Former Chevrolet dealership at the 8700 Block of South Commercial Avenue, will be up for auction Sept. 23, and Alderwoman Susan Sadlowski Garza believes one potential use for the site is a well-needed grocery and produce store. The property exists within the Commercial Avenue Tax Increment Financing District and the pending auction has generated interest from an array of users.
The Lakeside Development, a joint venture between McCaffery Interests and United States Steel Corporation, offers a game-changing urban ideal for not just Chicago’s Southeast lakefront, but for the entire region, according to Chicagolakesidedevelopment.com. The City of Chicago recently modernized the Lake Shore Drive extension which was completed over the past couple years.
Frank Diliberto, president of Diliberto Real Estate Services, the firm handling the auction sale, said the auction is an opportunity for users or investors to capitalize on the city’s incentives, and even more importantly, the city’s efforts to promote new business.
A dissolving partnership mandated the auction and a closing of the sale in October. With a standing 32,000-square-foot retail building, the property has nearly 3 acres ready for development. According to the auction firm, the current tenants, including the City of Chicago, offer good revenue, and flexibility for redevelopment. But TIF opportunities are essential.
The auction bid packages, which demonstrate clean title and detailed property information are available through the auction company. The ability to develop the property, maintain leases and partner with the City of Chicago on their efforts to bring businesses to the area, opens the door to investors and users. The bonus chip is the ability to name your price at auction, which opens at a fraction of the appraised value.
The auction company admits it’s difficult to determine value for this property, but ensures the auction is the best way to do so. A live auction offers transparent value by open public bidding.
John Heroff, Director of Policy and Legislative Affairs for 10th Ward Alderwoman Susan Sadlowski Garza, is offering personal guidance to quickly take action for auction bidders. He said the auction has certainly expedited the timeline for selling this asset and getting it into use, with potential jobs, services and goods to be offered to the area.
“We have it on our radar and look forward to working with all interested bidders and of course the new owner,” Heroff said.
According to Diliberto, the bid packages, TIF information and site inspections are available, allowing bidders to review all information before attending the auction. Special financing is possible for approved bidders. A $20,000 cashier’s check is required to bid on each of the two parcels, but discounts are available for the buyer of both properties. Appraised over $2.36m, in July of 2009, the auction will open at $686,000, representing a 14.7% Cap rate on 2014-2015 revenue. The first inspection takes place at 11:00am on September 9, 2015. Interested bidders can contact the auction company.
