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Dayton Street adds another office building to its Kinzie Corridor buying push
The developer acquired a 33K sf complex at 1827 West Hubbard Street
Dayton Street Partners bought a 33,000-square-foot office building at 1827 West Hubbard Street for $3.9 million, picking up its fifth property inside the Kinzie Industrial Corridor since 2014.
Property records identify the seller as Theta Properties LLC, which traces back to Katheryn Ruff and Martha Olson.
The 59-year-old building, which is fully leased to Tablescapes Chicago Party Rentals, includes two loading docks, a 34-space parking lot and 6,320 square feet of showroom space.
Dayton Street principal Michael Schack said the “high-demand for single-story industrial buildings” drew his firm’s interest to the site, adding warehouse users have been pushed out of the increasingly expensive Fulton Market.
“Tenants have been moving west but still need to be in close proximity to Downtown, and this is right in the path of that westward expansion,” Shack said.
Dayton Street has not yet decided whether to keep the building as an office or solicit an industrial tenant, he added.
The property is one block north of one of the city’s most sought-after Opportunity Zones, a quarter-square-mile chunk of land between Ashland and Damen Avenues.
Chicago-based Dayton Street made the acquisition five months after it paid $2.8 million for a nearby industrial building at 2501 West Fulton Street, and it also owns a five-story office building at 1500 West Carroll Avenue.
The firm also bought, renovated and sold industrial buildings at 2137 West Walnut Street and 2101 West Carroll Avenue, for a combined gain of nearly $4 million between 2014 and 2018, Schack said.
Interra Realty’s Colin O’Malley and Jon Morgan represented the seller on the deal.
Developers have picked up interest in the Kinzie Industrial Corridor, which snakes through the city’s West Side between Fulton Market and East Garfield Park, since city officials last year proposed revamping the area’s zoning to allow more commercial uses.
Prolific Fulton Market landlord Phil Denny announced plans to build a $91 million spec industrial building at 2124 West Lake Street, and Shapack Partners last month acquired a warehouse property at 400 North Noble Street.
Dayton Street has also been active in the O’Hare area, where it is teaming up with Black Creek Group on two large spec distribution warehouses.