CHICAGO—The historic downtown building at 10 N. Dearborn has just been sold to REDICO, a real estate developer and investor located in Southfield, MI, a suburb of Detroit. The 11-story building, best known as the home of the Trattoria No.10 and Sopraffina restaurants, was sold by North Dearborn Operating Associates LP, an investment group led by Santa Fe-based Rosemont Realty. The price of the sale was not disclosed.
Suzanne Martinez, principal with Avison Young's capital markets group in Chicago, Senior Vice President Alison Girard and Associate Director Matt Hoffmann along with Harrington Brown, LLC represented the owners in this transaction.
Although the building has a vacancy rate of about 30%, the new owners seem confident that the health of the downtown office market presents them with an opportunity.
"The 7,300-square-foot floor plates are perfect for mid-sized tenants seeking full floor occupancy, in a boutique historic building,” says Martinez. “Further, the building's current average net rental rates provide an opportunity to push rental rates, creating opportunities for increasing value."
The 80,288-square-foot office building was completed in 1923, and until 1986, it hosted the Covenant Club, which provided members with a swimming pool, running track, bowling alley and formal dining and ball rooms. A previous owner converted it to office space in 1987. It now includes the headquarters of Two by Four, a Chicago ad agency, and the law firms Albert Whitehead, PC and Nottage and Ward.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
