Washington Dulles South

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Project:  Industrial Development
Size:  161,000 square feet 4 Bldgs.
Location:  Chantilly Virginia (Dulles Submarket)
Partners:  BlackRock, Inc.

In December of 2007 a joint venture between Washington Properties Inc. and BlackRock, Inc. purchased a 10 acre parcel on Pleasant Valley Road in Chantilly Virginia. The infill parcel is adjacent to Dulles International Ariport. Four state of the art industrial buildings were built to service tenants ranging from as small as 2,700 sqaure feet to as large as 40,000 square feet.

The project was completed in January of 2009. Two buildings were sold in 2012 and the final two buildings were sold in 2013. The project was nominated for the Industrial Development of the Year for 2013 by the Washington Business Journal.

Franklin Park Distribution Center

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Project: Industrial Development
Size: 73,000 square feet
Location: Franklin Park (O'Hare Submarket)
Partners: BlackRock, Inc.

In July of 2006 Washington Properties, Inc. formed a joint venture with an investment vehicle managed by BlackRock, Inc. for the purpose of investing in value-added industrial real estate in the Chicago area. The joint venture's first purchase was the former Schwak facility located at 11222 Melrose Avenue in Franklin Park. The property is situated on 4.6 acres and is approximately six minutes from the O'Hare South Cargo entrance at the intersection of Mannheim and Irving Park Roads.

The existing structure was torn down and the development of a new 73,160 square foot state-of-the-art distribution facility with a 30' clear height and 26 truck doors was completed. The project represents a realization that strong demand exists for new state-of-the-art industrial facilities in infill locations. 

960-1100 Maplewood Itasca, IL

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Project: Industrial Investment
Size: 124,000 square feet
Location: Itasca (O'Hare submarket)
Partners None

In 2002 Jeff Gumbiner purchased a 124,000 square foot, two tenant industrial building in Spring Lake Business Park in Itasca, Illinois, one of the premier industrial parks in the Chicago suburbs. The property is a 21' clear height, class B+, industrial building.

Trader Joe's Chicago, IL

studies4 Project: Retail Repositioning
Size: 24,000 square feet
Location: North Side of Chicago (Lincoln Ave. between Addison and Irving Park)
Partners: None
Jeff Gumbiner and family members owned a 24,000 square foot retail store in the City of Chicago leased to Butera Foods, a small chain of food stores in the Chicago area. Recognizing that the current lease rate had been set over 25 years ago and that the neighborhood had significantly improved over the years, the Butera Foods lease was bought out. Concurrently with the buy-out, Crate & Barrel leased 100% of the space for a rate substantially over the existing rent for a ten year term. The building is now leased to Trader Joe's and Pet Supplies Plus.

Fortune Business Campus Elk Grove Village, IL

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Project: Industrial Repositioning
Size: 221,000 square feet
Location: Elk Grove Village (O'Hare Submarket)
Partners: DSI Interests- GE Capital

In December 2000, Jeff Gumbiner became a partner with DSI Interests to purchase a 221,000 flex industrial/ service center project in Elk Grove Village Illinois, primarily known as the center of the largest industrial base in the United States near O'Hare Airport. The project was purchased from MONY Real Estate and was 60% leased.

The project plan called for aggressive leasing and a hands-on management approach to convince existing tenants to renew, and to develop a reputation among the brokers and tenants that the project was tenant friendly.

Joint Venture financing was provided by GE Capital. During 2001 three existing tenants renewed at pro-forma rents and four leases were negotiated with Fortune 500 companies which added almost 50,000 square feet of new tenants which brought the occupancy to 78% within one year of purchase.

In 2003 the project was sold to a private investment manager. Returns to the investors were over 22%

Sprint PCS Building- Bolingbrook, IL

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Project: Industrial Development
Size: 105,000 square feet on 12 Acres
Location: Bolingbrook (I-55 Submarket)
Partner:  DSI Interests, WisPark Corp.

In 1998 Washington Properties Inc. teamed up with DSI Interests to purchase a 12 acre industrial site in Crossroads Business Park in Bolingbrook, Illinois, one of the fastest growing industrial areas in Chicago. While primarily a big box distribution location, Jeff Gumbiner and DSI (Bolingbrook Associates) realized that there was a need for multi-tenant industrial buildings that could deliver space in the 15,000 to 30,000 foot range with between 10% and 30% office finish.

Bolingbrook Associates sub-divided the 12 acres and built the first building of 105,000 square feet. Six months after completion it was 100% leased to Sprint PCS for 10 years as a call center with 100% office finish. Upon occupancy by Sprint, the project was refinanced.

In 2004 Sprint exercised its option to cancel the lease and paid a substantial penalty. Within three months after Sprint vacated, the building was 90% leased to US Cellular as a call center. The project was sold in 2005 for over $105 per square foot. Returns to investors were well over 25%.

Lincoln Village Shopping Center, Chicago, IL

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Project: Shopping Center Redevelopment
Size: 117,000 square feet increased to 144,000 square feet
Location: North Side of Chicago (Lincoln and McCormick near Evanston)
Partners: Terraco Inc.

Lincoln Village shopping center was an old, tired center anchored by Office Depot which was constructed in the early 1950's and rehabbed in the late 1980's. It benefitted from an excellent location at the intersection of Lincoln Blvd and McCormick on the North Side of Chicago with a dense urban location. The project needed to be physically rehabilitated in order to raise rents.

Jeff Gumbiner and Terraco Inc. an experienced shopping center developer became partners in the transaction and purchased the property in December 1999. Upon closing, negotiations were started with Borders Books and Barnes and Noble to replace an aging cinema and act as an anchor for the center in this neighborhood which was rapidly upgrading. A lease with Borders was signed and plans were prepared for a complete fa├žade renovation. 

The total cost of the project was approximately $23,500,000. The project was sold in 2006.

635 E. Remington Schaumburg, IL

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Project: Industrial Repositioning
Size: 57,000 square feet
Location: Schaumburg IL ( West of O'Hare Northwest Submarket)
Partner:s DSI Interests 

635 Remington is a 57,000 square foot flex/industrial building purchased in 1997. The property is located in Woodfield Business Park, a well known industrial park in Suburban Chicago. Although the building was purchased 100% leased for $36 per square foot, an existing 25,000 square foot tenant was planning to leave.

The ownership instituted an aggressive leasing program using CB Richard Ellis as listing brokers. The 25,000 square foot space was split into two spaces and a new seven year lease was signed for 9,000 square feet. A telecommunications company leased the remaining space for 10 years for use as a telecommunications switch site. The building was refinanced with equity investors obtaining their original investment back within three years.

This project was sold in 2007.