REAL ESTATE REPORT Celebrating 28 Years of Excellence in Commercial Real Estate

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

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

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

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

Summer 2009 VOL.12 NO.1 www.hsacommercial.com Business As Usual, Well Almost! HSA ACQUISITIONS by Bob Smietana, CEO and Vice Chairman

Acquisitions Spotlight Unprecedented events in world financial markets have left most Americans won- Taking advantage of favorable prices, dering where our country is headed. However, I believe that our country’s tradi- HSA Commercial has been aggres- tion of innovation and entrepreneurialism will undoubtedly help our country sively expanding its property portfolio. emerge from this downturn even stronger than before. The firm acquired more than 1 million square feet of industrial properties in Entrepreneurial spirit has always been a driving force at HSA Commercial, as 2008, the majority during the third and demonstrated in our diverse activities. For example, we are at the forefront fourth quarters. of one of the most thriving sectors in commercial real estate: medical office development. HSA Commercial’s PrimeCare division now controls a portfolio of medical office properties totaling more than 700,000 square feet.

Our development division has two major industrial projects underway, and we are securing vacant land for future developments. Our property portfolio continues to grow, with several acquisi- tions in recent months. Our reputation for honoring our commitments has served us well through the current financial crisis, as our finance division has been able to obtain capital at favorable rates 4219 Air Trans Road, Memphis, TN., to fund our opportunities. 366,000 SF—This warehouse is located in Memphis’ dominant Southeast sub- HSA Commercial is ready for the challenges ahead. We will continue to make sensible and market near Memphis International Airport and is fully occupied with a enlightened decisions about where the market is heading. Knowledgeable and responsive service long-term lease to International Cot- has always been our forte, and we promise that we will continue to provide reliable guidance for our ton Depot. clients in these troubled times. In other words, it is business as usual at HSA Commercial.

Office Leasing Update

180 N. LaSalle Street, 37,940 SF—David R. Wilson, executive vice president and managing director, and Ryan Foran, vice president, represented Cremer Spina Shaughnessy Jansen & Siegert LLC in its sublease to DN Partners, a private equity firm, in downtown Chicago. 5321 Shelby Drive, Memphis, TN., 344,000 SF—Also in the Southeast 3903-3927 S. Halsted St., 23,000 SF—Roger Knigge, senior vice president, corporate real estate ser- submarket, this facility is fully leased vices, represented all parties in MW Transport System Inc.’s lease of a 15,950-square-foot warehouse by its previous owner, Crews, a manu- and adjacent two-story, 7,220-square-foot office building. facturer/distributor of industrial safety gear. 1279 N. Milwaukee Ave., 17,245 SF—Brad Black, senior vice president, represented Neighborhood Housing Services of Chicago Inc. (NHS) in restructuring its office headquarters lease in Chicago’s 1260 Brukner Drive, Troy, OH, Wicker Park neighborhood, enabling the housing and advocacy nonprofit to expand and renovate its 211,900 SF—HSA Commercial en- premises. The property is owned by Joseph Freed & Associates, represented by David Kirshenbaum, tered the Troy-Dayton area with the ac- senior vice president-operations. quisition of a state-of-the-art industrial facility that has now been 75% leased Sullivan Center, 33 S. State Street, 10,896 SF—Wayne Shulman, senior vice president, represented to two tenants, Arett Sales and Ware- ownership in lease negotiations with PSA-Dewberry, a national architectural firm. Shulman is exclu- house Specialties, Inc. sive leasing agent for the office portion of Sullivan Center on behalf of Joseph Freed & Associates, which restored the Louis Sullivan-designed landmark after Carson, Pirie, Scott vacated in 2007. New tenants include Freed headquarters; Gensler, the global architectural design firm, with more than 50,000 square feet; and a 32,000-square-foot gallery of The School of the Art Institute of Chicago on the seventh floor.

HSA COMMERCIAL REAL ESTATE | 233 S. Wacker STE. 350 Chicago, IL 60606 | www.hsacommercial.com HSA ACQUISITIONS (Continued) Three New Industrial Developments Underway

Acquisitions Spotlight Park 94 at Mt. Pleasant: LEED Certified Industrial in SE Wisconsin HSA Commercial has completed phase one of Park 94 at Mt. Pleasant, a 90-acre business park along I-94 in Southeast Wisconsin’s Racine County just 15 miles north of the Illinois-Wisconsin border. The two-building, 448,610-square-foot complex is designed for industrial users seeking high-image space with access to low Wisconsin taxes and an abundant labor force. Phase one is a 323,610-square-foot divisible warehouse, expandable to 664,610 square feet, that is among the first LEED Certified warehouses in the region. Phase two will be a 125,000-square-foot divisible facility. David Bercu and David Liebman of Colliers Bennett & Kahnweiler are leasing represen- tatives for the park.

10277 Venice Drive, Sturtevant, WI., Delany Commerce Center: Multi-Tenant Space in Lake County 192,000 SF. Located just off Interstate 94 HSA Commercial recently acquired one of Lake County’s last vacant parcels, a 23-acre site at the near Racine, Wis., this property is fully intersection of Delany and Blanchard Roads near the I-94 interchanges at Route 132 and Route leased to Allstates Trucking Inc. and Bway 173 just north of Waukegan, Ill. One development option is a 475,000-square-foot complex with Manufacturing. units ranging from 23,600 to 256,500 square feet in two buildings. Another option is a single facility with 125 truck docks, two drive-in doors and 80 trailer parking stalls. HSA Commercial’s Doug Reed and Tim Thompson are the exclusive leasing agents for the project.

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

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

15900 West 103rd Street, Woodridge, IL David Keady: Negotiated 4 leases on behalf of Potbelly Sandwich Works in South Elgin, South a 32,000 SF facility fully leased to GCS Barrington, Schaumburg and Rolling Meadows totaling 9,430 SF. Supply. Shannon Pope: Represented ownership in a 56,529 SF lease to Treasure Island grocery at Hyde Park Shopping Center, Chicago, IL.

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

21151 S. Northern Illinois Drive, Chan- Finance Division Closes 14 Loans in Six Months nahon, IL., 28,680 SF—Fully leased to Commonwealth Edison. Despite the steady decline of the capital markets, HSA Commercial’s finance division closed 14 loans in the second half of 2008, securing a total of $68 million in financing for the firm’s prop- 1950 Duncan Place, Woodstock, IL., erty acquisitions and refinancing of current portfolio properties. The division closed 24 loans 28,680 SF— Fully leased to Common- total in 2008 for $147 million in loans from the nation’s most stable lenders. wealth Edison. “Our strong lending relationships and balance sheet have allowed us to continue to finance new acquisitions and existing real estate assets during these difficult economic times,” said Melissa Pielet, executive vice president, finance, and a principal in the firm.

HSA COMMERCIAL REAL ESTATE | 233 S. Wacker STE. 350 Chicago, IL 60606 | www.hsacommercial.com AWARDS/ACCOMPLISHMENTS For the 2nd year in a row, a 56 Michael Havdala, Senior Vice President, Retail Brokerage Division, won the Silver Award for Tenant member team of Representative - Retail Leasing, from the Chicago Commercial Forum group on November 13, 2008. HSA employees These awards are given to industry practitioners who are recognized by their peers as the “best of the and friends par- best” in the field. Michael joined HSA in 2001 and works out of the corporate headquarters in the ticipated in the Sears Tower in downtown Chicago. Sears Tower “ Go Vertical” climb up 103 stories to benefit the Da- Josephine Thomas, SPHR, Senior Vice President of Human Resources, Information Technology and mon Runyon Cancer Research Foundation. Over Administration recently earned certification as a Senior Professional in Human Resources (SPHR). $8,000 was raised by the HSA & Friends team A Columbia College alum, Josephine holds a BA in Management with honors from Benedictine for cancer research, and many of the climbers also University. Josephine joined HSA in 1998 and works out of the corporate headquarters in the Sears raised money for the Lisa Bone Children’s Fund Tower in downtown Chicago. The SPHR certification, awarded by the HR Certification Institute, (see story below). signifies that Josephine possesses the theoretical knowledge and practical experience in human re- source management necessary to pass a rigorous examination demonstrating a mastery of the body of On June 2, 2008, knowledge in the field. HSA suffered an immeasurable loss with the sudden PROMOTIONS tragic death of Lisa Bone, Our Corpor- Douglas K. Jones, to Assistant Vice President, Finance. ate Accounting Manager. Lisa joined HSA at the Joseph A. Swojenski, to Vice President-Facilities Management, Property Management. age of 20 and died exactly 13 years to the day she Kenneth E. Verne, to Vice President-Asset Manager, Property Management. began work of a fatal pulmonary embolism. She left a loving family, including two beautiful young HSA WELCOMES NEW TEAM MEMBERS: daughters, Kristina, age 13, and Samantha, age 9. No one can take the place of their mother, but Kelsey Blindt, Associate, Retail Brokerage HSA is helping to provide an assurance that their Cecil Ford, Maintenance Associate, Property Management hopes and dreams can be realized by founding the Ernesto Gonzalez, Jr., Maintenance Engineer, Property Management Lisa Bone Children’s Fund to help meet their fu- Ruth Johnson, Desk Clerk, Property Management ture educational needs. Liane B. Jones, Property Coordinator, Brown Deer Business Park, Property Management Steven Kwong, Administrative Assistant, Administration, HR, IT For more information on how to help Kris- Diana Morales, Administrative Assistant, Development, Finance, Legal tina and Samantha, please call Grace Fill at Stefan Polcyn, Assistant Vice President, Development 312.683.1270 or visit Janet Risch, Property Accountant, Property Management Accounting www.lbchildrensfund.org Carlos Tenorio, Vice President, Tenant Advisory Services Peter Zeigler, Maintenance Associate, Property Management