Fulton Market development overflow will go to Kinzie Corridor, Wells-Wentworth Connector construction begins: Daily digest

A daily round up of Chicago real estate news, deals and more for September 10, 2019.

TRD CHICAGO /
Sep.September 10, 2019 05:00 PM
Each day, The Real Deal rounds up Chicago’s biggest real estate news. We update this page in real time, starting at 10 a.m. Please send any tips or deals to [email protected].

 

The Kinzie Industrial Corridor may open up to new development overflowing from Fulton Market. Aldermen on the Zoning Committee unanimously voted in favor of development on four blocks between Ashland and Ogden Avenues, along with a northern sliver. The full City Council will vote on the measure on September 18. [Crain’s]

 

Related Midwest began construction on the Wells-Wentworth Connector spanning Chinatown to downtown. The connector is part of a 62-acre development called The 78, a road with sidewalks, a raised bike path, residential units, retail, restaurants, and a 7-acre park. [Sun-Times]

 
21 Huron Street unit #4601 (Credit: Redfin)

21 Huron Street unit #4601 (Credit: Redfin)

Four of this week’s priciest sales hovered around the $1.2 million mark. The top sale was a $3.5 million penthouse in The Pinnacle with 360-degree floor-to-ceiling views, while at the bottom of the list, a $1.15 million townhouse got attention for its location near Webster Park and public transportation. [TRD]

 

Protestors and city representatives will appear in court tomorrow over a controversial $1.3 billion Lincoln Yards tax subsidy. The organizers’s lawsuit claims the plan is “racially and ethnically discriminatory.” The Lincoln Park project would create a new neighborhood and retail development on 55 acres along the Chicago River. [Block Club]

 

More office landlords are trying to beat WeWork at its own game. Hines Interests is one of the latest landlords to try their hand at co-working, partnering with WeWork competitors Industrious and Convene to launch “Hines Squared” this June. Firms like Boston Properties and Tishman Speyer have taken a similar approach, presenting yet another challenge to the We Company as it prepares for an IPO. [WSJ]

 

A massive title insurance merger has been called off. Fidelity National Financial and Stewart Information Services announced Tuesday that their proposed merger has been called off, after the Federal Trade Commission did not provide the necessary approval. Fidelity will pay Stewart a $50 million reverse termination fee as a result. [TRD]

 
Mayor Lori Lightfoot (Credit: Getty Images)

Mayor Lori Lightfoot (Credit: Getty Images)

Mayor Lori Lightfoot ordered a review of the Rev. Leon Finney Jr.’s “significant portfolio” of public housing following allegations of fraud, self-dealing, and mismanagement. The nature of the review has not been disclosed. Lightfoot called Finney an “iconic person” whose fall was “disappointing.” [Sun-Times]

 

Old Main Post Office (Credit: Gensler)

Uber will hire 2,000 new employees to fill 601W Companies’ revamped Old Post Office’s Uber Freight headquarters. The 10-year lease of the 463,000-square-foot office will help connect truck drivers with shippers. Uber CEO Dara Khosrowshahi said Chicao will be one of the company’s most important cities. [Chicago Tribune]

 

Major League Soccer’s Chicago Fire wants a long-term lease to play at Soldier Field. Chicago Park District will vote on whether to start negotiations with the team for what could be a 10-year deal. The Fire already altered its long-strained arrangement at SeatGeek Stadium, making way for the lease. Rent could reach $1 million a year, depending on attendance, which currently ranks the lowest of any Major League Soccer team. [Crain’s]

 

Cedar Street Companies, which owns Bridgeview Bank Building, has asked nonprofit tenants to terminate their leases as the developer makes way for luxury apartments. Cedar Street will waive penalties for early lease termination at 4753 N. Broadway in Uptown, which it acquired in April. Community advocates say the move signals rapid Uptown gentrification. [Block Club]

 

The owner of Comcast’s Oak Brook offices secured $29.8 million in financing. The 184,525-square-foot property at 2001 York Road is leased mostly by Comcast. Pembroke IV LLC is the controlling entity. JLL arranged the 36-month floating-rate loan. [ReJournals]

 
WeWork CEO Adam Neumann and Softbank CEO Masayoshi Son (Credit: Getty Images)

WeWork CEO Adam Neumann and Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank wants WeWork’s parent company to hold off on its IPO. The We Company’s largest outside shareholder, which is currently trying to raise $108 billion for its second Vision Fund, may have issues raising funds if the co-working firm IPOs at a big discount — and the company has been considering chopping its valuation by more than half amid scrutiny from investors and analysts. At the same time, holding off on the IPO would cause WeWork to lose access to a $6 billion loan from various banks that is contingent on the success of the public offering. [FT]

 

More resi firms are getting into mortgages and title insurance. Instant-homebuying company Opendoor became the latest example of this trend in recent weeks, after both acquiring a title and escrow company and launching a mortgage-lending business. Redfin and Zillow have operated such side businesses for years, both as an extra revenue source and a solution to homebuying’s “last mile” problem. [WSJ]

 

The hotel industry’s decade-long rally may be nearing an end. Hotel revenue growth per available room has fallen below 2 percent for two straight quarters for the first time since 2010, as owners struggle with weaker demand, booming supply and rising costs. Hotel REITs have been the second-worst performing category of REITs this year, with only mall REITs doing worse. [WSJ]

 

Realogy’s stock price jumped more than 11 percent on Monday. The uptick comes after a weekend of intrigue, rumor and conflicting statements surrounding the brokerage’s legal battle with Compass. Last week, Compass claimed Realogy CEO Ryan Schneider once attempted to sell the firm to Compass — a claim that Realogy has denied. [TRD]


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