Naperville Continues to be Hot Spot for Growth

Naperville, Illinois

The city of Naperville has been a hot spot for development since 1831 with the birth of Naper’s Settlement.  Today is no different.  Growth continues to expand both along the popular Route 59 corridor and the trendy downtown area.

Most recently on Route 59, a number of mid-box retailers leased space in various shopping centers including Ross Dress for Less and Gordman’s.  At the intersection on 75th Street, Dick’s Sporting Goods recently opened near Naperville’s newest commercial development that already includes Nordstrom Rack, Whole Foods, and a number of other retailers.

Our firm was happy to help Bien Trucha obtain space for their second location in what will be a mixed use development directly on the river in downtown Naperville.  Pizzeria Neo, with its original location in St. Charles, also recently signed a lease for a second location in Naperville.  The popular, gourmet pizza restaurant will start serving at 47 E. Chicago this spring.

Many tenants choose Naperville for the co-tenancy it provides while others are interested for demographic purposes.  Additionally, Naperville easily lends itself to a variety of retailers due to its combination of heavy retail corridors and quant downtown area. 

If you are thinking about opening a Naperville location, we’d be happy to help on either a purchase or lease option.

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IPO? What’s that and is it for me?

Individual Private Office

The shared office concept has gained much popularity over the past few years, both by landlords and tenants.  Also called Individual Private Offices, IPO’s, these small suites offer leasing options for tenants seeking 100 to 1,000 square feet with a variety of amenities.

As we’ve discussed in the past, most often times IPO’s include shared areas, such as conference rooms, kitchens, and reception areas.  Additionally, they are most often furnished and “plug-in” ready for phone and internet hook up.  

From a tenant perspective, IPO’s are increasing in popularity for a number of reasons:

  1. As businesses lay off personnel and downsize, the need for less corporate space arises.  Therefore, the company itself becomes a key prospect for shared offices as they now office fewer personnel.  Additionally, higher end IPO’s offer shared receptionists and administrative personnel, meaning that these staff members may not be needed by companies themselves any longer.
  2. Personnel that have been laid off seek new ventures and those with entrepreneurial/executive attitudes look for this type of office situation.  As a means to meet with potential clients and work in a business environment, rather than a home, IPO’s are a great choice for start-ups.
  3. More often in today’s economy, companies are allowing personnel to work in their home area and pay for shared offices, over a large corporate headquarters where rent is relatively high.  This also cuts costs for employees who would normally have to spend personal money (or sometimes corporate funds) on parking, public transportation, or commuting charges to downtown locations.

From the landlord point of view, obviously large vacancies create gaps in their financial portfolio that lenders would rather see occupied at any expense.  Thus shared offices are a suitable option.  Furthermore, second generation space can easily be converted to a shared office concept as nearly any suite comprising of 5+ offices is a great opportunity for IPO’s.

Whether you are a tenant looking for an IPO, or are a landlord considering this option, contact us today and let us help you make the best decision.  We’ve worked on both sides and have valuable knowledge to provide.

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Fourth Article in Irish American New

If you’re anything like us, you’ve admired the craftsmanship at McNally’s Irish Pub in St. Charles.  Walking through the pub doors is like crossing the ocean and being brought straight to Ireland.  But what you may not know is that owner Maurice McNally custom built out the restaurant through his design build construction company, Avondale Custom Homes and his custom woodworking company.  Over 25 years ago Maurice started Custom Woodworking, Inc. which offers handcrafted millwork, cabinetry, and trim.  From there, he went on to building homes and commercial projects through Avondale.  His experience in commercial projects range from a number of restaurants, including McGonigal’s Pub in Barrington, to office suites and retail sites throughout the Chicagoland area.  We recently sat down with Maurice to talk about the commercial build out process.

O’Donnell Commercial (O):  Being in the construction business, you had a leg up as to what to look for when choosing a new pub location.  How should commercial tenants select a location from a construction point of view?

Maurice McNally (M): Yes, my construction experience does help me evaluate the pros and cons of previous construction.  Therefore, I believe it is essential to involve a contractor as early as possible.  I have been included in a number of site searches where I helped evaluate office spaces and restaurant establishments to estimate build out timing and costs before any lease or purchase document was signed.  Avondale is more than happy to work directly with a commercial real estate broker and tenant to tour perspective spaces.

O:  So you can work directly with our firm and a tenant to evaluate approximate timing on build outs?

M:  Yes.  Many tenants may not understand the time needed to build out a commercial space.  Build out doesn’t just involved the contractor.  We team up with an architect to design the space, then bring those plans to the proper city for permitting, and finally start construction.  The permit process and applications can be quite cumbersome and lengthy, taking up to about 30 days in certain cities.  Meaning we can’t even start construction for a month. 

O:  We advise people all the time to start their search for space anywhere from 6-12 months out for most commercial needs, longer if they require a larger space or more built out.  Would you say that is true?

M:  Definitely.  In my experience, it takes most companies or restaurants 1-2 months to find the space they need.  Add another month at minimum for negotiations and attorney review.  That is three months before the space is even ready for construction.  When we work hand in hand with brokers, we are able to bring in architects and necessary construction professionals during negotiation so that we can be ready for construction as soon as proper documents are signed.  But many times, we aren’t brought in till the 11th hour, meaning we have to play catch up on the project. 

O:   Avondale has in-house architectural services, right?

M:  Yes, Avondale offers architectural services, but also works with a variety of local architects.  As long as there is a cohesive team for a tenant that includes commercial real estate representation, construction, and architecture they are in good hands. 

O:  We recommend tenants to bid out three contractors for projects.  How do you feel about this and what should a tenant look for in a contractor?

M:  Absolutely.  Interviewing and bidding out contractors is important.  The contractor you choose is essential to the success of your commercial site.  Even if you have the best architecture plans, it the contractor who needs to execute them correctly, on time and in budget.  I’m all for keeping the business in the family, but saving money by hiring your cousin to dry wall a space may end up costing you more in the end.  Unless your family members are licensed and bonded, and practice that construction field daily, it may cost you more in the end to use them than choosing a well regarded contractor. 

I make sure to spend time with my clients prior to build out.  We tour office suites I have built out, grab lunch at the pub to talk about construction elements there, or merely listen to them as they discuss their business plan.  Understanding the direction of the company or restaurant, and the budget constraints they may have, is important.  Therefore, if a contractor isn’t putting their time up front in getting to know you, chances are they won’t put the time in later on to fix any construction errors or kinks that may have developed after occupancy. 

O’Donnell Commercial had the opportunity to represent Maurice in the purchase of the new McNally’s Pub in St. Charles.  We continue to work hand in hand with his firm suggesting them for bids on new commercial projects to any of our clients.  For more information on Avondale Custom Homes or to start the search for your new commercial site, contact us today.  We promise to help you with your office, medical, retail, or industrial lease or purchase every step of the way, starting with finding the right contractor.

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O’DONNELL COMMERCIAL CREATES VENDOR LIST TO GROW LOCAL BUSINESS SUCCESS AND CONTRIBUTES TO CASA KANE COUNTY ORGANIZATION IN RETURN

From left to right: Susan Farmer of O’Donnell Commercial, Kevin O’Donnell of O’Donnell Commercial and Lori Hewitt of CASA Kane County

SAINT CHARLES, IL (January 2012) – O’Donnell Commercial Real Estate, Inc. has operated in St. Charles for approximately seven years now.  Throughout this time, their relationships with other small businesses, as well as charitable organizations, has grown tremendously.  In an effort to aide both, the firm created a “Preferred Vendor List” where prospective tenants in the market can reach out to local businesses for their services.  “As a commercial real estate firm, we work to educate our tenants on the real estate process.  Part of this is offering them connections to various businesses they may need to support their own business.  For instance, printers, contractors, and bankers are just a few of the possible vendors they may need while either starting their own business or relocating.  Our preferred vendor list does just that…provides them with a trusted source,” says Kevin O’Donnell, president of O’Donnell Commercial.  

Included vendors joined this list with a monetary contribution to CASA Kane County, a nonprofit organization that advocates for abused and neglected children within the Juvenile Court system. In total, O’Donnell Commercial, along with their business relationships, raised $4,000 for the organization.  “In a time where the economy is still not at its best, it is great to see so many businesses come together and not only support our organization, but each other.  We greatly appreciate the support of so many local businesses,” comments Gloria Bunce, Executive Director of CASA Kane County. 

The sixteen vendors that will participate in the 2012 vendor list are:

Accurate Repro, Inc.

AlphaGraphics-St. Charles

Ariano, Hardy, Ritt, Nyuli, Richmond, Lytle & Goettel, P.C.

Associated Bank, NA

Avondale Custom Homes

CPR Printing, Inc.

Helping Hand PC

K. Peterson Associates, Inc. Architects

Marshall Architects

Michael Raymond Construction

Rieke Office Interiors

Schramm Construction Corporation

Sequoia General Contraction Corp.

State Farm Insurance

STC Capital Bank

The National Bank & Trust Company

 

“We were very pleased with the variety of participants we had in this inaugural year for our vendor list.  We truly believe that the companies will see business from this list as our firm can encounter 1-2 prospective tenants a day that will be given our list,” comments Susan Farmer, Vice President for O’Donnell Commercial.  Categories for the list include architects, attorneys, bankers, computer maintenance, contractors, furniture vendors, insurance vendors, printers, and sign vendors.  “I’m amazed at the camaraderie already forming between these businesses.  Vendors are offering discounts to one another for their support of the CASA organization.  As a small business, building a strong network is important.  This is a prime example of the support we should be offering one another,” states Farmer.

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O’DONNELL COMMERCIAL REPRESENTS FAMOUS “BIEN TRUCHA” RESTAURANT IN SECOND LOCATION

SAINT CHARLES, IL (January 2012) – Kevin O’Donnell and Mike Lentino of O’Donnell Commercial Real Estate, Inc. represented ownership of Bien Trucha restaurant in the lease of 2,769 square feet in the highly anticipated Water Street District development of Naperville. This will be the second location for the modern Mexican establishment which has drawn a large following since opening its first location in Geneva. Ownership is very excited for this additional restaurant, which is set to open in 2013, and believes the heart of Naperville is an ideal location.

Bien Trucha has been published in several publications including Chicago Magazine where it was listed in having the number one best taco in the area. Husband, wife, and son team, Ricardo Garcia-Rubio, Delores Garcia-Rubio, and Rodrigo Cano, have worked vigorously to develop a one-of-a-kind dining experience; from the background music to interior décor and the handmade drinks to unique menu items. For more information on Bien Trucha, visit http://www.bientrucha.com/index.php.

Water Street District in Naperville, Coming Soon

Ownership of the Water Street District was represented by James Young from Paramount Properties Commercial Real Estate. More information regarding this brand new mixed use development can be found by visiting http://www.youtube.com/watch?v=bVXqBb1_e2g  

O’Donnell Commercial Real Estate, Inc. is a full service commercial brokerage firm serving the western suburbs. The company offers tenant representation and product representation of office, medical, industrial, retail, land, and investment properties. For more information please visit www.odcre.com or call 630-444-0444.

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The Benefits of an Off-Campus Medical Office Location

Our firm has offered medical commercial real estate services for many years now, representing doctors and medical buildings throughout the western suburbs.  The most recent trend we have seen in this field is the flight from hospital campuses.  In the past it has been popular for a variety of doctor groups to be located on the hospital campus, often times attached to the hospital.  Although this may provide a great location and tenant referral source, it is often times more costly and probably does not offer a purchase option.

 

Over the past five years more office medical parks have been developed, where doctors choose to lease or purchase space off the hospital campus.  This trend has gained popularity as doctor groups expand into new markets, create satellite offices, and start to note the high rental rates associated with on-campus office buildings.  Historically, these on-campus building charge a third to fifty percent more than typical office buildings as the main attraction of the hospital is a draw for tenants.   Furthermore, many hospitals do not offer purchase options on campus as the building is a high-grossing asset for the hospital and selling space would take away this income stream.

 

Additionally, our firm has seen higher “pass-thru” charges with on-campus buildings.  Many times these charges are higher in general as most on-campus buildings are multi-story, leaving more common areas that need to be pro-rated out to tenants.  For example, a single story office building will most often times have a very small shared space that each tenant will pay a portion of.  In a multi-story office building, elevator shafts, lobbies, additional hallways, and stairways alone suggest more shared space that needs to be paid for. 

 

The recent flight from on-campus locations has provided doctor groups with alternative, more cost-concise options that allow them to allocate finances to new equipment, staff salaries, and overall net profit-meanwhile offering the same amenities.  For more information on off-campus medical options, please contact O’Donnell Commercial today at 630.444.0444.

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Commercial Real Estate Absorption & Vacancy Rates


The above graph is from CoStar Group, a national commercial real estate database our firm purchases for property information and data. Similarly to the MLS for residential real estate, CoStar provides lease and sale listing information, historical data, and comparable sold property reports. When CoStar is used in collaboration with our firm’s local market knowledge, we are able to provide a variety of current information for commercial property owners, tenants, and buyers alike.

Shown above is a historical analysis of deliveries, absorption and vacancy for the East/West Office Corridor. Deliveries, notated in yellow, have seen a downward decrease ever since 2008 with minimal upswings. Most likely the few deliveries that did occur can be attributed to special build-to-suit projects for corporations. Due to the fact there is a large amount of vacant properties in this market, it can be assumed that most companies would occupy one of those spaces rather than put the money in building a brand new building unless deemed necessary by facility needs, etc…

Absorption is shown in green on the above graph. In the period between first quarter 2009 and third quarter 2010, there is a negative absorption. After that point the absorption starts to grow. We attribute this to aggressive landlords and eager tenants finally coming to terms with the economic situation. We all know the economy isn’t ideal, but holding out any longer for a change isn’t a possibility. The time to act is now. With upward absorption comes decreasing vacancy. Eventually those eager landlords won’t be so eager anymore and prices will stable out. With this said, NOW is the time to lease or purchase your office space before prices increase.

To discuss office options in your desired area or pricing strategies for leasing or purchasing commercial space, contact O’Donnell Commercial today.

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Third Article in Irish American News


Many of us have had the pleasure of moving. Sure the excitement of a new home is great-but the actual act of moving can be quite overwhelming and cumbersome. The same holds true for commercial office moves, especially since these moves include a larger number of involved parties. In addition to keeping staff up to date on moving protocols, companies have to juggle communications with both old and new landlords, service companies, their customers, and many more groups of people.

As a commercial real estate company we believe it’s partially our job to make office relocations as easy as possible. From helping to bring all parties together and keeping communication consistent to recommending preferred vendors, our firm knows that our job extends past the actual real estate transaction. Our website includes an ever-growing “Tenant Toolbox” that aids in this action, providing a glossary of commonly used terms, methods on how to calculate rent, and even a relocation checklist.

In this article we’d like to expand on our current relocation checklist by featuring tips from Daly Moving & Storage, a fellow Irish business commonly featured in IAN. This family owned company has offered moving services throughout Chicago and the suburbs for over 25 years. As a licensed and bonded company, clients can rest assured their items are in good hands.

Below is a list of tips Daly Moving & Storage have for successful office moves:
Send notifications early and often. Similarly to residential moves, utility companies need to be made aware of office moves…don’t assume landlords or property managers will take care of this. Water, gas, electric, cable, trash removal, security and janitorial should be notified a month before the move and then again the week before. Vendors, such as office supply and computer service companies, should also be notified. A discussion should be had with your insurance company as rental insurance requirements may vary at each location. The post office can be notified online. Customers should receive notification personally. Often times, companies include a message in their email signature line notifying recipients of the moving date and new address. Finally, necessary stationery should be ordered as soon as possible to eliminate any lack of correspondence.

Keep staff informed. Once the final paperwork has been completed to conclude the real estate transaction, staff should be kept “in the know” as to their moving responsibilities and the overall moving plan. By having a plan clearly communicated in advance, staff will not be overwhelming the project leader on the day of the move, keys will not be misplaced, and no one will feel left out from this exciting time for the company. If the new location is quite a distance from the previous office, a company tour may be appropriate to show staff the new office, how security works, where parking is, and what nearby amenities there are.
Additionally, staff should be made responsible for certain moving efforts. Provide numbered storage containers so that staff can pack their own office/cubicle the day before the move. The number will help the movers effectively place the container in the correct area. Other moving efforts for staff to complete include purging of old files and properly shedding unnecessary documents.

You can’t be too detailed. Checklists, timelines, and floor plans are a great way to stay on top of every moving detail. A floor plan outlining the new office and where furniture/boxes go should be presented to the movers and necessary parties. Use color-coded stickers or a number system to easily identify boxes from the outside. A reference sheet of all necessary contacts should be kept on hand including property managers, landlords, utility companies, movers, etc… Make numerous timelines for each step of the move, including one for the actual day. While things may not go as planned, at least a timeline will keep you knowing what the next step is.
Eliminate downtime. Obviously the goal of most companies is to be profitable. A day spent on moving, although will be helpful in the end, is not profitable while in transition. Therefore, by completing as much work in advance, you’ll eliminate unnecessary downtime. Work with your computer and telecommunications companies to properly set up the new office prior to the move and then ask them what their protocol is to get you up and running shortly after the move is complete. Keep phone lines connected for as long as possible and keep a staff member on hand to answer calls in the previous location until the phone line is set at the new one. Weekends or nights may be ideal for moving, however they also may be less cost-effective.

Don’t make furniture assumptions. Evaluating space properly is harder than most think, therefore it is important to correctly measure your furniture to ensure it will adequately fit in your new space. By using a floor plan, you can easily “layout” furniture in your new space. Doing this can also help with cabling, as you can make sure outlets and wiring are in the right location.

For more tips or a free quote to move your office, contact Daly Moving & Storage at 773.697.9323. But if you haven’t found that perfect new location, contact us. We promise to help you with your office,medical, retail, or industrial relocation every step of the way, from finding a banker to an architect, and ensuring your moving day goes as smoothly as possible.
kevin@odcre.com susie@odcre.com 630.444.0444

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Historic Homes Can Provide Alternative Commercial Real Estate Sites

Third Street in Geneva, Illinois is lined with historic homes housing retail establishments

Many of the suburban towns of Chicago feature quaint downtown, historic districts where century old homes and their unique craftsmanship line cobblestone sidewalks. The attraction to these houses has risen in the commercial market as retailers and office users seek alternative real estate sites. These charming homes provide a different aesthetic that better suits certain users, and sometimes can be a lot more cost effective than traditional commercial sites. However, there can also be numerous drawbacks to converted homes.

Throughout Geneva, Illinois, Third Street is lined with retailers setting up shop in old homes featuring original millwork and trim. For home and clothing shops, this can be an ideal backdrop to feature products…rather than having to display their trinkets and treasures with the standard fluorescent lights and linoleum floors. A variety of rooms that the home already has provides for various themes (and “departments” of the store), as well as less build out cost. Additionally, bathrooms and kitchens are readily available in homes.

These historic homes can also be budget conscious. Many times they are less expensive than traditional commercial spaces and can be a mix use concept for owners. While the main floor can house the commercial need, the upper floor can used for personal residence or rental purposes. Again, since the space is most likely already built out, minor changes are the only thing that need to be made as compared to office buildings that are in shell condition and need major tenant improvements.

The obvious pitfalls to converted homes are the same ones basic homeowners face, maintenance and upkeep. Although the charm of these homes is appealing, keeping that charm can come at a pretty penny, especially when you are dealing with “ancient” fixtures and equipment.

Other negatives that need to be considered is the visibility and accessibility of these homes. Many times zoning regulations over advertising and signage on the property are put in place to keep the “quaintness” of the historic district. Attracting clients with minimal signage can be difficult when compared to strip centers with neon lights and “Grand Opening” banners. Accessibility, including parking needs, are also more challenging. Usually a driveway is all these homes come with, so street parking is a must for such converted homes. Handicap accessibility should be considered for most tenants, as stairs, hallways, and bathrooms in century old homes were not made for today’s wheelchair.

When all is said and done, converted homes can be great commercial real estate options for certain tenants, but all the pros and cons should be weighed before making a decision. O’Donnell Commercial Real Estate is happy tenants weigh out these concerns and help them through the commercial real estate process.

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Second Article in Irish American News


Sure blasting “Blarney on the Air” and typing emails in your pajamas is a much more comfortable environment for work, however is it a conducive one? Working from home may seem like the ideal set up with no traffic to battle and less bills to pay, but does it offer appropriate meeting spaces for clients or promote team collaboration?

As a commercial real estate firm, of course we believe in the need for appropriate office space…afterall that is how we make a living, but after doing a little bit of research and diving into our realms of market knowledge, we truly believe that working OUT of the home is a better option in most cases. With a variety of shared office spaces on the market, and the anxious landlord looking to fill up his overwhelming vacancies, there are a lot of cost-concise options to fit the needs of small companies. Whether you’re a one-man shop or a small team organization, finding an office space that fits your budget, special needs, and client’s expectations is easy when using a commercial real estate agent.

We’ve come up with a few reasons that now is the time to find a suitable office out of the home:

1. Impress your clients. Sure your Irish charm and wit (and accent if you’re lucky) have the ability to woo customers, but we’re pretty sure your in-home office adjacent to the mud room isn’t the best place to hold a sales pitch. Today, many office buildings and parks not only offer smaller office suites for single users, they have the ability of offering shared conference rooms, kitchenettes, and reception areas. Having a friendly secretary that you only pay your pro-rata share of can be the difference between you and the “big guys” you’re pitching against. Plus the shared conference room that you only pay a minimal amount for is probably easier on your wallet than all those “lunch meetings” or “coffees” that you’ve had to purchase in the past due to a lack of presentation space.
Shared office suites also offer the advantage of an actual business address. No longer will your clients have to send their monthly payments to Wispering Springs Drive or fret about what to put in the signature line of your email. And if you went the cautious route of a P.O. Box, well guess what? You no longer have to make an afternoon trip to the Post Office where your clients are sending mail, fully aware that you have a post office box because you DON’T have an office. The mere suite number added to your new office space address indicates that most likely you are not a “fly by night” organization and that if a landlord is going to rely on you for monthly rent, than a client can rely on you to perform.

2. Short term leasing options and promotions. It’s no secret that today’s commercial real estate market is a tenant’s market. Walk down the block and you’re sure to see at least one Office Space for Lease or Free Rent, Inquire Today sign in your travels. Landlords are hungry for tenants. Gone are the days tenants are required to sign a five year lease in order to get a landlord to look their way. In fact, many landlords are encouraging 12-36 month transactions in hopes that by the time your lease is over this thing we call an economy will be turned around and right side up again.
Furthermore, landlords are making the deals more attractive. Sure, you’re probably thinking that Free Rent sign is a classic example of the old bait and switch. Alas, you’d probably be wrong. As commercial real estate agents, we prefer to not represent any landlord that won’t be offering one month of free rent for every year of the lease. In our market this is pretty much going rate, as long as the rent is at a suitable number. However, if it is the rent you’re more concerned with rather than the abatement, most landlords can be rate aggressive as well. Think of it as a teeter totter, the less you ask for them on one side of the equation means the more you can probably ask from them on the other side.

3. Positive work environment. Just like putting on your best suit, a professional office suite can also provide for a more productive day. The act of driving to the office may make a world of difference in itself. For example, you may have a gym card and pay the monthly bill with every intention of going on a frequent basis, but until you actually get off the couch, get in the car, and go chances are slim you’ll use that membership. When working out of the home it is easy to get wrapped up in housework, spend time with the kids, or zone out in front of the television. An office space will have far less distractions, even if it means you actually have to get dressed in the morning.
Additionally, for those working in small teams, office suites are especially essential. Even though technology has drastically improved our ability to quickly communicate with one another regardless of their geographic coordinates, it can never compare to the age old “open-door” policy where associates have the ability to pop in for a quick chat that results in a fully thought out sales pitch. Ideas, solutions, and even camaraderie can be formed over coffee breaks, spontaneous office chats, and break room lunches.

So if we’ve successfully convinced you to start your own office search, feel free to call or email us. We’ll help you find the best space, that fits in your budget and isn’t too far from home (in case forget to stop at the cleaners and need to wear your sweats in afterall.)
kevin@odcre.com susie@odcre.com 630.444.0444

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