This Week's Chicago Deal Sheet
Condo deconversions keep rolling forward in Chicago. Becovic Management Group bought Shore Manor, a 90-unit condo property at 5858 North Sheridan Road in the Edgewater neighborhood, for $13.3M.
After the city of Chicago tightened up the rules late last year, condo deconversions, known as Section 15 sales, require 85% of the owners to vote for the sale.
“The opportunity to help condo associations like Shore Manor continues to exist,” said CBRE’s Sam Haddadin, who represented the 5858 North Sheridan Condo Association with colleague Justin Ross. “Older buildings facing capital projects present a great opportunity for condo owners to get well above market value for their condos in a deconversion sale.”
The 12-story 5858 North Sheridan was built in 1955 and converted to condos in 1977. It offers a mix of studio and one-bedroom units, with an average of 576 SF per unit. CBRE helped complete the deconversion sale of the neighboring 188-unit 5815 North Sheridan in 2018.
“This area of Chicago is ideal for condo deconversion opportunities,” Ross said. “It is a very popular area for its quality of life, but there are no real development sites available. A lot of the residential product is now dated and have become ripe opportunities for multifamily developers to reinvest in them and convert to rental apartments.”
Newmark Knight Frank hired Elizabeth Gagliardi and Chuck Johanns for the firm’s Midwest multifamily capital markets investment sales group. Gagliardi and Johanns, both Chicago-based, will specialize in institutional multifamily investment sales in downtown Chicago. They both were senior managing directors at JLL.
Peter S. Martin III joined Inland Securities Corp. as senior vice president of institutional relations. Prior to joining Inland Securities, he served as managing partner of a private equity fund, where he raised limited partnership capital and led real estate development projects within the multifamily market.
The LaSalle Towers Condominium Association hired Kiser Group brokers Andy Friedman and Jake Parker to handle the sale of LaSalle Towers, a 70-unit condo property at 1211 North LaSalle Drive. The 19-story building was built in 1929 as a hotel and in 2006 converted to a mix of one-bedroom and two-bedroom condominiums. The property also has two commercial spaces.
MidAmerican Printing Systems decided to move from Chicago’s former industrial hub in Fulton Market to the O’Hare submarket. It signed a long-term lease for 30K SF at 3838 North River Road in Schiller Park. Colliers International’s Matthew Stauber and Thomas Rodeno represented the owner, Brennan Investment Group.
Kiser Group surveyed clients to learn more about the coronavirus’s impact on mid-market multifamily owners throughout Chicagoland. The respondents collectively own more than 14,000 units, Kiser officials said. Rent collection was steady throughout the spring, with more than 94% of respondents reporting that rent collection exceeded 80% in March, April and May. There has been some drop-off. In March, more than 71% of tenants paid more than 95% of their rent, but by May that number dropped to 22%, Kiser found.
CONSTRUCTION & DEVELOPMENT
Chicago-based firms The Habitat Co., James McHugh Construction Co. and Bowa Construction topped off a commercial and retail building at 2652 West Ogden Ave. that marks Phase 1 of the $200M Ogden Commons mixed-use project in Chicago’s North Lawndale neighborhood.
Habitat formed a public-private partnership with Sinai Health System, Cinespace Chicago Film Studios, the Chicago Housing Authority and the city of Chicago to develop the 10 acres along Ogden’s 2600 block. The project is slated to include 120K SF of commercial and retail space and more than 350 mixed-income housing units. Habitat officials say the SCB-designed building is scheduled for completion in January.
Chicago-based Kinzie Builders completed construction on two suburban Chicago luxury rentals projects: 444 Social, a 302-unit development at 444 Parkway Drive in Lincolnshire, and Marq on Main, a 202-unit community at 4755 Main St. in downtown Lisle. Smash Residential owns 444 Social, which was designed by HKM Architects + Planners and consists of two four-story buildings, each with multiple courtyards.
A joint venture between Marquette Cos. and Principal Real Estate Investors owns Marq on Main, a five-story complex with more than 13K SF of ground-floor retail space. Humphrey & Partners Architects was its architect.
M/I Homes of Chicago started work on Sigwalt 16, a new community of 16 luxury townhomes in downtown Arlington Heights. Company officials expect first move-ins to occur in early to mid-2021. Along with Arlington Heights Mayor Thomas Hayes, they held a socially distanced groundbreaking ceremony on May 15.
THIS & THAT
47th Ward Alderman Matt Martin and 48th Ward Alderman Harry Osterman introduced to City Council on May 20 an ordinance that would allow the addition of new coach houses and other accessory dwelling units to existing residential buildings, according to Chicago Cityscape. The ADU ordinance could take effect as early as Aug. 1.
The April 11 implosion by Hilco Redevelopment Partners of a smokestack at 35th St. and Pulaski Road continues to generate controversy. Its Little Village neighbors were outraged when the demolition at the former Crawford Power Generation Station covered the surrounding blocks with dust. Residents criticized both the company and the Lightfoot administration for allowing the action. 22nd Ward Alderman Michael Rodriguez, who represents Little Village, introduced on May 20 a resolution that outlines how the City Council could claw back Cook County real estate tax incentives if any recipient jeopardizes the health, safety and welfare of the surrounding community.