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Peppercorn Capital lists West Loop development site to focus on Opportunity Zone investments
The developer would use the proceeds toward construction of its massive vacant land holdings in nearby Kinzie Industrial Corridor
Peppercorn Capital is looking to unload a West Loop development site — air rights included — as it invests in a neighboring area located in a federal Opportunity Zone.
The Chicago investor has listed its 20,000-square-foot property and surrounding air rights for $10 million, according to Crain’s.
It bought the property at 1217 W. Washington Blvd. for $4.6 million in 2016.
Peppercorn plans to invest the profits from a sale into developing vacant land it owns at Kinzie Industrial Corridor, according to Crain’s. That move would provide significant tax breaks under the Opportunity Zone program.
Last year, Peppercorn founder Phil Denny said he planned to develop on the nine properties of vacant land he owned at the time — totaling 650,000 square feet — inside the Kinzie Corridor. All nine are located inside a designated Opportunity Zone.
“I don’t know how I managed to amass so much property inside an Opportunity Zone,” he told The Real Deal at the time. But he added, “I’m going to leverage my ownership of those sites the best I can.”
Other investors like Shapack Partners, an early entrant into Fulton Market, have also sought investments in the Kinzie Corridor. [Crain’s] — Sarah Paynter