REDICO has acquired the historic 10 N. Dearborn building in downtown Chicago. The national real estate development and investment company – headquartered in Southfield, Mich. – plans to renovate the 11-story boutique office building with its red stone facade in the heart of the Loop.
Once known as the Covenant Club building, 10 N. Dearborn was originally constructed in 1925 and underwent extensive renovations in the mid-1980s. The building has some 69, 000 square feet of office space and more than 11,000 square feet of retail space. It is home to six office tenants and to two iconic Italian restaurants, Trattoria No. 10, and Sopprafina, Marketcaffe.
With the hiring of Robert Horne as senior vice president of investments, who will be based in Chicago, the combination marks a milestone for REDICO in entering the Chicago real estate marketplace.
“We are excited to move into the Chicago market in 2014 and broaden our Midwest base of properties,” said President and Chief Executive Officer Dale Watchowski. “Considering the investment cycle and capital flow into Chicago, we think an expansion into the Chicago market at this time makes sense for REDICO.”
James Solomon of Ravinia Investment Group acted as the exclusive financial advisor to REDICO. REDICO has engaged JF McKinney & Associates as listing agent and has developed plans to upgrade the building to create a high-quality office environment for existing and future tenants. Terms of the transaction were not disclosed.
In addition to 10 N. Dearborn, REDICO is pursuing several other development and acquisition opportunities in Chicago.
“Our core discipline is value-add acquisition and development opportunities in the office, retail and healthcare sectors,” said Dietrich Knoer, chief investment officer of REDICO. “When entering a new market, we are looking for opportunities in all our core disciplines and market sectors.”
REDICO plans to demolish several walled offices along the exterior of the building’s three vacant floors to take advantage of floor-to-ceiling windows and to create the more open layout many startups prefer, Horne said.