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9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 1/9
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September 11, 2015
4 Quick Flips with JawDropping ReturnsDon't miss the Chicago Property Management &Adaptive ReUse Revolution: Unlocking the Value ofyour Property. Click here for tickets!
There was a time when companies would hold real estateassets for decades before selling. Not in this market. Now,developers can see a large return on their investments in ashort period if they play their cards right and position theirassets for maximum value. Today, we look at four recentdeals with sizable ROIs.
1. JeffJack Apartments
Location: 601 W Jackson
Developer: Tom Roszak and Dan Moceri
Price: $65M, delivered in April
Sold: $82M on July 30 to LaSalle Investment Management
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9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 2/9
ROI: 79% over development cost
Apartments are one of the hottest sectors in Chicago realestate and the West Loop is one of the city's strongestsubmarkets. Combine the two and Roszak and Moceri had anasset that was highly desirable. This 190-unit building'samenities include a private dog run and terrace dining,sundeck, a rooftop deck and garden, and a spacious hotel-style lobby. JeffJack was only 77% occupied in May; LaSalle isbullish on the building's upside.
2. 777 South State
Location: 777 South State St
Flipper: A JV of Atlas Real Estate Partners, Marc Realty andAngelo Gordon
Bought: $59M in 2013
Sold: $85M on Sept. 8
ROI: 69% after two years
Atlas managing principal Arvind Charny says this 28-story,882-bed building, formerly known as 2 East 8th Apartmentsand serving Columbia College students, wasn't efficientlyoperated upon purchase. The JV rebranded and aggressivelymarketed the building as 777 South State, launched a summerhousing program to generate revenue when school was outand improved amenities such as the Internet, the gym and thebusiness center. 777 South State now has a mix of nine- and12-month leases, in addition to its summer housing program.Arvind says it was the JV's goal all along to turn over the assetwithin a short time frame.
3. Glen Gate Shopping Center
9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
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Location: Waukegan and Golf roads, Glenview
Developer: Regency Centers
Price: $29.6M, delivered October 2014
Sold: $50M on Sept. 10 to LaSalle Investment Management
ROI: 59% after development and one-year hold
Regency had big plans when it purchased 20 acres atWaukegan and Golf roads in October 2013. It sold eight acresto Focus Development, which plans to build 238 luxuryapartments whose residents will live next to a 74k SFMariano's and another 24k SF of retail. Regency planned onowning the asset long-term, but VP Matt Hendy saidLaSalle made an offer that couldn't be refused.
4. River Center
Location: 111 N Canal
Flipper: Sterling Bay
Bought: $100M in 2012
Sold: $304M in March to JPMorgan Asset Management
9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 4/9
ROI: 33% after three years
Sterling Bay wasted no time renovating the common areas inthis 102-year-old, 16-story, 830k SF office building andattracting an impressive array of tech clients. Sterling Baycompletely overhauled River Center's lobby, and added arooftop deck and a fitness center. At one point, more than halfof the building was under construction. The tech firms,meanwhile, were signed to long-term leases. The largesttenant is Gogo, which provides in-flight wireless for airlines.Twitter, Uber, Fieldglass and Potbelly are also in the building.The sale price is one of Chicago's top 10 office sales of 2015.
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9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 5/9
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9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 6/9
Real Estate Takes Heart
This Sunday, Sept. 13, hundreds of runners willgather at Lisle Community Park for the sixthannual Rock the Beat. This 5k run and funwalk is organized by Real Estate TakesHeart, a nonprofit group of young commercialreal estate professionals committed to promotingcharitable giving and providingnetworking opportunities for real estateprofessionals through athletic fundraisingevents. Rock the Beat has raised over $75k forarea heart charities in its six years. Last year'srace raised $15k for the American HeartAssociation.
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The race has a personal meaning for the raceorganizer, Clarion Construction director ofbusiness development Jonelle Dzikowicz(pictured, second from right). Jonelle's dad,James Ocwieja, died from a heart attack 11years ago. Jonelle was bitten by the real estatebug visiting her father, who worked as acontractor on residential properties, on jobsites. The two spent countless time bikingthrough the race course when Jonelle wasgrowing up. Jonelle says other members of therace's board of directors have family or friendswho've suffered heart problems, and that one infour people have a heart attack or cardiacproblem in their lives. Any opportunity to helpmakes a difference. The race begins at 8:30am. Ifyou wish to participate or make a donation, youmay register here.
Onni Group's River NorthMultifamily Project Stalls
Onni Group's proposed 32storyapartment tower at the former Clark &Barlow Hardware site is stalled andlikely dead, Ald. Brendan Reilly(42nd) told guests at a developmentmeeting Tuesday. Onni's proposal for 353W Grand called for 330 apartments, 271parking spaces and a shared deck with apool. Neighbors objected to the proposaland argued it would block their viewsand cut into a shared alley. Makingmatters worse, Onni was circulating newplans for the project to residents withoutReilly's input. Without the alderman'ssupport, the project would face toughopposition before a full City Councilvote. Onni isn't hurting for projects inChicago. It's developing the 1,500-unit
9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 7/9
Atrium Village in Old Town, and buildinga 25-story tower at 750 N Hudson.[DNA]
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Anniversary Tour: TheWorld Trade Center 14
Years LaterThe past year's seen the opening of 1WTC and Conde Nast's historic moveinto over 1M SF there. This Sept. 11marks not just another grim anniversarybut a real statement of the WTC's impacton Lower Manhattan. View our slideshowto see how things look on Sept. 11, 2015.
Construction Begins onWirtz Lakeview Apartment
BuildingConstruction is underway on WirtzRealty's planned 19story apartmentbuilding at 2950 N Sheridan inLakeview. Wirtz originally planned thisas a condo project in 2008 before themarket's collapse. The 82-unit buildingwill now be a mix of one, two andthreebedroom apartments pricedfrom $2,900 to $6k per month. Therewere concerns the steel and glassstructure would tower over, and distractfrom, the neighborhood's vintageresidential architecture. Wirtz addedlandscape elements designed tolessen the impact on surroundingbuildings that go above and beyond therequirements of local ordinances. Theproject also calls for 200 parking spaces,50 bicycle parking spaces and a 3,818 SFgreen roof. It's expected to deliver inlate 2017. [Crain's]
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9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 8/9
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9/11/2015 4 Quick Flips with Jaw-Dropping Returns | Bisnow
https://www.bisnow.com/archives/newsletter/local-real-estate/chicago/6067-4-quick-flips-with-jaw-dropping-returns/ 9/9
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