The Real Deal Chicago

Angelo Gordon pays $20M for South Side baking plant

The acquisition is part of a sale-leaseback deal with Gold Standard Bakery
By John O’Brien |
Research by Laura Hanrahan
August 10, 2018 03:00PM

Angelo Gordon CEO Michael Gordon

Angelo Gordon & Co. bought a South Side baking plant for $20.3 million, grabbing a piece of Chicago’s hot industrial market.

The New York-based firm also secured a $27.4 million loan from Citi Real Estate Funding for the acquisition, a sale-leaseback deal with Gold Standard Bakery for the 189,000-square-foot building at 3700 South Kedzie Avenue.

RE Journals reported Avison Young’s Erik Foster, Mike Wilson, Brendan Kelly and Todd Heine represented Gold Standard Baking, which manufactures croissants and other pastries.

The building is the latest Chicago-area acquisition for Angelo Gordon, which spent $148 million earlier this year on the Presidents Plaza office complex near O’Hare and whose portfolio here includes a stake in the Citadel Center.

Its purchase of the Gold Standard building is another sign of investor interest in Chicago’s strong industrial market, where rents hit a record high in the second quarter.

It’s also the latest industrial activity on the near Southwest Side, joining Banner Wholesale Grocers’ new warehouse at 3000 South Ashland Avenue, Amigos Foods’ new 110,000-square-foot processing and warehouse facility near 51st and Kedzie, a $17.5 million speculative logistics complex from Venture One and USAA at 2445 South Rockwell Street, and Marina Cartage’s massive spec industrial complex at 2075 West 43rd Street.