A joint venture led by Cedar Street Co. has acquired 303 W. Erie, a creative loft office building in Chicago. The partnership with ABC Realty Investments marks the Chicago-based private equity real estate firm’s entrance into the downtown value add office marketplace. The building was purchased for $11 million and financed by a Morgan Stanley non-recourse loan.
Located at the corner of Erie and Franklin streets in Chicago’s River North submarket, the six-story, 70,000-square-foot office building currently is 100 percent leased to more than 20 office and food/beverage tenants. Additionally, the venture also acquired the building’s tenant HopHaus along with its 5 a.m. liquor license in an effort to reposition the establishment with a strong new operator and bring the current HopHaus lease to market rate, which will substantially increase its value. Other tenants include the Chicago Chapter of the Grammy’s, AFLAC, dbHMS, Stir Crazy Corporate Headquarters and Spy Bar.
