CHICAGO-Structured Development LLC, based here, has snagged the first downtown Chicago REI outdoor gear store for its Blackhawk Halsted development. The two-acre mixed-use development, at the corner of West Blackhawk and North Halsted streets, has an estimated cost of $77 million. Structured secured a $70 million construction loan from Maverick Commercial Mortgage Inc. earlier this year.
REI has signed a lease for 28,000-sf on two stories at 1460 N. Halsted. The term of the lease is 10 years. REI has 91 stores nationwide, including in Northbrook, IL and Oakbrook Terrace, IL, but “this is their first major store located in downtown Chicago,” says J. Michael Drew, a principal with Structured. “It really validates the appeal of the North-Clybourn shopping district. REI had been looking for a location for quite some time,” Drew says.
The four-story building will have a total of 140,000 sf. Other tenants in the building will include Town & Country Pediatrics, Pine Dental and Advocate Health Care, which is relocating for a facility at Fullerton and Sheffield. The terms for all of the leases are at least 10 years, Drew says. Construction is underway and is expected to be ready for occupancy in the middle of next year. Mid America Realty is the leasing broker for the development.
The British School will open in January at 814 W. Eastman. The private school for children in kindergarten through high school signed a 25-year lease for 75,000 sf of the 85,000-sf building. Construction is completed on the five-story building with tenant build-out currently taking place. Plans also include a seven-story building on Blackhawk Street which will have about 10,000 sf of retail space and 550 parking spaces. The asking lease rate is $45 per sf, net, for first floor retail space; $30 per sf, net, for second floor retail space and $25 per sf, net, for medical office space, Drew says. Other tenants will likely include a furniture store and clothing retailers, he says.
The buildings were designed by architecture firm Valerio Dewalt Train Associates. Power Construction Co. is the general contractor for the project. The site previously housed a True Value paint operation. Structured acquired the property in May 2005. The development is to the west of NewCity YMCA, also being developed by Structured along with Commonfund Realty Inc., based in Wilton, CT. The $270 million, mixed-use development will have a total of one million sf with a total of about 370,000 sf of retail space on 8.5 acres at the former NewCity YMCA.
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