Marcus & Millichap facilitated the $11.35 million sale of a 53,931-square-foot, mixed-use commercial loft building and an adjacent lot located at 1040 W. Huron Street in Chicago. The development team of Tandem Partners and Rambaud Holdings intend to pursue a planned development for the site in the rapidly developing River West neighborhood.
The plan for the 28,314-square-foot combined property calls for a 23-story, 226-unit rental building, a parking garage and 2,300 square feet of first-floor retail. The existing multi-story loft office building will also be fully modernized, appealing to users in search of creative office space.
Stephen Lieberman, first vice president of investments, and Kyle Stengle, senior vice president of investments at Marcus & Millichap’s Chicago downtown office, represented the private sellers and also procured the buyer, Tandem Development.
“With a competitive bid situation during the marketing process, this transaction demonstrates the strong demand that exists for high-density, transient-oriented developments in the city. The buyer utilized the downtown zoning expansion district that was recently put in place to successfully approve a planned development for the site,” said Stengle. “This property provides an excellent redevelopment opportunity as young professionals continue to move into River West and look for high-quality, well-located housing.”
Located one block southeast of the intersection of Milwaukee and Chicago avenues, the property features a partial single- and three-story mixed-use commercial loft building with an adjoining parking lot. With a zoning change, the property would qualify as a transit-oriented development—a designation that allows for greater density and less parking—due to its proximity to the CTA Blue Line stop at Chicago and Milwaukee. Currently, 1040 W. Huron, which was built in 1911 and renovated in 1991, holds an M1-3 commercial zoning designation.
“We worked very closely with the city’s planning department and the local neighborhood zoning group to preserve the existing office building and have designed a new building that we feel will be a wonderful addition to the neighborhood,” said Dimitri Nassis, director of development with Tandem. “We anticipate construction to start in the middle of the year and for leasing to start in the first quarter of 2020.”