, also speaks to the sense of community and leadership development that Xavier was passionate about. He was a steward of his community and communities of color who are often overlooked.

P006_CCB_20210208.indd 6 2/5/21 11:57 AM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 7 Some bright spots for shops weathering the pandemic In North Lawndale, business owners position themselves to survive—including one that opened just days before the shutdown last spring

BY WENDELL HUTSON happened last summer damaged nearly every business around here e North Lawndale communi- except mine. Had my shop been ty on the West Side is not known damaged, I would have been on for having a robust economy. But the hook for repairs since I had no since the pandemic began, busi- insurance.” ness has increased for one fami- And while Reed’s shop nears its ly-owned health food store. one-year anniversary, a longtime “e pandemic has been good North Lawndale resident started for us. Since the pandemic began, an online dessert business one sales have increased by 20 per- month after being laid o in May cent,” says Rha-Kera Barney-Sut- from Rush University Medical ton, manager of Barney’s New Life Center. Health Foods store. e pandemic Ida Nelson, a 38-year-old single “has made people more conscious mother who had been an executive about wanting to take care of their assistant to a vice president at the bodies.” Her late grandfather start- hospital, says she initially started ed the business in 1980. selling ice cream as a way to make “e pandemic has been hard ends meet. en she grew it into on everyone, especially people Ida’s Artisan Ice Cream & Treats. whose immune systems were al- “I bought an ice cream machine ready compromised. It is those and started selling ice cream to groups of people who have be- make extra money. Before I knew come our biggest customer base,” it, I had a demand for my ice she adds. “We are seeing custom- cream, and now it is my new ca- ers we haven’t seen in a long time, reer,” Nelson says. and now they’re coming back Nelson lives in Bronzeville with more frequently.” her ve children, ages 21, 16, 12,

e store at 3141 W. Roosevelt HUTSON WENDELL 10 and 4. But she was raised in Road sells a variety of products, Rha-Kera Barney-Sutton manages Barney’s New Life Health Foods store, which her family founded in 1980. She says sales are up 20 percent since the North Lawndale, which is where such as vitamins, vegan items, sup- pandemic began. the ice cream is manufactured. plements for diabetes and soaps. In “Eventually I may open a brick- addition to the revenue increase, is 87 percent Black, 9 percent Lati- here. e pandemic is like getting He added that if another manda- and-mortar store, but for now, on- Barney-Sutton says it has helped no and 3 percent white. e medi- pneumonia, and we know pneu- tory shutdown occurs, he doubts if line is working ne for me,” says that her business owns the store an household income is $26,781, monia can kill you if not treated he would be able to reopen. Many Nelson. “A lot of small businesses building, did not apply for any compared with $55,198 citywide. immediately and correctly,” says businesses shuttered their doors are having a hard time paying their grants or loans and has not had to As shops face challenges during Brown. “It’s important that busi- after the shutdown last year, in- rent, which is a big expense, and as lay o any of its ve employees. a pandemic that’s hit other small nesses do what is in their best in- cluding many small businesses. long as this pandemic is here, I want “People may say we are lucky to businesses hard, the North Lawn- terest to stay aoat, while allowing But the pandemic has beneted to keep my costs to a minimum.” be doing good during a pandem- dale Chamber of Commerce is them to bounce back and not be his shop “because it showed that Whether brick-and-mortar, on- ic, and they would be right. ings working to help shop owners iden- hindered in the long run.” hair care is a necessity,” he says. line or home-based, the West Side have worked out well for us and I tify resources available that would “Try going two months with- neighborhood cannot aord to lose help keep their doors ‘MOSTLY GOOD’ out a haircut or for a woman to go any businesses because it already open, says Rodney For Winston Reed, owner of Cut without getting her hair pressed, lacks resources, says Ald. Michael “PEOPLE MAY SAY WE ARE LUCKY TO Brown, executive direc- Right Barber & Beauty Salon at 811 permed and so on,” says Reed. “No Scott, 24th, whose ward includes tor of the chamber. S. Pulaski Road, the pandemic has one wants to walk around without North Lawndale. He detailed a BE DOING GOOD DURING A PANDEMIC, “We are talking been booth good and bad for his looking their best, especially if number of steps to boost business. AND THEY WOULD BE RIGHT.” about a community business, “but mostly good,” he they work in an o ce where ap- “I am attempting to bring back that was already strug- says. pearance is paramount. Now cus- businesses in a major way by part- Rha-Kera Barney-Sutton, manager, gling commercially, Reed says he opened his shop on tomers are coming every day we’re nering with DRW, a nonprot or- Barney’s New Life Health Foods store and now the pandemic March 9, four days before Gov. J.B. open and at a steady pace, too.” ganization in North Lawndale, and hits, which did nothing Pritzker ordered a mandatory shut- And rather than take out a loan the Steans Family Foundation. Our hope it stays that way,” adds Bar- but deliver a bigger hit on us,” says down for all nonessential business- or apply for grants, Reed says he goal is to bring the rst sit-down ney-Sutton, who says she expects Brown. “is is why the chamber es—including barbershops. reduced expenses at the shop restaurant to North Lawndale,” to inherit the business from her is working to help keep businesses “I was shut down for two during the shutdown. says Scott. “But as far as helping father, Raymond Barney. “is open, especially those small busi- months and was stuck paying rent “I had cable, internet and elec- businesses, I am working with business has been in my family for nesses that might not have large for an empty shop,” recalls Reed. tricity disconnected to save mon- Cook County Commissioner Den- more than 30 years, and I want to cash reserves.” “I used my personal money to pay ey. And I canceled my property nis Deer to host a workshop that keep it that way.” Brown compared the pandemic the $1,300 monthly rent until I was insurance, which luckily did not will help business owners apply for North Lawndale has nearly to a major health ailment. able to reopen and get things go- come back to haunt me,” says a loan from the (federal) Paycheck 34,000 residents. e population “We are not talking about a cold ing again.” Reed. “e looting spree that Protection Program.” Big Evanston apartment tower hits the market again walk to downtown Evanston. comment. A representative of The 221-unit apartment building on the Chicago border last sold for $46 million in 2016 CBRE is pitching 415 Premier to Dallas-based Crescent did not re- BY ALBY GALLUN e investment market for big cine rollout, and suburban Chi- a category of investors that seek to spond to requests for comment. Chicago-area apartment buildings cago apartment occupancies and boost the value of buildings by x- If 415 Premier fetches close to A Dallas investor has put a has cooled o considerably since rents have held up well over the ing them up and raising rents. what it sold for in 2016, it would 17-story apartment tower in Evan- then, and it’s hard to determine past year, even as the downtown be the most paid for an Evanston ston up for sale for the second time exactly what’s happened to multi- market has suered. ‘TREMENDOUS OPPORTUNITY’ apartment building since Decem- in two years, testing a market mud- family values because so few prop- Built in 2008, 415 Premier is 92.8 “415 Premier is truly the most ber 2017, when the Park Evanston dling through a COVID-induced erties have traded since the coro- percent occupied, with the average reasonably priced provider of lux- changed hands for $127 million, slowdown. navirus pandemic began last year. apartment renting for $1,638 per ury high-rise apartment living in according to Real Capital Analytics, Crescent Real Estate has hired In the most recent big deal close month, or $1.97 per square foot, the area which allows the next a New York-based research rm. the Chicago o ce of CBRE to sell to Evanston, Ravenswood Terrace, according to a CBRE marketing owner the tremendous opportu- Another big Evanston property, 415 Premier, a 221-unit building a 150-unit property in the Chica- brochure. e building at 415 W. nity to make thoughtful improve- Evanston Place near Northwest- on the border of Evanston and the go neighborhood of Ravenswood, Howard St., just down the street ments to the unit interiors and ern University, hit the market last Chicago neighborhood of Rogers sold in August for $46 million—less from the CTA’s Howard el stop, has capture signicant upside with- fall with an expected sale price of Park. Crescent paid $46 million for than the $48.1 million it fetched an Evanston address but is isolat- out competing head-to-head with about $70 million. But its owner, the property in 2016 and put it on in 2016. But optimism about the ed from the Evanston market. e newly constructed buildings,” the Denver-based Aimco, took it o the market in 2018, but the build- economy and real estate market is building, which overlooks a big CBRE brochure says. the market as part of a broader re- ing never sold. growing amid the COVID-19 vac- CTA rail yard, is a good 30-minute A CBRE executive declines to structuring. 8 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS Local commercial property sales hit 10-year low With buyers and sellers not seeing eye to eye on price as COVID-19 rocked the economy, sales plummeted in 2020

BY DANNY ECKER and the $210 million sale of 225 DEAL DROUGHT W. Wacker Drive to San Francis- e deepest recession in more With buyers and sellers not seeing eye to eye on price amid the pandemic, commercial property sales volume plummeted in 2020. co-based Spear Street Capital. than 80 years and the lingering fog Chicago-area industrial prop- of the COVID-19 pandemic add- COMMERCIAL REAL ESTATE SALES BY PROPERTY TYPE erty sales were down for the year ed up to a predictable outcome $11.48 billion by 12 percent to $5.2 billion, for commercial property sales in $25.0 billion $5.24 billion $1.82 billion slightly better than the 14 percent 2020: the lowest deal volume in a Industrial Apartments U.S. decrease nationwide. That down 11.9% down 54.3% decade. 20.0 from 2019 from 2019 sector has been one of the best Investors last year traded just performing in recent years as under $11.5 billion of Chicago-area 15.0 companies hunt for warehouses commercial real estate, a 32 per- $2.22 billion $1.44 billion to store and distribute products O ce Retail cent decrease from 2019, accord- 10.0 purchased online—a consumer ing to data from research  rm Real down 29.1% down 38.4% behavior that got a big boost from from 2019 Capital Analytics. e last time from 2019 the pandemic with people stuck local commercial property sales 5.0 at home. posted a lower  gure was 2010, $358.4 million $389.2 million The year even saw the highest when just $6 billion of real estate 0 Seniors housing Hotels price ever paid for a single indus- ’08’07’09 ’10 ’11 ’12’13 ’14 ’15 ’16 ’18’17 ’20’19 and care down 65.8% changed hands. down 7.9% from 2019 from 2019 trial property in the Chicago area e numbers lay out the severe Source: Real Capital Analytics when private-equity firm KKR impact of a public health crisis paid $176 million for two Ama- that has sti ed the global econo- zon fulfillment center warehous- my for nearly a year and has been want to give up value and sell at a have been a product of investors prop up Chicago-area office sales es in Kenosha, Wis. especially painful for big urban cut-rate price,” he says. “And the concerned pre-COVID about to $2.2 billion in 2020. That 29 Industrial real estate’s success centers like Chicago that have buyers are not willing to come in impending 2021 property reas- percent year-over-year decrease has come at the expense of retail largely emptied out since March. except at a low cost because they sessments under Cook County outperformed the 39 percent de- properties, where sales have fall- But thanks to some record-set- don’t want to take the risk that (the Assessor Fritz Kaegi. Those are crease nationwide, according to en 38 percent year over year. That ting downtown o ce deals and recovery) takes longer. Unless sell- expected to jack up property tax RCA. was not as steep as the 42 percent the rise of online shopping fuel- ers are forced to make a decision, bills for apartment building and dip nationwide, but came after a ing demand for the area’s massive nothing’s going to happen.” other commercial property own- OFFICE DEALS year in which local retail proper- inventory of industrial properties, at was especially the case for ers, based on Kaegi’s reassess- Properties with high-credit ty sales fell by 34 percent, accord- local sales fared about as well the apartment market, which was ments in other parts of the coun- tenants tied to long-term leases ing to RCA. as the U.S. average. Commercial booming in downtown Chicago ty over the past two years. sold at a premium, such as the Local hotel sales suffered the property sales nationwide last with new construction and rising Investors “were in the middle $412.5 million sale in October most drastic decrease at 66 per- year totaled $410 billion, down 31 rents before the pandemic. Sales of trying to figure out how to price of the McDonald’s headquarters cent, hitting the lowest mark percent year over year, according of Chicago-area apartment build- everything, and then COVID hits and the nearly $87 million sale of since 2009—though that was on to RCA. ings last year fell by 54 percent and it puts people on the side- Mondelez International’s Fulton par with the 68 percent drop-off e main culprit behind the from 2019 to $1.8 billion, accord- lines for a bit trying to see how Market headquarters in April, nationally. The virtually frozen drop in sales volume is that inves- ing to RCA. at was a far steeper things shake out,” Costello says. which set a record for the highest convention and tourism indus- tors have wildly di erent views on fall than the 27 percent drop-o There are lots of questions price per square foot paid for a tries overwhelmed hospitality fair market value of commercial nationally. about the future of office build- Chicago office building. properties with financial distress, properties, says RCA Senior Vice ings, too, after nearly 11 months Other big downtown o ce though the carnage has yet to President Jim Costello. PROPERTY TAXES of many companies operating deals that closed were the $376 translate into a flood of distressed “You have owners of these Part of the reason apartment with remote workers. But some million sale of 333 S. Wabash asset sales as some hotel owners buildings looking at prices set a deals fell by so much locally was deals early in the year and others Ave. to a joint venture led by New and lenders expect a travel boom year or two years ago saying that, if the plight of dense urban areas, during the pandemic that offered York-based investor Michael Shvo as soon as the second half of 2021 this thing is temporary, they don’t Costello says, but it may also buyers stable cash flow helped and Deutsche Finance America, if the pandemic subsides. Allstate losing auto customers at fastest clip in decades cent average reduction in Illinois, Wall Street isn’t loving what it’s The insurer has made growth and market share gains a top priority, going into e ect later this month. seeing, either. Allstate’s stock price Allstate long has championed was down about 2 percent in Feb. but 2020 was a year of slippage as the company posted the worst retention the importance of customer reten- 4 trading. at was despite quar- tion in driving growth or at least terly earnings that topped analyst numbers for auto policies since at least 2001 holding its own in market share. estimates. Largely due to the wind- Allstate achieves its industry-lead- fall from lower claims payouts to BY STEVE DANIELS ers, boosted its auto policies by 11 ing lifestyles, not driving as much, ing pro t margins by pricing pol- reduced driving, Allstate’s net in- percent in 2020, according to a Se- some people shopping more, you icies above faster-growing rivals, come of $5.46 billion for the year e COVID-fueled price compe- curities & Exchange Commission have competitive moves.” given that its costs remain higher was 17 percent higher than $4.68 tition among auto insurers took its  ling. than many peers. billion in 2019. toll on Allstate in 2020. e slippage  ew in the face of TRIMMING RATES So it was unusual to hear Glenn Wilson and Shapiro portrayed e Northbrook-based com- one of CEO Tom Wilson’s top pri- Executives attributed at least Shapiro, Allstate’s president of 2020 as a year of transition in pany, which prides itself on how orities, which is for Allstate to add some of the attrition to the end of personal property-liability, come which the growth platforms they well it holds onto customers once market share after years of losses Allstate’s “Shelter-in-Place Pay- close to dismissing the retention put in place were either being they join, posted the worst reten- to the likes of Geico and Progres- back,” which expired last summer issue during the earnings call. acquired or reorganized. Allstate tion numbers in recent memory sive. He’s pursuing what he calls after Allstate provided monthly 15 “We’re within a decent range of closed its $4 billion acquisition last year. For 2020, Allstate’s auto a “transformative growth” plan, percent rebates to drivers in the our long-term retention and we’re of New York-based National Gen- policy renewals for its namesake in which the company intends early stages of the pandemic. e focused on it, and of course we eral Holdings last month, giving brand, which accounts for a ma- to compete hard in sales over the company then reverted to its old want to retain every customer that it a top- ve position among auto jority of its revenue, were 87.5 per- internet and phone, as well as rates in most states while archrival we worked hard to get in the  rst insurers selling through indepen- cent, down from 88.0 percent in through independent agents. Most State Farm slashed auto rates by place,” he said. dent agents. And it eliminated 2019. It was the worst performance of the company’s business con- 11 percent nationally on aver- Allstate’s renewal rate gener- the Esurance brand, which sold on that metric since at least 2001, tinues to come through its army age in response to far lower acci- ally over the last eight years has car insurance online and over the according to investor disclosures. of agents selling only the Allstate dent claims as driving behavior been about a full percentage point phone, instead moving that busi- Not coincidentally, that led to a brand. changed. Progressive and Geico, above 2020. at doesn’t sound ness into the Allstate brand and 0.5 percent decline in policies at In a conference call with analysts too, lowered prices in select states. like a lot, but on a base of about 20 pricing policies sold directly at 7 year-end, to 21.8 million, accord- last week, Wilson didn’t have many State Farm now is increasing million policies, 100 basis points percent less than what drivers get ing to earnings data released Feb. answers for the decline in policies. rates again in many states, but means 200,000 more lost policies. when they buy from an Allstate 3. By contrast, May eld Village, “Of course, retention’s always hard not to the point where they were Allstate’s 78.2 percent renewal agent. Ohio-based Progressive, consis- to  gure out, right?” he said. “Be- before COVID. Allstate early this ratio in the fourth quarter was its at makes 2021 a put-up-or- tently along with Geico the fastest cause you have a bunch of stu year  nally is trimming auto rates worst quarterly attrition in at least shut-up year on transformative growing of the big U.S. auto insur- going on, you have people chang- in several states, including a 5 per- eight years. growth.

P008_CCB_20210208.indd 8 2/5/21 4:06 PM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 9 Home prices went into overdrive in January Median sale prices rose by about 20 percent in three of the month’s four weeks

BY DENNIS RODKIN MRED weekly reports. In the two on the market for just 15 days in subsequent weeks, the increas- December. Chicago-area home prices, es were 20 and 21 percent. In the Home sales that closed in Jan- which were rising by double digits last week of January, data released uary mostly went under contract throughout the latter months of Feb. 1 shows, the increase was just to their buyers in December, a 2020, were going up even faster in under 14 percent. period when, with the presiden- January. e median price of homes tial election over and new COVID From October through De- sold in the last week of January cases in Illinois declining, people cember, in weekly reports on sale was $249,000. A gure for the full may have been feeling condent

prices published by Midwest Real month is not yet available. about the near-term future and CHICAGO HOMESERVICES HATHAWAY BERKSHIRE Estate Data, the median price of “It’s good old-fashioned supply willing to pay more for the homes This workers cottage in Ukrainian Village sold for $600,000 in January. homes sold during the week was and demand,” says Beth Gomez, they wanted. consistently in the range of 15 per- a Berkshire Hathaway HomeSer- Interest rates, which have been cent above the median for the cor- vices Chicago agent. “People are low for a few years but continue to responding week in 2019. upsizing because of COVID, but dip lower, fueled the buying as well. Royal Bank offers commercial loans en came January: ree of the inventory of homes is very low. e slide in interest rates during the four weeks had median home Prices go up.” 2020 increased what buyers can with attractive rates and terms. sale prices in the range of 20 per- aord more than rising prices de- cent above the corresponding LOW INVENTORY creased it. In other words: People week last year. January is typically At the end of December, the in- paid less, in real dollars, for homes Contact Andrew Morua, Senior Vice President a slow month in Chicago’s real es- ventory of homes on the market at their higher end-of-year prices tate market, but January 2020 was was enough to feed 1.8 months than at their lower beginning-of- 2IƓFHŘ0RELOH strong, which makes the January of sales, the lowest inventory in at the-year prices. (PDLODPRUXD#UR\DOEDQNXV 2021 increases even more note- least 13 years. Four to six months’ “ e continual upside for buy- %LOLQJXDOŧ(QJOLVKDQG6SDQLVK worthy. inventory is generally considered ers is that we have these low in- Putting community first since 1887. In the week that began Jan. 4, a balanced real estate market. terest rates” at a time when af- the median price of homes sold Gomez represented a tradi- fordability would otherwise be in the Chicago metropolitan area tional Chicago workers cottage in galloping away from them, says royal-bank.us was up more than 18 percent from Ukrainian Village that had been Matt Farrell, managing broker at Member FDIC a year earlier, according to the updated. A three-bedroom, it was Corcoran Urban Real Estate. /RFDWLRQVLQ&KLFDJR:HVWPRQWDQG1LOHV

FINAL WEEK

2021 TO NOMINATE

RESIDENTIAL REAL ESTATE BROKERS NOMINATE NOW! Deadline is Feb. 12

Calling residential real estate experts Crain’s 2021 Notable Residential Real Estate Brokers feature will highlight an impressive cross section of the region’s residential real estate community and its top producers.

Nominate at ChicagoBusiness.com/noterealestate

Nomination deadline is Friday, Feb. 12. Section publishes Apr. 5. To view Crain’s Notable Executives nomination programs, visit chicagobusiness.com/notablenoms.

P009_CCB_20210208.indd 9 2/5/21 12:02 PM 10 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS

EDITORIAL United is leading by example on climate limate change is real, and hu- ments to nance new technologies that man activities are contribut- Scott Kirby could do more to reduce the company’s ing to a problem that’s already environmental impact than tree-planting reached crisis proportions. ever could. One is a multimillion-dollar in- Until quite recently, those vestment in 1PointFive, a company that’s Cstatements would have been considered developed technology to capture carbon hyper-political, the subject of intense par- dioxide from the air and bury it safely, deep tisan debate. e business community, underground, a process known as carbon however, seems lately to be arriving where sequestration. United’s investment—an the scientic community has been for aviation industry rst—will help 1Point- some time now—that climate change is an Five build the rst industrial-size plant in existential threat—and the most bracing example of this new cleareyed recognition of the crisis comes from a leading CEO UNITED IS PUTTING ITS MONEY in an industry whose carbon footprint is among the largest on the planet. WHERE ITS MOUTH IS, MAKING In a Feb. 2 appearance before the Eco- DIRECT INVESTMENTS TO FINANCE nomic Club of Chicago, United Airlines CEO Scott Kirby spoke passionately about NEW TECHNOLOGIES. the dangers of climate change and made a persuasive case that the aviation industry the nation using this technology. A single needs to do more—much more—to re- facility is expected to capture and perma- duce its impact on the environment. While nently sequester 1 million tons of carbon acknowledging the limits of electric- and dioxide each year, equivalent to the work hydrogen-powered battery technology for of 40 million trees but covering a land area long-haul airliners, Kirby left the audience about 3,000 times smaller. with little doubt he takes the challenge Similarly, United has made a $30 mil- seriously, describing other steps the Chi- lion investment in California-based sus- cago-based carrier is taking to realize the tainable fuel producer Fulcrum BioEner-

goal it laid out in December to become NEWSCOM gy, whose product claims to generate 80 100 percent green by 2050. e near-term percent less carbon emissions than con- moves already taken include initiatives bon oset, or credit, is a certicate repre- but when you’re talking about pollu- ventional jet fuel. Again, this direct invest- such as replacing aging ground equip- senting the reduction of 1 metric ton of tion on the scale of what an airline puts ment is the rst of its kind in the aviation ment with electric-powered alternatives carbon dioxide emissions. To compen- out, carbon osets aren’t going to get us industry. and eliminating nonrecyclable plastics in sate for their own carbon dioxide pollu- where we need to go. As Kirby put it, “ e Airlines and those of us who y them its onboard food service. tion, companies buy carbon credits from reality is, we produce 4,000 times as many have long been in the hot seat for the role But the most striking aspect of Kirby’s certied organizations that support com- emissions as we did in the preindustrial jet travel plays in heating up the planet. So presentation was his acknowledgment munity development, protect ecosystems era. We cannot plant 4,000 times as many it’s refreshing to see Chicago’s hometown that a traditional corporate path toward or install ecient technology to reduce or trees. ere’s not enough space on the airline taking bold steps to get ahead of greening up operations—carbon osets— remove emissions from the atmosphere. planet.” the problem. And if United can do it, other is basically a nonstarter for a company as Tree-planting is often the carbon oset Instead, United is putting its money corporate players can—and should—fol- vast and energy-hungry as United. A car- technique of choice. It’s not a bad idea, where its mouth is, making direct invest- low suit.

YOUR VIEW Housing is a human right. This law supports that.

e Cook County Board of Commission- dinance. her rent with a combination Does this woman deserve to be locked ers unanimously passed the Residential is piece of legislation af- of child support and unem- out of her apartment with her three chil- Tenant and Landlord Ordinance on Jan. rms the rights of renters in ployment checks. She also dren in a blizzard in January? Is it fair that 28. suburban Cook County who owes $800 in medical bills for she is on the cusp of eviction without be- lacked critical protections a sick child in August and has ing allowed a chance at resolution? ousing is a human right. against lockouts, excessive $46,000 in student loan debt. Of course not. at’s why the Residen- is is not up for debate. Every move-in and late fees, and ex- Unable to supplement her tial Tenant and Landlord Ordinance is H human being has the right to a de- orbitant interest rates on rent- unemployment cent, safe and aordable place to lay their al arrears. because she can- head. is will mean that more not nd child care, WE HAVE A RESPONSIBILITY TO PROTECT But while we’ve made strides over the residents will be able to stay she’s fallen behind past decade with the passing of the Hu- in their homes at the time they Toni Preckwinkle is in her rent pay- OUR MOST VULNERABLE RESIDENTS AND man Rights Ordinance and Just Housing need support the most. president of the ments. Her land- MAKE SURE ALL OF US HAVE ROOM TO MAKE Ordinance on the county level, renters in James Baldwin famously Cook County Board lord charged her suburban Cook County have all too often said, “Anyone who has strug- of Commissioners. $100 per month in A LIFE IN THE COUNTY WE CALL HOME. been left with an uneven playing eld. gled with poverty knows how late fees for four Until today. extremely expensive it is to be poor.” months, and now she is behind on the common sense. Every human being in Today, I am proud to stand with Com- For a moment, imagine a single mother rent again and owes half the rent in late Cook County deserves the fair, legal pro- missioners Scott Britton and Kevin Mor- of three in South Holland who pays half fees. She woke up this morning with an cess of renting a home. rison, as well as every Cook County com- her monthly income in rent. She’s been eviction noticed pasted to her door and a It must be said to those who would missioner who sponsored or supported unemployed for the past six months due voicemail from her landlord threatening claim that landlords are being given the the Residential Tenant and Landlord Or- to the pandemic and has been paying to change the lock on her door. short end of the stick—this is patently

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_20210208.indd 10 2/5/21 3:13 PM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 11

YOUR VIEW Continued

false. is is a fair deal. one direction. In crafting the ordinance, Our responsibility in Cook County is Government bears a role in creating For nearly a year, we have met with re- Commissioners Britton and Morrison en- made even more clear when one consid- this crisis. Now we have a responsibility altor, landlord and neighborhood own- gaged with more than 65 organizations ers the alarming rise of racially concen- to repair that harm we helped cause. ers’ groups and have made dozens of con- and many community members to de- trated areas of poverty in the suburbs. at is why I am proud to support this cessions as a result—all with the mutual termine who beneted and who was bur- Since 2000, poverty in suburban Cook ordinance. e Residential Tenant Land- goal of getting rent current and resolving dened by the lack of regulation in subur- County has doubled. lord Ordinance advances racial equity, cases. ban Cook County. We cannot ignore that this rise is clear- fair housing and our ght against poverty e ordinance provides greater clarity ly tied to race, decades of redlining, hy- in Cook County. We have a responsibility and delineates the responsibilities be- BURDEN per-policing and disinvestment in urban to protect our most vulnerable residents tween property owners and renters. is e answer was crystal clear: e communities that have led to people of and make sure all of us have room to clarity and protection will ultimately help burden rested primarily on the almost color leaving urban neighborhoods for make a life in the county we call home. both renters and housing providers. We 250,000 renters in the suburbs. Look at suburban opportunities. Housing is a human right. all benet when an ordinance provides the renter/landlord court cases from 2000 Furthermore, according to the Center Protecting fair housing is the right proper guidance and regulations. to 2017. Seventy-one percent of landlords for American Progress, renters of color thing to do. at being said, the ordinance aims to have lawyers, while just 11 percent of ten- are more cost-burdened, and neighbor- Today was a step forward for work- level the playing eld—and the direction ants did. We also know that the majority hoods with more renters of color have ing families and people of color in Cook of the scales of justice clearly point in of Cook County renters are low-income. higher rates of eviction. County.

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Crain Communications Inc. Keith E. Crain Mary Kay Crain Chairman Vice chairman KC Crain Chris Crain Chief executive o cer Senior executive vice president Lexie Crain Armstrong Robert Recchia developed by: designed by: built by: Secretary Chief nancial o cer Upshore Chapter Veebha Mehta Chief marketing o cer Chicago, Illinois * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. Founder Chairman (1885-1973) (1911-1996) We see our work through the eyes of the people who will use them every day. Through their For subscription information and delivery concerns eyes, we see places of innovation, industry, technology, healing, research and entertainment. please email [email protected] or call 877-812-1590 (in the U.S. and Canada) The result? Powerful structures with impacts that reach far beyond these walls. or 313-446-0450 (all other locations). 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.

P010-P011_CCB_20210208.indd 11 2/5/21 3:13 PM 12 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS Calamos Investments eyes Fulton Market office The Naperville-based investment rm, one of the Chicago area’s biggest, is nearing a deal to open its rst downtown oce in the former meatpacking district

BY DANNY ECKER cancy rate jump to a record high 18 percent since March as new One of the Chicago area’s big- buildings were completed and gest money managers is poised tenants flooded the market with to open its first downtown office space available for sublease. And in the Fulton Market District and it’s far from clear what future of- notch a much-needed leasing fice demand will look like after win for a local developer in the months of employees settling process. into working remotely. Naperville-based Calamos In- Jeff Kelley, senior vice presi- vestments is in advanced talks dent and head of marketing at to lease 20,000 square feet on the Calamos, confirms in a state- top two floors of a recently com- ment that the company has been pleted office building at 215 N. hunting for its first downtown Peoria St., according to sources office but does not address any familiar with the discussions. specific properties. If the deal is completed, Cala- “In light of our strong success mos would be the rst tenant to in recent years, Calamos Invest- sign on at the 12-story building, ments views additional office which Chicago-based Parkside space in downtown Chicago Realty began developing before as the next step in our strategic

the COVID-19 pandemic on spec- growth strategy, and has been GROUP COSTAR ulation, or without any tenants extensively scouting locations 215 N. Peoria St. signed. e 90,000-square-foot within the Fulton Market and building, dubbed Fulton East, River North areas,” the statement der whether that will continue ing to the Crain’s list. Kelley says to finishing a 13-story building was completed late last year and says. with the migration of more mil- Calamos Investments’ portfolio with 270,000 square feet of of- has sat empty amid an all but fro- Spokesmen for Parkside Realty, lennials to the suburbs during has grown since then to $33.7 fices at 320 N. Sangamon St. that which was launched the pandemic. billion in assets under manage- has yet to announce a tenant, IT’S FAR FROM CLEAR WHAT FUTURE in 2019 by commer- ment today. while Chicago developer John cial real estate veter- GROWING PORTFOLIO Founded in 1977 by John Cala- Murphy recently completed a OFFICE DEMAND WILL LOOK LIKE ans Bob Wislow and Calamos, which manages in- mos Sr., who is now chairman of 96,000-square-foot spec office Camille Julmy, did not vestments for major corpora- the company, Calamos also has building at 318 N. Carpenter St. AFTER MONTHS OF EMPLOYEES respond to requests tions, pension funds, endow- offices in New York, San Fran- New York-based or Equi- for comment. ments and other institutional cisco, Milwaukee and the Miami ties is also close to completing a SETTLING INTO WORKING REMOTELY. For Calamos, the investors, ranked 17th on Crain’s area, according to its website. 450,000-square-foot oce build- downtown expan- most recent list of the Chicago Parkside is one of a handful ing at 800 W. Fulton Market that zen oce leasing environment as sion would be in line with a trend area’s largest money managers. of developers to build Fulton will be anchored by dental prac- companies evaluate their future of Chicago-area companies The company had $26.1 billion Market office buildings on spec, tice services company Aspen workspace needs. opening downtown offices over in assets under management in a run fueled by premium rents Dental. And Chicago-based Ful- The Calamos lease would also the past decade to gain access to 2019—up 21 percent from the companies have paid to be in ton St. Cos. recently broke ground stand as a promising sign for young, urban-dwelling talent in year before—and had 15 port- the gritty-turned-trendy former on a 150,000-square-foot spec downtown office landlords, who a tight labor market. Some real folio managers and 45 account meatpacking district. New York- oce building at 1043 W. Fulton have nervously watched the va- estate investors, however, won- managers based locally, accord- based Tishman Speyer is close Market. Bronze lion statues highlight Lawry’s steakhouse auction The 46-year-old restaurant shuttered the doors of its Chicago location late last year, and everything had to go

BY ALLY MAROTTI similar behavior when the com- pany closed a couple of iconic Lawry’s e Prime Rib shut steakhouses in Los Angeles, too. down its Chicago location late “ ey got engaged there, they last year, closing its doors after had their wedding there, their 46 years. And everything in the prom date,” he says. “It’s got a steakhouse had to go. sentimental dimension to it.” e restaurant turned to an on- e Lawry’s auction includ- line auction, listing about 1,000 ed the expected cooking equip- items. e auctions, the last of ment—like ice makers, convection which closed Feb. 2, ultimately ovens and soap dispensers—that drew 374,000 views. According are central to any commercial to RestaurantEquipment.Bid, the kitchen. ere was also cutlery, marketplace that hosted the auc- cream-color plates, wine glasses

tion, 500 bidders took part. and Champagne utes. SHERMAN NEAL OF COURTESY Typically, when his company Lawry’s The Prime Rib’s Chicago location shut down late last year after 46 years. works on liquidations and online NOSTALGIC CROWD auctions, the goal is to save some en there was the decor, has changed during the pandem- Additionally, the pandemic has the company thanked the Chica- of the equipment from landlls, which likely drew in the nostal- ic, he says. e site used to get 1 forced restaurants that have been go community for “its outpouring says Neal Sherman, president of gic crowd. ere were bronze lion million views a month. Now it gets around for decades, like Lawry’s, of support throughout the nal RestaurantEquipment.Bid. Auc- statues that stood watch over a that many in a day. to close their doors. Morton’s e months and days of service” at the tions often draw resellers or other dining room, padded chairs with e restaurant landscape is Steakhouse also closed its origi- restaurant, which was located just restaurant owners that can use the oral patterns, paintings from the changing, he says. More inde- nal location on State Street, which o Michigan Avenue. equipment in their own kitchens. walls and a box of holiday orna- pendent restaurants, which have opened in 1978, and blamed It also touts its other locations, But with Lawry’s, there was an ments. struggled during the pandemic, COVID-19 restrictions. in Beverly Hills, Las Vegas and additional element: nostalgia. e lions went for $1,000 each, are looking for deals. ere are A representative from Pasadena, Dallas, and its Lawry’s At Home People checked out the auction says Sherman. He declines to also more budding home cooks Calif.-based Lawry’s Restaurants oering, which ships prime rib and bought old pieces of decor as comment on total sales. buying commercial items they can did not return requests for com- meals and sides directly to cus- keepsakes. Sherman says he saw e marketplace Sherman runs cook with. ment last week. On its website, tomers.

P012_CCB_20210208.indd 12 2/5/21 4:09 PM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 13 How the luxury home market shifted in 2020

The pandemic and periods of social unrest took a toll on COLDWELL BANKER COLDWELL high-end downtown condo sales | BY DENNIS RODKIN Above: Tied for No. 24, in Hinsdale, sold for $4.6 million. Below: No. 10, in Winnetka, went for $6.5 million.

In 2019, nine of the 10 high- est-priced home sales in the Chi- cago area were downtown condos. In 2020, just two condos were in the top 10. at’s a stark measure of how hard 2020’s blows to down- town’s vitality—the pandemic and spasms of social unrest—hit the highest strata of the Chicago real estate market. “COVID made you want to stay as far away from other people as possible,” says Phil Skowron, an @properties agent, much of whose work is with high-end downtown condos. “If you have to use an ele- vator or share amenities with oth- er residents, that was to be avoid- ed. So a lot of the kinds of people who’ve been buying those down- town condos for the past 10 or 15 years were gone.” e big-ticket buyers, Skowron says, “started asking their brokers to nd them lake houses in Wis- consin or Michigan, or something in Florida.” Or perhaps a single-family home away from the downtown neighborhoods, such as in Lin- coln Park, where the year’s high- est-priced home sale went down. A 12,000-square-foot mansion on a double lot on Howe Street went for

$11.9 million in December. STUDIOS VHT e price, the most anyone has

paid for a house in the city in about 2½ years and more than $500,000 above 2019’s top-priced sale, is one sign that “a ‘bigger is better’ phi- “COVID MADE losophy has come about. Buyers YOU WANT TO are embracing large homes again,” says Tim Salm, the Jameson Sothe- STAY AS FAR by’s International Realty agent who represented the mansion. AWAY FROM

Neither Salm, who represented REALTY INTERNATIONAL SOTHEBY’S JAMESON OTHER PEOPLE the sellers, nor Skowron, who rep-

resented the buyers, would identify AS POSSIBLE. the sellers, whose names have not yet appeared in public records. SO A LOT OF Large homes are the stock in trade of the North Shore, where six THE KINDS of the year’s 10 highest-priced sales OF PEOPLE took place. “Ultrahigh-net-worth individ- WHO’VE BEEN uals are by nature agile and pivot

BUYING THOSE BANKER COLDWELL easily as their needs and interests REALTY INTERNATIONAL SOTHEBY’S JAMESON demand,” Kelly Rynes tells Crain’s Clockwise from above: No. 18, in Chicago, sold for $5.5 million. No. 14, in Chicago, went for $5.9 million. Tied for No. 20, in Chicago, fetched $5.0 million. DOWNTOWN by email. Rynes, a Berkshire Hatha- way HomeServices Chicago agent, CONDOS FOR cord breaker for the North Shore. million for land alone, with many One high-priced transaction represented the seller in the year’s e Chicago Tribune has reported millions more to spend on building that is not included here is the De- highest-priced suburban sale, a THE PAST 10 that one so-far-unidentied buyer a home on the site. cember sale, at $6.05 million, of a lakefront estate in Winnetka. made three purchases on Winnet- Along with the shift away from 25-acre vacant parcel in Lake Blu When the pandemic hit in OR 15 YEARS ka’s lakefront—numbers 2, 6 and downtown condos at the upper with 400 feet of Lake Michigan March, Rynes writes, “suddenly, WERE GONE.” 14 on Crain’s list of the year’s 50 end, Crain’s list of the year’s 50 shoreline. While it will likely be put luxury equaled space, control over highest-priced sales—for a total of highest-priced home sales in 2020 to residential use, it wasn’t a home safety, wellness and peace of mind. Phil Skowron, about $24 million and will swap shows another dierence from at the time it was sold. e market trend in the high end is @properties agent some of the land with the local 2019: While there were 52 sales in is year’s list is missing more practical demands: multiple oc- park district to make a contiguous 2019 at $4 million or more, in 2020 buyers’ names than usual, largely es, gyms, pools.” 3.3-acre site. there were only 46. us the bot- because the relevant public records e transaction Rynes was in- If this plays out as reported, the tom rung on this year’s top-50 list have been slower to be updated be- volved with may be part of a re- buyer will have spent nearly $24 is $3.9 million. cause of COVID.

P013-P016_CCB_20210208.indd 13 2/5/21 11:19 AM 14 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS

BERKSHIRE HATHAWAY HOMESERVICES CHICAGO HOMESERVICES HATHAWAY BERKSHIRE ANDREW MILLER ANDREW MILLER

Clockwise from above: No. 1, in Chicago, sold for $11.9 million. Nos. 2 and 3, in Winnetka, brought $9.5 million and $8.8 million. PROPERTIES GOOGLE MAPS GOOGLE

PREMIER RELOCATION PREMIER Clockwise from right: No. 8, in Chicago, brought $7.2 million. No. 5, in Winnetka, fetched $8.2 million. No. 4, in Chicago,

sold for $8.4 million. REALTY INTERNATIONAL SOTHEBY’S JAMESON CRAIN’S LIST CHICAGO AREA’S PRICIEST HOME SALES All sales in 2020. Ranked by purchase price. Purchase price Price per Bedrooms/ Address (millions) Square feet square foot bathrooms Purchase date Buyer(s) Seller(s) Neighborhood 1 NORTH HOWE STREET, CHICAGO 60614 $11.9 12,000 $992 6 BR/7.5 BA 12/23 NA William and Sandra Sterling Lincoln Park 2 SHERIDAN ROAD, WINNETKA 60093 $9.5 4,849 $1,959 5 BR/4.5 BA 10/27 Walton 2019 Revocable Trust Estate of Stavrula Gotsis Not applicable 3 LOCUST ROAD, WINNETKA 60093 $8.8 16,800 $521 5 BR/8 BA 7/16 Chicago Title Land Trust Sherwin and Deborah Jarol Not applicable MICHIGAN AVENUE, CHICAGO 60611 $8.4 6,240 $1,346 5 BR/4.5 BA 5/8 Michael L. and Deborah M. 800 N Michigan Unit 5101 LLC Streeterville 4 Greenhill trusts 5 SHERIDAN ROAD, WINNETKA 60093 $8.2 4,323 $1,897 5 BR/4.5 BA 7/27 Orchard 2020 Revocable Trust Robert and Sharlene Britz Not applicable 6 MICHIGAN AVENUE, WILMETTE 60091 $8.0 8,282 $966 6 BR/10 BA 9/9 1126 Michigan Ave LLC Brad and Mary Whitmore Not applicable 7 SHERIDAN ROAD, KENILWORTH 60043 $7.5 6,291 $1,192 5 BR/3.5 BA 8/19 Sairam and Amisha Muthalu Craig and Elsa Donohue Not applicable 8 WALTON STREET, CHICAGO 60610 $7.2 5,230 $1,377 4 BR/4.5 BA 7/13 4036 NW 58th LLC Jason Heyward Gold Coast 9 SEMINARY AVENUE, CHICAGO 60614 $6.7 9,000 $747 5 BR/6 BA 8/14 NA Chicago Title Land Trust Lincoln Park 10 SHERIDAN ROAD, WINNETKA 60093 $6.5 6,390 $1,017 6 BR/5.5 BA 10/13 Chicago Title Land Trust Susan E. Remien trust Not applicable KENMORE AVENUE, CHICAGO 60614 $6.5 8,900 $730 6 BR/5.5 BA 5/24 O ce of Penny Pritzker David Scherer, Rosemarie Lincoln Park 11 Lizarraga 12 GRAND AVENUE, CHICAGO 60611 $6.3 4,798 $1,303 3 BR/3.5 BA 3/12 NA NA Streeterville 13 SHERIDAN ROAD, WINNETKA 60093 $6.2 5,410 $1,146 6 BR/5.5 BA 11/9 NA Claude Ricard Not applicable 14 STATE PARKWAY, CHICAGO 60610 $5.9 7,430 $794 6 BR/7 BA 8/31 Jason Heyward Bloomeld Development Gold Coast 15 HOWE STREET, CHICAGO 60614 $5.9 5,358 $1,092 5 BR/4.5 BA 5/11 NA Ronald and Deborah Clarkson Lincoln Park

P013-P016_CCB_20210208.indd 14 2/5/21 11:19 AM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 15

BERKSHIRE HATHAWAY HOMESERVICES CHICAGO HOMESERVICES HATHAWAY BERKSHIRE BERKSHIRE HATHAWAY HOMESERVICES CHICAGO HOMESERVICES HATHAWAY BERKSHIRE

PROPERTIES COMPASS JAMESON SOTHEBY’S INTERNATIONAL REALTY INTERNATIONAL SOTHEBY’S JAMESON

VHT STUDIOS VHT PROPERTIES

JAMESON SOTHEBY’S INTERNATIONAL REALTY INTERNATIONAL SOTHEBY’S JAMESON Clockwise from top left: Tied for No. 16, in Winnetka, sold for $5.5 million. No. 20, in Lake Forest, brought $5.0 million. Tied for No. 26, in Chicago, fetched $4.5 million. No. 29, in Chicago, sold for $4.4 million. Tied for No. 26, in Highland Park, went for $4.5 million.

Purchase price Price per Bedrooms/ Purchase price Price per Bedrooms/ Address (millions) Square feet square foot bathrooms Purchase date Buyer(s) Seller(s) Neighborhood Address (millions) Square feet square foot bathrooms Purchase date Buyer(s) Seller(s) Neighborhood 1 NORTH HOWE STREET, CHICAGO 60614 $11.9 12,000 $992 6 BR/7.5 BA 12/23 NA William and Sandra Sterling Lincoln Park 16 PRIVATE ROAD, WINNETKA 60093 $5.5 2,602 $2,114 4 BR/6.5 BA 8/26 Bernick Family Property Trust Mark and Yoanna Kulas Not applicable 2 SHERIDAN ROAD, WINNETKA 60093 $9.5 4,849 $1,959 5 BR/4.5 BA 10/27 Walton 2019 Revocable Trust Estate of Stavrula Gotsis Not applicable 16 DEMING PLACE, CHICAGO 60614 $5.5 6,884 $799 6 BR/5.5 BA 2/5 Chicago Title Land Trust Mary B. Miller trust Lincoln Park LOCUST ROAD, WINNETKA 60093 $8.8 16,800 $521 5 BR/8 BA 7/16 Chicago Title Land Trust Sherwin and Deborah Jarol Not applicable CEDAR STREET, CHICAGO 60611 $5.5 7,000 $779 5 BR/6 BA 2/3 Ketu Amin, Komal M. Patel James and Janice Jensen Gold Coast 3 18 trusts MICHIGAN AVENUE, CHICAGO 60611 $8.4 6,240 $1,346 5 BR/4.5 BA 5/8 Michael L. and Deborah M. 800 N Michigan Unit 5101 LLC Streeterville MICHIGAN AVENUE, CHICAGO 60611 $5.1 6,240 $817 5 BR/4.5 BA 10/1 Matthew Gornet, Valerie Ratts Michael G. Medzigian trust Streeterville 4 Greenhill trusts 19 5 SHERIDAN ROAD, WINNETKA 60093 $8.2 4,323 $1,897 5 BR/4.5 BA 7/27 Orchard 2020 Revocable Trust Robert and Sharlene Britz Not applicable 20 MAYFLOWER ROAD, LAKE FOREST 60045 $5.0 24,500 $204 10 BR/13 BA 8/28 Chicago Title Land Trust CG Mayower LLC Not applicable 6 MICHIGAN AVENUE, WILMETTE 60091 $8.0 8,282 $966 6 BR/10 BA 9/9 1126 Michigan Ave LLC Brad and Mary Whitmore Not applicable 20 GOETHE STREET, CHICAGO 60610 $5.0 5,800 $862 4 BR/5.5 BA 10/15 Mark and Robin Tebbe R. Montgomery Falb Gold Coast 7 SHERIDAN ROAD, KENILWORTH 60043 $7.5 6,291 $1,192 5 BR/3.5 BA 8/19 Sairam and Amisha Muthalu Craig and Elsa Donohue Not applicable 22 WALTON STREET, CHICAGO 60611 $4.8 4,000 $1,200 3 BR/3.5 BA 1/24 Arrow 5 LLC Lisa Rees Near North Side 8 WALTON STREET, CHICAGO 60610 $7.2 5,230 $1,377 4 BR/4.5 BA 7/13 4036 NW 58th LLC Jason Heyward Gold Coast 23 LILL AVENUE, CHICAGO 60614 $4.7 6,757 $698 6 BR/5.5 BA 7/8 Forest Union LLC Environs Development Lincoln Park 9 SEMINARY AVENUE, CHICAGO 60614 $6.7 9,000 $747 5 BR/6 BA 8/14 NA Chicago Title Land Trust Lincoln Park 24 BELDEN AVENUE, CHICAGO 60614 $4.6 6,290 $723 6 BR/5.5 BA 10/26 Stephen Brown Stewart M. Mather trust Lincoln Park SHERIDAN ROAD, WINNETKA 60093 $6.5 6,390 $1,017 6 BR/5.5 BA 10/13 Chicago Title Land Trust Susan E. Remien trust Not applicable EIGHTH STREET, HINSDALE 60521 $4.6 14,727 $309 8 BR/9 BA 8/31 Incobrasa Industries Ltd. Frederick A. and Karen L. Not applicable 10 24 Henderson KENMORE AVENUE, CHICAGO 60614 $6.5 8,900 $730 6 BR/5.5 BA 5/24 O ce of Penny Pritzker David Scherer, Rosemarie Lincoln Park RIPARIAN ROAD, HIGHLAND PARK 60035 $4.5 13,000 $346 5 BR/8.5 BA 9/15 Kymberly A. Foglia trust Michael L. and Debra M. Not applicable 11 Lizarraga 26 Greenhill 12 GRAND AVENUE, CHICAGO 60611 $6.3 4,798 $1,303 3 BR/3.5 BA 3/12 NA NA Streeterville 26 SHERIDAN ROAD, KENILWORTH 60043 $4.5 5,155 $873 5 BR/5.5 BA 8/19 Mary E. Glerum trust Yoanna Kulas Not applicable 13 SHERIDAN ROAD, WINNETKA 60093 $6.2 5,410 $1,146 6 BR/5.5 BA 11/9 NA Claude Ricard Not applicable 26 DEMING PLACE, CHICAGO 60614 $4.5 10,150 $443 6 BR/7.5 BA 5/20 Chicago Title Land Trust Missy D. Lavender trust Lincoln Park 14 STATE PARKWAY, CHICAGO 60610 $5.9 7,430 $794 6 BR/7 BA 8/31 Jason Heyward Bloomeld Development Gold Coast 29 ELM STREET, CHICAGO 60611 $4.4 5,100 $863 5 BR/6 BA 9/25 NA MOD Construction Gold Coast 15 HOWE STREET, CHICAGO 60614 $5.9 5,358 $1,092 5 BR/4.5 BA 5/11 NA Ronald and Deborah Clarkson Lincoln Park 30 MENOMONEE STREET, CHICAGO 60614 $4.3 6,739 $644 5 BR/6 BA 8/24 Evan Jahn Benjamin Weprin Old Town

P013-P016_CCB_20210208.indd 15 2/5/21 11:20 AM 16 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS PROPERTIES

VHT STUDIOS VHT COLDWELL BANKER COLDWELL BERKSHIRE HATHAWAY HOMESERVICES CHICAGO HOMESERVICES HATHAWAY BERKSHIRE Clockwise from top left: Tied for No. 34, in Lake Blu , sold for $4.2 million. No. 39, in Winnetka, went for $4.2 million. Tied for No. 49, in Lake Forest, fetched $3.9 million. No. 48, in Hinsdale, sold for $4.0 million. No. 47, in Lake Forest, brought $4.0 million. CRAIN’S LIST CHICAGO AREA’S PRICIEST HOME SALES OF 2020 All sales in 2020. Ranked by purchase price. Purchase price Price per Bedrooms/ Address (millions) Square feet square foot bathrooms Purchase date Buyer(s) Seller(s) Neighborhood ALTGELD STREET, CHICAGO 60614 $4.4 6,538 $665 5 BR/5 BA 5/11 B, K & D LLC Thomas Ross and Mary T. Lincoln Park 31 Bergonia 32 DAYTON STREET, CHICAGO 60614 $4.3 9,182 $466 7 BR/7.5 BA 5/14 Chicago Title Land Trust Stephen B. Bonner trust Lincoln Park 33 MICHIGAN AVENUE, CHICAGO 60611 $4.3 3,228 $1,317 3 BR/3.5 BA 3/30 Timothy W. Turner Andrew Carvill Streeterville 34 BURLING STREET, CHICAGO 60614 $4.2 7,000 $600 6 BR/6.5 BA 11/2 NA NA Lincoln Park 34 GRAND AVENUE, CHICAGO 60611 $4.2 3,765 $1,116 3 BR/3.5 BA 9/22 NA NA Streeterville 34 SUPERIOR STREET, CHICAGO 60654 $4.2 4,700 $894 4 BR/3.5 BA 8/21 Mallers family trust Michael D. Neller River North ARBOR DRIVE, LAKE BLUFF 60044 $4.2 29,745 $141 7 BR/11 BA 3/9 Patrick J. and Edith Ahern Richard Marx and Cynthia Not applicable 34 Rhodes HOWE STREET, CHICAGO 60614 $4.2 8,500 $491 7 BR/6 BA 5/19 Stephen A. and Jennifer L. Donald J. and Edna L. Weiss Lincoln Park 38 Sullivan 39 HIGGINSON LANE, WINNETKA 60093 $4.2 11,000 $377 6 BR/8 BA 2/26 Liliana G. Roche trust Kerry and Sarah Wood Not applicable GREENLEAF AVENUE, GLENCOE 60022 $4.1 14,000 $293 7 BR/8 BA 9/30 Roger N. Chams trust Paul J. and Ellen C. Not applicable 40 McDonough 40 EUGENIE STREET, CHICAGO 60614 $4.1 3,000 $1,367 6 BR/6.5 BA 2/24 Chicago Title Land Trust Matt Smith Old Town 42 SHERIDAN ROAD, WILMETTE 60091 $4.1 4,056 $1,006 4 BR/3 BA 1/13 Adam and Susan Lee Sabow Peter V. and Robin S. Baugher Not applicable CLARK STREET, CHICAGO 60610 $4.1 3,852 $1,051 4 BR/4.5 BA 10/21 Kenneth M. Tallering 1550 North Clark (Chicago) Gold Coast 43 Owner LLC DUNDEE LANE, BARRINGTON HILLS 60010 $4.1 13,000 $312 6 BR/8.5 BA 3/18 Aqeel A. and Mariam R. Robert and Elizabeth Schmidt Not applicable 43 Sandhu trusts 45 BURLING STREET, CHICAGO 60614 $4.0 7,000 $571 6 BR/5.5 BA 10/15 Elizabeth Hirschtritt Dmitry and Elona Balyasny Lincoln Park WESTMINSTER ROAD, LAKE FOREST $4.0 10,863 $368 7 BR/8.5 BA 10/16 Michael H. and Lynda L. Robert and Susan Morrison Not applicable 45 60045 Mooney trusts 47 ELM TREE ROAD, LAKE FOREST 60045 $4.0 7,845 $507 5 BR/7 BA 8/10 Chicago Title Land Trust James and Haity McNerney Not applicable 48 OAK STREET, HINSDALE 60521 $4.0 14,490 $273 5 BR/8 BA 5/12 Chicago Title Land Trust Roger Weston Not applicable WOODLAND ROAD, LAKE FOREST 60045 $3.9 7,800 $500 6 BR/8 BA 12/3 612 E. Woodland Road Gregory D. and Melissa K. Not applicable 49 Residence Trust 1 and 2 Glyman 49 GOETHE STREET, CHICAGO 60610 $3.9 3,543 $1,101 2 BR/2.5 BA 2/26 Deborah Bricker trust Chicago Title Land Trust Gold Coast Ranked by purchase price. Includes homes sold in Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will counties and reported in real estate listings or public records by Jan. 29, 2020. Purchase price is rounded to the nearest thousand; only those homes that share a ranking number have identical full prices. NA: Not available. Researched by Dennis Rodkin and Chuck Soder

WANT MORE PRICEY HOMES? BECOME A DATA MEMBER AND GET LISTS FROM THIS YEAR AND LAST YEAR, PLUS MORE CRAIN’S DATA: CHICAGOBUSINESS.COM/DATA LISTS

P013-P016_CCB_20210208.indd 16 2/5/21 11:20 AM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 17

CRATE & BARREL CEOS The Northbrook-based retailer has struggled to find a long-term leader since Gordon its founder sold a majority stake in the Segal Barbara Turf Doug Diemoz Janet Hayes company in 1988. 1962-2008 2008-2012 2015-2017 2020 to present

1962 ’70 ’80 ’90 2000 ’08 ’12 ’17’15’14 ’20

Sascha Bopp 2012-2014 Neela Montgomery Note: Adrian Mitchell was interim CEO between Sascha Bopp and Doug Diemoz. 2017-2020 Crate & Barrel has another new CEO—its fifth in nine years. Will this one last? CRATE from Page 1 company since 1998. It does not re- into Crate & Barrel—like its 2019 ac- furnishing stores last year. After So, instead of getting a customer lease revenue gures, but there have quisition of home decor company dropping o to less than $2 billion to buy a set of a bar stools, convince merchandising will be a north star. been glimpses of Hayes’ moves so Hudson Grace—which could give it in April, sales rebounded to almost them to also buy a matching ta- “She’s been in the industry for a far. more exclusivity. $4.8 billion in September, according ble. Or better yet, update the whole long time. She had great experience, e company doubled down on She is also hands on. Hayes told to data from the U.S. Census Bureau. kitchen. and she knows vendors and rela- curbside pickup and online chan- Nob Hill that she liked to study peo- Crate & Barrel’s competitors “at’s a more fruitful transaction tionships,” he says. “She knows how nels, according to news releases and ple while they shop, to see how they cashed in. Williams Sonoma report- for a company like Crate & Barrel our type of business works, where reports. It recently rolled out a plat- interacted with products, and to do ed net earnings of almost $372 mil- than like, ‘Hey, we’re having 30 per- prior (CEOs) didn’t have (the) many form that noti es customers when her own quality assurance. “I try to lion for the 39 weeks that ended Nov. cent o bar stools this weekend,’ ” years of experience it takes to get their curbside order is ready. Last taste everything that goes through 1, a roughly 96 percent increase year she says. A one-o purchase like good at this business.” fall, it released its Crate & Kids cat- here that’s going to hit our shelves in over year. Wayfair’s net revenue was that “is not meaningful enough to Hayes worked in senior roles at alogue on Pinterest, foregoing the the stores,” she told Nob Hill. up to almost $10.5 million during change how people think about uti- Williams Sonoma for 12 years, the print version, a move that could help the rst nine months of 2020, from lizing the brand.” last half as president of the Williams customer retention. A VARIED MENU about $6.6 million in 2019. Crate is headed in that direction. Sonoma brand. Company lings “Once you have a social media Crate opened a restaurant in 2019 e focus on the home is expect- Its mobile app oers an augmented show the brand’s revenue grew handle, it’s easier for them to fol- within its Oakbrook store. It uses ed to continue, according to data reality component that lets users see each year Hayes was in charge. She low the consumer back . . . and give online channels to push people into consulting rm Accenture. Fifty-sev- what a piece of furniture might look was also president of the company’s them incentives to come back,” says stores, oering consultations to dis- en percent of consumers plan to do like in their home. Pottery Barn Kids and Pottery Barn Sajna Razi, a clinical assistant pro- cuss oor plans and decor. most of their socializing from home Crate & Barrel says 60 percent of Teen brands. fessor of marketing at the University “Our business remains very in the next six months, and many are its website trac comes from mo- Previously, Hayes worked in of Illinois at Chicago. strong, and we’ve seen record de- continuing to move to bigger subur- bile. managerial roles at Nike and Gap, Hayes also faces the ongoing task mand for our products across cat- ban homes that need decorating. e data gleaned from those and got her start in retail when she of maximizing the company’s brick- egories as people spend more time Still, it is unlikely the staggering transactions can be used for product turned 16. Since then, “I have never and-mortar footprint as sales push at home and improve their home sales growth some companies saw development, merchandising strat- come o the retail oor, one way or further online. oces, kitchens, outdoor spaces last year will be sustained, says Jai- egy and more, says Laura Gurski, se- another,” she told the Nob Hill Ga- At Williams Sonoma, Hayes was and more,” Crate spokeswoman me Katz, a senior equity analyst at nior managing director of consumer zette, a regional magazine based in a proponent of making sure stores Vicki Lang says in an email. “Janet’s Morningstar who covers Williams goods at Accenture. Hayes must en- San Francisco, in 2018. gave shoppers something the inter- leadership and deep background in Sonoma and Wayfair. sure the company is using its data Crate & Barrel declines to make net could not. e stores hosted reg- home and design have set us up for e trick now for Hayes will be wisely. Hayes available for an interview or ular cooking classes and events, in- continued success as we innovate in nding ways to continue driving “at will be the dierence in con rm her age. Hayes and her fam- cluding one in 2015 at which Hayes ways that will excite our new and ex- sales, Katz says. To do that, Crate & their revenue and pro tability,” she ily relocated to the Chicago area last cooked with Kris Jenner. isting customers.” Barrel must work to generate more says. “ose that understand the summer, the company says. Germa- Observers expect Hayes to bring Homebound customers with dis- money per sale and create lifetime consumer are going to be in a better ny-based Otto Group has owned the more merchandising partnerships posable income drove sales at home customers. place.” GameStop-fueled lawsuits could force Citadel to pry open its black box CITADEL from Page 1 Robinhood’s sporadic halt of trading ing Charles Schwab, E-Trade and TD instructed or otherwise caused any “whether or not the recent events in GameStop and other previously Ameritrade. brokerage rm to stop, suspend, or warrant further action.” communicating and cooperating low-pro le stocks that suddenly be- Citadel and Robinhood have said limit trading or otherwise refuse to do Speci c proposals for regulatory over Reddit. Other defendants in came highly volatile allowed those the trading suspensions were due to business. Citadel Securities remains xes have been few and far between the cases include Robinhood, the being squeezed to trade out of their lack of liquidity at Robinhood to meet focused on continuously providing li- so far. Concerted regulatory action, no-fee trading app many used to positions while many Redditors were the demands of clearinghouses and quidity to our clients across all market though, could well require more dis- bid up shares of GameStop and sidelined. that Citadel Securities, which is Rob- conditions.” closure from Citadel Securities than other heavily shorted stocks with One example: A Feb. 1 class-ac- inhood’s largest buyer of trades, had A spokeswoman for Citadel’s is the case now. “e risk for them is the goal of squeezing hedge funds tion lawsuit led in San Francisco no say in or advance knowledge of hedge-fund business said at the time, we open up some broad regulatory heavily invested in seeing the by high-pro le antitrust class-ac- those decisions. “Citadel is not involved in, or respon- fact- nding investigation,” UChica- stock prices fall. tion attorney Joseph Saveri accused sible for, any retail brokers’ decision go’s Casey says. e risk to Citadel and Grin Citadel’s hedge fund of conspiring NATIONAL STORY to stop trading in any way.” Likewise, Congress: “ey cer- is less that they ultimately will be with Citadel Securities, something While Citadel and Grin have e other unpredictable arena in tainly can say, ‘We want to know found liable for damages, and more, that the spokeswomen for the two been entangled in business litigation which Citadel nds itself a focus is everything about your conicts or that they might have to divulge de- companies adamantly denied in late before, the disputes have tended to political. e spectacle of ordinary we’re going to make new rules,’ ” he tails of their business operations if a January. be the sort that interest only those in investors getting hurt due as much to says. judge rules against their inevitable “Defendant Citadel (Securities) the investment industry. e plight of hiccups in the trading system as the “I’m trying to get everybody that motions to dismiss, legal observers also pays defendant Robinhood the Reddit investors is a national sto- wisdom, or lack thereof, in their de- has a role to play,” Rep. Maxine Wa- say. at would mean discovery for order ow,” the complaint said. ry, featuring a narrative in which the cisions has members of Congress and ters, D-Calif., said Feb. 3. She chairs and handing over documents and “Payment for order ow is a kickback public can take sides. even Treasury Secretary Janet Yellen the House Financial Services Com- sitting for depositions by hostile that a brokerage rm receives for di- “Judges are impossible to predict,” looking for answers. mittee and plans at least one hearing. plaintis’ attorneys. recting orders to third party-market says Anthony Casey, deputy dean and “We really need to make sure our “I want Reddit there. I want Robin- Grin then would have to de- makers, like Citadel (Securities), for faculty director at the University of nancial markets are functioning hood there. I even want GameStop cide whether to settle to avoid ex- trade execution. . . .(D)efendant Cit- Chicago Law School’s Center on Law properly, eciently and that inves- there. And I want a couple of the posing secrets of a company and adel had ‘reloaded’ their short posi- & Finance. “at has to be a concern.” tors are protected,” Yellen said Feb. 4 hedge funds there.” industry that ercely guard their tions before instructing defendant Spokeswomen for Citadel and Cit- on ABC’s “Good Morning America.” Among the rms she said she intellectual property and how Robinhood to prohibit the purchases adel Securities decline to comment She convened a meeting that day of wanted to question was Citadel. large of a check he’d be willing to of GameStop and other stocks.” on any of the lawsuits. leaders from the Federal Reserve, Sen. Sherrod Brown, D-Ohio, in- write. Billionaires make inviting In addition to Citadel and Robin- In late January, as the GameStop the Commodity Futures Trading coming chair of the Senate Banking targets for class-action lawyers. hood, that suit names a who’s who of controversy was raging, the compa- Commission and the Securities & Committee, also plans at least one e lawsuits typically allege that trading rms as defendants, includ- ny said, “Citadel Securities has not Exchange Commission to discuss hearing.

P017_CCB_20210208.indd 17 2/5/21 4:40 PM ACCOUNTING / CONSULTING ARCHITECTURE / DESIGN BANKING ENGINEERING / CONSTRUCTION INFO TECHNOLOGY

Porte Brown LLC, Elk Grove Village Solomon Cordwell Buenz (SCB), Lakeside Bank, Chicago Burns & McDonnell, Chicago Alden Management Services, Chicago Chicago Porte Brown is pleased Bill Ryan joins Lakeside Bryan Knowles joins to announce Megan SCB is pleased to Bank as Managing Burns & McDonnell Alden Management Angle, CPA, has been announce James Jeffs, Director, Commercial & in Chicago to provide Services announces admitted as Partner. AIA, LEED AP and Katie Industrial (C&I) Lending. technical leadership the promotion of Megan is part of Porte Perez, NCIDQ, LEED Bill will lead the charge on power distribution Richard Hoffman Brown’s not-for-profit AP BD+C have been at Lakeside to accelerate modernization projects to Chief Information and audit & review promoted to Associate the growth of middle nationwide. In his 15 Officer. Hoffman has services teams in the Elk Grove Principals. James joined Jeffs market lending. For 30 years, Bill’s held years of experience, Bryan has implemented and Village office. She has more than SCB in 2016 and has senior roles at major Chicago banks, spearheaded large, complex simplified various technological twelve years of experience providing worked on several helping clients across industries projects for utility clients across the practices that resulted in the tax consulting, accounting, and of the firm’s office succeed. He has degrees in Finance region — serving as an engineering company’s expansion. With over audit services for individuals, projects in Chicago and from U of I & an MBA from Kellogg’s. director and technology leader for 25 years of experience holding nonprofit organizations, and closely throughout the Midwest. From a large family, he KNOWS how a major design firm. As the nation’s various Vice President and Senior held businesses. She co-leads Porte He is currently part of to listen & move fast, like Lakeside. If distribution system grows more Vice President positions within the Brown’s Not-for-Profit team and StudioORD working on you’re with a middle market company, complex, Bryan provides years of information technology industry, is also an integral leader of Porte the new O’Hare Global “It’s about time” to meet Bill Ryan. robust experience and insight to Hoffman will continue to oversee the Brown’s Audit Services team. Terminal. Perez make the firm’s clients successful. technological advancement of more Katie joined SCB in 2013 than 50 health care facilities across and is a project manager in the the Illinois and Wisconsin region. firm’s Interior Design studio. Her diverse portfolio of work includes INSURANCE workplace, mixed-use, and multifamily CONSTRUCTION SERVICES residential projects, including the ENGINEERING / CONSTRUCTION recent repositioning of One South Power Construction Company, Health Care Service Corporation, Wacker. James and Katie’s leadership, Chicago Chicago ACCOUNTING / CONSULTING dedication to design excellence, and V3 Companies, Ltd., Woodridge collaborative spirit is integral to SCB’s Power Construction is Dr. Opella Ernest is Porte Brown LLC, Elgin continued growth and success as a pleased to announce V3 Companies named promoted to Executive leading design firm. Jeff Geier’s promotion Louis Gallucci, P.E., as Vice President and Chief Porte Brown is pleased to President. An Iowa the second President/ Operating Officer. Opella to announce Mark State University graduate, CEO in the company’s will retain and continue Gallegos, CPA, MST, Jeff began at Power in 38-year history. Lou to lead Information has been admitted 2000. Passionate about joined V3 in 2003 from Technology, Customer as Partner. Mark is supporting education Geier Alfred Benesch and led Service, Health Care Ernest a member of Porte initiatives, he serves on the growth in V3’s public sector Management and Data Brown’s tax services Cristo Rey’s Foundation business, helping the firm become Analytics. She is a board- team in the Elgin office. Gallegos has Board. Terry Graber will a recognized leader in Illinois certified family physician dedicated his career as a Certified remain as CEO. transportation consulting. Most recently and holds a bachelor’s Public Accountant in taxation. He has Bob Gallo has been he was Executive VP of Business degree from the University Development and led teams serving more than 20 years of experience ARCHITECTURE / DESIGN promoted to Chief of Michigan and a degree providing sound tax advice to his Operating Officer. the Transportation and Power & Energy in medicine from The markets. Lou serves on V3’s Board of Ohio State University clients. Gallegos also has extensive Solomon Cordwell Buenz (SCB), A Bradley University Directors and its Executive Committee. College of Medicine. experience in business and individual Chicago graduate, Bob began at Gallo Tikkanen Jeff Tikkanen is promoted taxation, credits and incentives, and Power in 1987, helping to Executive Vice President, international tax and consulting. SCB has welcomed two Power grow from 70 people to a Commercial Markets. Jeff will retain new Associate Principals 400-person firm. He serves on the Lurie and continue to lead commercial to the firm’s Chicago Children’s Hospital Foundation Board markets, product design and office. James Michaels, and works with several community development, pharmacy solutions AIA is a senior designer organizations including Revolution and market operations, including with 25+ years of Workshop - supporting residents of broker and consultant operations and experience designing Michaels Chicago’s west and south side develop HEALTH CARE relationships. Jeff has been with HCSC large-scale, high- skills and find employment. since 1993 and served in a variety of profile urban projects ATI Physical Therapy, Bolingbrook management roles. ACCOUNTING / CONSULTING worldwide, most recently at Wight and Co. and ATI Physical Therapy, Porte Brown LLC, Elgin Skidmore Owings & one of the nation’s INSURANCE Merrill. He joins SCB’s CONSULTING largest providers of Porte Brown is pleased architecture practice physical therapy services, Health Care Service Corporation, to announce Gabe focusing on multifamily Conlon Public Strategies, Chicago is pleased to welcome Chicago Grzeskiewicz, CPA, and mixed-use projects Schabel Ryan Wilson as Chief CITP, has been admitted across the country. Conlon Public Strategies, Commercial Officer Arun Prasad will join Wilson as Partner. Gabe is Alex Schabel, AIA joins the firm as a a Chicago-based and John Sanford the company as Senior part of Porte Brown’s project manager from Booth Hansen, consulting and public as Vice President of Vice President and Chief accounting and consulting bringing 20+ years of experience affairs firm, welcomes Design, Construction Strategy Officer where he services team in the Elgin office. across a variety of sectors including Dr. Joanne Howard as a and Facilities. Wilson will lead the organization’s He has more than fourteen years multifamily, adaptive reuse, and Senior Advisor. With an will be responsible for strategic efforts including of experience providing tax education. She is currently engaged extensive background in enterprise-wide sales long-term planning, consulting and accounting services with new residential and mixed-use higher education and organizational and marketing efforts, business and corporate development for individuals and closely held projects in Philadelphia and Atlanta. leadership, Dr. Howard offers the including customer and strategic investments. Arun’s businesses across several industries. firm’s clients expertise in nonprofit acquisition and retention responsibilities also include oversight Grzeskiewicz is also the leader of management, program evaluation, strategies. Sanford of HCSC’s subsidiary businesses. He Porte Brown’s information technology and strategic planning. In addition Sanford will be tasked brings nearly two decades of strategic and cybersecurity services teams. to her work with the firm, Dr. Howard with the oversight and management health care experience to HCSC. Arun is a clinical assistant professor of of ATI’s clinic design and construction holds a B.S. in finance and economics public administration at the Illinois process as well as fleet maintenance from Boston College. Institute of Technology Stuart School programs. The two bring decades of of Business. expertise and strategic insight to ATI as the brand grows its footprint in INSURANCE 2021 and beyond. CONSTRUCTION Health Care Service Corporation, Chicago ACCOUNTING / CONSULTING BMWC Constructors, Inc., Jim Walsh will assume Chicago / Indianapolis Porte Brown LLC, Elk Grove Village EDUCATION the role of Senior Vice President and Chief The BMWC Constructors Porte Brown is pleased Financial Officer. Jim Board of Directors The University of Chicago’s Polsky to announce John HUMAN RESOURCES currently leads the unanimously elected Center for Entrepreneurship and Lancaster, CPA, CCIFP, Financial Services Chris Buckman as Innovation, Chicago has been admitted as division and has held Chief Executive Officer. Alight Solutions, Lincolnshire Partner. John is part of positions of increasing Walsh Chris accepted this Christine Karslake, Porte Brown’s audit & responsibility within position, in addition to PhD, MBA, is the Cathinka Wahlstrom has review and accounting HCSC’s finance divisions his previously held role as President Managing Director of been named president services teams in the Elk Grove for more than 13 years. of BMWC, and will now be holding Polsky Science Ventures and chief commercial office. He has more than ten years of Nathan Linsley will both titles. In his new role as Chief for the Polsky Center officer of Alight, a leading experience providing tax consulting, assume the role of Executive Officer, Chris replaces for Entrepreneurship cloud-based provider of accounting, and audit services Senior Vice President, Brian Acton who will remain with and Innovation at the integrated digital human for individuals and closely held Government Programs, the company in a reduced role University of Chicago. In this role, capital and business businesses. He is also one of the where he will lead the as Executive Chairman. Chris has she leads the formation and launch solutions. Cathinka will be responsible leaders of Porte Brown’s construction company’s government professionally served our employees, of new science and technology for accelerating Alight’s growth strategy, Linsley team. In addition, Lancaster works business. Nathan previously clients and industry for 24 years and companies across all fields of leading all aspects of its commercial with numerous manufacturing was a Divisional Senior Vice President is perfectly suited for this position. research at the University of Chicago. organization, including North America businesses in the Chicagoland area. Christine brings more than 10 years sales, strategic accounts, channels and of Treasury and Corporate Strategy, of venture capital experience and has partnerships and marketing. Cathinka responsible for the development helped deliver more than $12 billion joins Alight from Accenture where she and articulation of the company’s in incremental value for a variety of served in various leadership roles for corporate strategy as well as all capital life science businesses. more than 26 years. planning and allocation activities. Advertising Section

PEOPLE ON THE MOVE To place your listing, visit www.chicagobusiness.com/peoplemoves or, for more information, contact Debora Stein at 917.226.5470 / [email protected]

LAW LAW LAW LAW REAL ESTATE

Freeborn & Peters LLP, Chicago Keller Lenkner LLC, Chicago Much Shelist, Chicago Saul Ewing Arnstein & Lehr, Chicago NAI Hiffman, Oakbrook Terrace

Freeborn & Peters LLP Keller Lenkner LLC, a Juli Dreifuss was Marc Adesso joined NAI Hiffman, the region’s is pleased to announce national plaintiffs’ law elevated from associate Saul Ewing Arnstein & largest independent that Kimberly A. Beis firm, has added Jason to special counsel in Lehr’s Chicago office commercial real estate has been named Co- Zweig as a Partner in its the Wealth Transfer & as a partner in the brokerage and management Leader of the Intellectual Chicago office. Zweig is Succession Planning firm’s Cannabis and company, is pleased to Property Practice Group. a seasoned class-action group at Much. Juli Corporate Practices, announce the shareholder Kim has experience with lawyer with experience focuses her practice on including its Securities, promotions of commercial all aspects of civil litigation, including representing plaintiffs in antitrust, tax planning and the integration of Mergers and Acquisitions and real estate veterans Higa pre-suit investigations, discovery, consumer, and product-liability estate plans and corporate structures, REIT sub-groups. He has extensive Perry Higa and John motion practice, trial preparation and matters. Zweig joins Keller Lenkner with an eye toward transferring experience advising clients in IPOs, Basile. Throughout his examining witnesses at trial in both from Hagens Berman Sobol Shapiro wealth and business interests in a alternative public offerings, primary 30+ year career, Perry’s state and federal court, particularly LLP, where he was Managing Partner of tax-efficient manner. She advises and secondary registered offerings diligence and knack for as it relates to pharmaceutical its Chicago office and had previously clients on developing strategies using and complex corporate transactions. assembling mutually- patent litigation. In addition, Kim is opened the firm’s New York office. gift, estate and generation-skipping Marc’s experience includes advising beneficial transactions Co-Leader of the Firm’s Women’s transfer tax planning. clients in the real estate/REIT, have earned him a loyal Leadership Council. cannabis, health care, manufacturing client base of tenants, and financial service industries. landlords, buyers, and Basile sellers. He joined Hiffman LAW in 2015 following his time with CBRE’s NON-PROFIT Corporate Services Group. Freeborn & Peters LLP, Chicago John’s successful 15-year career is LAW LAW marked by partnerships with local and Neighborhood Housing Services, Freeborn & Peters LLP multi-market clients. He leverages his Chicago is pleased to announce King & Spalding LLP, Chicago Much Shelist, Chicago expertise in supply chain efficiencies, that Katheleen A. the freezer/cooler food industry, and Anthony Simpkins is Ehrhart has been Jake Downing has Matthew Feery the execution of real estate strategies. the organization’s new named Co-Leader of joined the Chicago was elevated from John joined Hiffman in 2019. President and CEO. the Insurance Brokerage office of King & Spalding associate to income He has held multiple Group. Kathy has as a partner in the principal in the Labor roles serving the City of extensive experience working with Corporate, Finance and & Employment group Chicago, most recently executives, senior management and Investments practice at Much. Matt advises as Managing Deputy in-house counsel of corporations in group, and as part of clients on matters Commissioner of the Department managing litigation as well as advising the firm’s recently-launched Global involving hiring and termination, of Housing. Simpkins earned his on litigation risks and strategy. She Human Capital and Compliance restrictive covenants, wage and law degree from Loyola University also was recently involved in the first practice. Downing specializes in hour requirements, discrimination and began his career as a Skadden virtual bench trial in Cook County. global executive compensation and harassment, medical leaves Foundation fellow at the Legal and employee benefits issues, and related issues. Matt helps Assistance Foundation and Lawyers’ TRANSPORT / LOGISTICS including executive compensation employers of all sizes support their Committee for Better Housing. He LAW programs, retirement programs, business goals by developing best has also worked for the Leadership Echo Global Logistics, Chicago health and welfare programs, fringe practices, strategies and solutions in Council for Metropolitan Open Freeborn & Peters LLP, Chicago benefit programs and their related compliance with federal, state and Communities founded by Rev. Echo Global Logistics, governance considerations. local labor and employment laws. Inc., a leading provider Freeborn & Peters LLP Martin Luther King Jr. of technology-enabled is pleased to announce transportation management that Michael J. Kelly has services, has announced been named Co-Leader that Brian Parchem of the firm’s Litigation has been named Chief Practice Group. For more LAW Information Officer. Prior to working at than 25 years, Michael LAW Echo, Mr. Parchem served as Executive has worked with clients on complex Levin Ginsburg, Chicago Vice President of Global Engineering litigation cases involving antitrust, Much Shelist, Chicago and Operations for TransUnion and was contract, insurance, intellectual PROFESSIONAL SERVICES Levin Ginsburg is responsible for managing IT strategy property and trade secrets, often Luke Harriman was pleased to announce and overseeing development teams involving novel issues. Michael is also elevated from associate Aon, Chicago that Joseph A. LaPlaca across the globe. Mr. Parchem holds an experienced counselor, litigating to income principal in has joined the firm as a bachelor’s degree from Northern and providing in-depth strategic the Wealth Transfer & Aon welcomes back an Associate Attorney. Illinois University. advice on class action litigation. Joe is a graduate of Succession Planning Jeremy Myeroff as a Vice the UIC John Marshall group at Much. Luke President in Chicago’s Law School and obtained his B.A. in advises individuals and Commercial Risk & Health LAW History from Denison University. Joe families on estate planning matters, Solutions office. Jeremy will focus his practice in all areas of helping clients protect and provide was most recently with Freeborn & Peters LLP, Chicago commercial law. While a law clerk for their loved ones. His practice Aon from 2014-16. In his with Levin Ginsburg, Joe worked is comprehensive, ranging from new role, Jeremy is responsible for WEALTH MANAGEMENT Freeborn & Peters LLP on a broad range of commercial counseling young parents as they driving client value, solutions and is pleased to announce matters including both commercial plan for the care of their children to business development across risk Altair Advisers LLC, Chicago that Steven D. Pearson litigation and transactions. formulating sophisticated estate tax and health. Most recently, Jeremy has been named Co- and income tax strategies for comes from Mercer, where he served Altair Advisers, an Leader of the Insurance high-net-worth individuals. as a consultant focused on business independent wealth Brokerage Group. Steve’s development. Jeremy is a Miami of advisory firm, is proud to practice emphasizes Ohio graduate, where he majored in announce that Rachael the areas of non-compete litigation, business organizations & management. LAW Halstuk Mangoubi and professional liability, insurance David Lin have been coverage, bad faith, reinsurance, and Mammas · Goldberg · Vanderporten, promoted to Managing complex commercial litigation. Steve Chicago Director. Rachael’s Halstuk also regularly litigates large-scale LAW professional background, Mangoubi attorney fee disputes and has testified As they enter the 2021 along with her depth of as an expert witness in such matters. New Year, Mammas · Much Shelist, Chicago technical skills and her Goldberg · Vanderporten, ability to mentor others LAW one of the oldest domestic Peter Shepard was make her a tremendous relations law firms in elevated from associate asset to Altair. David has played an Freeborn & Peters LLP, Chicago Chicago, will celebrate to income principal in the its 40th anniversary Business & Finance group instrumental role in the firm’s market outlook Freeborn & Peters LLP by welcoming Caidi Mammas at Much. Peter focuses his Lin and investment strategy is pleased to announce Vanderporten, Esq. as a new partner, practice on mergers and through both his leadership of the that Terrence Sheahan extending its legacy. The boutique firm, acquisitions. He provides firm’s research group and his position has been named Co- founded by Vanderporten’s father, Evan outside general counsel services To order frames on Altair’s Investment Committee. Leader of the Litigation James Mammas, and the late Jerry S. for private and public companies, “Rachael and David represent Practice Group. TJ has Goldberg, unveiled its new name and entrepreneurs and private equity or plaques the very best in our field. We feel tried to verdict more logo in December 2020. Vanderporten firms. Peter regularly represents clients fortunate to have their talents at than 150 civil and criminal bench trials joined Mammas | Goldberg in 2018 looking to expand their businesses of profiles contact Altair and we are excited to welcome and 17 civil and criminal jury trials after six years as a prosecutor with the through acquisitions. He provides Lauren Melesio at them as new partners to the firm” (in addition to trying multiple other Cook County State’s Attorney. strategic advice, guiding his clients notes CEO, Rebekah Kohmescher. bench and jury trials that have settled through business combinations, [email protected] or or otherwise ended during trial). In capital raises and exit opportunities. addition to his courtroom experience, 212-210-0707 he routinely represents business clients in arbitrations and mediations. 20 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS

æ`ÛiÀ̈Ș}-iV̈œ˜ CLASSIFIEDS To place your listing, contact Claudia Hippel at 312-659-0076 or email [email protected] .www.chicagobusiness.com/classi eds

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BOEING SALES IN BILLIONS Aircraft Defense Total sales WABTEC U.S. RAIL, INC. seeks to Attn: HR, 600 Mountain Ave, 6D-401E, “ e defense segment has im- LEAD ENGINEER 2 EMBEDDED SW Murray Hill, NJ 07974. Specify Job #. EOE mensely beneted the company 2017 $54.61 $23.94 $94.01 DEVELOPMENT in Chicago, IL to lead during the COVID-19 pandemic the dvlpment of wrld clss lcmtve dgnstic 2018 applctins. Req domestic trvl up to 5% of time. by being a stabilizing factor in a $57.50 $26.3 $101.13 Apply at www.jobpostingtoday.com, FOR RENT tumultuous time, but the com- REF# 79038. pany has largely missed the large 2019 $32.26 $26.10 $76.56 CONTRACTOR LOTS upswing in U.S. defense spending AVAILABLE WITH OFFICE over the past four years,” Morning- 2020 $16.16 $26.26 $58.16 MONEE, IL star analyst Burkett Huey wrote in CAREER OPPORTUNITIES OUTDOOR PARKING Source: Company filings TRUCK TRAILER RV CAR BOAT a note to clients. RESEARCH DATA ANALYST, 1-100 SPACES AVAILABLE Boeing needs every penny it can NORTHWESTERN UNIVERSITY, Chicago, Fenced & Secured get from defense as the rebound due to slow after rising 20 percent prots in the defense business to IL. Engage in data management, quality 24-Hour Electronic Gate Access in air travel remains stubbornly under the Trump administration. $1.5 billion from $2.6 billion. assurance, analysis and reporting. Prior Short or Long Term Availability out of reach, leaving little demand e boom didn’t benet Boeing experience in processing and analysis of Family Owned and Operated for new commercial airliners. e as much as other military con- TREADING WATER? neuroimaging data required. Resumes to: Call Today for Availability TRICIA PARTLOW 815-395-0122./ 708-878-0676 Chicago-based company burned tractors. Boeing’s defense revenue To grow in defense, Boeing will NORTHWESTERN UNIVERSITY $18.4 billion in cash in 2020 as grew 10 percent between 2017 and have to take business from others, 300 E Superior Street Tarry 8th Floor deliveries of the 737 Max were 2020, while Northrop Grumman’s which the company has struggled Chicago, IL 60611 on hold for most of the year, and rose 42 percent and Lockheed to do. “ e most anybody can deliveries of the 787 also stopped Martin’s climbed 31 percent. hope for is to maintain their old because of quality-control issues. “Northrop Grumman is the share,” says George Ferguson, It’s likely to burn an additional team to beat in defense contract- an analyst for Bloomberg Intel- Chicagoland’s latest business news and events. ChicagoBusiness.com $3 billion to $5 billion this year, es- ing, and Raytheon and Lockheed ligence. “I think it’s going to be timates S&P Global Ratings. Ana- are nipping at their heels,” says really hard for anybody to grow lysts say Boeing can likely weather Loren ompson, chief operating share.” the storm: It has nearly $26 billion ocer of the Lexington Institute, a However, he says Boeing’s air in cash and short-term invest- think tank in Arlington, Va. “Boe- focus might be an advantage now. OUR READERS ARE ments, having borrowed about $36 ing has a dierent kind of busi- “We think ground forces will get billion since the downturn began. ness: e other three are trending less funding in the future.” Instead, 125% MORE LIKELY Calhoun told analysts he ex- more toward munitions and elec- he sees “more of what we call force TO INFLUENCE pects Boeing’s defense revenue tronics. Boeing is still about things projection and presence” and re- to grow “at the lower end of the with wings, plus space.” newed focus on Asia by the Biden OFFICE SPACE single digits” this year. ings look Boeing lost a $13 bil- DECISIONS dicey beyond that. Amid a global lion contract for ballis- pandemic, government spending tic missiles to Northrop “BOEING HAS A DIFFERENT KIND OF on vaccines, testing and treatment Grumman, which also BUSINESS. . . .BOEING IS STILL ABOUT will rise, cutting o the easiest won an $80 billion con- path of future growth for Boeing’s tract for a new long- THINGS WITH WINGS, PLUS SPACE.” defense unit. range bomber. Nonetheless, Boeing Loren ompson, COO, Lexington Institute ‘CRIPPLING’ DEBT landed some lucrative e U.S. government already has contracts during the recent Pen- administration. “If you’re going committed to more than $3.5 trillion tagon spending spree, ompson to have a presence in Asia, you’re in coronavirus relief, from vaccina- says. Wins included an $890 mil- going to do that with aircraft and tions to economic stimulus. And the lion unmanned refueling-tanker ships.” Biden administration is pushing for project for the Navy, which could ompson sees opportunity in another $1.9 trillion in pandemic grow to $13 billion, as well as a the space segment, particularly in relief. Total federal spending has $43 million contract for under- national security programs. Boe- been about $4.8 trillion annually. sea drones. Boeing also landed a ing has stumbled with its Starlin- “When the dust settles on $9.2 billion deal to provide the Air er replacement for NASA’s space COVID, we will be left with a po- Force with new training aircraft shuttle, trailing rival SpaceX. Boe- Find your next tentially crippling amount of debt, and a $2.4 billion contract for new ing’s new moon rocket also has corporate tenant or leaser. and sooner or later we will need helicopters. e Air Force ordered suered setbacks. to confront that as a matter of na- updated F-15 ghters last year in a “ eir space problems have tional public policy,” says Anthony deal that could be worth up to $23 been on the civil side, and those LoSasso, an economics professor billion. are fairly easily rectied,” omp- at DePaul University. “ e cost of Boeing’s big contract victory a de- son says. “ e No. 1 thing for servicing that debt will naturally cade ago for a new Air Force tank- (Boeing) is to secure major con- crowd out other spending prior- er has been plagued by delays and tract wins. ey missed out on the Connect with Claudia Hippel at ities. Defense will likely be pretty other problems. e company took (B-21) bomber and the new ICBM. [email protected] for more information. high on that list.” a $1.3 billion charge for the KC-46 ey’re looking at a hole that must Defense spending already was program last year, which dropped be lled.”

P020_CCB_20210208.indd 20 2/5/21 4:32 PM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 21

Employers’ next challenge: Post-COVID space needs OFFICE SPACE from Page 3 ‘COMMUNITY’ VS. CONVENIENCE e 72,000 square feet that law rm Clark Hill leases on three oors of One Prudential Plaza in- cluded vacant space managers liked to have avail- able to quickly sta up as the company won new business. Now it’s too much. “Now we get to toss out those traditional pro- jections,” says Ray Koenig, member in charge of the rm’s Chicago oce. His employee surveys showed that before the pandemic, less than 10 percent of its team worked remotely three days or less per week. Today, only 15 percent say they want to work from the oce full time in the future, with the majority saying they’d prefer to be there three days a week or less. Koenig remains concerned about the rm’s 110 Chicago-based attorneys and sta missing face time with each other, but the overwhelming survey response was that location didn’t seem to impact collaboration, he says. “Face time today doesn’t necessarily mean (someone) sitting in a chair across my desk.” Younger attorneys still say they would prefer to work out of the oce every day to feel connected to the rm “community,” Koenig says, and to learn from more veteran partners. He sees a challenge in creating a policy that allows both exibility but also encourages interaction among colleagues. at likely means more desk-sharing among people that aren’t in the oce as often, “but we Ray Koenig don’t know the answer to any of that,” Koenig

PHOTOS BY JOHN R. BOEHM R. JOHN BY PHOTOS says. “ at’s what we have to explore.”

GETTING-TO-KNOW-YOU GATHERINGS Like many growing tech com- He says the company has func- “more hoteling as opposed to ‘my panies in Chicago, IT consultant tioned well during the pandemic pictures are on my desk,’ ” Hoehne Ahead spent the early part of 2020 and predicts based on worker sur- says. guring out how to add more seats veys that about 20 percent of its Ahead has another wrinkle in in its 29,000-square-foot oce at team will almost never be in the of- its workspace calculus: It has ac- 401 N. Michigan Ave. to accom- ce in the future, while another 20 quired two companies during the modate a couple dozen new hires percent will want to return to the pandemic. at means new work- who joined in the months before. oce ve days a week. e majori- ers and new customers it needs to COVID not only put that on ty will land somewhere in between. get to know. hold, but feedback over the past More people working from “We will do a lot of hosting here year from most of its more than home could become a release when things come back for both 200 local employees showed valve for the company to avoid clients and potential clients,” “people are enjoying being able leasing a lot more space for new Hoehne says. “ e space—even to work from home,” says Michael hires. at may lead to “more of a though we won’t have people sit- Hoehne, who oversees Ahead’s hybrid” of personal desks for cer- ting here like we used to before the human resources department. tain employees in the oce and pandemic—it will still be used.”

‘PLEASE STAY IN THE SUBURBS’ Jace Mouse Gary Walter isn’t just guessing that many of his employees will work from home a lot more in the SPACE TO CONNECT future. He’s counting on it. e CEO of marketing tech rm Jace Mouse has found a mixed business also hinges on collab- Infutor faced a 2021 lease expira- bag of responses from his rough- oration to pair employers with tion in Oakbrook Terrace, forcing ly 100 employees about work merchants they want. “We spend him to decide amid the pandem- in a post-COVID world. But the a lot of time on Zoom and we talk ic whether the company should CEO of tech company PerkSpot about Zoom fatigue,” Mouse says. maintain an oce in both the sub- has heard a common theme e company aims to hire urbs and downtown, where it leas- that will shape the future of its another 50 people this year, but es a small space on Wacker Drive. 27,000-square-foot oce at 320 Mouse isn’t sure what future After surveys showed two-thirds W. Ohio St.: People are craving growth will mean for its oce of the company’s roughly 90 local space to gather. space, which it doubled just employees live in the suburbs— “It feels like the last thing we more than a year ago. In a telling many are older millennials with want to think about right now sign of the work-from-home era, kids, Walter says—and that peo- Gary Walter . . . but that’s the big draw that one of his most recent hires lives ple were both happy and produc- people want the most in our of- in Los Angeles. tive working from home, Infutor ce,” says Mouse, whose rm “When we did surveys, very late last year subleased its down- ter says, but that many workers and nance employees, he says, operates an online platform that few people (said) ‘I don’t plan town oce to another tenant and still “want to have access to an of- may never return to the oce full companies use to let employees to ever return to the oce,’ ” signed an 11-year lease for a full ce.” time. buy discounted merchandise he says. “It’s just going to vary. oor at its current Oakbrook Ter- Despite plans to add employees e new space will have enough and services. Something has shifted for us that race building. this year, Walter opted to lease just seats to accommodate his whole PerkSpot’s workforce is tech- we’re hiring outside of Chicago. “ ere were surprisingly heart- more than 15,000 square feet, or team if it needed to, but it would heavy—engineers and product But some (employees) are say- felt (survey) responses that said, roughly the same amount of total be a tight squeeze. “I wouldn’t be developers, for example—and ing that there’s a draw to having ‘Please do not move downtown, space Infutor had before COVID. able to do that ve days a week, 52 can work well remotely, but its a place to go.” please stay in the suburbs,’ ” Wal- Some of the company’s accounting weeks a year.”

P021_CCB_20210208.indd 21 2/5/21 4:33 PM 22 FEBRUARY 8, 2021 • CRAIN’S CHICAGO BUSINESS Is Springfield ready for real ethics reform? SPRINGFIELD from Page 1 resigned from the state Senate and A special ethics committee ap- soon registered as a Spring eld pointed early last year shut down to illegal behavior, but you also lobbyist whose client list included without producing a report when change the expectation of what Enterprise. While in the General COVID-19 hit. An eort to pass an should be acceptable behavior, Assembly, she had sponsored a bill ethics bill during the recent lame even if it’s not illegal.” to regulate ride-hailing companies, duck session zzled, to the relief Key reform proposals include: ultimately bene ting rental compa- of good-government groups that banning legislators from lobbying nies like Enterprise. didn’t think it went far enough or other governments (Arroyo lobbied Altho didn’t respond to requests was properly, publicly vetted. Chicago for gaming interests while for comment, but in an email, Lang Welch and Senate President Don voting on the issue in Spring eld); says a lawmaker’s duciary respon- Harmon say they’re committed to

stopping legislators, and potentially sibility to the public interest lasts ethics reform. Welch has created a TOMDEMMER.ORG their sta, from becoming lobbyists only as long as their term in oce. new ethics and elections committee Rep. Tom Demmer, R-Dixon, criticized the handling of the panel looking into the ComEd scandal. immediately after leaving govern- While revolving-door provisions and signaled support for term limits ment; expanding lobbying rules to “are popular ethics reforms, and for legislative leaders, a move aimed agerial, operational and consulta- also an Evergreen Park trustee. “Our cover attorneys and consultants; ex- may help at the margins,” he says at preventing any single lawmaker tive responsibilities compared to constitution and the way our Legis- posing conicts of interest by mak- they “act mostly as window dress- from amassing too much power. partner-level leadership.” His wife lature is set up, it envisions a citizen ing lawmakers fully disclose outside ing” and that “integrity can’t be leg- Still, some Republicans have remains a partner at the rm. Legislature,” Burke says. income; and, perhaps most import- islated.” He adds that a legislator’s their doubts, given Welch’s han- Madigan was a partner at a prop- Current disclosure statements ant, giving the legislative inspector experience is a long-term asset that dling of the Special Investigative erty tax law rm throughout his oer very little insight. Welch, for general more independence. extends well beyond six months or Committee looking into Madigan term, as was former Senate Pres- example, disclosed his legal work at Other states have “revolving a year. and the ComEd scandal. ident John Cullerton. Republican three rms on his 2020 form, but was door” rules requiring legislators to “e committee met three times Rep. Jim Durkin also switched to not required to list his clients or com- wait anywhere from six months to POWER COULD VARY in 100 days and heard from one “of counsel” at his rm when he as- pensation. Similarly, Madigan did six years before lobbying former e amount of power given to witness,” says Rep. Tom Demmer, sumed House leadership. Harmon not have to disclose lucrative prop- colleagues. e longer the wait, the the legislative inspector general R-Dixon, a member of that commit- is the exception: He resigned from erty tax arrangements. at makes it less risk of lawmakers “auditioning” to independently launch probes tee. “at’s not a thorough investi- his law rm when he became a leg- dicult for the public to understand for lobbying gigs by shepherding could also vary widely. Currently, gation. At the same time, now in islative leader. whether lawmakers have a conict legislation through to bene t po- legislators sign o on both the start his role as speaker, (Welch) has in- All point to another sticky issue and how big it might be. Plus, under tential future clients. of investigations and on public dicated that he wants to reconsider lawmakers agree needs to be ad- the current code, recusal is optional Lou Lang, formerly second in disclosure of ndings. e state’s the House rules, turn the page, and dressed but haven’t found a x for: if a conict exists on a bill. command in the House Democrat- former acting legislative inspector establish kind of a new day. I take economic interest statements and “Some of this is gonna hurt,” Ka- ic Caucus, stepped down in 2019 general, Julie Porter, testi ed that him at his word.” recusals. ere are no proposals to plan says. “But unfortunately, I think after three decades in Spring eld she completed dozens of inves- Welch stepped back from his role crack down on outside gigs for leg- what we’ve seen is there’s no way to work almost immediately for a tigations, but when she “did nd as partner at law rm Ancel Glink, islators. Spring eld lawmakers are around that. If the General Assembly Spring eld lobbying rm whose wrongdoing and sought to publish where he represented municipali- part-timers with base salaries under is serious about changing this cul- clients include Exelon, the Health it, state legislators charged with ties, but will continue to serve in an $70,000, so most hold other jobs. ture and restoring trust with the peo- Care Council of Illinois and the serving on the Legislative Ethics “of counsel” role, which a spokes- Rep. Kelly Burke, tapped by Welch ple of Illinois, some of these deep University of Illinois. Pam Altho Commission blocked me.” woman says means “reduced man- to lead the new ethics committee, is changes are gonna be necessary.”

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P022_CCB_20210208.indd 22 2/5/21 4:31 PM CRAIN’S CHICAGO BUSINESS • FEBRUARY 8, 2021 23 Chicago software firm going public in blank-check deal The transaction values CCC Information Services, which employs 600 in Chicago opment to firm founded by Marc Stad, improve its known for early investments and serves the auto insurance industry and its vendors, at $6.5 billion system and in hits like Spotify, Slack and develop new DoorDash. Dragoneer’s SPAC BY STEVE DANIELS co-based Dragoneer Invest- cloud-based platform to work products. went public in August. ment Group. The deal will value with repair shops, parts mak- On reve- The transaction will net CCC CCC Information Services, CCC at about $6.5 billion and is ers, towing services and other nue of $600 $968 million, since none of the the Chicago-based software slated to be finalized in the sec- vendors that participate in fix- million in existing investors are cashing firm that’s built a $600 million ond quarter. ing cars damaged in accidents. 2020, it gen- out in the deal. Advent, too, will business on a digital platform SPACs, better known as erated $203 continue to be a shareholder. serving the property and casu- blank-check companies, are R&D INVESTMENT million in New shareholders providing alty insurance industry, is re- proving to be a popular alter- In a presentation Feb. 3 for earnings be- add-on investments include turning to the public markets. native to the traditional initial investors, CCC CEO Githesh fore interest, CCC Information giants like Fidelity Investments Fourteen years after selling public offering. Shares of Drag- Ramamurthy, a 29-year veteran taxes and Services CEO Githesh and T. Rowe Price, as well as to an investment firm and then oneer Growth Opportunities, of the company, painted a pic- depreciation Ramamurthy the family office of billionaire the SPAC acquir- ture of a firm whose growth po- and amorti- Michael Bloomberg. ing CCC, were ini- tential is steady and dependent zation. CCC employs 600 in Chicago BLANK CHECK COMPANIES ARE tially down on the on trends showing no signs of CCC projects revenue in 2021 and is moving to a new Fulton PROVING TO BE A POPULAR news Feb. 3. changing. will grow more than 12 percent Market office from its longtime CCC has posted “We have grown this busi- to $675 million, and EBITDA home at the Merchandise Mart. ALTERNATIVE TO THE TRADITIONAL 20 straight years ness in every economic cycle,” will increase to $242 million. Its total workforce numbers of revenue growth, he said. Ramamurthy, 60, will CCC has been owned since 1,780. INITIAL PUBLIC OFFERING. profiting on the continue as chairman and CEO 2017 by Palo Alto, Calif.-based The firm was founded in 1980 insurance indus- after the deal closes. private-equity firm Advent In- by Howard Tullman, then an at- bouncing through two more try’s move toward digitizing More than 30,000 companies, ternational. Advent intended torney who later gained renown private-equity owners, CCC has many of the functions it used to including over 300 insurers, to take CCC public through an as a startup investor and CEO of a deal to go public via a trans- handle manually, particularly connect with each other via IPO, Managing Director Eric the 1871 tech incubator in the action with a special purpose processing of claims. Eighteen CCC’s platform. The compa- Wei said on the investor call. It Merchandise Mart. Tullman no acquisition company—called of the 20 largest U.S. property ny invests at least $100 million opted instead to partner with longer has any involvement in a SPAC—run by San Francis- and casualty insurers use CCC’s annually in research and devel- Dragoneer, a tech investment CCC. Drugmaker AbbVie predicts quick rebound from Humira revenue drop-off

ABBVIE from Page 1 HUMIRA PATENT CLIFF NEARS accounting for 61 percent of AbbVie is counting on new immunology drugs Skyrizi and Rinvoq to fill the gap when Humira sales plummet in 2023 as copycat AbbVie’s revenue. But interna- drugs invade the U.S. market. tional sales of Humira sank 13.6 percent last year when Euro- PROJECTED HUMIRA SALES Wall Street estimates pean patents expired, even as 2022 $19.6 billion rising U.S. sales pushed overall revenue for the drug up 3 per- 2023 $12.5 billion cent to $19.8 billion. Still, Gonzalez’s forecast 2024 $8.5 billion comes with a big blank. He doesn’t say how much revenue SKYRIZI & RINVOQ ACTUAL AND ESTIMATED SALES will drop in 2023. Analysts proj- ect a 7 percent decline to $54 Actual 2020 $2.3 billion billion, as Humira sales plum- met 36 percent to $12.5 billion. AbbVie 2025* $15+ billion Wall Street expects Humira sales to plunge another 32 per- Wall Street 2025* $12 billion

cent to $8.5 billion in 2024 and BLOOMBERG Note: 2020 marks first full year on the market for Skyrizi and Rinvoq. *Estimate Sources: AbbVie and Wall Street estimates, SEC filings continue falling thereafter. Richard Gonzalez The drugmaker had been re- luctant to project beyond 2023, continuing to maintain strong e astronomical growth Gon- growth beyond 2023 will be large- Allergan softens the impact of particularly after its initial esti- growth through the rest of the zalez projects for Rinvoq and ly driven by its pipeline, which declining Humira sales, which mate for Humira’s 2018 loss of decade,” Gonzalez said. Skyrizi isn’t unheard of, Evans lacks a high number of late-stage now represent less than 40 per- exclusivity in Europe turned out AbbVie shares moved up less says, recalling Merck’s immu- assets,” Conover writes. “Howev- cent of total revenues. to be too optimistic. than 1 percent on the forecast, no-oncology blockbuster Key- er, the early-stage pipeline is fo- “This is how the drug indus- Now another optimistic pro- reecting skepticism among an- truda: “e key is the additional cused in the right areas of unmet try works: You create a block- jection underpins the compa- alysts who expect Rinvoq and indications.” medical need of oncology, im- buster success, and then it ny’s rosy outlook. AbbVie is Skyrizi to generate closer to $12 By 2025, Rinvoq and Skyrizi are munology, and neurology, which becomes the giant hole,” says counting on two new immu- billion in 2025. At $108.53 at expected to be approved to treat all can advance quickly to the mar- Erik Gordon, professor at the nology drugs to ll much of the closing on Feb. 4, the stock has the major diseases Humira treats, ket if favorable data is achieved.” University of Michigan’s Ross Humira gap. Gonzalez predicted declined 2 percent over the past including rheumatoid arthritis School of Business. “The narra- Rinvoq and Skyrizi will generate three years on persistent worries and psoriasis—plus atopic derma- SOFTENING THE BLOW tive that AbbVie had to escape combined annual sales of $15 about post-Humira prospects. titis, which AbbVie says is a large Analysts tend to agree that is that AbbVie equals Humi- billion by 2025, an ambitious “ey’re not going to fully re- and underpenetrated market. last year’s $63 billion Allergan ra,” and Rinvoq and Skyrizi are target for products that posted place Humira, but they’re cer- Additionally, oncology drugs acquisition, which didn’t come helping it do that, he says. revenue of $2.3 billion last year. tainly growing very nicely and like Imbruvica and Venclexta with a notable pipeline of new “It won’t be the company it “We are confident that Rin- are going to help supplement should help mitigate the post-Hu- products, won’t boost AbbVie’s was when it had Humira,” Gor- voq and Skyrizi have the ability that loss of sales in the mid- mira pressure, Morningstar ana- growth rate. But by enlarging don says, “but it can be a dif- to offset any level of Humira bi- 2020s,” says Edward Jones ana- lyst Damien Conover wrote Feb. 3. the overall revenue base to a ferent company that’s a good osimilar erosion by 2025, while lyst Ashtyn Evans. “e rm’s ability to drive projected $55.7 billion in 2021, company.” “THIS IS HOW THE DRUG INDUSTRY WORKS: YOU CREATE A BLOCKBUSTER SUCCESS, AND THEN IT BECOMES THE GIANT HOLE.” Erik Gordon, professor, University of Michigan

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