Chicago Mixed-Use Redevelopment Commands $21.6M
- Nov 25, 2015
Spirit Bascom Ventures has acquired 5200 N. Sheridan Road, a mixed-use redevelopment project in Chicago’s fast growing Edgewater/Andersonville neighborhood, for $21.6 million.
Spirit Bascom is a partnership between The Bascom Group, LLC and Spirit Investment Partners.
“We’re a value-add buyer, so everything we look at has some sort of value-add component to it,” Scott Zwilling, Spirit Investment Partners’ principal, told Commercial Property Executive. “We had been looking at Chicago for a while and felt some of the areas downtown and in the Loop were overpriced, and this was just in the outskirts but a lakefront community that had been overlooked for a number of years. Post-recession had seen a few deals repositioned very successfully, and that’s what we look for.”
The existing eight-story prewar building currently consists of 223 rental units with unobstructed views of Lake Michigan and approximately 9,000 square feet of ground floor retail space.
“The owner hadn’t done much of anything, it was completely un-renovated, and in a great area a block away from two properties that had been successfully renovated,” Zwilling said. “I feel there is now a newfound interest in this area and some other suburbs for institutional investment.”
A major repositioning will consist of the repair or replacement of major mechanical systems, windows and elevators, and borrow style and space planning elements from the boutique hotel space to curate an exciting new tenant lounge, fitness center and rooftop deck.
“We’re modernizing all the building’s systems, we’ll be renovating all the units to a high-end standard, we’re adding all sorts of amenity space that doesn’t exist and ultimately will upgrade this to Class A quality,” Zwilling said. “Everything we do, we look to improve.”
Each renovated apartment will feature modern, open floor plans with all-new kitchens and bathrooms with stone counters tops, stainless steel appliances, refinished hardwood floors, and contemporary urban fixtures and finishes throughout.
According to Zwilling, the neighborhood is attracting transformative projects attracted to the improving demographics such as high-end grocer Mariano’s, and the 198-unit luxury high-rise development at 5440-50 N. Sheridan Road recently announced by Greystar Investment Group.
The building is located two blocks from the Berwyn Street stop on the Red “El” Line and is just a short walk to the vibrant N Clark Street retail corridor and family-friendly Foster Beach.
Todd Stofflet of KIG CRE represented the seller, who was not disclosed, in the transaction.