Thor scales back plan for spec office project in Chicago

Thor Equities’ Joe Sitt and a new rendering of 800 W. Fulton Market. (Credit: Skidmore, Owings & Merrill (SOM) via Curbed)

Thor Equities shaved two floors off its planned spec office building at the gateway to Fulton Market, and said it hopes to start work this summer.

The New York-based firm originally planned a 20-story office complex with ground-floor retail at 800 West Fulton Street, but reduced it to 18 stories after closed-door discussions with neighbors, according to Curbed.

The new design from Chicago-based Skidmore, Owings & Merrill features multiple setbacks and terraces as it rises to its new height next to a slightly taller 19-story building that Sterling Bay is building.

Thor acquired most of the parcels for the project in 2016 for $36 million, then spent another $20.4 million last year assembling the rest of the block.

Thor’s proposal still requires a zoning change. If granted, work could begin this summer and take one year and four months to complete.

The firm is building another office project on the next block at 905 West Fulton Street, where snack maker Mondelez International in January announced it will move its global headquarters. [Curbed] — John O’Brien

from Chicago – The Real Deal New York https://therealdeal.com/chicago/2019/03/14/thor-scales-back-plan-for-spec-office-project-at-fulton-market-gateway/#new_tab

Downtown Chicago is seeing a surge in new apartments — is it enough?

Ron DeVries (Credit: Integra Realty Resources)

Chicago is expected to get nearly 8,000 new apartments in the next three years, but a new report suggests that may not be enough to meet demand.

A near-record of 4,200 new apartments are expected to come online this year, but that number will slow to 3,500 in 2020 and 2021, according to a forecast from consultant Integra Realty Resources reported by the Chicago Tribune.

But growing political uncertainty and rising property taxes could curtail further multifamily development, slowing new deliveries to a crawl in the years that follow, the forecast said.

“We have a change in the governor, change in the mayor, change in the assessor,” Integra’s Ron DeVries said. “There’s just a lot of uncertainty out there right now.”

New people in key government posts could lead to changes in affordable housing requirements, rent control, even higher taxes and more that could turn off developers and lead to a shortage of units in a few years, DeVries said. That could lead to higher rents in existing apartments.

New Assessor Fritz Kaegi already made several changes to his office and new Gov. J.B. Pritzker is pushing for a graduated income tax and has voiced support for statewide rent control. And the two mayoral candidates who made it Chicago’s April 2 runoff, Lori Lightfoot and Toni Preckwinkle, have taken several positions opposed by the real estate industry.

[Chicago Tribune] — John O’Brien

from Chicago – The Real Deal New York https://therealdeal.com/chicago/2019/02/28/downtown-is-seeing-a-surge-in-new-apartments-is-it-enough/#new_tab

So, Chicago and parts of the Midwest are sinking

The Chicago area is sinking up to 8 inches each century in some places (Credit: iStock, Pixabay)

Homeowners living along the shore of southern Lake Michigan who’ve dealt with wildly fluctuating water levels over the past few decades now have another worry: Chicago and other parts of the region are sinking.

The Earth’s crust around southern Lake Michigan is dipping as areas of the northern United States and Canada are rising as once heavy sheets of ice melt and recede. The Chicago area is sinking up to 8 inches each century in some places, according to the Chicago Tribune.

The change also affects the flow of water throughout the Great Lakes, and leads to lower levels in northern regions and higher levels at the southern end of the lakes. The effect could be water levels 4 inches higher in Chicago in the next century, while Cleveland could see levels climb 4 inches and Milwaukee could see levels nearly 6 inches higher.

New Buffalo, Michigan resident Ron Watson told the Tribune he’s seen fluctuating water levels over the years at his home across from Lake Michigan and is concerned.

“If you’ve ever lived on the shoreline, it’s inches of water we’re worried about, not feet of water. When lake levels are high, all it takes is inches,” Watson said. [Chicago Tribune] — John O’Brien

from Chicago – The Real Deal New York https://therealdeal.com/chicago/2019/03/02/so-chicago-and-parts-of-the-midwest-are-sinking/#new_tab

R. Kelly evicted from Chicago recording studio that doubled as residence

R. Kelly and 219 North Justine Street

Singer R. Kelly was evicted from a Near West Side industrial building that he used for a recording studio and residence, on the grounds he owes tens of thousands of dollars in back rent. The decision also comes days after a series of new allegations of abuse against him surfaced in the Lifetime series, “Surviving R. Kelly.”

A Cook County judge this week ordered the R&B star out of the warehouse at 219 North Justine Street after Midwest Commercial Funding said he owed nearly $80,000 in back rent, according to the Chicago Sun-Times.

City attorneys, meanwhile, are asking another judge to grant inspectors access to the building, alleging its uses as a recording studio and residence violated zoning code. Inspectors were at the building Wednesday night trying to get inside, but no one answered, the paper said.

Kelly, who was acquitted of child pornography charges in 2008, has denied all allegations he abused women, including those made in the Lifetime series. The Cook County state attorney’s office said at least two women have since come forward alleging inappropriate conduct by Kelly in 2002 at the warehouse and a home on the South Side in the mid-1980s. [Chicago Sun-Times] — John O’Brien 

from Chicago – The Real Deal New York https://therealdeal.com/chicago/2019/01/11/r-kelly-evicted-from-near-west-side-recording-studio-that-doubled-as-residence/

Rahm Emanuel, Chicago developers shrug off Amazon snub

Rahm Emanuel and the Chicago skyline (Credit: Getty Images, iStock)

The public and private leaders who aggressively pitched Chicago to be the site of Amazon’s second North American headquarters shrugged off the retail giant’s decision to split its expansion between Queens, New York and Crystal City, Virginiaon Tuesday, predicting the city would land other corporate relocations instead.

Property owners last year sent applications to Amazon for 10 different sites in Chicago and its suburbs, joining more than 200 other cities that tried to land the new headquarters and its promised 50,000 jobs. Amazon leaders visited five of the Chicago sites, and they toured one of them — Related Midwest’s The 78 — as recently as August.

Related Midwest CEO Curt Bailey said in a statement Tuesday that The 78 was a “top contender” for HQ2 because of its potential to attract tech talent with concentrated retail and entertainment spaces, which also make it appealing to other possible tenants.

“We have had tremendous interest … from major corporations, cultural institutions and retailers who share our vision for Chicago’s next great neighborhood,” Bailey said.

At an unrelated event Tuesday morning, Mayor Rahm Emanuel refused to say what Amazon executives told him about why they passed on Chicago. But he told reporters he was “not sorry” for his approach to with dealing with the company, saying his administration put its “best foot forward.”

“If you compete, you have the opportunity to win, and you also have the opportunity to not be successful,” Emanuel said. “That said, Chicago has won more than it has lost, and we have a record to show for it.”

The mayor added his staff has spoken with the leaders of four major companies in the past week who are considering opening new offices in the city.

“Over the next two to three months, you’ll see the success of that strategy,” he said.

Last month, Equity Group Investments CEO Sam Zell told an audience Chicago was “the last place” Amazon should consider for its new headquarters, because of the legacy of political and fiscal dysfunction in the city and state.

Amazon executives this year toured the 100-acre former site of the Michael Reese Hospital in Bronzeville, where Farpoint Development is leading a team of companies to design a new technology campus it’s calling the Burnham Lakefront.

Elle Ramel, director of development for Farpoint, wrote in an email Tuesday she was “proud how our site and others in Chicago presented a united and clear option for HQ2.”

“When Chicagoans come together, we can achieve great things,” Ramel wrote. “That tradition will continue in spite of today’s announcement, and we are excited to be part of Chicago’s bright future through the historic transformation and revitalization of the Michael Reese Hospital site in Bronzeville.”

Sterling Bay, which pitched its 53-acre Lincoln Yards site as a contender for HQ2, is also ready to put Amazon in the rearview mirror.

Earlier this year, Sterling Bay released renderings of the riverfront campus imagined as HQ2, with Amazon’s logo adorning conceptual buildings. As of Tuesday, the company’s “Amazon Lincoln Yards” advertising website was still live.

But the developer doesn’t expect to have any trouble filling the 6 million square feet of commercial space it has planned for the project now that the Seattle-based e-commerce behemoth is out, according to spokeswoman Julie Goudie.

“Sterling Bay is moving full steam ahead with our initial plans for Lincoln Yards,” Goudie said in a statement Wednesday. The developer is set to release more details of its proposal for the site during a public meeting later this month.

The 78, the Burnham Lakefront and Lincoln Yards all promise to add millions of square feet of residential, office and retail space in the years to come, but all three projects remain in the infancy stages, having yet to clear any specific plans by the city.

Last month, the Chicago Plan Commission approved the first phase of the 37-acre “River District,”which co-developers Tribune Media and Riverside Investment & Development also had submitted as contender for HQ2.

Representatives of Riverside declined to comment, and Tribune Media did not immediately respond to a request for comment Tuesday.

from Chicago – The Real Deal New York https://therealdeal.com/chicago/2018/11/13/chicago-shurgs-off-amazon-headquarters-snub/#new_tab

Tower of power: A look at the big names buying at this Chicago condo

9 West Walton Street, Jason Heyward, Ken Griffin, Omer Asik, Steve Stratton, Todd Siwak, and Matthew Lawton (Credit: JDL, ESPN, JLL, ULI)

A 7-foot-tall Chicago Bull, a candy company magnate and the richest man in Illinois walk into the lobby of a luxury Chicago condo tower.

If you’re waiting for a punchline, don’t. There’s no joke here — just the possibility of what could happen once Omer Asik, Jason Heyward and Ken Griffin all have moved in to their units in the still-under-construction high-rise from JDL Development at 9 West Walton Street in the Gold Coast. The 38-story building was scheduled to open later this year.

The roster of soon-to-be residents at No. 9 Walton already includes hedge-fund managers, financial advisers, real estate execs, doctors, lawyers and other wealthy buyers who gave the building the record for most sales of $3 million or more, according to Crain’s.

And while it’s true there are many Gold Coast buildings boasting well-heeled leaders of Chicago industry living in multimillion-dollar homes, No. 9 Walton has dominated the list of most expensive residential sales in recent months.

In addition to the usual luxury amenities, the building also features a house car and driver, private wine storage available, a covered dog run and two guest suites available to all homeowners. And Gemini restaurant owner Ryan O’Donnell bringing over Coda Di Volpe chef Christopher Thompson for a new two-floor restaurant inside the building, Eater reported.

A JDL executive declined to comment for this article, citing the privacy of the firm’s buyers. While a number of the units were purchased through trusts or LLC, The Real Deal was able to determine the identities of a number of the buyers:

Ken Griffin

The hedge fund billionaire behind Citadel made a splash late last year when he bought four unfinished floors at the top of the building for $59 million, shattering the record for most expensive home sale ever in Chicago. And even with the millions he’d have to spend to build out the home, it wouldn’t come close to the price tag of Griffin’s sprawling South Florida compound.

Todd Siwak

The Ferrara Candy Company CEO paid $4.6 million for a three-bedroom unit on the 17th floor. Siwak has led the Oakbrook Terrace-based firm since 2013 and plans to use the condo as a second residence, according to the ChicagoTribune. He also has a home in the St. Louis area.

Jason Heyward

The Cubs outfielder bought a 19th-floor unit for $6.9 million through an LLC. But the 29-year-old shouldn’t have many problems making his payments: He’s in the middle of an eight-year, $184 million contract with the Cubs.

Matthew Lawton

The executive managing director of commercial real estate firm HFF paid $4.5 million for an 8th-floor condo.

Steven and Sarah Stratton

JLL’s Steven Stratton is the firm’s Chicago tenant representation group co-lead and oversees its Midwest practice. He and his wife, Sarah, paid $3.8 million for the 10th-floor unit.

Omer Asik

The 7-footer from Turkey who is in his second stint with the Bulls paid $3.1 million for a seventh-floor condo with Wilma Wyngaart.

Paul Greenwalt

The partner at law firm Schiff Hardin paid $8.9 million for the 34th-floor condo, which puts it among the most expensive recent home sales.

Ashley and Jennifer Keller

Ashley Keller is a co-founder of Keller Lenkner, a plaintiff-side litigation firm. He also was a co-founder of litigation finance firm GKC, which sold in 2016 for $160 million. The Kellers paid $6.8 million for their 20th-floor condo.

Stephen Madry and Valerie Vlahos

Madry, a plastic surgeon, and Vlahos, a director at PriceWaterhouseCooper, paid $5.5 million for their 16th-floor condo.

Dominick and Cynthia Mondi

The president of Mesirow Financial and his wife paid $2.5 million for their fourth-floor unit.

Imad Bazzi and Salma Shawwaf

Bazzi is CEO of Oakbrook Terrace-based ACH Food Companies, a manufacturer of cooking and baking ingredients. They paid $3.2 million for their ninth-floor condo.

Joseph Rotter

The former Citadel hedge fund manager is managing director for Neuberger Berman Investment Advisers and head of the Principal Strategies Group. He paid $3.6 million for his fourth-floor condo.

David and Laura Eikenmeyer

The couple behind the Urban Child Academy preschools paid $5.3 million for their 19th-floor unit

Kevin and Shoshana Vernick

Shoshana Vernick is managing director at investment bank Sterling Partners, while Kevin Vernick is president of commercial real estate firm Vernick & Associates. They paid $3.7 million for their 12th-floor condo.

Cary and Teri Cicurel

Cary Cicurel is managing director at Loop Capital Markets. The couple’s 17th-floor unit cost $4.5 million.

Steve and Ariel Derringer

Steven Derringer is partner at law firm Bartlit Beck Herman Palenchar. The couple paid $4.5 million for their 14th-floor condo.

Helaine G. Cohen

The broker for Berkshire Hathaway Home Services Koenig Rubloff Realty Group paid $2.3 million for her seventh-floor condo. Cohen’s online bio says she is creator of ChicagoCondoFinder.com.

from Chicago – The Real Deal New York https://therealdeal.com/chicago/2018/08/10/tower-of-power-look-whos-buying-a-no-9-walton/#new_tab

Warren Buffett's Berkshire backs Sears property spinoff with $2B loan

The funds help Seritage refinance debt and boost liquidity, the company said.

from Chicago Business News http://www.chicagobusiness.com/realestate/20180731/CRED03/180739957/warren-buffetts-berkshire-backs-sears-property-spinoff-with-2b-loan?utm_source=CRED03&utm_medium=rss&utm_campaign=chicagobusiness