It’s much the same deal Walker made at Morgan Park, buying a shuttered target and leasing it to Blue Cross & Blue Shield in Illinois to turn it into a community center. DL3 sold the property Last year, it invested more than $20 million in ventures from Brooklyn, New York-based Beitel Group.
A similar price in Chatham would add more validation to Walker’s claim that developers could make money in the Southside neighborhood, which historically hasn’t been considered. Communities like Chatham, which have suffered from deprivation and depopulation, are struggling to attract real estate investors, making it difficult to put together projects that could reverse these demographic trends.
However, successful sales such as the Morgan Park property and properties DL3 is seeking in Chatham “demonstrate that there is value and opportunity to invest in our area,” said Walker.
“We have to show that there are active buyers and sellers in the market,” he said. “As the next wave of new black and brown developers enter (into the development sector), get investors and others willing to take risks if they can see liquidity in the market. will be easier.”
DL3 purchased the former Chatham Target for $250,000 in 2019, according to Cook County property records.the developer then signed a landmark deal early last year In collaboration with Riverwoods-based Discover, we have opened a call center within the building. The project will bring nearly 1,000 new jobs to his neighborhood by 2024. At the time, a Discover representative said: Discover last month cut the ribbon at its new facility.
It’s unclear how much DL3 spent on leasing fees and helping Discover build the space, and the property on public records is unencumbered. But according to a JLL flyer, he spent more than $25 million on Discover and DL3 together, which includes 25,000 square feet of “multipurpose space for community use,” JLL said. .
Walker is framing the building as an opportunity for buyers to capitalize on long-term cash flow income from Discover’s leases. The lease is accompanied by 3% annual rent increments and has over nine years remaining on the contract.
“Given the (capitalization) interest rate and interest rate pressures, we thought now was the right time for anyone looking to lock in (cash flow) for the long term,” Walker said. He added that he is open to partnering with buyers and holding stakes in real estate.
DL3 has been one of the South Side’s most active commercial developers for years. The company he developed a Whole Foods-centric shopping center in Inglewood in 2016 and co-developed Jewel Osco in Woodlawn. We are also about to launch a new affordable housing project of 58 units.
Walker also has a $33 million mixed-income housing project in the immediate vicinity of the Englewood Square shopping center, where Whole Foods is scheduled to close in November.DL3 is the city’s Invest South/ As part of the West Initiative, it was selected by City Planning Officers to redevelop several sites adjacent to the Cheltenham station on the Metra Electric line in the South Shore area. The $47 million project will include 63 residential units.
JLL Senior Managing Director Alex Sharin pitches DL3’s Discover property.