Ted Prillaman, VP of the office group with Grubb & Ellis, represented the buyers in the transaction, while McDonald's was represented in-house. "When McDonald's bought the building in the late 1970s, they bought it for the retail location and the retail space," Prillaman tells GlobeSt.com. "They had toyed with the idea of redeveloping it themselves, but never did it. There was a great value in them disposing of the space they weren't using rather than the liability that comes with a building that is in disrepair." Prillaman says the fast food giant has recently replaced the windows in the building and had tuckpointing done.
Prillaman says Humaideh and Burdi plan to redevelop the long-vacant floors two through eight of the building into a boutique hotel, student housing or apartments. "Office space is probably a secondary consideration right now, given where pricing and rents are for office space," Prillaman says. "It's been vacant for decades and really needs a lot of work. It needs a whole rebuild."
Prillman could not put a figure on the amount the two men expect to put into the redevelopment. He says he expects Humaideh and Burdi will decide on a use for the space by the end of the year.
Humaideh and Burdi own six other properties in Chicago and the surrounding suburbs, Prillaman says, including spaces on Walton Street near Rush Street, at Lake Street and Halsted Avenue, and near Chicago and Halsted avenues. All of the properties are smaller spaces, which range from 4,000 sf to 40,000 sf. Their newly acquired property is their first in this Downtown submarket. "The Central Loop is not as strong as the West Loop, but it's healthy," Prillaman said.
Prillaman said Humaideh and Burdi may or may not retain ownership in the long term. "They're not sold on holding this property for a long period of time," Prillaman says. Humaideh has worked on many major motion pictures, such as "While You Were Sleeping," "High Fidelity," and "Ocean's Twelve."
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