GW Properties cashed in on a medical office property the firm built at Chicago’s busy Six Corners intersection, selling the two-story building to another local real estate player for more than $16 million.
Oak Brook’s Inland Real Estate Group paid $16.3 million for the property at 3950 North Milwaukee Avenue, Cook County records show. Advocate Medical Group is the tenant and started providing services at the location in August, according to published reports.
GW’s Mitch Goltz said the deal and other recent sales in the in the Portage Park neighborhood on the northwest side is a testament to the area’s strength. Historically a shopping district, the area has seen increased residential density in recent months.
“We have been very bullish as a company on this area for quite some time,” Goltz said.
The intersection is unique because it boasts several large properties primed for repositioning, including another nearby for which GW is pursuing a large redevelopment, he said.
“It’s created a lot of opportunities for the market to speak to what the demands and needs are to fill,” Goltz said.
Medical offices have figured prominently into transformations of urban areas that were more exclusively shopping districts as brick and mortar retail faced challenges across the nation, and the Chicago area’s addition of medical offices has outpaced other large cities over the past decade.
Goltz declined to share the property’s full development costs. Inland didn’t return a request for comment on the deal.
GW is the latest firm to take advantage of elevated property values as multifamily developers move into the area. Northbrook-based Pine Tree sold a 40,000-square-foot retail strip on the Six Corners intersection to San Diego-based Realty Income for $12.6 million over the summer, a $5 million valuation increase over its last sale.
Earlier this year, the Chicago City Council approved Novak Construction’s redevelopment of the former Sears store at 4730 West Irving Park Road into a six-story, 207-unit apartment building. Across the street, a $130 million project by Clark Street Real Estate and Ryan Companies to build a 10-story, 258-unit senior housing complex is scheduled for completion later this year.
GW is also playing a major role in establishing the area’s new real estate makeup. The firm’s Shops at Six Corners project at 3955 North Kilpatrick Avenue would turn a former warehouse into 110 apartments and five retail buildings. Goltz said that project is still in the planning stages, after an initial proposal for the site was met with some unfavorable comments by local residents.
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