This Week's Chicago Deal Sheet
A big apartment building is in the works for the vacant property next to the planned $6B Lincoln Yards megaproject.
Sterling Bay, in a joint venture with Dallas-based Lone Star Funds, one of its partners in the Lincoln Yards project, plans to construct the 359-unit building on a vacant property at 2031-2033 North Kingsbury Ave. The investment and development firm acquired the building from steelmaker A. Finkl & Sons in 2016, according to a zoning application filed with the city, reported by Crain’s Chicago Business.
“The demand for multifamily housing across Chicago continues to grow, and 2031 N. Kingsbury sits at the cross section of several of Chicago’s most populated communities like Lincoln Park, Bucktown, Wicker Park, as well as the future site of Lincoln Yards,” a Sterling Bay spokeswoman wrote in an email.
The horizontal building will stretch across a long, thin lot directly across the street from Lincoln Yards, according to the zoning application, as reported by Crain’s Chicago Business.
Lincoln Yards’ first building, an eight-story life sciences facility across the river, is slated to open next year.
SALES
Interra Realty brokered the $2.5M sale of 906-908 North Damen Ave., a pair of six-unit multifamily properties in the Ukrainian Village neighborhood, at a per-unit price of $208K. Brad Feldman, senior managing partner for Interra, represented the seller, a local real estate partnership. Feldman also represented the group when it bought the properties in 2017 for $1.7M. Interra Director Jeremy Morton represented the local buyer, which plans to increase electric capacity and make minor upgrades to units, hallways and the building facade. Built in 1905, 906-908 North Damen includes two one-bedroom units, eight two-bedrooms and two three-bedrooms. The apartments were fully occupied at the time of sale.
CONSTRUCTION AND DEVELOPMENT
McHugh Construction started vertical construction on Embry, a 16-story tower from Sulo Development with 58 luxury condo residences. Slated for completion in fall 2023, the 201-foot-tall building at 21 North May St. in the West Loop will offer duplexes, two-, three- and four-bedroom units, and two penthouses, ranging from 1,800 to 5,200 SF, with column-free layouts, dens and full-size laundry rooms. Installation of the windows and facade elements is expected to begin this fall, and the topping out of the structure is slated for January 2023.
FINANCING
Managing Director Parker Stewart, Associate Vice President Alex Malzone and Vice President Dominic Martinez of Northmarq’s Chicago and St. Louis investment sales team completed the $45M sale of Prairie Vista Apartments. Made up of 43 buildings, including 38 rental buildings, a clubhouse, a poolhouse and garages, the property has one-, two- and two-bedroom-with-loft floor plans. Dan Baker, vice president of Northmarq’s St. Louis office, secured $27M in acquisition financing for the 304-unit property, located at 2401 West Alta Road in Peoria, Illinois. The loan was arranged through Freddie Mac on a 10-year, fixed-rate structure with five years of interest-only followed by a 30-year amortization schedule. Nearly all the units are occupied.
Sterling Bay secured a $91.68M construction loan to build 225 North Elizabeth, its latest multifamily development in Fulton Market. The building will feature 350 residential units, 20% of them designated for affordable housing, and will be developed in partnership with Denver-based private equity firm Ascentris. The 28-story property will consist of residential units, 9K SF of retail space, 95 parking spaces and amenities on the building's third and top floors. Chicago-based general contractor McHugh Construction will oversee construction of the project, and Hartshorne Plunkard will be the lead architect. Completion is expected in Q2 2024.
THIS AND THAT
Renovo Financial has surpassed $1B in loan originations between January and August 2022, following its announcement earlier this year it had reached $2B in loan originations since its founding in 2011. Now in 17 markets across the country, the company announced its expansion into the Tampa Bay, Florida, region, Phoenix and Denver.
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By The Hand Club For Kids, together with Present Future Architects, has been awarded a Citation of Merit in the annual American Institute of Architects Chicago Design Excellence Awards for By The Hand Club – Moving Everest, a dual-purpose school and after-school club located in the Austin neighborhood. By The Hand Club – Moving Everest is a three-floor, 53K SF building at 416 North Laramie Ave. that serves 800 students from kindergarten through eighth grade. Joe Buehler, principal architect for Present Future Architects, is responsible for the building’s interior and exterior design.
