RDG Funds bought a three-story mixed-use building and adjacent one-story building in the heart of Wicker Park, with plans to renovate the larger building and raze the smaller one.
The Chicago-based private equity real estate firm acquired the property at 1616-1628 North Damen Avenue for $11 million from CLK Properties.
RDG plans to renovate the existing 12,800-square-foot building. It will replace the vacant smaller one to the north with another three-story building with 50 feet of ground-floor retail, according to a company release.
The upper floors of the main building are vacant. They had been home to the IHSP Chicago hostel, which closed late last spring. Benefit Cosmetics and Real Good Juice Co. occupy retail spaces on the first floor. They have long-term leases and will remain in their spaces as the project is completed.
They have long-term leases and will remain in their spaces as the project is completed.
New York-based CLK bought the property in 2015 for $7.5 million. It is a block from the Damen Blue Line “L” stop and just off the six-point intersection of Milwaukee, Damen and North avenues.
Danny Spitz and Greg Dietz of Baum Realty Group brokered the deal. John Parrett and Elizabeth Arnold of CBRE advised on the financing.