“The building has several deferred maintenance issues,” he adds, “but we didn't see anything alarming.” Furthermore, some leases will soon expire, and North Wells sees a possible opportunity to push up the rents a bit and match what it gets for other UI spaces in River North.

One of the reasons North Wells and UI remain so bullish on River North is the expansion of the downtown office market into other neighborhoods such as Fulton Market, Pilsen and Goose Island. The companies and groups looking at spaces in these areas are very similar to those occupying the loft buildings in River North, Fox points out, but the latter's closeness to the Loop will always give it an advantage. “If there is a market correction, I'd rather be in River North.”

CHICAGO—As reported in GlobeSt.com, North Wells Capital LLC, the affiliate of River North office pioneer Urban Innovations Ltd., just expanded its portfolio in that neighborhood by purchasing 308 W. Erie, a 45,359-square-foot mixed-use building, along with an adjacent parking lot, for $12.8 million.

The partnership between the two began in 2015 with the aim of tripling UI's portfolio, and although they recently expanded to Milwaukee, this new deal shows the pair remain committed to the River North neighborhood.

“We think the long-term dynamics of River North will continue to be compelling,” Jim Fox, co-founder and chief executive officer of North Wells, tells GlobeSt.com. And on this property, the price was right.

He says that North Wells picked up the building for just $10.4 million, or about $229 per square foot, and the 7,719-square-foot lot for just $2.4 million, or roughly $311 per square foot. That compares quite favorably to other recent sales in the neighborhood, and considering the robust demand for space in the still-trendy submarket, “it seemed like a low-risk proposition for us.”

“The building has several deferred maintenance issues,” he adds, “but we didn't see anything alarming.” Furthermore, some leases will soon expire, and North Wells sees a possible opportunity to push up the rents a bit and match what it gets for other UI spaces in River North.

One of the reasons North Wells and UI remain so bullish on River North is the expansion of the downtown office market into other neighborhoods such as Fulton Market, Pilsen and Goose Island. The companies and groups looking at spaces in these areas are very similar to those occupying the loft buildings in River North, Fox points out, but the latter's closeness to the Loop will always give it an advantage. “If there is a market correction, I'd rather be in River North.”