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California investor picks up distressed South Side office building
The Avalong Park complex is down the street from where a Target store is set to close
Kevin Fialko, a property investor who splits time between Southern California and Chicago, bought a distressed South Side office building for $11.8 million.
Fialko, a principal at La Jolla, California-based Renegade Realcap, bought the complex at 1111 East 87th Street in Avalon Park in late December, Cook County property records show. Selling the property was First Merchants Bank, which foreclosed on it in 2017.
The 14,500-square-foot building was built in 2001 and is home to a number of medical office tenants, according to LoopNet. Fialko’s purchase of the property was financed by a $9.3 million acquisition loan from Heartland Bank & Trust, records show.
First Merchants Bank foreclosed on the property in 2017 after its previous owner, a St. Louis investor, defaulted on a $20 million construction loan taken out in 2004, according to the foreclosure complaint.
Fialko was born in Chicago but splits his time between San Diego and his hometown, according to a report in the Aurora Beacon-News. He also owns a retail complex in Oswego, according to the paper.
His Renegade Realcap owns single-family homes and multifamily properties along the west coast and has commercial holdings in Arizona and Chicago, according to its website. Fialko did not immediately respond to request for comment.
Luke much of the country, Chicago’s South Side is dealing with a soft retail market. Two blocks from Fialko’s investment is one of two Target stores set to close due to poor sales, the retailer has said. Discount retailer Marshalls has also announced that it will close two South Side stores.