J. Michael Drew, founding principal of Chicago-based Structured Development, today announced the sale of 1333 N. Kingsbury St., a four-story, 100,000-square-foot loft office building in Chicago’s Clybourn Corridor. A unit of Zurich, Switzerland-based Credit Suisse Group paid $27.8 million for the property, or $278 per square foot.
“The sale of 1333 N. Kingsbury shows how institutional investors – both domestically and internationally – are pursuing a greater variety of deals, including loft office properties outside the CBD that offer comparatively attractive yields,” said Drew. “Interest is especially high in buildings like 1333 N. Kingsbury that are stabilized with long-term, credit-worthy tenants. These loft office conversions, along with newer mixed-use developments like NEWCITY, have helped create the live-work-play lifestyle that has drawn so many people to the neighborhood.”
Cody Hundertmark and Blake Johnson of CBRE represented the seller, Everbury Partners, a limited partnership managed by Drew.
Prior to being purchased by Drew in 1991, 1333 N. Kingsbury housed manufacturing operations for Peppers Waterbeds. Drew subsequently converted the building into a multi-tenant loft office building that, at the time of the most recent sale, was 95 percent leased. Current tenants include college sports recruiting firm National Collegiate Scouting Association, which occupies 38,000 square feet; and recruiting and staffing firm TrueBlue, which occupies 30,000 square feet.
It is the second time in less than a year that Drew has sold an office property in the Clybourn Corridor to an overseas investor. In spring 2016, a Structured-led group sold Blackhawk on Halsted, a 224,000-square-foot retail and medical office property at 1460 N. Halsted St., to a German investment fund.
“The Clybourn Corridor is known for its industrial-to-retail renaissance and this is one more step in the area’s economic emergence,” said Drew. “The city of Chicago’s ongoing review and modernization of its industrial corridor zoning policy will be another catalyst to unlocking its potential as a smart-growth zone. We’ve been actively developing in this area for the past 15 years, and it’s gratifying to see how our projects have helped spur an incredible revitalization of the neighborhood that is recognized locally, nationally and internationally.”
As principal of Structured Development, Drew has developed nearly 2 million square feet of real estate in the Clybourn Corridor, with a completed value of $700 million.
“We’re incredibly optimistic about the future of the Clybourn Corridor due to the area’s convenient access to downtown, its vibrant retail and residential offerings, and its proximity to high-paying tech jobs on Goose Island and in River North,” said Drew. “The sale of 1333 N. Kingsbury will allow us to make additional investments in the neighborhood that will contribute to its continued economic vitality.”
For more information, visit www.strdev.com.
About Structured Development:
Structured Development is a Chicago-based real estate development company formed in January 2002 to pursue unique real estate development opportunities. The company thrives on engaging in complex real estate transactions encompassing a range of property types, including retail, residential, mixed-use and industrial. Whether working with partners or independently, Structured Development strives to unlock and enhance the unseen value of real estate, simultaneously enriching urban and suburban landscapes through sustainable and innovative development practices. For more information, visit www.strdev.com.
A partnership managed by Structured Development’s J. Michael Drew has sold 1333 N. Kingsbury St., a 100,000-square-foot loft office building in Chicago’s Lincoln Park neighborhood.
