UBS Sells Addison & Clark Stake at a Loss
A UBS investment fund has cashed out of its majority stake in Addison & Clark, a seven-story apartment and retail complex across from Wrigley Field that opened in 2019, reported Crain’s Chicago Business. The developers took a big loss on the property, selling it for $100 million, about $80 million less than it cost to build.
Dinerstein, a Houston-based multifamily investor, effectively bought the UBS fund out through a recapitalization in late April. The fund’s two local partners, M&R Development and Bucksbaum Properties, re-invested in the building.
With 145,000 square feet of retail space and 148 apartments, Addison & Clark seemed like a sure bet when the developers broke ground on the project in 2016. A few months after its opening, COVID-19 changed all that.
“Obviously, the market has declined dramatically, and we got hit particularly hard at that site because of the pandemic,” M&R chairman Tony Rossi told Crain’s.
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