Preferred Plans $13M Investment in Retail

CHICAGO-Preferred Development, based here, has acquired three retail properties on North Seaport Avenue with plans to redevelop the building. Preferred Development has acquired the 15,000-sf former Red Tomato Restaurant at 3415-21 N. Southport Ave.; the 8,000-sf retail building at 3447 N. Southport Ave. and the 3,000-sf retail building at 3510 N. Southport Ave., Preferred Development president Evan Oliff says. The cost to acquire the three buildings was $6.6 million. The sellers were locally based, except for the former restaurant which was owned by a former Chicago artist who now lives in Hawaii, Oliff says. The developer plans to spend approximately $6.5 million to demolish the existing structures and construct three new buildings with up to 20,000 sf of retail space.

The three properties are near Anthropologie’s location at 3532 N. Southport Ave., in addition to Krista K, Trousseau, City Soles and Uncle Dan’s. The area is surrounded by 800,000 residences and is served by both the Chicago Transit Authority’s Brown Line train route and the Addison bus route. Additionally, the area has ample street parking, Oliff says. Oliff says he had lived in the area for about 15 years and also owns property about a half a block away from the recently acquired properties on Southport Avenue. “That is where the pedestrian traffic is and that is where the quality retailers today are,” he says.