That’s not just the motto of Chicago Cubs great Ernie Banks, but the approach of M&R Development and Bucksbaum Retail Properties when it comes to a prime piece of North Side real estate across the street from Wrigley Field.
The developers increased their ownership stake in the apartment and retail complex known as Addison & Clark through a refinancing deal, while their Swiss partner on the project, UBS Group, lost most of its equity in the property, CoStar reported.
M&R and Bucksbaum, along with an affiliate of The Dinerstein Cos., paid $100 million for the property at 1025 West Addison Street in late April. That’s far less than the $180 million it cost to build the complex.
UBS provided not only the original debt but most of the equity, too. With the deal, UBS’s debt vehicle will get paid back the $97 million loan it put toward the project, though most of the equity held by the firm’s property holdings affiliate was wiped out by the deal, M&R Chairman Tony Rossi told the outlet. Houston-based Dinerstein is now the primary investor in the property.
M&R and Buckshaum originally had a 20 percent ownership stake in the project. Their shares increased under the new deal, but it’s unknown by how much. The new ownership group borrowed more than $65 million from Nationwide Life Insurance, resulting in a smaller loan at a higher interest rate compared to the previous debt.
Commercial properties selling for far less than what an investor paid has become common in today’s market. Rising interest rates, fears of a recession and banking fallouts have hampered real estate activity across the country, pushing property values down.
Addison & Clark comprises 148 apartments, almost 145,000 square feet of retail and about 400 parking spaces. The developers are confident that the complex will rebound from the pandemic, as warmer weather, baseball season and neighboring bars provide a steady flow of foot traffic to the area.
“We’re seeing an excitement level,” M&R chairman Tony Rossi told the outlet. “We feel like everything’s headed in the right direction now. That’s why we still believe in it, particularly at this lower cost basis.”
Apartments at Addison & Clark are 90 percent leased, but that number is set to increase to 94 percent in the near future. Nashville-based bar chain Tin Roof has leased almost 10,000 square feet in the retail portion, joining tenants like Harley-Davidson and Lucky Strike bowling alley.
— Quinn Donoghue
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