Home News Sterling Organization hires Greenstone Partners to building on State Street

Sterling Organization hires Greenstone Partners to building on State Street

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Unsurprisingly, Greenstone plans to market the property as a potential redevelopment site, highlighting its size and generous zoning to accommodate a skyscraper on site. Given the strength of the downtown multifamily market, a new apartment building is the most obvious option for this property.

Greenstone CEO and Managing Partner Danny Spitz said: “It’s very rare to find something like this on State Street.”

Given the current retail predicament on State Street, it also makes sense to demolish or repurpose existing buildings to build new ones. Vacancy rates for the Central Loop, which includes the State Street shopping district, 23.4% It will end 2021, up from 14.7% two years ago, according to Chicago brokerage Stone Real Estate.

Greenstone markets properties for sale without an asking price. Palm Beach, Fla.-based real estate investor Sterling paid his $14.5 million for the building in his three transactions in 2018 and 2019, according to Cook County real estate records. I was.

Sterling could face financial pressure to sell the building, according to county records. According to documents filed with the county, Sterling has an $18.3 million mortgage on his property set to mature on May 1, but the company has negotiated a payoff date with the lender. reached an agreement to extend it until May 1, 2023.

A representative for Sterling did not respond to a request for comment.

Sterling put the State Street building up for sale Mid 2020, Hire CBRE to recruit investors. But the pandemic paralyzed the real estate market for a long time in his 2020. Investors were reluctant to buy. The lender was unwilling to rent and the property never sold.

Retail is still weak and rising interest rates are having a cooling effect, but the market is strong today, with apartments leading the way.Downtown Chicago Apartment Rent record all-time high The number of skyscrapers has increased this year.

“The apartment makes a lot of sense[for Sterling’s property]whether it’s adaptive reuse or ground-up reuse,” Spitz said.

The seven-story high existing building at the northern end sits on a 20,300-square-foot lot with current zoning, Greenstone said, and can accommodate projects up to 325,000-square feet. Developers can also ask for zoning changes that allow for larger buildings on the site.

Spitz says developers can also preserve and reuse existing Art Deco buildings that are about 100 years old. The property is not a landmark and is not on the city’s list of historically significant buildings. Should the city step in to save it? Ward Miller, a Chicago conservationist, is not ready to speak out on the issue.

“This is a great example of a quality building that should be preserved,” said Miller, executive director of the advocacy group Preservation Chicago. “A breakthrough quality? I think we need to look further.”

Miller focuses on preserving two historic buildings located directly across the street. Century and Consumer Building, The federal government wants to demolish it to create a security perimeter around the federal court complex next door. In July, Chicago’s Landmarks Commission asked city officials to produce a report on the building as a first step toward landmark designation that could thwart demolition plans.

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