Press Releases
CANYON JOHNSON'S SALE OF SHOPS AT STATE PLACE MARKS REVITALIZATION OF CHICAGO'S SOUTH LOOP AREA
-- Original development group sells retail center and public garage to BlackRock Realty --
CHICAGO, IL (March 30, 2006) - Three years after beginning the redevelopment of Chicago's former police headquarters, Canyon-Johnson Urban Funds (CJUF) and three of Chicago's most respected real estate firms -- Mesirow Financial Real Estate, Inc., Near North Properties, Inc., and Northern Realty Group, Ltd. -- have sold the Shops at State Place. This retail center and public garage is part of a large mixed-use development in Chicago's South Loop. New York investment manager BlackRock Realty purchased the property consisting of 61,796 square feet of retail and a 156-car garage.
The property is located on the entire block of South State Street between 11th and Roosevelt Road, the former address of the Central Police Station and Courts Building.
In 2003, Canyon-Johnson/State Street Partners demolished the existing building and developed State Place, a 243-unit condominium building, with ground floor retail and an enclosed private parking garage. Today, State Place has sold all but eight housing units, and the retail space is 85 percent leased, with retailers including Walgreen's, Fitness Formula Health Club and Spa, Coldwell Banker Real Estate, Charter One Financial, H & R Block, Verizon Wireless, Hair Cuttery and Benchmark Medical.
"This sale demonstrates that State Place and the surrounding community are thriving," said Bobby Turner, Managing Partner of Canyon-Johnson Urban Funds. "As investors in urban areas, we look for exactly this type of opportunity to turn a dilapidated building into a high-quality mixed-use development that transforms the neighborhood."
Canyon-Johnson Urban Funds is a partnership between Canyon Capital Realty Advisors and Earvin "Magic" Johnson's Johnson Development Corporation. The Funds' investment strategy is to identify, enhance and capture value through the development, redevelopment, acquisition and repositioning of urban real estate. In addition to meeting its investment objectives, Canyon-Johnson provides and fosters economic opportunities for the underserved residents of the urban neighborhoods in which it invests.
"The Shops at State Place will have a positive effect on this diverse community for many years to come. We're confident that this will stimulate more positive development in the area and enhance the community's overall value. That's what Canyon-Johnson is all about," said Earvin "Magic" Johnson, CJUF Partner.
"We are very pleased that we were able to identify and acquire a property to create a vibrant retail center for the community," said Michael Tobin, managing principal, development for Northern Realty Group. "State Place is successful for not only the developers, but also the City of Chicago, the retailers and the neighborhood."
For seventy years the property was the site of Chicago's police headquarters. At the time of the demolition it held a run-down thirteen-story building.
"We were very concerned that State Place match the neighborhood in terms of architecture and historical feel," said Jim Loewenberg, President of Loewenberg Associates and Near North Properties. "We're proud to have created a street scene that is representative of the flavor of the community and highlights the exciting commercial and residential growth of the South Loop area."
Situated in one of Chicago's most historically significant neighborhoods and located near Grant Park, the museum campus, major expressways and mass transit, State Place occupies a setting unsurpassed in terms of location, access and neighborhood amenities.
"State Place was a very complex redevelopment project because it was designed to meet a multitude of community needs in the South Loop," said Mike Szkatulski, Senior Managing Director of Mesirow Financial Real Estate. "What today looks like a seamless mixed-use development has many important features including critical access to public transit, high residential density, significant ground floor retail and public parking."
Canyon-Johnson and State Street Partners were represented in the transaction by CB Richard Ellis' Chicago Shopping Center Investment Team of George Good, Rich Frolik, Robert Mahoney and Bill Wright.
About Canyon-Johnson Urban Funds
The Canyon-Johnson Urban Funds (CJUF) are the country's largest private real estate funds focused on the development of urban properties in underserved neighborhoods. A joint venture between Canyon-Capital Realty Advisors and Earvin "Magic" Johnson's Johnson Development Corporation, the funds were formed to identify, enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically diverse urban communities. The Funds' objectives are to seek current income and capital appreciation and, in addition to meeting investment goals, the funds are committed to providing for and fostering economic opportunities for the residents of the urban neighborhoods in which CJUF invests. With nearly $1 billion in committed equity capital, the funds are positioned to facilitate more than $4 billion in development and revitalization in major U.S. metropolitan areas. To date, projects have been undertaken in Atlanta, Baltimore, Brooklyn, Chicago, Cleveland Heights, Las Vegas, Los Angeles, Miami, Milwaukee and San Diego.
About Mesirow Financial Real Estate, Inc.
Mesirow Financial Real Estate, Inc. provides broad real estate expertise based on over 30 years of success in the industry. The firm is known for successful high-quality public/private place-making at every scale, including major urban redevelopment projects and suburban mixed-use projects. In addition to State Place, other recent residential projects include: 58-acre University Village consisting of town homes, condominiums, lofts and single-family homes in Chicago; the six-acre Deerfield Village Centre; the redevelopment of the 1,200 acre Glenview Naval Air Station in Glenview and the former army base of Fort Sheridan on Chicago's North Shore.
Mesirow Financial Real Estate, Inc. is part of the Mesirow Financial family of companies that make up a diversified financial services firm headquartered in Chicago. Founded in 1937, the firm is independent and employee-owned with nearly $30 billion in assets under management, advisory and custody, and more than 1,000 employees in 29 offices across the country and in Puerto Rico. For more information about Mesirow Financial, visit our Web site at www.mesirowfinancial.com.
About NNP Residential
NNP Residential continually sets new standards for the urban residential experience. The Chicago-based company has won acclaim among residents, residential managers, investors and developers as one of the nation's most innovative residential real estate firms. NNP Residential has directed the most impressive apartment leasing and marketing projects in Chicago over the past decade.
Its wide range of management, start-up, and marketing services reflects the diverse expertise of the company's founder, veteran Chicago real estate executive James Loewenberg. NNP Residential excels across the board, constantly exceeding expectations.
In addition to State Place, projects include One Superior Place, Grand Plaza and The Park Millennium. The most recent project, Lakeshore East, is a $4 billion, 28-acre mixed-use community rising where the Chicago River meets Lake Michigan. The plan allows for up to 4,950 residences, a lush 6-acre public park, 2.2 million gross square feet of commercial space, 1,500 hotel rooms, 770,000 square feet of retail and a proposed elementary school.
About Northern Realty Group, Ltd.
Formed in 1987, Northern Realty Group specializes in the retail leasing of, and consulting on urban mixed-use properties. Since that time, the company has represented building ownership in leasing the retail component of numerous major mixed-use projects in the Chicago metropolitan area, including Citigroup Center/Metra station, 600 North Michigan Avenue, The Leo Burnett International Headquarters, Sears Tower, Park Hyatt, Chicago Title & Trust Center, AT&T Corporate Center/USG Building, the Renaissance Chicago Hotel, and the Park Evanston Tower.
In 1997, the company made the strategic decision to capitalize on the development expertise of its principals, and to add professional staff with multifamily property operations, and mixed-use development expertise. The result is an ongoing effort to acquire and reposition underutilized real estate of various property types where significant hidden value can be accessed. To date, this new business effort has generated more than $160,000,000 in completed work, with another $250,000,000 in various stages of development. Northern, and its investment partners, own apartment communities containing more than 1,000 rental units, 125,000 square feet of suburban office buildings and more than 100,000 square feet of urban retail.
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Media Contact:
Heather Herndon
310-689-7538
heather@sugermangroup.com
www.sugermangroup.com
