Month: October 2019

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Mark your calendars: These are Chicago’s…

Written by The Real Deal

Here is a real estate event coming to Chicago next week. Host: RE Journals Date: Nov. 5 Time: 7:30 a.m. to 10:30 a.m. RE Journals is holding its 11th Annual Senior Housing Real Estate Conference at Maggiano’s Little Italy, 516 North Clark Street from 7:30 a.m. to 10:30 a.m. This event will offer networking opportunities and a discussion analyzing the current and future trends in a variety of areas, including design and financing. Speakers include Suzanne Koenig of SAK Management Services and Douglas Kimes of TCF Commercial Banking. Host: CREW Chicago Date: Nov. 5 Time: 4:30 p.m. to 7:30 p.m. CREW Chicago is holding an event as part of its Professional Development Forum Series at Polsinelli, 150 North Riverside Plaza from 4:30 p.m. to 7:30 p.m. Take part in this interactive workshop alongside former CIA operations officer Karen deLacy to gain insight on leadership and the importance of gender equity in the workplace. To submit more industry events, please reach out to . The post appeared first on .

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Acadia Realty Trust is obsessed with…

Written by The Real Deal

Acadia Realty Trust CEO Kenneth Bernstein and 849 (right) and 912 W. Armitage Avenue in Chicago’s North Side (Credit: VHT Studios and ICSC) The biggest retail landlord on Armitage Avenue placed another bet on Chicago’s North Side shopping corridor. Acadia Realty Trust bought three-story buildings at 849 and 912 W. Armitage Ave. from New York-based Jenel Management in September for $7.9 million, according to the , which cited Cook County property records and public filings by the Rye, New York-based real estate investment trust. The buildings include apartments on the upper floors and ground-floor space leased to retailers Marine Layer and Pogo. In total, Acadia owns 10 buildings, comprising nearly 23,000 square feet of retail space on Armitage between Halsted Street and Sheffield Avenue. Other tenants in those buildings have included companies with e-commerce origins, like Warby Parker and Bonobos. Acadia’s footprint equates to about 16 percent of the total 141,000 square feet of retail space on Armitage’s shopping strip, making it the largest retail landlord on one of the North Side’s prime shopping corridors, according to Stone Real Estate’s annual report. Acadia owns properties in other areas of Chicago and in many large cities across the U.S. Last month, the company containing Lululemon’s new “experiential” flagship store for $32 million to New York-based Feil Organization. [] – Brianna Kelly The post appeared first on .

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It’s over for Barneys: Luxury retailer…

Written by The Real Deal

(Credit: iStock) Its official: Barneys will been sold to Authentic Brands Group and B. Riley for about $270 million. The deal, approved by Judge Cecilia Morris in bankruptcy court Thursday morning, means that ABG, a brand merchandiser, will own the luxury department store’s intellectual property. It also will allow the new owner to partner with rival department store Saks Fifth Avenue to use Barneys’ name in its stores. It also means that, most likely, the new owners will shutter Barneys’ locations — including its property at Ashkenazy Acquisition’s . A property in Boston may stay open, Barneys’ attorney said. “It’s a sad day,” Morris said after she made her decision. READ MORE A representative for Barneys would not immediately provide a comment after the hearing. Rick Chesley, ABG’s attorney, said after the hearing that closing the stores was just one option on the table the new owners would evaluate. Still, the move marks yet another blow to the retail industry, which has suffered from a string of retailer bankruptcies, store closures and liquidations. The challenges have rattled both discount and high-end retailers, and the U.S. is on pace to close a record 12,000 stores this year, according to research from Coresight. Barneys had already said it would close 15 of its 22 locations, but the shuttering of more large department stores leaves additional vacancies landlords must work to fill. Barneys, which filed for Chapter 11 bankruptcy in August after a at its flagship, already signaled that ABG was its stalking bid offer earlier in the month. But news reports over the past couple of weeks that at least two other offers may be on the table. And yesterday, Barneys’ unsecured creditors, a group that includes some of its landlords, signaled that they have the any other offer that comes in, especially if it preserves stores and jobs. But in a Poughkeepsie courtroom, where the hearing was held, those offers never surfaced, said Joshua Sussberg, Barneys’ attorney. Sussberg said the company had wanted to work out deals with at least three other groups who would work the keeps Barneys’ doors open and employees working. “Everybody at this company… has been working 24 hours a day … to try to achieve this goal,” he said. One revised offer was to come from a group of investors led by Kith investor Sam Ben-Avraham, who started an online campaign to try to save Barneys. Those investors had submitted a lower bid earlier in the process that had been rejected. David Jackson, former head of Istithmar World, once an owner of Barneys, and a third group, a private equity firm, also were working to craft deals. Those also never pulled through, Sussberg said. The transaction is set to close Nov. 1 at 10 a.m. but Sussberg said the purchase agreement has a provision that should circumstances change — say, another offer pops up — before the closing time, the debtors have the right to review it. “If something changes,” he said, “we will be in touch.” The post appeared first on .

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Financier at center of 1MDB fraud…

Written by The Real Deal

Jho Low and the Time Warner Center at 25 Columbus Circle (Credit: Getty Images) Fugitive financier Jho Low will stop fighting for assets valued between $650 million to $900 million in the massive 1MDB scandal. He has given up his claim to assets including luxury apartments, jets, yachts and artwork that prosecutors claim he bought with stolen money, according to the New York Times. The settlement will likely impact the Time Warner Center along with multiple homes in Los Angeles. “The message in this case is simple: The United States is not a safe haven for pilfered funds,” U.S. Attorney Nick Hanna said in a statement. “Our strict anti-money laundering controls are effective, and we will seize assets used by criminals to conceal ill-gotten gains.” Low released a statement saying that the settlement was “the result of good faith discussions” and stressed that it “does not constitute an admission of guilt, liability or any form of wrongdoing by me or the asset owners.” Low has never appeared in criminal court in the United States or Malaysia, and he is believed to be living in China. The agreement did not include anything about giving Low special treatment in the pending criminal cases against him. Federal authorities have accused Low and his associates of using money from a Malaysian sovereign wealth fund to buy more than $1.7 billion worth of real estate, yachts, jets and jewelry. The fund was meant to support development in Malaysia but instead became notorious for corruption. The Justice Department earlier this year recouped about after selling a stake Low had owned in the Park Lane Hotel. Prosecutors are also investigating a series of bond deals that Goldman Sachs put together for 1MDB for about $6.5 billion. []  – Eddie Small The post appeared first on .

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WATCH: Grant Cardone espouses his real…

Written by The Real Deal

Grant Cardone, the , speaker, author and business consultant who has amassed more than 2.4 million Instagram followers, spoke about his at The Real Deal’s sixth annual . The post appeared first on .

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Developers land $44M construction loan for…

Written by The Real Deal

1133 West Fulton Street (Credit: Google Maps) Domus Special Situations Group and Barnett Capital have secured financing for a west Fulton Market mixed-use project anchored by fallen co-working giant WeWork. In February, the Domus-Barnett joint venture snapped up the three-property, block-long assemblage on Fulton Street and Racine Avenue in separate transactions for $23.5 million. A month later, they filed a 97,000-square-foot industrial building on Fulton Street, and demolish an adjacent apartment building on Racine Avenue. Domus and Barnett captured headlines in August when they announced that WeWork would nearly 90,000 square feet of office space at 1113-1155 W. Fulton Market, and that they would then develop a 75,000-square-foot boutique office building on Racine Avenue. Now, Fifth Third Bank has given the developers a cash injection with $43.5 million in construction debt, according to Cook County loan documents recorded late last month. Domus Group, led by Phillip and Steve Ciaccio, and Barnett Capital could not be reached for comment. The project is under construction. The partnership joins a growing list of developers who want to get in on Chicago’s hottest office submarket. Late last month, Chicago developer Mark Goodman & Associates and New York-based developer Tishman Speyer construction on a 13-story office building with ground-floor retail at 320 North Sangamon Street, five blocks east of the Domus-Barnett project. Yesterday, New York-based Thor Equities and Vancouver-based QuadReal on an 19-story office project at 800 West Fulton Market, roughly six blocks east of the Fulton market development. The Fulton Market and River West neighborhoods average rents in the East Loop submarket in the second-quarter of 2019, part of an ongoing Westward movement in demand for Downtown office space, according to Q2 Chicago office market report from CBRE. The post appeared first on .

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How to get away with [selling…

Written by The Real Deal

(Illustration by Chris Koehler) Los Angeles might be just as famous for its grisly murders as it is for its movie industry. Tourists can take true-crime tours of the Beverly Hills mansion where the Menendez brothers fatally shot their parents in 1989, the site where the mutilated body of Elizabeth Short (the “Black Dahlia”) was dumped in 1947 or the East L.A. neighborhoods once terrorized by serial killer Richard Ramirez, aka the Night Stalker. And sometimes real estate is the motive. In August, 72-year-old Marina del Rey resident William Webb , allegedly by his tenants in a plot to prevent him from selling his house, prosecutors say. Unless they can be turned into museums, properties with macabre histories must eventually go on the market. After all, even a site where a gruesome murder took place is still a piece of Los Angeles real estate. But sellers and brokers of those properties face unique challenges. “Murder is bad feng shui,” said Orell Anderson, a forensic real estate appraiser who specializes in valuing properties affected by a crime. Residences where murders have occurred usually sell at a discount of 10 to 15 percent, Anderson said. In cases where the homicide was high-profile, the difference can be 20 to 30 percent. California law requires brokers to disclose whether a death has taken place at a property within the previous three years. Potential buyers can also consult DiedInHouse.com, where for $11.99 you can find out whether someone has died by murder or suicide at a particular address. Some cases, however, are too infamous to avoid, even if the crime took place decades ago. Take, for example, 2475 Glendower Place, the five-bedroom Spanish Revival house better known as the “Los Feliz Murder Mansion.” There, on the night of Dec. 6, 1959, Dr. Harold Perelson bludgeoned his wife, Lilian, to death with a ball-peen hammer before severely beating his 18-year-old daughter, Judy, while his two younger children slept. She escaped and raised the alarm but not before Perelson drank poison, ending his own life. A year later, the hillside property sold to an older couple, Emily and Julian Enriquez, but they never lived there. It sat empty for more than 40 years, attracting a cult following of gawkers who peered through the windows at dusty 1950s furniture. Finally, in 2016, the home was purchased for $2.3 million in a probate sale. In May of this year it was listed again for $3.5 million, having been stripped down to the studs. Agent Scott Pinkerton of Century 21 Peak, who represented the 2016 buyers and is now the listing agent, said it was hard to escape the home’s dark history. “When it first came on the market, the listing agents had a bunch of looky-loos. So many people wanted to come see the house because of what it was,” he said. This time, Pinkerton is requiring potential buyers to submit proof of funds to get a showing. “I’m in the business of real estate,” he said, “not a tour guide.” How to de-creepify a home To offset a property’s notoriety, forensic appraiser Anderson offers sellers some basic advice. First, change the outside appearance of the property so it doesn’t look as it did in media coverage at the time of the crime. Nicole Brown Simpson’s home at 875 South Bundy Drive in Brentwood became infamous after she and friend Ron Goldman were stabbed to death outside her front door on June 12, 1994. Images of the bloodstained brick path were beamed around the world. The sensational trial and acquittal of former football star O.J. Simpson, Nicole’s ex-husband, guaranteed the property a place in the annals of L.A. history. The four-bedroom condo, which Nicole had bought for $625,000, sat empty for more than two years after the killings before finally selling for $595,000 in 1997. It sold again in 2006 for $1.7 million. The new owners remodeled the famous front entrance, moving the path entirely. They also changed the property’s address, another tactic Anderson advises sellers to try. In 1969, members of the Charles Manson “family” brutally murdered eight-months-pregnant actress Sharon Tate and four others at 10050 Cielo Drive. Rudolph Altobelli, a Hollywood talent manager who owned the French-style villa, struggled for years to sell the property. It finally sold in 1988 for $400,000 below the asking price. Police at the scene of the Manson Family murders at 10050 Cielo Drive. The property was bought in 1991 by real estate investor Alvin Weintraub for $2.25 million. He demolished the villa and changed the address to 10066 Cielo Drive in an attempt to remove some of the stigma. “There’s no house, no dirt, no blade of grass remotely connected to Sharon Tate,” he told the L.A. Times in 1998. The property was later bought by “Full House” creator Jeff Franklin for an undisclosed sum, and by 2010 he had constructed a mansion with a 15-car garage, two swimming pools, six bars and five aquariums on the site. But sometimes it’s much more challenging to disassociate a property from a grotesque crime. Sellers have no choice but to demolish the structure in which it took place, Anderson said, but even that may not be enough. “The stigma runs with the land,” he said, “it’s the location and the dirt that people remember.” One example is the 9,200-square-foot mansion at 18241 Colina Norte in Rancho Santa Fe, San Diego County, where 39 members of the Heaven’s Gate cult committed mass suicide in late March 1997. Anderson, who appraised the property, said the bodies sat for several days in the spring heat before being discovered. “You couldn’t get the smell out,” making it impossible to even stand inside the property for long, he said. The mansion eventually sold for $668,000 to a neighbor, who demolished it and changed the address. The Cielo Drive property, now numbered 10066 Cielo Drive. Bad blood If homicides can complicate a sale, sometimes real estate matters precipitate them. One recent case shows just how dangerous a property dispute can be. In March of this year, William Webb listed his luxury Marina del Rey home for $2.6 million. Five months later, he was brutally slain in what prosecutors allege was a plot by his former stepdaughter and two tenants to prevent him from selling it. Authorities say Webb was killed in the five-bedroom harborside house at 131 Lighthouse Mall by John Schiefer and Shavonne Webster, who were renting a room there. Webb’s body was burned and dumped in a dry lakebed in Joshua Tree National Park, according to the Los Angeles County district attorney’s office. Webb’s former stepdaughter, Haena Kealia Worthing, also faces murder charges, although her role in the purported plot is unclear. Since Webb’s divorce from Worthing’s mother in 2012, the Marina property has been at the center of court battles between the two families. Last year Worthing sought to take possession of the property, but a judge denied her request. “She has some misguided idea that she can get me out of my house,”  Webb wrote at the time, according to the L.A. Times. “Haena has stated that she will then inherit the house.” The property was in contract at the time of the murder. At press time, it was unclear if the sale will close. If it doesn’t, the broker might want to watch a new streaming video series for inspiration. “Murder House Flip,”  a recently announced true-crime home makeover show from “CSI: Crime Scene Investigation” producer Josh Berman, will help owners of “infamous” properties with renovations. The show will air on new short-video platform Quibi, Deadline reported in August. Sony’s Elyse Seder told Deadline that the new show “combines America’s two biggest TV obsessions: true crime and home renovation.” The post appeared first on .

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This developer is willing to take…

Written by The Real Deal

Naperville Woods Office Center at 1000 and 1100 E. Warrenville Road in Naperville (Credit: iStock) Even when leasing is going well, it’s tough to be an office landlord in the Chicago suburbs these days. A nearly fully-leased office complex in Naperville is on the market for about $80 million, roughly $3 million less than it sold for six years ago. In 2013, a venture of Canadian real estate investment trust Agellan Commercial REIT paid $83.4 million for the two-building Naperville Woods Office Center at 1000 and 1100 E. Warrenville Road. Now Elad Group’s Canadian arm, which acquired Agellan earlier this year in a $400 million deal, is seeking around $80 million for the 482,000-square-foot office complex, according to Crain’s. The buildings were 97 percent leased when Agellan bought them and they’re now 95 percent leased, a rare show of stability when suburban competitors have seen tenants flee for downtown towers in recent years. The two buildings were vacant in 2005 after telecommunications equipment company Lucent moved out and sold them for $23 million to a joint venture of Chicago-based M&J Wilkow and a subsidiary of Minnesota-based Cargill. The joint venture spent $13.5 million on renovations and leased it to a number of tenants, including Blue Cross & Blue Shield of Illinois parent company Health Care Service Corp., the complex’s biggest tenant, whose lease runs through 2023. Aldi signed a 10-year lease in 2018 for nearly 118,000 square feet. The 31-acre Naperville Woods property includes a pair of potential development sites along the highway that could be developed for multifamily and hotel uses, according to a flyer from JLL, which is marketing the property. [] — Brianna Kelly The post appeared first on .

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An unexpected win in 11-day teachers’…

Written by Curbed Chicago

Thousands of Chicago teachers take to the streets, stopping traffic downtown. | Getty Images More resources and early intervention for vulnerable students After an 11-day strike, Chicago Public School teachers will return the the classroom with a contract that includes resources for thousands of homeless students in Chicago. In the last school year, Chicago Coalition for the Homeless estimates there were about at Chicago Public Schools. Chicago teachers and city officials reached an agreement on Thursday that will bring more resources to some of the city’s most vulnerable kids. The new contract designates funds to hire “community representatives” at schools with large numbers of students experiencing homelessness or transitional living situations. Depending on the number of vulnerable students, the school will be able to hire one or two full-time representatives. They will be responsible for providing families in need with access to housing resources, establishing early intervention to prevent homelessness, and helping students succeed in class. A stipend will also be available for some schools to hire a Students in Temporary Living Situation (STLS) Liaison. Together, the representative and liaison will ensure homeless students are attending class, have transit passes, and are aware of neighborhood resources. “This deal will move us closer to ensuring that our most vulnerable students receive the instruction, resources and wraparound services they need to thrive,” said Jesse Sharkey, CTU’s president, in a statement. “This contract will put a nurse in every school, a social worker in every school and provide a real solution for thousands of homeless students in Chicago.” has brought the issue of affordability, cost of living, and to the forefront of a few union contract negotiations. Ahead of the Chicago strike, for teachers, which are required to live in the city, and better resources for thousands of homeless public school students. The mayor wasn’t willing to discuss housing assistance for teachers—although the union argued that other city employees like police and firefighters get housing assistance. For the full rundown on what else Chicago teachers won in the contract, Chalkbeat has and breaks down .

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Here’s what $1.2M buys in Chicago…

Written by Curbed Chicago

VHT Studios See properties in Edgewater, Morgan Park, West Loop, and more Welcome to , a weekly column that explores what you can buy for a certain dollar amount in various Chicago neighborhoods. Today, we found five higher-end homes priced at or around $1.2 million. Vote for your favorite. Photos by VHT Studios, courtesy Mario Greco of the MG Group at Berkshire Hathaway HomeServices KoenigRubloff Let’s start with this brand new single-family home on an extra-wide lot in Chicago’s Edgewater neighborhood. The ultra-contemporary 3,600-square-foot design features four bedrooms, three and a half bathrooms, and an eye-catching minimalist kitchen. There’s also a front porch, covered rear deck, grassy backyard, and detached two-and-a-half-car garage. The home is listed for . Photos by VHT Studio, courtesy Dana Nolan of Baird & Warner Buyers seeking a more old-school residence will find plenty to like about this renovated Prairie School estate built in Morgan Park in 1915. The massive 7,200-square-foot home offers six bedrooms, a formal living room, a newer kitchen, a basement theater room and pub, and a glassy solarium overlooking its landscaped grounds. The South Side property seeks . VHT Studios courtesy D. Waveland Kendt, @properties Looking for breathtaking views? Consider this downtown condo perched on the northwest corner of the 68th floor of the Legacy on the Park high-rise. The 1,822-square-foot unit offers high ceilings, a balcony, two and a half bathrooms, and three bedrooms (including one with a slick built-in murphy bed). Live in the sky for —plus $1,355 in monthly HOA fees. Photos by Positive Image courtesy Nathan Binkley of Binkley Residential at Compass In Chicago’s trendy West Loop neighborhood, consider this three-bedroom loft situated in a converted 1910 warehouse building. The home features soaring 30-foot ceilings in the main living space below two lofted bedrooms. The unit has a chic industrial vibe thanks to black metal beams and factory-style metal sash windows serving as room dividers. There’s also a private rooftop deck with a fire pit under strings of bistro lights. It’s listed for plus $1,099 in HOA fees. VHT Studios, courtesy Michael Thomas of @properties Located just north of Chicago in Evanston’s Lakeshore Historic District, this single-family home dates back to 1884 and spans an impressive 6,490 square feet. The five-bedroom, four-bathroom residence includes handsome interior wood trim and a grand staircase plus two fireplaces and a newer kitchen. Listed for , the Evanston property is priced lower than the others.