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CHICAGO-BlackRock Realty has paid $25 million for the 61,796-sf Shops at State Place and a 156-space garage at the base of a 243-unit condominium building. A joint venture that included Canyon Johnson Urban Funds, Mesirow Financial Real Estate, Near North Properties and Northern Realty Group sold the retail portion of the project 85% leased.
All but eight of the condominiums at State Place, which replaced the former Chicago Police Department headquarters in the 1100 block of South State Street, have been sold. "The Shops at State Place will have a positive effect on this diverse community for many years to come," says former NBA star Earvin Johnson, a partner in Canyon Johnson Urban Funds. "We're confident that this will stimulate more positive development in the area and enhance the community's overall value. That's what Canyon Johnson is all about."
A CB Richard Ellis team of George Good, Rich Frolik, Robert Mahoney and Bill Wright represented the sellers.
State Street Associates bought the 70-year-old former police station from the city for $8.2 million in 2003, demolished it after a new headquarters opened at 35th Street and Michigan Avenue, then built State Place. Walgreen's, Fitness Formula Health Club and Spa, Coldwell Banker Real Estate, Charter One Financial, H & R Block, Verizon Wireless, Hair Cuttery and Benchmark Medical are among the retail tenants. One-, two- and three-bedroom condominiums have sold from $225,000 to more than $500,000.
"State Place was a very complex redevelopment project because it was designed to meet a multitude of community needs in the South Loop," recalls Mesirow Financial Real Estate senior managing director Mike Szkatulski. "What today looks like a seamless mixed-use development has many important features including critical access to public transit, high residential density, significant ground-floor retail and public parking."
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