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Developer Snags Retail, Office Building at Huge Discount
A joint venture of Farpoint Development and MCZ Development is under contract to pay a little more than $20 million for a retail and medical office building. The move to swoop in on the North Avenue Collection at 939 W. North Avenue in Chicago’s Clybourn came at a recent auction, reported Crain’s.
It is the latest in a string of plays by investors to snag distressed assets in a bid to capitalize on the discounted price of struggling Chicago properties. The $20 million sale price represents an almost 78 percent loss for ownership, a venture of Iowa-based Principal Financial Group. Principal bought the North Side building for $89 million in 2004. Blake Johnson, David Knapp, Arthur Johnson and John Saletta of CBRE brokered the deal.
Similar scenarios have played out throughout the city, including a retail property on Magnificent Mile, a 12-story West Loop office building and a five-story State Street building, which all sold for at a significant discount.
