Fights over multifamily policy, suburban retail revival and fresh investment in the office sector shaped Chicago real estate markets this week. From Fulton Market to Burr Ridge to South Shore, here’s what mattered.
The drama surrounding embattled multifamily firm CKO Real Estate escalated when its ex-investor Shai Wolkowicki lobbed a $10.8 million lawsuit at founder Chikoo Patel, accusing him of running the firm as a “Ponzi-like scheme.” The allegations — misuse of investor funds, siphoning money into personal accounts — read like a playbook from the worst days of cheap credit. The dispute extends a trend of lawsuits popping up nationally as cracks form in the multifamily syndication boom of the last five years that thrived on low rates and easy money.
In Fulton Market, Sterling Bay unloaded an entitled development site for $18 million, taking a loss from its previous purchase price. Local investor Marc Bortz was the buyer. While still the hottest ZIP in town for trophy developments, Fulton Market land prices are cooling as rising construction and operational costs reset property values everywhere.
Suburban retail told the opposite story. Edward Hassan and Adam Firsel sold the once-distressed Burr Ridge Village Center for $55 million, notching a tidy payday that shows how open air commerce centers have become a winner amid brick and mortar retail’s rebound.
Also in Burr Ridge, the late rapper Juice WRLD’s mother listed her estate for $7.2 million after three years of owning the home, which is currently the second-priciest listing in the western suburb, behind a $10 million ask.
At Chicago’s high end, a St. Regis penthouse fetched $7.5 million, another data point showing Chicago’s ultra-luxury condo market is climbing out from a hole. A West Loop penthouse condo in a Sulo Development project this week also fetched over $5.2 million as raw space, meaning the sellers are likely to spend significantly more on finishing the unit.
Chicago residential brokers were buzzing about the planned Compass acquisition of Anywhere Real Estate and its impact on the local market. The tie-up consolidates power in an industry already wrestling with commission lawsuits and shifting consumer behavior.
On the policy front, activists scored wins in the Housing Committee and Chicago City Council this week by pushing South Side right-of-first-refusal and just-cause eviction rules. Landlords and investors, unsurprisingly, are gearing up to fight. Chicago’s battle lines echo national trends as cities from Washington D.C. to San Francisco debate similar anti-gentrification tools.
The office market produced two substantial Chicago investments, one a purchase and another a lease.
601W Companies is circling the long-distressed Brookfield-owned property at 175 West Jackson Boulevard. The New York-based buyer has made a business of scooping up Chicago’s troubled towers, and its latest move fits a broader national playbook: opportunistic capital targeting landlords caught on refinancing cliffs.
Meanwhile, private equity firm Wind Point Partners is subleasing office space in Salesforce Tower, highlighting how trophy assets are weathering the storm. The deal underscores a national trend — even as office demand slumps, the newest Class A towers are still drawing tenants from weaker buildings.