Marcus & Millichap, today announced the sale of a 53,931-square-foot, mixed-use commercial loft building located at 1040 W. Huron St. in the rapidly developing River West neighborhood of Chicago. This asset sold for $11.35 million.
Stephen Lieberman, First Vice President of Investments, and Kyle Stengle, Senior Vice President of Investments at Marcus & Millichap’s Chicago Downtown office, represented the private sellers and also procured the buyer, Tandem Development. The Chicago-based developer plans to renovate the existing building and develop a 226-unit apartment tower on an adjacent parking lot and single-story structure that were included with the sale.
“With a competitive bid situation during the marketing process, this transaction demonstrates the strong demand that exists for high-density, transient-oriented developments in the city. The buyer utilized the downtown zoning expansion district that was recently put in place to successfully approve a planned development for the site,” said Stengle. “This property provides an excellent redevelopment opportunity as young professionals continue to move into River West and look for high-quality, well-located housing.”
Located one block southeast of the intersection of Milwaukee and Chicago avenues, the property features a partial single- and three-story mixed-use commercial loft building with an adjoining parking lot.
In the coming months, the development team of Tandem Partners and Rambaud Holdings intend to pursue a planned development for the 28,314-square-foot site. The developer envisions a 23-story building comprising 226 apartments, a parking garage and 2,300 square feet of first-floor retail. The existing multistory loft office building will also be fully modernized, appealing to users in search of creative office space.
“We worked very closely with the city’s planning department and the local neighborhood zoning group to preserve the existing office building and have designed a new building that we feel will be a wonderful addition to the neighborhood,” said Dimitri Nassis, director of development with Tandem. “We anticipate construction to start in the middle of the year and for leasing to start in the first quarter of 2020.”
With a zoning change, the property would qualify as a transit-oriented development – a designation that allows for greater density and less parking – due to its proximity to the CTA Blue Line stop at Chicago and Milwaukee. Currently, 1040 W. Huron, which was built in 1911 and renovated in 1991, holds an M1-3 commercial zoning designation.
About Marcus & Millichap
With over 1,800 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed nearly 9,000 transactions in 2017 with a value of approximately $42.2 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors.