A revamped former Target store that was converted to a Blue Cross & Blue Shield multipurpose center in Chicago’s South Side is paying off for developer DL3.
A venture of Brooklyn, New York-based Beitel Group bought the center at 11840 South Marshfield Avenue in Morgan Park for more than $20 million, according to Crain’s Chicago Business. Chicago developer DL3 Realty signed Blue Cross to a 10-year lease in 2019 for the 128,000-square-foot store and subsequently paid $250,000 to buy the property from Target.
DL3 managing partner Leon Walker said the firm invested about $10 million to renovate the Blue Door Neighborhood Center and office building early this year. Property records show DL3 refinanced the property with a nearly $5 million loan in July 2020.
More than $1.3 million is expected to be generated as annual net income from the building, according to Jones Lang LaSalle that represented DL3.
Beitel Group specializes in residential and retail projects. Most recently, the group filed plans to build a 12-story, 96-unit residential building in Mott Haven in the Bronx.
DL3’s Walker said in a statement that he hopes the sale will be an example of the strong return other developers can generate if they invest into areas that have been disinvested. Bringing in investment in the South and North Side communities has been one of Chicago mayor Lori Lightfoot’s priorities. The city announced a development of mixed-use real estate that would include more than 215 units and 40,000 square feet of commercial space for South Chicago, North Lawndale, Bronzeville and New City.
[Crain’s] — Connie Kim