$19 Million - Land Assemblage Sale
The following is the copy from RE Journals post dated April 27, 2020.
@properties Commercial has completed the $19 million sale of a nearly 20,000-square-foot land assemblage in Chicago’s Fulton Market District. The buyers plan to redevelop the property as a hotel.
Brokers Marty Casey and Matt Scales of @properties Commercial worked with three different owners over the course of two years to assemble the parcels and conduct a sealed-bid process that drew more than a dozen offers.
The winning bid came from North Park Ventures and MF Development, who have proposed a mixed-use retail and hotel development for the site. The $19 million purchase price represents a price per square foot of $956.
The sale, which closed in early April, involved three properties: a two-story building at 204 N. Halsted Street, that houses Paddy O’Fegan’s Irish pub; a three-story building at 804-808 W. Lake Street, housing the offices of restaurant and bar operator One Off Hospitality Group and its Publican Quality Bread store, and a two-story retail building and adjacent parking lot at 810-816 W. Lake Street, where the knife shop Northwestern Cutlery has been operating since 1972.
Casey and Scales said they originally began working with the owner of Paddy O’Fegan’s. The parties determined that an assemblage creating a large-scale redevelopment opportunity would result in the highest and best value. Over the next several weeks they held discussions with the other owners, and ultimately everyone was on board with the collective approach.
“We were fortunate to work with three sellers, who came at this opportunity from different vantage points, but who had vision and were willing to work together to create value for each other and for themselves,” said Scales.
While the winning bid was accepted over a year ago, the sale finally closed in early April after the city and state had been locked down due to the COVID-19 crisis.
“In a time of uncertainty, crossing the finish line on this transaction is a strong vote of confidence for Chicago’s commercial real estate market and the Fulton Market District,” said Casey.