Student housing pitch before city panel today
A venture that includes veteran Chicago developer Steven Tinsley is seeking a new zoning plan that will allow it to covert three buildings between 20 and 28 E. Jackson Blvd. into a $57 million, 184-unit rental complex geared toward graduate students and young professionals. The proposal is scheduled to be heard by the Chicago Plan Commission this afternoon. One-bedroom units would rent for around $1,500 a month, with two bedrooms costing $2,600; all will include a full kitchen, washer and dryer and other features. “We think in terms of security, privacy and amenities, we offer something no one else does. It's not a dorm. Most of the other buildings are dorms,” Mr. Tinsley says. The venture is seeking federal historic tax credits to help pay for the project, he says. It is also seeking city landmark status for the Steger Building, a 19-story structure at 28 E. Jackson built in 1911, according to real estate data provider CoStar Group Inc.
Reese loan restructuring deal advances
The Chicago City Council's Committee on Finance agreed Wednesday to restructure the $91 million loan the city used to buy the former Michael Reese Hospital property on the South Side. The city, which wanted to build an athletes' village on the site had it won the 2016 Olympic Games, borrowed the money three years ago from an affiliate of Medline Industries Inc., the Mundelein-based hospital supplier. The new agreement will lower interest rates on the loan, saving taxpayers $14.5 million over the term of the deal, says a spokeswoman for the city's Department of Finance. But the city hopes to sell the 37-acre property, which sits between 26th and 37th streets along Lake Shore Drive, before the payments start in October 2014. Related story: Emanuel looks to restructure Michael Reese site loan
Developer borrows to expand data center
Developer Ascent Corp. said it borrowed $107 million to finance the expansion of a multitenant Northlake data center and enter new markets. St. Louis-based Ascent secured the loan from a group led by Bank of America Merrill Lynch, with Royal Bank of Scotland and Cole Taylor Bank participating. Ascent paid $11.5 million in 2010 for the 250,000-square-foot industrial site at 505 N. Railroad Ave. Tenants in the building include Comcast Corp., which moved in last year. Ascent declines to provide details on the new projects. Related story: Data center firm buys Northlake site
Duke Realty tenants stay put
Duke Realty Corp. said three tenants renewed leases for a total of 405,089 square feet at three suburban industrial properties. Niven, a merchandising firm, will now have 218,464 square feet at 815 Kimberly Drive in west suburban Carol Stream after expanding its space by 62,760 square feet. WinCup, a Georgia-based ompany that makes disposable foam cups and containers, renewed a 150,000-square-foot lease at 1250 Carolina Drive in West Chicago. Birger Christensen, a Danish retailer, renewed a 36,625-square-foot lease at 4160 Madison Street in west suburban Hillside. Steve Schnur, senior vice president of Chicago operations at Indianapolis-based Duke Realty, says all the extended leases are considered long term, or more than five years beyond their original expiration. Tenants and their representatives did not return calls.
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