This Week's Chicago Deal Sheet

The Sterling Organization has hired Greenstone Partners to market the sale of a 112K SF vacant building at 209-227 South State St., hoping to attract the interest of developers that could tear it down and turn it into a high-rise development.

The longtime home of a Woolworth's store has been vacant since Foot Locker closed there in 2020, making it well-positioned to become an apartment conversion in an especially hot time for multifamily.

“There are so many different ways you can cut it from a development standpoint,” Greenstone Partners CEO and Managing Partner Danny Spitz told Crain’s Chicago Business. “It’s very rare to find something like this on State Street.”

The existing building sits on a 20.3K SF parcel with zoning that could accommodate a project as large as 325K SF, according to Greenstone. Unlimited height restrictions and the ability to create additional density through zoning changes would allow for a larger building on the property, which now rises as high as seven stories on its north end. 

Greenstone is marketing the property for sale without an asking price. Florida-based investor The Sterling Organization paid $14.5M for the building in three transactions in 2018 and 2019, according to Cook County property records obtained by Crain’s.

PEOPLE

Kevin Rahmanim has joined Interra Realty as an associate, working under Senior Managing Partner Brad Feldman with a focus on market analysis, asset valuation and business development. Rahmanim brings experience from Denver-based corporate housing company Travelers Haven, where he was a national account executive, and a stint at ICM Properties Inc., where he handled operations with multifamily investment properties.

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Seth Weinert has been appointed as principal and director of strategy and risk management at Avison Young. He will remain on the company's executive committee, partnering with it on design and implementation, while focusing on driving development of the firm’s long-term strategies. He will also be responsible for the identification, analysis and mitigation of potential gaps or threats to the firm. Weinert brings 20 years of client-facing product and corporate development experience from JLL. 

SALES

Continental Realty Corp. acquired a portfolio of five shopping centers from DiMucci Cos. for $93.6M, comprising over 900K SF with locations in Cicero, northwest suburban Mount Prospect and Palatine, and west suburban Naperville. Tucker Development acted as an acquisition and development consultant on the transaction. The portfolio was 84% occupied at the time of the sale, leased by national retailers such as Sam’s Club, Home Depot, Jewel-Osco, Kroger, Walgreens and Ross Dress for Less. The portfolio was purchased on behalf of Continental Realty Opportunistic Retail Investment Fund I.

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Kiser Group Partners Aaron Sklar and Noah Birk, along with Director Jack Petrando, recently closed on Homan Properties, comprising 35 units across two properties on South Homan Avenue in East Garfield Park. The properties sold for $2M to an out-of-state buyer. The property at 351 South Homan is a mix of two-, three-, and four-bedroom units, and the property at 10-18 South Homan Ave. has 14 two-bedroom and three three-bedroom units. Plans are in place to increase rents by more than 25%.

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DarwinPW Realty Vice President Terry Lynch and associate Marc Hale represented the seller with the disposition of an investment property at 1285 North Ellis St. in west suburban Bensenville. The industrial service facility was purchased by Gullo Development and is fully leased to World Fuel Service Corp.

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Kiser Group Managing Broker Lee Kiser, Director Andy Friedman and advisor Jake Parker brokered a $9.72M multifamily transaction at 5017 North Wolcott Ave., selling at $220K above listing price. The property comprises 44 units, made up of one-bedroom and studio apartments. Approximately 25% of the total units have been renovated. Plans call for increasing 75% of the building’s rents.

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CBRE has arranged the sale of Mount Prospect Plaza, a 228K SF grocery-anchored community shopping center in northwest suburban Mount Prospect. RPT Realty sold the property to LBX Investments for an undisclosed price. CBRE’s George B. Good, Christian Williams and the company’s National Retail Partners’ Midwest team represented RPT in the transaction. Mount Prospect Plaza sits on 32.13 acres and includes tenants such as Aldi, Marshalls, Burlington, LA Fitness and shadow anchor Walmart.

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NAI Hiffman brokered the sale-leaseback of a 252K SF warehouse at 1455 West Thorndale Ave. in northwest suburban Itasca, 5 miles west of O’Hare International Airport. Patrick Sullivan, executive vice president of capital markets, and Eric Tresslar, executive vice president of industrial services, represented Top-Line Furniture in the $36M sale of its facility to High Street Logistics Properties. Top-Line Furniture subsequently entered into a long-term lease for the property.