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CHICAGO-Terrapin-Taxman LLC has acquired a 79,000-sf development site near the intersection of Madison and Halsted streets here. The joint venture between Chicago-based Terrapin Properties LLC and The Taxman Corp., based in Skokie, IL, acquired the parcel from MB Financial Bank.
Executive vice president Jim Whittington and assistant vice president Jason Gill, both with US Equities, represented MB Financial Bank in the sale. The sales price was not disclosed. A $100 million retail and condominium project is planned for the site, says Michael Ezgur, principal with Terrapin Properties.
The parcel occupies the majority of the block bounded by Halsted, Madison, Green and Monroe streets, Whittington says. An unoccupied building, which was formerly occupied by MB Financial, was not included in the sale. MB Financial had owned the building but not the land it was on, Whittington says. MB sold the property because it was "surplus real estate," he says. "Clearly, the area is experiencing a lot of growth and it has tremendous redevelopment value." The parcel is located on three "major thoroughfares" and the area has "great traffic flow" and visibility, Whittington says.
Ezgur says they were interested in the property because they have done several developments in the area, such as at 1001 W. Madison St., 901 W. Madison St. and 909 W. Washington St. These mixed-use developments have retail on the ground level with condos above. The development at 909 W. Washington has approximately 10,000 sf of retail. The development at 901 W. Madison St. has about 15,000 sf of retail, including FedEx Kinko's, and 148 condominium units with about 120 units sold, Ezgur tells GlobeSt.com.
The development on the newly acquired parcel will have two separate buildings. There will be more than 100,000 sf of retail. The area is a "great retail corridor" that Terrapin wanted to "maximize the amount of retail," he says. Terrapin has done mostly residential developments so they tapped retail developers Taxman Corp. Taxman Corp. "They brought in the Walgreen's right across the street," he says.
Terrapin is close to signing the anchor tenant, which will be a high-end grocery store that will lease more than 60,000 sf on the second floor, Ezgur tells GlobeSt.com. He expects to store to be "really well received" by the community. Restaurants and "great street life" are expected to lease the ground level, he says. The asking rate for the retail space will be approximately $50 per sf triple net, he says. There will be up to 230 condominium units in a separate building with public parking.
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