Alderman Ed Burke spends $400K of campaign funds for his own defense, developer crowdfunds $10 million for office building buy: Daily digest

A daily round up of Chicago real estate news, deals and more for October 11, 2019.

Chicago /
Oct.October 11, 2019 04:15 PM

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 4:15 p.m. CT

 

Embattled Alderman Ed Burke used nearly $400,000 of his campaign fund to pay for his criminal defense. Burke faces charges he bribed developers, promising to approve their projects only if they directed business to his law firm. Burke, who was charged in January, later won re-election. [Sun-Times]

 

Phoenix Development Partners crowdfunded a 14-story office building purchase. The company raised $10 million toward the $32.7 million acquisition of 226 West Jackson Boulevard from City Colleges of Chicago. The firm plans on turning the historic building into a 249-room hotel over the next 18 months. [BisNow]

 

A new city ordinance requiring 85 percent of condo owners to approve a bulk sale goes into effect Oct. 16. The new law raises the threshold from Illinois’ existing 75 percent. Across Chicago, there is a rush to get in 75 percent of votes needed before the deadline. [Crain’s]

 

WeWork is shuttering its private school, WeGrow, after this school year. The “conscious entrepreneurial school” charges tuition of $22,000 to $40,000 a year and has been open in Manhattan since 2018. [HuffPo]

 

A 2015 FBI recording reveals former Alderman Danny Solis solicited campaign contributions from a development team that includes Jerry Reinsdorf. The owner of the Bulls and White Sox, Reinsdorf is part of the Michigan Avenue Real Estate Group, which needed Solis’ help getting approval for a $40 million apartment complex in his ward. Reinsdorf and his business partners gave the now disgraced former alderman a total of $79,300 in campaign contributions, according to campaign finance records. [Sun-Times]

 

Amazon has signed a lease for a planned 1M sf fulfillment center. The e-commerce giant’s new space, in Channahon — about 50 miles from Chicago — will be developed by Venture One Real Estate. It will be at the Crossroads 55 business park, where Venture One already built a 1 million-square-foot facility that isn’t occupied. [Crain’s]

 

Former Blackhawks great Chris Chelios sold his 2,873-square-foot, 15-acre Westmont lake house. He sold it for bought the home for his parents 25 years ago. [Tribune]

 

A downturn in the Chicago area luxury market hasn’t stopped owners from listing properties. The latest is a Barrington Hill mansion that hit the market for $4.8 million. The six-bedroom, 13,000-square-foot home on 84 Dundee Lane sits on five acres. Luxury residential sales dropped 11 percent year over year last quarter. [TRD]

 
WeWork

(Credit: Getty Images)

A bailout package for WeWork could come as soon as next week. The co-working giant canceled IPO plans last month, which it was relying on to secure a $6 billion loan by the end of the year and additional financing. Now, it’s selling off investments and considering hundreds of layoffs at the least. JPMorgan Chase is leading discussions for the rescue package. [Bloomberg]

 

After shuttering 60 stores, Bed Bath & Beyond seeks to right the ship. The company has hired Mark Tritton, the former CEO of Target, one of Bed Bath & Beyond’s biggest competitors. Three investors, including Legion Partners Asset Management, have also weighed in with a plan to sell off certain brands for as much as $1.4 billion — and update Bed Bath and Beyond’s “archaic” supply chain. [Bloomberg]

 

Meanwhile, WeWork has cost Wall Street a pretty penny. Goldman Sachs is taking a $264 million writedown. In September, Jeffries said it was taking a smaller $146 million hit — and analysts say other banks may be making similar moves. [BI]

 
Adam and Rebekah Neumann (Credit: Getty Images)

Adam and Rebekah Neumann (Credit: Getty Images)

Adam Neumann was on a real estate buying spree before WeWork’s disastrous IPO. He and his wife Rebekah Neumann purchased a $!0.5 million landmarked West Village townhouse, a 60-acre Westchester estate for $15 million, s $3 million home in the Hamptons, a $21.4 million property in California and more. A $500 million line of credit from JPMorgan Chase that allowed Adam Neumann to borrow against WeWork’s shares before he stepped down. [WSJ]


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