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Windy City RE lists South Loop properties as Opportunity Zone play
The firm is shopping 6 properties on South Michigan that sit inside an area eligible for the federal tax benefit program
Windy City RE is selling a South Loop commercial portfolio, hoping to draw interest from Opportunity Zone investors.
The Chicago-based developer is asking $30.5 million for the six properties in the 2200 and 2300 blocks of South Michigan Avenue, according to Crain’s.
Windy City bought the properties for $11.3 million in 2014 and 2015 and spent $7.3 million renovating them, Crain’s reported.
Windy City’s buildings sit in the area known as Motor Row, which some experts say is one of the areas in Chicago set to benefit the most from the Opportunity Zone program. The area is near McCormick Place and the 49-acre former Michael Reese Hospital site, which Farpoint Development and McLaurin Development want to turn into the “Burnham Lakefront” mixed-use project.
The Opportunity Zone program gives investors a break on capital gains taxes if they back projects in certain areas and add value to them.
Financial managers nationwide have been racing to channel billions of dollars into Qualified Opportunity Funds to maximize their returns before benefits expire in 2026. One fund from Chicago-based Origin Investment raised more than $100 million in less than a day. [Crain’s] — John O’Brien