The real estate investment trust Store Capital sold the building that’s home to popular Wicker Park barbecue eatery Smoke Daddy.
The buyer was not yet identified in public records but a source said it is a California-based LLC that acquired the building at 1804 West Division Street in a so-called 1031 exchange.
The purchase price was $5.1 million, according to RE Journals.
A 1031 exchange refers to part of the tax code that allows anyone who sells a property to defer capital gains taxes on the deal by quickly buying another property of similar value.
Ryan Smeele, Jordan Shtulman and Jonathan Wolfe brokered the deal for Stream Capital Partners, a national net lease and sale-leaseback advisory group.
Smeele said Smoke Daddy has a long-term lease in place and the buyer could add value in the future by updating the building’s residential units.
A few blocks away, RDG Funds bought a three-story mixed-use building and adjacent one-story building 1616-1628 North Damen Avenue. RDG has plans to renovate the larger building and raze the smaller one, replacing it with a three-story structure with ground-floor retail.