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Shapack ventures west, picks up 1.5-acre warehouse property in Kinzie Corridor
The developer paid $6.5M to acquire a vacant two-story building near the northwest corner of Fulton Market
Shapack Partners paid $6.5 million to buy a 1.5-acre warehouse property in the West Loop, planting yet another flag west of the heart of Fulton Market.
The firm headed by prolific West Loop developer Jeff Shapack bought the property at 400 North Noble Street last month from investors Gary Levinson, Marc Troop and William Sullivan, according to Cook Country property records. The sellers made a handsome return, having spent a little more than $2 million to acquire the two-story brick warehouse in 2013.
Shapack secured a $3.8 million loan on the property from CIBC Bank, records show.
The 52-year-old building, formerly a cold storage warehouse, features some 58,600 square feet of interior space, according to a marketing brochure from commercial brokerage Lee & Associates.
The previous owners began building out a roughly 10,000-square-foot office space on the second floor, but that project was not completed at the time of the sale, according to Thomas Condon, a principal of Lee & Associates. The building at one time was occupied by food distribution companies but has been vacant for at least a year, Condon said.
The property sits on the eastern edge of the Kinzie Industrial Corridor, a West Loop manufacturing district that city leaders have proposed modifying to allow commercial uses. Even with the change, the area’s relatively low zoning designation would restrict most development there to about five stories.
The site is also about two blocks from one of the city’s most sought-after Opportunity Zones, a quarter-square-mile rectangle between Ashland and Damen avenues that’s caught the attention of investors hoping to cash in on the new federal program.
An early entrant into the Fulton Market building frenzy, Shapack last year filled up his new office building at 811 West Fulton Market and expanded his firm’s plans to co-build a 17-story complex with developer Focus at 167 North Green Street.
In September, Shapack paid $8.5 million to buy a 27,000-square-foot lot at 224 North Ada Street, his first splash into the largely industrial west half of Fulton Market.
Shapack did not immediately respond to a request for comment on Monday.