Having announced plans to purchase properties around Chicago for redevelopment earlier this month, Cedar Street has moved fast to acquire the former Combined Insurance Building on N. Broadway, which it plans to redevelop for mixed use.
Chicago, Illinois, April 22 2015: Having announced the sale of its commercial properties in Fulton Market at the beginning of April 2015, Cedar Street has moved quickly to begin the process of reinvesting the proceeds into residential opportunities in Chicago. It has paid $16.1 million dollars for the former Combined Insurance Building at 5050 N. Broadway, and plans to spend as much as $150 million on its redevelopment.
The buildings, comprised of two six-story buildings linked to an 11-story building, currently benefits from a large parking lot with space for more than 600 cars. Cedar Street plans to rehabilitate the existing structure and build a new mid-rise block. This new block is likely to include a gym and retail outlets, though specific details have yet to be confirmed. The process of getting retail tenants interested has already begun, according to Cedar Street Managing Partner, Alex Samoylovich.
Praised for revitalizing Uptown in recent years, while simultaneously criticized by some who dislike the ‘gentrification’ that Cedar Street’s developments have produced, Samolyovich says has high hopes for the project.
“It’s situated in the center of our core market, near the Argyle (Red Line) stop on a major thoroughfare, and it’s prime and ripe for redevelopment,” adding, “It’s got close proximity to Uptown Theatre, and it’s our hope that all the theaters and art the mayor is looking to bring to that area will get off the ground in the next few years.”
With a portfolio of residential properties that now stretches to more than 2,500 apartments in Uptown and the surrounding neighborhoods, Cedar Street will take a measured pace in this latest redevelopment project. It is likely to be a year before those finalized plans are presented to the city and neighborhood groups, a big change to the way the company began its life by buying fractured condos to convert to apartments.
The property has been bought from Imperial Reality, which paid $5.1 million for it in 2011. The 11-story tower is likely to house around 130 apartments for rent, if plans disclosed to Imperial two years ago remain in force. The twin six-story office towers are mostly leased. Imperial President Al Klairmont said that Cedar Street has been chasing the property for several years, and the purchase price announced is the product of many negotiations. “They’ve been throwing numbers at me for well over a year, and we finally reached a number that rang the bell,” he said. “They know more about residential than I do. I’m confident that they will do very well.”