Amid Real Estate Recovery, Starwood Puts Logan Square Site Up For Sale

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By: David Lee Matthews October 01, 2013

A venture led by Starwood Capital Group is dumping its plans to build a small apartment project in Logan Square, putting the site up for sale in an apparent attempt to take advantage of developers’ growing interest in the gentrifying neighborhood.

The investment firm hired Chicago-based brokerage ACO Commercial to sell a vacant, nearly 18,000-square-foot site at 2489-2505 N. Milwaukee Ave., according to marketing materials. Greenwich, Conn.- based Starwood also hired ACO to sell 23 units it owns in a failed condominium project at 2504-2516 N. Willetts Court, about one block north of the development site.

The listing is an about – face for Starwood, which filed a zoning application in January to build 39 apartments on the site near the junction of Kedzie and Logan boulevards.  But Starwood’s change in plans may indicate a desire to make a quick profit by taking advantage of developers’ growing confidence in the housing market housing market and increasing enthusiasm for the Northwest Side neighborhood.  “Retail supports residential and residential supports retail,” said Gary Levitas of Wheeling-based Northfield Group Ltd., which is building 24 apartments at Whipple Street and Armitage Avenue.

Starwood, whose chairman and CEO is investor Barry Sternlicht, was one of the most active buyers of troubled loans during the recession.  The company, which manages $20 billion in equity capital, led a group that paid nearly $2.8 billion in 2009 for the assets of Chicago-based Corus Bank, a failed commercial-real-estate lender.

But the Starwood venture has been cashing out.  Mr. Sternlicht says he has doubled the value of the group’s $1.4 billion investment, according to a story Aug. 21 in the Wall Street Journal.  A Starwood spokesman had no immediate comment.

Starwood acquired the Logan Square property through foreclosure last year after assuming a $9.4-million construction loan secured by the site, county records show.  Whether the loan was part of the Corus Bank loan portfolio or was acquired separately could not be confirmed.

Starwood’s 23 units on Willetts Court, built in 2007, are a mix of one to three-bedroom apartments that rent for an average of $1.40 per square foot, according to marketing materials. The rentals include two eight-unit apartment buildings and seven of eight units in a so-called “fractured” condo project.  Before the downturn, the units were part of a larger plan by Chicago based Paramount Homes, which wanted to build 18 more condos above first-floor retail space on the Milwaukee Avenue development parcel.

Paramount President Bruce Fogelson did not return messages seeking comment.

An executive of Chicago-based Madison Realty Group Inc., which partnered with Starwood to develop the Milwaukee Avenue site, did not return messages seeking comment.

ACO Commercial Executive Vice president George J. Toscas declined to comment.

ACO Commercial Arranges the Bulk Sale of 27 Condominiums in Norridge, IL for $1.625 Million.

CHICAGO, ILLINOIS – Thursday September 5, 2013 – ACO Commercial is pleased to announce the sale of the Carmen East River Condominiums located at 5025-5043 N. East River Road in Norridge, a northwest suburb of Chicago.   The property consists of 27 out of the 48 condominium units in the development, which was constructed in 1970, and converted to condominiums in 2007.  The units are all one-bedroom floorplans, and are located in two adjacent freestanding buildings.

George Toscas, Executive Vice President of ACO Commercial arranged the sale of this fractured development on behalf of a bank client.  The sale price of $1,625,000, or approximately $61,000 per unit, represented a 10% premium over the average unit sales in the property during the previous 12 months.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest.  Affiliated Chicago Operations, LLC has 21 offices in Illinois, Wisconsin, and Indiana with over 1,000 agents.

ACO Commercial Sells California-Style Property for $61,000 Per Unit in Chicago’s West Ridge Neighborhood.

CHICAGO, ILLINOIS – Wednesday September 4, 2013 – ACO Commercial is pleased to announce the sale of 2040 W. Hood in Chicago, Illinois.   The California Style property, constructed in 1963, consists of 10 one-bedroom units, each of approximately 475 square feet.

S. Justin Brown, a First Vice President with ACO Commercial, arranged the sale of the property on behalf of a private investor.  The price was approximately $610,000.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest.  Affiliated Chicago Operations, LLC has 21 offices in Illinois with over 1,000 agents.

ACO Commercial Arranges the Sale of Land Parcel in Chicago’s Dover Street Historic District

CHICAGO, ILLINOIS – Friday June 28, 2013- ACO Commercial, is pleased to announce the sale of 4753 N. Dover Street in Chicago, Illinois. The 36’ by 196’ land site is zoned RS-3, and located near the southeast quadrant of Clark Street and Lawrence Avenue.

George Toscas, Executive Vice President of ACO Commercial arranged the sale of the property on behalf of local trust. The price was $337,500, or approximately $47 per square foot.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest. Affiliated Chicago Operations, LLC has 21 offices in Illinois with over 1,000 agents.

ACO Commercial Arranges the Sale of Bank Owned Property in Broadview, Illinois.

CHICAGO, ILLINOIS – Wednesday, June 20, 2013- ACO Commercial, is pleased to announce the sale of 2101-2111 Roosevelt Road in Broadview, Illinois. The property consists of 24 residential units and was constructed in 1965.

George Toscas of ACO Commercial arranged the sale of the property on behalf of Oxford Bank based in Oak Brook, Illinois. The price was approximately $1,150,000.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest. Affiliated Chicago Operations, LLC has 21 offices in Illinois with over 1,000 agents.

 

ACO Commercial Arranges the Sale of 19 Unit Multifamily Building in Chicago, Illinois.

CHICAGO, ILLINOIS – Friday April 31, 2013- ACO Commercial, is pleased to announce the sale of 950-956 N. Lavergne in Chicago’s Austin neighborhood . The vintage property consists of 19 residential units and was constructed in 1917.

George Toscas, Executive Vice President of ACO Commercial arranged the sale of the property on behalf of an out of state investor. The price was approximately $21,578 per unit.

At the time of sale, the property was partially occupied, with significant deferred maintenance.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest. Affiliated Chicago Operations, LLC has 21 offices in Illinois with over 1,000 agents.

 

ACO Commercial Arranges the Sale of Condominium De-Conversion in Rogers Park for $1 Million

For Immediate Release:

ACO Commercial Arranges the Sale of Condominium De-Conversion in Rogers Park for $1 Million

CHICAGO, ILLINOIS – Thursday March 23, 2013- ACO Commercial, is pleased to announce the sale of 7314 N. Winchester Avenue in Chicago’s Rogers Park Neighborhood.   The property consists of 20 residential units and was constructed in 1952.

Prior to the sale, the vacant and vandalized property was placed into receivership, secured and reconstituted, under the City of Chicago Troubled Buildings Initiative by Community Initiatives Incorporated. The program implements a 10-year affordability agreement on assets that are sold to facilitate affordable housing stock in the City of Chicago.

George J. Toscas, Executive Vice President of ACO Commercial arranged the sale of the vacant property.  The price was approximately $1,000,000.  To date, ACO Commercial has arranged the sale of five properties comprising 102 units under the program.

Asset management, including the reconstitution of the project was handled by Condo Program Director, Marie Doladee, of Community Initiatives, Incorporated.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest.  Affiliated Chicago Operations, LLC has 21 offices in Illinois with over 1,000 agents.

 

ACO Commercial Arranges the Sale of Sixty Condominiums in Arlington Heights, Illinois for $3.8 Million

CHICAGO, ILLINOIS – Monday March 4, 2013- ACO Commercial, is pleased to announce the sale of the Shalamar East Condominiums located at 2206-2210 S. Goebbert Road in Arlington Heights, a northwest suburb of Chicago. The property is comprised of two midrise elevator buildings constructed in 1967, and converted to condominiums in 2007. The offering consisted of 60 of 96 units within the development.

George Toscas, Executive Vice President of ACO Commercial arranged the sale of the fractured development on behalf of a bank client. The sale price was $3,800,000 representing a capitalization rate of approximately 6.6%.

The offering was comprised of 35 one-bedroom units, and 15 two-bedroom units. At the time of sale, most units were occupied and in original condition. Asset management was provided by Michigan Avenue Real Estate Group, in collaboration with RMK Management.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest. Affiliated Chicago Operations, LLC has 21 offices in Illinois, Wisconsin, and Indiana with over 1,000 agents.

ACO Commercial Arranges the Sale of 27 Units Steps from Obama Residence for $3.2 Million

CHICAGO, ILLINOIS – Thursday December 27, 2012 –  ACO Commercial, is pleased to announce the sale of 1118-11218 E. Hyde Park Boulevard in Chicago, Illinois. The property is comprised of a 37-unit courtyard building constructed in 1929, and converted to condominiums in 2007.  The offering consisted of 27 of 37 units within the development.

George J. Toscas, Executive Vice President of ACO Commercial arranged the sale of the fractured development on behalf of a bank client to a buyer based in Los Angeles, California. The sale price was about $3,150,000 representing a price per unit of $116,666. The transaction marked one of the highest price points ever achieved in the Kenwood neighborhood on a per-unit basis.

The offering was comprised of 22 one-bedroom units, 3 four-bedroom units, and 2-three bedroom units. The property represented the one of the highest price per unit sales in the Kenwood Neighborhood for a multifamily property.

ACO Commercial specializes in the sale of investment real estate throughout the Midwest. Affiliated Chicago Operations, LLC has 21 offices in Illinois, Wisconsin, and Indiana with over 1,000 agents.

 

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