John Buck and Morgan Stanley want big payday for “Big Red,” former city development chief joins Clayco: Daily digest

A daily round up of real estate news, deals and more for August 21, 2019

TRD CHICAGO /
August 21, 2019 05:00 PM
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John Buck wants a big payday for ‘Big Red.’ The John Buck Company and New York-based Morgan Stanley are seeking $375 million for the office tower at 333 South Wabash Avenue known as “Big Red.” The venture had redeveloped the property in recent years, helping to lure Northern Trust to a 462,000-square-foot lease in the famous building. [Crain’s]

 

Former city development chief joins major development firm. Former Mayor Rahm Emanuel’s planning chief, David Reifman, has joined the development arm of Clayco. He will serve as a partner and senior vice president for strategic development initiatives. Reifman helped steer through City Hall some of the biggest developments in the city’s history, including Lincoln Yards and The 78, which are both long-term projects.[Crain’s]

 

Lincoln Park public housing development getting major expansion. The Chicago Housing Authority and Ohio-based PIRHL are embarking on a massive redevelopment of a 1960s public housing complex in the 2700 block of North Sheffield Avenue. Plans call for a new six-story building that will connect to the two existing 11-story structures, adding 91 apartments to the property. [Curbed]

 

GW Properties moves forward with Logan Square warehouse redevelopment. The developer has unveiled renderings for its project that seeks to turn a 107-year-old warehouse facility into a mixed-use project including offices, restaurants and retail. GW is foregoing original plans to include loft apartments, saying there is enough residential development in Logan Square. [Block Club]

 

Oak Brook corporate HQ expansion breaks ground. Morgan/Harbor Construction broke ground on a 135,000-square-foot expansion of Hub Group’s corporate offices in Oak Brook. The firm is building a replica of the company’s existing offices that will be connected via an underground walkway. [REbusinessonline]

 

Local developer sets sights on Humboldt Park. IBT Group’s Gary Pachucki is working to redevelop three Humboldt Park warehouses into a $50 million mixed-use development with loft-style office space. The complex will try to lure creative companies who may have been priced out of Fulton Market. [TRD]

 

Near North Side dominates last week’s priciest listing. Of the five priciest listings to hit the market last week, all of them were in the Gold Coast or River North. Two of them were for single-family homes, while the rest were for condo re-sales. [TRD]

 

Howard Lorber doesn’t fear a recession. As the Douglas Elliman chair prepares an entry to Houston, Texas, he has dismissed fears that recession would impact the brokerage business. “Could things slow down? Yeah, they could,” he said. “I’m not sure they will, but it’s not something I worry about.” [Houston Chronicle]

 
Former Ald. Joe Moreno (1st) and the site of RDM Development’s Wicker Park project

Former Ald. Joe Moreno (1st) and the site of RDM Development’s Wicker Park project

Too close for comfort. Vermilion Development is suing the city, alleging that a residential complex next to its own planned Wicker Park condo and townhome project was improperly approved during the twilight hours of Alderman Joe Moreno’s tenure. The project in question is RDM Development’s 121-unit complex, which is close to Vermilion planned 55-unit construction.[Crain’s]

 

Chicago Housing Authority boss resigns. Eugene Jones Jr. resigned his post as CEO, effective Sept. 27. Jones, a popular City Hall figure, is leaving a year before his contract is up, exiting to pursue other opportunities, he said. [Sun-Times]

 

601W Companies unveils new amenities at Aon Center. Construction firm J.C. Anderson has wrapped up work on the nearly 30,000-square-foot amenity floor on the Aon Center’s 70th floor, which includes a gym, conference center, a bar, eatery and dining area. 601W is also planning to put an observation deck on the top of the 83-story tower. [Connect Media]

 

Design firm is moving to the Loop. Canopy /Architecture + Design will move from Logan Square to a second floor space at 180 West Washington Street. The firm behind the Oso Apartment complex is just the latest creative company to move to the Loop, giving some hope for the area’s resurgence ahead of some major tenant relocations. [Rejournals]

 

Watch One Bennett Park’s rise in one minute. Related Midwest and EarthCam have released a timelapse video of the Streeterville high rise’s construction. The combination apartment and condo building has been racking up major condo sales this year, and is the tallest residential-only skyscraper in the city. [Curbed]

 

Risky loans to homebuyers are on the rise. Protections put in place following the 2008 financial crisis, that bar borrowers from taking out loans they can’t pay back, are being avoided by a new mortgage category known as non-qualified loans. Last year $45 billion of these loans were issued, and 2019 is on track to top that figure. [WSJ]

 

Landlords are using co-working companies to fill space in Opportunity Zones. A major challenge for building owners has been to draw businesses, and tenants, to distressed areas. The answer, for some, is to introduce co-working companies to their buildings, which in turn, attract startups, and entrepreneurial activity, giving those areas a boost. [NYT]

 

Compiled by Joe Ward


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