Caton Commercial

Commercial Real Estate

Retail Portfolio Gains Value Through Addition of Property Management

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Commercial real estate (CRE) is an attractive investment because of its consistent returns, passive income, and growth potential. The commercial sector of real estate investing is becoming more and more popular as an alternative investment. However, while it has the potential to be profitable, the acquisition of commercial investments is only the first step to strategic profitability. Knowing when, what, and how to manage the assets in a commercial real estate is an essential component of success or failure.

A successful owner of five high-profile suburban Chicago retail centers reached out to Caton Property Management after struggling to achieve desired financial outcomes with his investment portfolio.

As part of the onboarding process, the property management team conducted an analysis of the financial records, reviewed tenant leases and performed visual inspections of each of the retail strip centers. They also began contacting existing tenants to help facilitate a smooth transition and to prepare the business owners to work with the management team directly. As part of this analysis Caton discovered that several tenants had not paid their CAM reconciliations for several years. Other issues were also discovered that had been negatively impacting the annual net operating income across the portfolio.

Within the first 120 days the property management team made an impressive collection effort netting over $70,000 in balances due from 2019, 2020, and 2021; reducing delinquencies within a very short period of time. Recognizing the opportunity to reinvest the unexpected funds back into the assets, the owner allocated the funds to several maintenance projects and exterior improvements.

Leasing vacancies is a natural next step after securing lost revenue and bringing maintenance up to date. In this case, Caton Property Management partnered with the brokerage division of the firm to lease the primary vacancy in the portfolio. With the combined power of marketing and relationships, Caton Commercial Real Estate broker, Rich Bowden, was able to attract and secure a long-term lease with national tenant within 60 days of listing the space for lease.

The value of commercial real estate is mostly dictated by three things, the location of the property, the physical building and how well it’s maintained, and the quality of the tenants occupying the spaces. After the critical first steps were taken to re-establish a relationship between this investor and his tenants the expectations for tenants has been reset. Caton Property Management continues to deliver comprehensive service with day-to-day tasks such as tenant relations, rent collection, CAM reconciliation, preparing a budget, capital improvement projects, invoice payment, maintenance, and monthly financial reporting.

Caton Property Management takes pride in finding effective solutions to their clients’ most challenging concerns as well optimizing investors’ property values.

CBS 2 News Features QUARTERS Co-Living Location in Chicago’s Fulton Neighborhood

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CBS 2 News Chicago has featured the new QUARTERS co-living building in Chicago’s Fulton Market. Caton Commercial brokers Steve Caton, CCIM, Bill Caton, and Andy Velkme have partnered with The Medici Group to bring QUARTERS to the Midwestern United States. The co-living concept is gaining ground among millennials and others who wish to be in the heart of a CBD with plenty of nearby amenities, without shouldering the city’s rising rents.

To watch the full video, click here.

Medici Co-Living Group Reveals QUARTERS in Chicago

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A sneak peek of the terrace view of Chicago’s skyline from the new Quarters building at Fulton Market District f
Caton Commercial brokers attended a pre-opening event for Berlin-based Medici Co-Living Group  in preparation for the grand opening of their first Midwest-based co-living concept called QUARTERS  in late May 2018. The newest building is located at 171 Aberdeen in Chicago’s Fulton Market district. Caton Commercial‘s Steve Caton, Bill Caton, and Andy Velkme worked to secure the first Midwest location for Quarters and more locations across the nation. Quarters’ co-living concept, a new approach to targeted to young professionals, offers a move-in ready apartment space for 1-5 people overlooking the Chicago skyline.

From L to R: Caton Commercial’s Bill Caton, Christina Caton Kitchel, and Steve Caton, CCIM attended the pre-opening event of Berlin-based Medici Co-Living Group’s first Midwest co-living building.

On Thursday, April 26th, Caton Commercial’s Steve Caton, Bill Caton, Christina Caton Kitchel, and Andy Velkme  attended the special pre-opening event for Quarters, where Medici’s CEO Gunther Schmidt spoke on plans for the new location.

Medici Co-Living Group’s CEO Gunther Schmidt speaking on the pre-opening event last Thursday, April 26th, on the new opening of their first Chicago co-living building.

Click the video link below for your own tour of Quarters Co-Living location in Chicago’s Fulton neighborhood.

SOLD – 1296 W. Boughton Rd., Bolingbrook

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SOLD – 1296 W. Boughton Rd., Bolingbrook

January 8, 2018

Caton Commercial has brokered the sale of 1296 W. Boughton Road in Bolingbrook. Under contract after only 38 days on market, the property closed in November, 2017 with a final sales price of $1,000,000; over the listing price. The seller was Swart Nec Association and was represented by Caton Commercial’s Steve Caton, CCIM and John Andrade. The buyer was Kaplan Papadakis Gournis and was represented by Mid-America’s Sean Bossy. This former Applebee’s restaurant will soon become a new location for ATI Physical Therapy.

Congratulations to the brokers!

John Andrade Joins Caton Commercial Real Estate Group

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John Andrade joined Commercial Real estate Group as a Commercial Broker.

Andrade will be a great asset for the Caton team with his previous experience focused on the financial services industry, bank retail management, and project management. Andrade has owned a  wireless communications business and an online automotive retail website. He is familiar with the lending industry and individual needs of small business owners making him a good fit for the CRE sector. John looks forward to utilizing his unique skill set in working with Caton clients both now and in the future.

Following is the link to John’s Bio here.

The Importance Of CRE Connectivity

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Connectivity in an office building is no longer a luxury, it is as important as having electricity and water. Over the last 5 years, businesses have seen an increase in needing and requiring the highest possible speed on a wireless network for their employees and customers.

Below is an article from naiop.org that where Boingo’s Senior Vice President of Business Development, Doug Lodder shares a few insights on building connectivity. After reading the article, give us a call at Caton Commercial to discuss connectivity and your commercial real estate needs.

Source: blog.naiop.org | Re-Post Caton Commercial 9/14/2017 –

Tenants now expect highly connected buildings – the faster the better – the same way they would expect electricity or any other standard utility. NAIOP asked Boingo’s Senior Vice President of Business Development, Doug Lodder, to share a few insights on building connectivity in advance of his “Building Operations: Hyperconnected Buildings” session at CRE.Converge 2017 in October. In his role at Boingo, Lodder oversees the strategy and development of Wi-Fi and DAS networks for Boingo’s new and existing venue partnerships in commercial real estate and other sectors, and develops innovative partnerships with wireless carriers and wholesale partners.

NAIOP: How have tenant expectations changed over the last five years with regards to building connectivity?
Lodder: Tenants crave connectivity and their appetite for mobile data is skyrocketing. In the last five years, we’ve seen video streaming, Wi-Fi calling, social networks and the app economy create a seismic shift in the way people live and work. Smartphones, tablets, and fitness devices are now front-and-center, which has led to the rise of the “fourth utility” – aka wireless connectivity – and the demand for modern network solutions that can deliver seamless mobile coverage to tenants. We’ve entered a new era in commercial real estate where fast, reliable in-building cellular and Wi-Fi coverage has become imperative. Five years ago the mindset was “location, location, location,” but now, in the words of real estate technology strategist James Carlini, it’s all about “location, location, connectivity.”

Read the full article…

The Chicago Suburb Of Wheeling Prepares For $110M Downtown Center

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Excitement is in the air as the village of Wheeling is finally going to have a designated downtown area. At the cost of $110 million, the area will include apartments, a movie theater, retail shopping and various restaurants. Increased residential growth is also anticipated.

Below is an article from constructionequipmentguide.com that describes in detail all that will be happening in Wheeling. After reading the details of this new venture, give us a call at Caton Commercial so we can partner with you and provide guidance for your commercial real estate needs.

Source: constructionequipmentguide.com | Re-Post Caton 8/30/2017 –

This northern Chicago suburb has long lured diners to its popular 3-mile-long Restaurant Row along Milwaukee Avenue. But despite its gastronomic prominence, the village of Wheeling has no real downtown, even though it was founded in 1894.

That is about to change.

After years of planning and overcoming obstacles, the construction of a downtown is finally underway in the village 30 miles northwest of Chicago.

What does a new downtown cost? The tab here is $110 million.

A town center will rise on a 16.2-acre vacant site created by the demolition of the bankrupt Wickes Furniture property on Dundee Road at Northgate Parkway. The site is surrounded by existing structures that set the stage for a downtown area, such as the village hall, police and fire stations, park district recreational building, aquatic center, ball fields, a lake and a commuter rail station on Metra’s North Central Service line.

recently, crews are laying foundations for the town center. Here’s what to expect at the opening, slated for late 2018: A five-story, 300-unit apartment building will wrap around a 25,000-square-foot plaza with a pool, putting green, bocce court, fire pit, barbecue grills and a gazebo. The courtyard will serve as a central gathering place for residents and the surrounding community.

Read the full article…

Brian Blackmore at Caton Commercial: Developer to Broker Shares His Expertise

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Brian Blackmore  at Caton Commerical brings over 20 years real estate
experience to his new position as Sr. Vice President and Land Specialist. He specializes in the acquisition and disposition of land and bank-owned investment properties.  In addition to Brokerage, Blackmore is principal of his own firm, Blackmore Land Development Services, Inc. (BuiLDS, Inc.)

Here is a quick interview with Brian Blackmore  discussing  his expertise on land development and commercial brokerage:

Why work with BuiLDS and Brian Blackmore?

Having developed land throughout my career, I have a knowledge base that few brokers possess. Because of my relationships and experience, I am able to negotiate with municipalities and ensure that I will maximize the value of the land or lots that are for sale.

What type of services are offered through BuiLDS?

BuiLDS provides a wide range of land development services that includes due diligence studies, conceptual budgeting, estimating, and building as well as construction and post-construction services.

How does your experience complement your brokerage with Caton Commerical?

I was a developer for nearly 20 years where I was involved with taking a piece of property from a farm field all the way through engineering, development, and finally sales to a home builder. Having built subdivisions anywhere from 40 to 400 acres, I fully understand the process and challenges that are present for any prospective buyer.

Talk about the state of residential development.

Back in 2007 we had 75,000 vacant developed lots and were absorbing approximately 36,000 lots per year, which was two years inventory and a healthy absorption rate. Since 2008, we were at a yearly absorption as low as 2,000 vdl’s per year and are currently up just over 4,000 per year now. There are still approximately 45,000 lots left with only half of those being in desirable areas. Lot prices have been creeping up toward the cost of replacement, so home builders are starting to develop new subdivisions again.