Chicago is toasting a billionaire Italian family’s commercial real estate spending spree.
The wealthy Garavoglia family, linked to the global spirits giant Campari Group, has channeled $105 million into prime retail and office properties in the Windy City over the past two years, while dropping hints about where the money was coming from with the names of the LLCs making the acquisitions, CoStar News reported.
The investment venture includes April’s nearly $36 million purchase and subsequent financing of the popular Time Out Market food hall retail asset in the thriving Fulton Market district. That deal marked the third such investment made through LLCs tied to Campari. Until recently, the identities of these investors remained shrouded in secrecy, but the family has since taken out loans using the properties as collateral, revealing more about the origin of the funds.
The three LLCs used by the Garavoglia family for their Chicago investments all bear names inspired by cocktails made with Campari products, reflecting the family’s connection to the booze business. These LLCs, namely Bizzy Izzy LLC, Brown Derby LLC, and Grand 75 LLC, are managed by Luxembourg-based Lagfin, the entity overseeing the family’s investments and controlling shareholder of Campari Group, known for spirit brands that include its namesake Campari, Aperol, Skyy, Grand Marnier and Wild Turkey.
In a real estate market marked by a slowdown in commercial sales nationwide, foreign investments bring a ray of hope. Institutional investors have been sidelined due to financing challenges and economic uncertainties since mid-2022. This has led sellers to turn towards affluent individuals and families, including foreign investors.
Another notable European investor, Amancio Ortega, the billionaire founder of the Zara clothing retailer, recently paid more than $231 million for a 492-unit apartment tower near the Fulton Market area, in the priciest deal for a Chicago multifamily building so far this year.
The Garavoglia family’s involvement in the Time Out Market purchase was unveiled when its Bizzy Izzy LLC, named after a beverage made with Wild Turkey, snagged a $19.3 million loan from Northern Trust in August, with Lagfin as the guarantor and siblings Luca and Alessandra Garavoglia, respectively the chairman and director of Campari, listed as principals.
On the same day, Lagfin also obtained a $10.2 million loan secured by the boutique office building at 217 North Jefferson Street, which was bought for nearly $21 million in July 2022 under the name Grand 75 LLC, a reference to a drink made with Grand Marnier.
In a previous transaction that went under the radar, the Garavoglia family acquired the lower floors of the office tower at 79 West Monroe Street for $40.5 million in June 2022 and later purchased vacant upper floors for $8.8 million. These acquisitions were made through Brown Derby LLC, named after another Wild Turkey-based cocktail.
All three LLCs are wholly owned by Lagfin and managed by Paul Xuereb of New York-based Tri-Star Equities.
The Garavoglia siblings’ connection to Campari Group stems from their inheritance of shares from their parents, Domenico and Rosa Anna Magno Garavoglia. The shares are traded on the Milan Stock Exchange.
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