Home News Streeterville apartment building designed by Harry Weese sold to Altitude Capital Partners

Streeterville apartment building designed by Harry Weese sold to Altitude Capital Partners

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But a property’s architectural family tree is no guarantee of its owner’s financial success, and that may be the case for 227 E. Walton. Weas not only designed the building, but also worked with real estate broker John Baird to develop it. The original plan to sell the unit as a co-op apartment didn’t work out, so it was rented out instead.

Another developer converted the building into condominiums in 1969. All units were purchased by Blood Management in 2018 and returned to the apartment.

This is an investment strategy that gained a lot of attention a few years ago. With condominium prices skyrocketing and the condominium market sluggish, many investors have experienced the problem of acquiring entire condominium buildings and converting them into apartments.

They aim to profit from the price difference between the two markets. In theory, an investor should be able to pay a premium for a condo and sell the building as a rental property at a higher unit price. For example, in 2021, a Brooklyn investor sold the Edgewater building and converted it into condominiums. $43 million, That’s about 31% more than I had invested in the property.

Blood management didn’t work out either. The company paid $10.3 million for the condo in mid-2018, according to real estate documents filed with Marcus & Milichup and Cook County. However, the property sold for $10.5 million, up just 2%.

Jerry Wise, owner and chairman of Brad Management, did not return the call. But Kyle Stengle, senior managing director of Marcus & Millichap, said the numbers say it all, as Wise’s company also acquired his tower in the building’s cell and sold it at a profit in a separate transaction. did not say

“The gain looks worse than it actually is,” says Stengle. “The full story isn’t $10.3 million to $10.5 million.”

He said he did not advise Brad Management on its investment and therefore cannot provide details on the Celltower transaction.

Altitude Capital plans to refurbish the building with a gym, club room, lobby restoration and other improvements, said Brian Dohman, managing partner of the company. He declined to say how much the company plans to spend on the project.

“I think it will be a great asset to own for the long term,” he said.

The history of the building is simple plan In 2019 we will convert the building into a boutique hotel.But blood management lost an idea After about a month, I was unable to secure support from Ald. Brian Hopkins, second, representing part of Streeterville.

Whatever its function, the building’s form will remain protected as a landmark approved by the city in 2012. Weas, who died in 1998, is located at the Chicago Metropolitan Correctional Center at 55 E. Wacker Drive and 71 W. Van Buren Street. In the Chicago suburbs, the architect’s most acclaimed work is the Washington Metro subway system, featuring stations with coffered vaulted concrete ceilings inspired by Roman architecture.

The Streeter Building borrows from the past while offering a modern design, with a brick façade and three-sided bay windows that were characteristic of early Chicago School skyscrapers more than half a century ago. . The design represents the architect’s effort to break free from the international style of boxy glass and steel championed by Ludwig Mies van der Rohe and his disciples. 2012 report Prepared for the Commission on Landmarks of Chicago.

“Weese fought for modern architecture that is more humane and corresponds to historical architectural traditions and urban contexts,” the report states. “227 E. Walton Place has focused on Mr. Weeds’ interests as a contemporary architect, prioritizing human scale and texture over the machine-made, and contextual his designs over a ‘one size fits all’ approach. , indicating the importance of continuity. What set him apart from the mainstream of American architecture in the 1950s was not a complete break from the past, but a shift in architectural history. ”

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