Chicago Sun-Times
August 16, 1989

City’s real estate a Zeller’s market
By Jerry C. Davis

Paul M. Zeller’s impact on downtown real estate was almost immediate when he left the John Buck Co., another high-flying Loop developer, to form his own firm.

Since launching Zeller Realty Corp. in June, 1988, he has helped one West Loop development get started, bought property for another and, with several suburban projects, has participated in $250 million in development.

First, Zeller obtained financial support for Oxford Holdings, which is developing an office building at 1 N. Franklin. Then, the company contracted to buy the southwest corner of Franklin and Lake, and joined Standard Parking Corp. to become a multi-level self-park and retail facility, with eventual plans for a larger commercial office development.

“We have focused on developing in the Loop, but we have a number of projects in the suburbs, too,” Zeller said.

In fact, the company has participated in a speculative office and industrial building in the Naperville Center for Commerce and Industry and a similar 260,000-square-foot building in Arbor Creek Business Center in Buffalo Grove, both with the Corum Real Estate Group. Other projects in which the company is involved include two industrial buildings in Pleasant Prairie, Wis., and a planned 316 garden apartments in Toledo, Ohio.

Kenneth Sheetz, whose Oxford Holdings is developing 1 N. Franklin with Zeller, credits his partner with finding financial support for a $150 million co-development of a 38-story tower with 610,000 square feet of leasable area. It is the next building that will be completed in the West Loop, and Zeller’s financial sources made it possible with money from Canadian institutions.

“His experience in financing with mine in leasing made it a good match up,” Sheetz said. “We are leasing manager and majority partner, but we needed the financing that Paul helped negotiate.”

Zeller’s background centers on capital structuring of real estate deals. One of the most important projects while with the John Buck Co. was to arrange financing for the Leo Burnett headquarters at 35 E. Wacker. Citicorp Real Estate Vice President Debra Conrardy came away with admiration for his professionalism in that transaction.

“He was able to deliver the best financing to his client. His clear understanding of the total financial costs… saved his client as much as $3 million.”

Zeller is not just a negotiator with such funding sources, but does a lot of number-crunching for clients on the investment potential of projects.

“We write software and work up models that create an economic recipe for each deal,” he said.

The numbers look good at Franklin and Lake for parking now and possible development of something larger in a few years. With Standard Parking Co., Zeller intends to build a 1,200-space parking facility to open next year.

“We think we have the expertise to interface between these parties,” Zeller said, “and make deals work for both of them.”

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