Six sales highlight hot market

Six sales of Loop-area property by the Benj. E. Sherman & Sonsbrokerage this year indicate how strong the center-city market hasbecome.

"There has been tremendous interest in downtown properties thisyear," said Dan Hyman, vice president of the company.

Most recently, he listed for sale the building that housed theformer Don Roth's Blackhawk Restaurant, a five-story structure at 139N. Wabash, and the two-story 59 E. Randolph building next door. Some32,500 square feet of the two buildings are used for retailoperations and the remaining 24,000 for offices.

Sherman also has just arranged a contract to sell 417 S.Dearborn that will close in January and another that should closenext week on a Michigan Avenue building. The Loop and its immediatesurroundings are attracting interest from international as well aslocal investors, although he would not elaborate, Hyman said.

"In the long term, the property at Wabash and Randolph will be alarger development site," he added. "It's just a block from MichiganAvenue with views that would overlook the four-story Cultural Centerto the park and lake on the east if a taller structure were built,"Hyman said.

The Randolph-Wabash owners are asking $11.5 million for the twobuildings. Musicland and Talbot's are strong retail tenants. Someunleased space remains on the heavily trafficked undergroundpedestrian way to Marshall Field's, located directly across WabashAvenue, and to City Hall and points east. STATE STREET REHAB

Further evidence of the Loop-area boom is the decision by ownerBG Associates of Berlin, Germany, to go ahead with a comprehensiverehab of its 18-story building at 14 E. Jackson, the northeast cornerof Jackson and State.

With planning, leasing and management assistance from Cushman &Wakefield, the property offers 150,000 square feet, improved withnewly renovated mechanical and energy-saving systems. The Lytton'sdepartment store vacated the building more than three years ago.

"We have been working on the project since Aug. 1 and havegotten a major redevelopment program approved by the owners,"according to leasing agent Jeffrey C. Cohen. "They plan $1.5 millionin capital improvements in 1990. The building is about 48 percentoccupied, and there is a lot of interest, including a70,000-square-foot tenant, in the remainder of the building."

Owner BG Associates is a large European real estate developmentcompany. The Lytton property was BG's first U.S. investment sixyears ago. PERKINS & WILL MOVES UP

Possibly the fastest-growing architecture firm in town, Perkins& Will made a big move this week to broaden its important healthdesign business by merging with New York-based Russo & Sonder.

That adds $8 million in fees to the $4 million Perkins & Willwill do this year in health-related billings (hospitals, medicalcenters and medical research facilities) and moves P&W up from about45th-largest in the field to about 25th. Perkins & Will employsabout 400 and Russo & Sonder 60. P&W is more diversified, especiallyin office building design.

Skyline watchers have begun to appreciate Perkins & Will for itsprimary role in the 123 N. Wacker building and the 100 N. RiversidePlaza property that is rising for 1990 completion. The company alsowas involved as an associate architect in the 900 N. Michigan(Bloomingdale's) complex and 333 N. Wacker, two of the most acclaimedbuildings in recent years.

Recently, the company has obtained contracts as general managingpartner for the international terminal at O'Hare and the SearsMerchandise Group's headquarters at Hoffman Estates. That's a lot toswallow for the company, which has been sustained mainly by itsinstitutional and health-care businesses for most of its 55-yearhistory. BIG LAW FIRM LEASE

One of the major leases by a law firm this year was signed byPhelan, Pope and John, which will move to 100,000 square feet at 311S. Wacker.

The deal confirms an October report in the Chicago Sun-Timesthat the law firm was looking for expansion and would move to theLincoln Property Co. development to be able to grow to as many as 150lawyers over the next few years. Richard J. Phelan, foundingpartner, said the firm will reach the 100-lawyer level from about 80today by the date of its move next April to the 65-story tower. Thecompany's currentt address at 180 N. La Salle does not allow for suchexpansion and is being offered for sale.