WeWork rival in growth mode in Chicago, casino operators make their pitches in the suburbs: Daily digest

A daily round up of Chicago real estate news, deals and more for September 24, 2019.

TRD CHICAGO /
Sep.September 24, 2019 10:00 AM

Every day, The Real Deal rounds up Chicago’s biggest real estate news, from breaking news and scoops to announcements and deals. We update this page throughout the day, starting at 10 a.m. Please send any tips or deals to [email protected]

This page was last updated at 10 a.m. CT

 

Rockford held its version of Casino Shark Tank on Monday, with three prospective operators presenting their plans. Hard Rock International plans to revitalize the shuttered Clock Tower Resort property as part of a $310 million development. Forest City Entertainment wishes to build a $400 million development for kids and adults, and Wisconsin-based real estate company Gorman & Company wants a casino next to its downtown hotel. The state has up to a year to approve the winning bid. [Chicago Sun-Times]

 

Industrious just scooped up more space. The firm will expand from 47,000 square feet to 93,000 square feet at 500 W. Madison St. The expansion gives Jamie Hodari-led Industrious nearly 300,000 square feet in Chicago. Rival WeWork has over 1 million square feet, among the largest tenants in the city. [Crain’s]

 

Logan Square Mexican restaurant Dos Amigos has closed after its owners sold the building at 2320 N. Milwaukee Ave. Co-owner Salvadore Lopez bought the property for $174,000. How much it sold for and to whom wasn’t disclosed. The sale wasn’t listed in public records. [Block Club]

 

The WeWork IPO is just the latest in SoftBank’s long list of problems. SoftBank-backed companies including Uber, its Chinese rival Didi Chuxing, Slack and cancer-test company Guardant Health are all likely to be marked down in the firm’s third-quarter reporting. The odd structure of Softbank’s Vision Fund — in which 40 percent of the capital comes in the form of debt-like preferred stock — poses greater risks in a downturn, and Masayoshi Son’s firm recently took out an unusual three-year loan to pay back its investors, using its stakes in Uber and Guardant as collateral. [WSJ]

 

Some developers embrace short-term rentals. From a condo project in Nashville marketed for short-term rental use, to hotel-licensed, Airbnb-branded developments in Miami and Austin, developers are taking a new approach to increasing profits and driving sales. They are also taking steps to address safety and regulatory issues which have historically led landlords to shy away from transient uses. [WSJ]

 

New NAR data shows more brokers abandoning the franchise model. The latest numbers from the National Association of Realtors show that the percentage of brokerages affiliated with a franchise company has fallen to 11 percent from 13 percent two years ago. Keller Williams is the nation’s largest franchise with 153,904 agents, while Berkshire Hathaway saw the most gains over the past two years. [Inman]

 

U.S. mortgage holders’ home equity has hit an all-time high. With a collective gain of nearly $428 billion in the second quarter, the average mortgage holder saw a $4,900 home-equity gain in just one year. Despite all-time low mortgage rates, few homeowners are tapping into that equity than in the past — perhaps a holdover from the previous housing crash. [CNBC]


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