Category: Real Estate

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Aurora approves $129M redevelopment of Copley…

Written by The Real Deal

A rendering of the mixed-use Copley Hospital redevelopment in Aurora, Illinois The former Copley Hospital in Aurora will soon give way to a $129 million development led by Fox Valley Developers. The Aurora City Council unanimously approved the development, which will include a mix of senior housing, apartments, educational facilities and neighborhood health care and parks, according to the Aurora Beacon. The city will put up as much as $15 million in incentives, one of the biggest investments on the East Side “in generations, maybe the largest ever,” according to Mayor Richard Irvin. Fox Valley has already completed the first phase of the project, a remediation of asbestos and lead. In all, the campus spans 341,000 square feet across seven buildings and nine acres. Fox Valley says it will build 102 units of senior housing, 53 supportive housing units, a pharmacy, a neighborhood health care facility, a surgery center, a new park, and school facilities. The development team is comprised of local developers and contractors, including Konrad Construction president Jason Konrad. Copley Hospital operated on the campus until it left for another campus on Ogden Avenue in 1994. Over the years several owners came with development plans, but the buildings remained vacant. [] — James Kleimann The post appeared first on .

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National groups fund NY landlords’ suit…

Written by The Real Deal

Five real estate trade associations are providing financial backing to a constitutional lawsuit looking to upend New York’s rent law (Credit: iStock) It’s not just New York trade associations fighting back against Albany’s new tenant-friendly rent law. Five real estate trade groups — National Apartment Association, National Association of Realtors, National Multifamily Housing Council, National Association of Home Builders and New York State Builders Association — are providing financial backing to a lawsuit looking to upend New York’s rent law. “The whole effort will collectively cost several million dollars,” said Jay Martin, the executive director of the Community Housing Improvement Program. “For that, we’ll need ongoing financial support from the industry collectively. This isn’t just another willy nilly, last-ditch effort. We genuinely believe we’re providing a comprehensive conversation at the court level that hasn’t been done before.” Read more CHIP, along with the Rent Stabilization Association and seven landlords, filed a in July alleging that New York’s new rent law violated the U.S. Constitution’s Fifth Amendment, which includes a clause that bars taking of private property without “just compensation.” The complaint also alleges that the rent law violates the Fourteenth Amendment’s due process clause because the law is “arbitrary and irrational.” Washington, D.C.-based law firm Mayer Brown is — which also claims that New York’s rent stabilization law violated the Constitution even before changes were made in June. Martin has been traveling the country, most recently visiting Oregon and California, to seek industry support for the effort. In September, California passed , its own statewide rent control measure. Community Housing Improvement Program director Jay Martin Robert Pinnegar, the president of the National Apartment Association, said in a statement that the organization “is opposed to any regulation or barrier to construction, including rent control, that has a negative effect on housing affordability.” NAA is also the parent organization of the California Apartment Association, whose members led the California effort to counteract a 2018 ballot measure to repeal a statewide ban on rent control. The five real estate groups will provide “all-encompassing” support for the costly litigation, as well as legal advice and public relations support, according to Martin. The exact dollar amount being contributed was not disclosed. CHIP and RSA’s lawsuit names New York City, the city’s Rent Guidelines Board, the board’s members and the head of the New York State rent stabilization regulatory agency as defendants. The post appeared first on .

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Lightfoot’s real estate transfer tax is…

Written by The Real Deal

From left: Ald. Carlos Ramirez-Rosa, Ald. Raymond Lopez and Mayor Lori Lightfoot (Credit: Wikipedia, Facebook, Getty Images) The predictions were right, without real estate transfer tax, property taxes have to increase. And according to the latest projections, the property tax levy will have to go up by about $65 million. Mayor Lori Lightfoot’s original plan for a graduated real estate transfer tax is no more, according to aldermen. They confirmed the news yesterday along with an increased property tax levy of $65 million, the Chicago Sun-Times . The raise in property taxes comes as no surprise. Despite Lightfoot’s optimism for her original tax plan to generate $50 million in 2020, aldermen have been vocal about the being pushed into action. Of the $65 million raise, $15 million is from capturing the growth of new construction and $32 million is associated with “debt service” approved by City Council last spring, according to the Sun-Times. Lightfoot expected her plan would pass in time to begin collection on Jan. 1. Instead, she was faced with 13 Democratic lawmakers threatening to withhold votes until “at least 60%” of the annual funding is put toward combating Chicago’s homelessness problem, reported the Sun-Times. During a Tuesday meeting with the municipal council, aldermen were given multiple other options to try to put a plug in the $838 million budget gap but it resulted in even more skepticism from the aldermen. Lightfoot’s chief of staff shot down the idea to tax hotel rooms at 75 cents-to-$1 per room, which was hatched by Carlos Ramirez Rosa (35th) and Ald. Leslie Hairston (5th). “When it comes to hotel taxes, we’re already one of the highest hotel taxes in the entire country,” chief of staff Maurice Classen said. “To increase that even higher would begin to hurt the industry and actually decrease revenue.” [] — Jacqueline Flynn The post appeared first on .

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The people left behind by SoftBank’s…

Written by The Real Deal

Softbank CEO Masayoshi Son (Credit: Getty Images) A Chicago real estate agent was unable to access basic marketing materials after . A hotel owner in is facing eviction after hospitality startup Oyo stopped making payments. And an employee for Rappi, a Colombian delivery startup, was told he would need to buy a new phone after he was robbed on the job. These people are among those sidelined by startups backed by SoftBank’s $100 billion Vision Fund, which provided them with immense sums of capital and a simple mantra: grow as fast as possible. Those startups have grown at breakneck speed with little oversight or regard for corporate governance, according to the New York Times. WeWork and Uber, the of SoftBank’s bets going awry, have provided a window into how the Japanese conglomerate has inflated the value of startups with profound consequences. This fall, WeWork abandoned plans to go public after investors its $47 billion valuation, and its charismatic CEO Adam Neumann left the company after SoftBank paid him more than $1 billion. SoftBank was forced to provide the company with a $9 billion lifeline to salvage it from potential bankruptcy. At Uber, the ride-share startup had an underwhelming IPO and recently posted losses of more than $1 billion. Since these companies have floundered, some have begun to look at early warning signs in other startups backed SoftBank’s Vision Fund, which has invested in 88 companies. Rappi, a Colombian startup received $1 billion from SoftBank and contracts delivery drivers in nine Latin countries. The company does not provide insurance or safety equipment such as a helmet to protect riders, who earn $1 per delivery. Dozens of riders have been injured. Compass, which is valued at $6.4 billion thanks to large investments by SoftBank, has recently faced tough questions about its parallels to WeWork. According to the Times, Chicago broker Tricia Ponicki after being offered generous incentives, but made just one deal this year. She has returned to former brokerage @properties, where she used to annually pull in $100,000. Another firm, Oyo, a $10 billion Indian startup founded by a 19-year-old in 2013, has also been propped up by the Vision Fund. In some cases, it has stopped paying hotel owners, to whom it directs customers, forcing them into financial hardship. [] –– David Jeans The post appeared first on .

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Developers place bets on another downtown…

Written by The Real Deal

1035-1065 N Orleans St (Credit: Google Maps) A new hotel could soon replace a Catholic school building on the Near North Side. Developers Robert Buono and Paul Utiguard have filed a zoning application to build a 114-room hotel at a former catholic school located at 1035-1065 N Orleans St., according to Crain’s. Their hotel will compete with the 216-room hotel at by developer Daniel Rezko. The y for the Near North Side area comes from a wave of successful tourism over the last few years. In October of 2018, The Real Deal reported Chicago’s occupancy rate nudged up by 10 basis points to 68.9 percent over a 12-month period, though there are also signs the downtown market could be , especially in Fulton Market. The property Buono and Utiguard seek is owned by a Chicago-based real estate investment company Glascott, which bought the property from the Archdiocese of Chicago in May. Other investors involved with the project include Robert Baum and Mike Downing who are experienced in the hospitality business with boutique hotels in Wrigleyville. The eight-story hotel would include converting an already existing gymnasium into a 450-person hall for events. Their proposal didn’t include parking space for the building, since it is close to public transportation – a factor the developers hope will win the the proposal approval from the city. [] — Jacqueline Flynn The post appeared first on .

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Design it the Martha Way: Martha…

Written by The Real Deal

Martha Stewart How would Martha design it, build it and sell it? Soon, we’ll find out. Marquee Brands, which owns the Martha Stewart brand, hired real estate agency Brand Labs International to identify cities, developers and real estate projects for the Martha Stewart brand, The Real Deal has learned. Brand Labs International’s CEO Florian Haffa said that Stewart will be involved in the design of various developments. The partnership is in talks with specific developers in the U.S., as well as in Europe and Asia. Haffa wouldn’t identify projects or cities where it plans to launch Martha Stewart-branded developments. , a business mogul, television personality and author, sold her Martha Stewart Living Omnimedia empire to Marquee Brands earlier this year for $215 million. The company included furniture, kitchenware and other branded products. Marquee Brands is the parent company of other brands, such as BCBG Max Azria, BCBG Generation, Emeril Lagasse, and Ben Sherman, according to its website. The Martha Stewart-branded real estate projects could include single-family homes, condos, townhouses, assisted living, and other residential communities. Stewart said in a statement that she looks forward to building developments that “will fit our needs and offer practicality, usefulness, beauty and comfort.” Her homes have “acted as laboratories” for the brand, according to a release. She owns a country farm north of New York City in Westchester County, a home on Perry Street in Manhattan’s West Village, a property on Mount Desert Island in Maine and a house in East Hampton, according to Architectural Digest. Branded developments have become . In South Florida, developers have recently partnered with Porsche Design, Armani Casa, Aston Martin and others to brand luxury residential towers. Developers can ask for nearly 31 percent more on average than for comparable non-branded properties, according to data from Savills. The post appeared first on .

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Third time’s the charm for PMG’s…

Written by The Real Deal

A rendering of the “ParkWorks” site, Ald. Byron Sigcho-Lopez (25th) and PMG’s Kevin Maloney (Credit: Getty Images) New York-based developer Property Markets Group is still trying to move forward with a scaled back version of its controversial “ParkWorks” project in Pilsen, all despite an ongoing lawsuit against the City of Chicago. The developer initially pitched a 500-unit mixed-use residential and commercial development, then a 465-unit project, and now it has filed a zoning application for 434-unit building on a 7.2-acre site at 18th and Peoria streets. Before PMG, led by Kevin Maloney, bought the vacant property in January 2017, former Ald. Danny Solis tried to block a residential development from being built on the site by rezoning it to its original industrial use. He said any project on the site must include more than 21 percent affordable housing, per Pilsen’s stringent affordable housing mandate, and be less dense than the developer’s initial 500-unit plan, according to DNAinfo. PMG and Solis couldn’t come to an agreement, and in 2018 the developer filed a lawsuit against the city, claiming the alderman’s move in 2016 to rezone the site was illegal and unconstitutional, Crain’s reported. Current is a community organizer and former executive director of Pilsen Alliance, a vocal opponent of the project that has led multiple protests against PMG. Sigcho-Lopez has promised to for affordable housing from 21 percent to 30 percent in new apartment buildings. PMG and Sigcho-Lopez didn’t immediately respond to requests for comment. The vacant property has sat vacant for more than 16 years, according to Crain’s. It was previously owned by the Midwest Jesuits. The post appeared first on .

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Chicago’s largest food bank plans $50…

Written by Curbed Chicago

AP It will help the organization deliver more meals to elderly folks who can’t leave their homes The Greater Chicago Food Depository has plans to build a new $50 million facility—one that will help them cook and deliver more meals to a coming boom of elderly baby boomers in their homes. The expansion will add on to its headquarters in Archer Heights. “It’s a major undertaking but we’ve looked at census projections and it shows a growing number of lower-income older adults—as much as 48 percent by 2030,” said Greg Trotter, a spokesman for the Food Depository. “It’s pretty alarming, so we’re seeing that need and responding to it.” The , which was submitted for approval to the Chicago City Council on Wednesday, calls for a 40,000-square-foot meal preparation kitchen to be built on land adjacent to its 268,000-square-foot headquarters. The food bank purchased the vacant lot from BNSF Railway in December 2018 for $3.6 million. Rendering by Partners by Design An initial rendering of the expansion plans. A second structure will connect the kitchen expansion with the existing headquarters and contain a nutrition education center and a community cafe. Also planned: a half-acre garden run by a yet-to-be-named urban gardening partner organization. The garden will grow fresh produce to be cooked in the kitchen and used in meals. The food depository has already been granted permission to build over Keeler Avenue to expand the campus but still needs approval from the city to get a zoning change on the lot currently designated as industrial. Later, the City Council must give their stamp of approval. What’s also required is a significant amount of fundraising from philanthropic partners to help foot the $50 million bill. If all goes well, the project could break ground as early as the spring of 2020 and operations may begin by mid-2021. The expansion is necessary, according to Trotter, so that the food bank can prepare approximately 4 million meals a year—many of which will be delivered directly to homes of those in need. “There’s an unmet need for older adults and disabilities who have a hard time getting meals from a food depository,” said Trotter. “If you can’t leave your house, it doesn’t do you much good.”

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Trendy brick and timber loft with…

Written by Curbed Chicago

1737 N. Paulina Street. | VHT Studios courtesy of . The banana leaf wallpaper is from the Beverly Hills Hotel In Wicker Park, a stylish two-bedroom, two-bathroom top floor loft is on the market for under $600K. Located on a quiet street near the start of The 606 and Walsh Park, this condo comes with beautiful 18-foot ceilings, a spiral metal staircase, and rustic timber beamed ceilings. The two-level unit has both bedrooms on the first level, each with their own unique features. The master bedroom has a tropical green ensuite bathroom—and if it’s banana leaf wallpaper looks familiar that’s because it’s the same pattern used in the Beverly Hills Hotel. The other bedroom has a custom sliding closet door with a black chalkboard wall. The living room has a cozy minimal fireplace with a built-in wooden mantel and the space gets a ton of natural light from the large balcony windows and skylights. On the other end of the residence, the kitchen features custom cabinets, shelves, and storage system made by the same crafter who designed some interior elements for high-end West Loop restaurants Avec and Blackbird. Love what you see? is listed for $575,000. A smooth kitchen with minimal hardware. The master bedroom has a fireplace, too. The bathroom has famous banana leaf wallpaper. A second bedroom with a chalkboard sliding door. The top floor unit has its own private deck.

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Danish design pop-up market opens at…

Written by Curbed Chicago

Hay’s Kaleido trays | Photo by Samantha Parquette Find the perfect Scandinavian stocking stuffer The stylish Hoxton Hotel in Fulton Market is opening a pop-up market with the popular Danish design brand Hay throughout the holidays. The pop-up, which had a soft opening on Monday, November 11, will feature trendy items from the store like the Sowden bottle, gold and silver kitchen sponges, colored glass straws, and the stackable Kaleido trays. Hay is known for its contemporary, thoughtful take on common household items and collaborations with . Hay’s Lincoln Park store is its third U.S. location . The husband-and-wife founders Rolf and Mette Hay admired Chicago’s reputation as a design city and manufacturing history. Rolf told Curbed Chicago that he saw a lot of similarities between Chicago and Copenhagen, particularly the climate “so city dwellers crave furnishings and products to make their home feel warm and inviting.” Do brightly colored toothbrushes on bathroom counter or neon, geometric kitchen towels hanging on the range make winter less dull? It appears to work for the Danes and is catching on for Americans, too. The mini design shop adjacent to the lobby will usually be open from 9 a.m. to 9 p.m. running until mid-February in part of the Hoxton’s new 24,000-square-foot coworking space. Everyone is welcome to shop, not just hotel guests or coworking members. The workspace, called , first opened in Chicago in November. Members work from a “place that feels like home” getting 24-hour access and all the perks of a hotel. Photos by Samantha Parquette