Thursday, July 10, 2014

A Variety of Real Estate Updates in the Sloop

Seems like we're in a heavy real estate news cycle or something for the Sloop.

On Monday we posted that prep-work was apparently underway for a new 29 28 story rental tower at 1000 S. Clark.  Crain's Chicago had a follow-up story that the developers have received financing and that they're just waiting on some city permits to begin the full on construction.

A reader also said that the developer, JDL, has updated their website and included a blurb and an additional rendering.

1323 S. Michigan - Seven Story Rental Conversion
Moving east to Michigan Avenue, it appears that a old 7 story building with potential is going to be converted to rental apartments (via Crain's Chicago):
Northbrook-based Speedwagon Properties plans to convert the six upper floors of an empty seven-story building at 1323 S. Michigan Ave. in the South Loop into 30 apartments, Managing Director Steve Khosabe said. “It's a great location. We think that 30 apartments right there will rent out very quickly,” he said. The planned one- and two-bedroom units will rent in the low- to mid-$2 per square foot range, he said. The building's ground-floor space is owned separately.
Moving further south to Motor Row, a failed development gets refurbished and nets the redevelopers a good return (again via Crain's Chicago):
Marc Realty Residential LLC has sold a failed South Loop condo project it finished as apartments for a big gain, another sign the sizzling market for rental properties has expanded beyond core downtown areas. 
Less than two years after paying $12.7 million for the foreclosed property at 2300 S. Michigan Ave. and investing $4 million to revamp the structure, an MRR venture recently sold the 94-unit building, now called the Shelby, to Chicago real estate firm Royal Imperial Group Inc. for $25.2 million, MRR principal David Ruttenberg said.

However, the most interesting thing is the acquiring firms outlook for the area:
“Typically, we try to find a neighborhood that is unseen by other people,” Mr. Tessler said. “We think this is next hot, hot area of the city.”  
He cited the forthcoming DePaul University arena, proposed hotel projects in the area and the planned development of Motor Row into an entertainment district. Some of those projects may take years to complete, and the entertainment district is off to a sluggish start.  
But Mr. Tessler, whose firm developed the Sterling Tower in River North, an apartment tower later converted into condominiums, said Royal Imperial is willing to wait.  
“We think it'll take three or four years, but we think it gets there,” he said of the neighborhood. “We think we'll be positioned well to take advantage of those opportunities. Motor Row is probably one of the top three areas the city has designated to put in infrastructure and increase the opportunities there.”

We've heard this plenty of times for Motor Row.  It seems like it's going to happen, but it's seemed that way for awhile.  Maybe the CTA stop at Cermak and the DePaul stadium is the catalyst for this...we will see.

(Hat tip: BS!)

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