Multifamily N Illinois

Interra brokers $13M Wrigleyville deconversion

Interra brokers $13M Wrigleyville deconversion,ph1

Chicago-based commercial real estate investment services firm Interra Realty brokered the $13.7 million deconversion sale of 3264-70 N. Clark Street, a mixed-use building in Chicago’s Lakeview neighborhood. The buyer, Chicago-based North Park Ventures, intends to convert the property’s 30 condominiums back into rentals and develop a new, five-story, 22-unit apartment building on an adjacent surface lot.

David Goss and Jon Morgan, co-founders and managing principals of Interra, together with Joe Smazal, managing partner, represented both sides in the transaction. The sale price equates to an average of $380,555 per unit, a market value that is much higher than other recent deconversions in the area as a result of the adjacent lot’s development potential, according to Morgan.

“Leveraging our expertise in condo deconversions, we were able to coordinate the various components of this transaction, working with individual owners to achieve their desired pricing as the buyer lined up financing for the acquisition and adjacent development,” said Morgan. “In the end, the owners realized a premium, and the buyer acquired a stabilized building of scale, with the ability to add value via new construction on the neighboring lot.”

Located at the intersection of School and Clark Streets, about a half-mile south of Wrigley Field, the existing building includes six ground-floor retail spaces comprising 7,600 square feet that North Park Ventures will continue to lease. The upper residential floors include a mix of one-, two- and three-bedroom apartments, all with fireplaces and many with condo-quality finishes, private outdoor space and in-unit laundry. Residents also have access to a shared dog run, rear courtyard, bike room and storage lockers.

The new five-story masonry building will include 22 apartments above an enclosed parking garage with 13 spaces. Like the existing building, the unit mix will include one-, two- and three-bedroom plans ranging in size from 600 to 1,400 square feet. In addition to the high-end finishes that will be featured in all apartments, penthouse units will offer private terraces.

“North Park Ventures is excited to become a part of the Wrigleyville community and contribute to the charm of the neighborhood with our new development,” said Robert Sekula, managing partner of North Park Ventures.

Adding to the appeal of the property is its highly walkable location, steps from popular restaurants, nightlife and shopping, including a small-format Target store on the same block. Residents also have easy access to the CTA’s Red, Brown and Purple lines via the nearby Belmont station, as well as several bus routes. The Lakefront Trail, a multi-use path that stretches nearly 18 miles along the Lake Michigan shoreline, is just a mile east of the property.

“Across the city, but especially in transit-oriented locations like this one, we’ve seen strong interest from investors looking to capitalize on rising rents in Chicago’s neighborhoods,” said Morgan. “The number of offers received for 3264-70 N. Clark suggests the deconversion trend will continue into 2018, with some buyers willing to pursue more challenging deals due to the attractive returns they offer.”