CHICAGO—Millennium Properties R/E has just sold a 1.8-acre riverfront development site at 800 S. Wells at auction for $7.75 million, opening up the possibility that yet another multifamily property will get underway in the South Loop, already one of the city's hottest neighborhoods. The Chicago-based brokerage and asset management firm auctioned off the property on behalf of the bankruptcy court after securing CMK Development, which eventually purchased the property, as a stalking horse bidder.
Millennium has sold many properties to CMK, Daniel J. Hyman, president of Millennium, tells GlobeSt.com, and it “likes to get in the ground quickly,” so he expects things could move fast. With 158 feet of frontage on the Chicago River, the adjacent River City Condominiums currently uses the 77,258-square-foot site as a parking lot. Previously approved development plans include a condo tower with 276 residential units and six townhomes.
CMK is currently developing a 15-story condo building at 1345 S. Wabash Ave. And a joint venture between Golub & Co. and CIM Group plans to build a 397-unit apartment tower at 1001 S. State St.
“We had a lot of developers interested in this property and the combination of a sealed bid and a public auction raised the purchase price 60% from the winning stalking horse offer,” Hyman adds. That initial bid was $4.872 million, and according to the terms of the auction, the next bid had to be over $5 million. “This was one of the rare occasions that all parties involved in the bankruptcy proceedings benefitted, due to our aggressive marketing campaign as well as the location of the site. The South Loop remains one of the hottest markets for multi-family and residential condo development due to its proximity to downtown as well as the neighborhood amenities.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
