Latest Chicago-land Real Estate News and Gossip

Hot off the press (December 10-11, 2024):

• Compass Acquires @properties: In a move that sent shockwaves through the industry, Compass has acquired @properties, Chicago's largest independent brokerage, and its Christie's International Real Estate brand. This is a major consolidation in the Chicago market and could have significant implications for agents and consumers alike.

  • Potential Impacts:

    • Commission structures: Will Compass implement its commission model at @properties, potentially disrupting the existing compensation structure for agents?

    • Branding: What will happen to the @properties and Christie's International Real Estate brands? Will they be phased out or retained?

    • Market share: This acquisition gives Compass a dominant position in the Chicago market. How will this impact competition and consumer choice?

    • Agent retention: Will @properties agents embrace the Compass platform, or will there be an exodus of talent?

• Sterling Bay's $250M apartment project rejected by committee: Sterling Bay, a prominent Chicago developer, faced a setback when a key city council committee rejected their proposed $250 million apartment project in Lincoln Park. The project, which would have included 328 apartments, drew criticism from some residents and local alderman Timmy Knudsen over concerns about affordability, density, and traffic. Sterling Bay may need to revise their plans to gain approval. This rejection highlights the ongoing tension between development and community concerns in Chicago.

• $1.44M home sale is South Shore neighborhood's most-expensive: A recently renovated home in South Shore sold for $1.44 million, setting a new record for the neighborhood. This sale is a strong indicator of the growing interest in South Shore, which offers relatively affordable housing compared to other lakefront neighborhoods. The increasing property values could attract further investment and development in the area.

• LG Group's Brian Goldberg makes waves with 330 South Wells: Brian Goldberg, co-founder of LG Group, has acquired the office building at 330 South Wells Street in the Loop. This acquisition is notable because it goes against the current trend of uncertainty in the downtown office market. Goldberg is known for his contrarian investments, and this move suggests he sees potential in the Loop's long-term recovery.

Recent Developments (December 9, 2024):

• Distress in the suburbs:  A 300,000-square-foot office campus in Lombard owned by BentallGreenOak has fallen into default on its $32.5 million loan. This is a worrying sign for the suburban office market, which is facing challenges due to remote work and changing workplace preferences. The situation raises questions about the future of suburban office properties and the potential for further distress in the market.

• JPMorgan's CRE head sets up shop in Chicago:  Michelle Herrick, JPMorgan Chase's head of commercial real estate, has decided to be based in Chicago. This move is significant because it signals Chicago's increasing importance as a hub for commercial real estate finance and investment. JPMorgan Chase is one of the largest lenders in the sector, and Herrick's presence in Chicago could bring more deals and capital to the city.

• Singerman snaps up Skokie life-science asset at a discount: Singerman Real Estate has acquired the former Takeda Pharmaceuticals campus in Skokie for $25 million, a significant discount from its previous sale price of $108 million in 2019. This acquisition highlights the growing interest in life sciences real estate, a sector that has seen strong demand in recent years. Singerman plans to redevelop the property into a multi-tenant life science facility, capitalizing on the growing demand for lab and research space in the Chicago area.

• JDI Realty invests $25M in senior housing: JDI Realty, a Chicago-based real estate investment firm, has invested $25 million in a portfolio of senior housing properties across the Midwest. This investment reflects the growing demand for senior housing as the baby boomer generation ages. The senior housing sector is expected to continue to grow in the coming years, making it an attractive investment opportunity.

• United Center redevelopment gets a boost: The Chicago City Council has approved a reworked tax-increment financing (TIF) district that could provide funding for the $7 billion United Center redevelopment project. This project, which is being spearheaded by the Chicago Bulls and Blackhawks, would include new residential, retail, and entertainment options around the United Center arena. The TIF district approval is a crucial step forward for the project, which has the potential to revitalize the West Side.

Other noteworthy items:

• Chicago home-buying surged in November: The Chicago residential market showed strong activity in November, with home purchases exceeding the levels seen in the past two years. This suggests that the market is recovering from the slowdown earlier this year. Low inventory and rising interest rates continue to be challenges, but buyer demand remains strong.

• Bears stadium saga continues: The Chicago Bears are still considering a move to Arlington Heights, where they have purchased a 326-acre site for a potential new stadium. The team is reportedly seeking a tax break from the state of Illinois to help finance the $5 billion project. The Bears' potential move to the suburbs has been a contentious issue, with some fans hoping they will stay in the city.

  
  
  
  

Sources:

• The Real Deal

• Crain's Chicago Business

• Chicago Tribune

• Bisnow Chicago

• Connect CRE