Centrum Properties Inc. is on the lookout for apartment and hotel developers and builders to take over the Streeterville site that Centrum hopes to sell for $50 million or more.
The joint venture between Centrum Properties and New York-based Angelo Gordon & Co. has hired the Chicago office of CBRE Inc. to find a buyer for the site located at 220 E Illinois street, which has the potential to house a 775,000-square-foot building. This means that potential developers would be able to build more than 600 apartments or roughly 450 hotel rooms on the lot, says Centrum principal Sol Barket.
“It’s just too good of a market with what’s happening with hotels and apartments to not take advantage of it,” Barket told Crain’s Chicago Real Estate Daily.
Although still weak, the hotel market has begun to recover from the recession, just as rising rents and rising occupancies lift downtown apartment developments off the ground as well. Yet, as the apartment market rises, the developments may begin to get crowded; seven high-rise projects, expected to be completed by the end of 2014, are already underway.
Barket stresses that this transaction is not a distressed sale: the lot is surrounded by roughly $10 million in debt, but this is far below what Barket expects it to bring in when it is sold.