Chicago’S “Motor Row” District 2328 South Michigan Ave., Chicago, Il 60616

FOR SALE 30,415 SF LAND SITE CHICAGO’S “MOTOR ROW” DISTRICT 2328 SOUTH MICHIGAN AVE., CHICAGO, IL 60616

WILLIS TOWER

JOHN HANCOCK CHICAGO LOOP MARRIOTT MARQUIS HOTEL SOLDIER FIELD

MCHUGH HOTEL WINTRUST ARENA HYATT REGENCY CERMACK CTA STATION SUBJECT SITE

MICHIGAN AVENUE CTA ENTRANCE MCCORMICK PLACE

I-55

JAMESON COMMERCIAL REAL ESTATE MARK JONES, CCIM Senior VP, Investment Sales 425 W. North Ave | Chicago, IL 60610 (O) 312.335.3229 [email protected] www.jamesoncommercial.com

©Jameson Real Estate LLC. All information provided herein is from sources deemed reliable. No representation is made as to the accuracy thereof & it is submitted subject to errors, omissions, changes, prior sale or lease, or withdrawal without notice. Projections, opinions, assumptions & estimates are presented as examples only & may not represent actual performance. Consult tax & legal advisors to perform your own investigation. EXECUTIVE SUMMARY

PRICE REDUCED: $6,750,000 PROPERTY DESCRIPTION Jameson Commercial is pleased to bring to market this 30,415 SF land site. The property is located in Chicago’s South Loop on South Michigan Avenue in the historic “Motor PROPERTY HIGHLIGHTS Row District” conveniently located adjacent to McCormick Place and just a 4-minute walk to the new CTA Greenline station. Although located in a historic district, the • Land Size: 30,415 SF site is one of the few unencumbered with historic landmark designation. A radical • Michigan Ave. Frontage: 170 FT transformation of the area is occurring with a number of significant new developments • Depth: 179 FT underway to transform the surrounding neighborhood into a vibrant entertainment • Zoning: DS-5 district. • Great Development Opportunity McCormick Place, the nation’s largest convention center, boasts over 170 meeting • Located in South Loop’s Motor Row District rooms and 2.6 million square feet of Exhibition Halls. It has secured more than $6 Billion • Adjacent to McCormick Square in new, recommitted, or extended shows. Through Elevate Chicago, McCormick Place • Within 4-Minute Walk to new CTA Green Line and Navy Pier are undergoing $1.1 Billion in transformational development projects. Station Chicago’s South Loop is one of the city’s fastest growing neighborhoods. There are • Accessible to I-55, I-94, Lake Shore Drive & more than a dozen active developments currently under construction in the South Loop Chicago’s Loop including the Marriott Marquis Hotel, the Wintrust Arena, the 22 story McHugh Hotel • Real Estate Taxes (2016): $41,710 Development, McCormick Square and the 14 -acre 3,600 unit Riverline Project

To help support development and investment in the South Loop, a new $50 million Cermak-McCormick Place Train Station was recently opened to service. The station is within walking distance of the Motor Row entertainment district and McCormick CLICK TO VIEW VIDEO Place. City officials and developers are optimistic that the new access to rapid transit will help accelerate the expansion of businesses and housing in the South Loop area.

The property is currently leased to Burger King Corporate via a 5-year absolute NNN lease extension expiring in February, 2021. Current NNN rent is $4,500/month. The landlord has a right to terminate with a 12-month notice. SOUTH LOOP MAP 2328 SOUTH MICHIGAN AVE. CHICAGO, IL 60616

The DS, Downtown Service district is primarily intended to accommodate commercial and service uses that are essential for the livelihood of businesses and residents of the downtown area and surrounding neighborhoods. The district regulations allow a mix of small-scale office, commercial services, public uses, transportation and communication services, and industrial uses. The maximum floor ratio (FAR) in a DS-5 is 5.0 with available FAR bonuses.

Chicago, on Lake Michigan, with a 2016 population of 2.705 million is the 3rd most populous city in the U.S. Famed for its bold architecture. it has a skyline punctuated by skyscrapers such as the iconic John Hancock Center, Willis Tower (formerly the Sears Tower) and the neo-Gothic Tribune Tow- er. e city is also renowned for its museums, including the Art Institute of Chicago with its noted Impressionist and Post-Impressionist works.

e Chicago metropolitan area, or Chicagoland, is the metropolitan area that includes the city of Chicago, and its suburbs. With an estimated population of 9.4 million people, it is the third largest metropolitan area in the US. e Chicago metropolitan area is one of the world’s largest and most diversi ed economies, with more than four million employees and gener- ating an annual gross regional product of over $561 billion. e region is home to more than 400 major corporate headquarters, including 31 in the Fortune 500 and the Chicago Cubs, White Sox’s, Bulls, Bears, and Black- hawks.

In 2016, Chicago set a visitation record of 54.1 million visitors; a 2.9 % increase from 2015.

Alderman Dowell is proud to have brought two streetscape projects to the Motor Row area, one on Michigan Avenue between Cermak Rd. and 24th Place, the other on 23rd Street between State Street and Indiana Avenue. Improvements include new sidewalks, curb and gutter, lighting, landscaping, road reconstructions, ComED line burial, and various pedestrian and placemaking elements. These streetscape and placemaking improvements provide needed infrastructure repairs and elements to support an envisioned Motor Row corridor as an Entertainment District

MOTOR ROW STREETSCAPES

Newly constructed and open, the Cermak-McCormick Place Chicago Transit Authority (CTA) Green Line station, will serve the growing area near historic Motor Row area and provide a crucial additional transportation option for the Near South Side residents and businesses. The new station, part of $4 billion in transit investments is located near the intersection of Cermak Road and State Street. It provides convenient rail access to McCormick Place, which lies two blocks east.

CERMAK-MCCORMICK PLACE GREENLINE STATION

The Wintrust Arena will be a multi-purpose general session hall for business meetings and conventions as well as a venue for concerts, sporting events and other major special events. With 10,000 seats and 22 state of the art suites, the Wintrust Arena can accommodate a myriad of events. It will feature a first-class NCAA basketball court that will be the new home court for DePaul University men’s and women’s basketball teams and THE Chicago Sky, the Windy City’s WNBA team. Wintrust Arena will feature a diverse, year- round calendar of events-ranging from sports to national concert tours to family shows and conventions. Part of a vibrant and walkable urban experience for convention goers, the Wintrust Arena is located in the heart of McCormick Square, making it a prime tourism destination for local residents and visitors alike. The WINTRUST ARENA, MCCORMICK SQUARE arena will serve as a further catalyst for economic development of the historic Motor Row along South Michigan Avenue and other surrounding neighborhoods.

Opening in 2017, the Marriott Marquis Chicago is a 1206-room hotel with over 90,000 SF of function space including two 25,000 SF ballrooms. Soaring above the Chicago lakefront and the South Loop, the new Marriott Marquis Chicago is connected to the country’s largest convention center, McCormick Place. The hotel offers an infinite combination of flexible event spaces and stylish guest rooms with striking city views within close proximity to Chicago’s top attractions and public transportation

MARRIOTT MARQUIS CHICAGO

Expected to rise 22 stories and feature 466 new hotel rooms to Chicago’s newly-branded ”McCormick Square” entertainment district near the McCormick Place convention center. Located at 123 E. Cermak, the yet-to-be-named development will feature a trio of Hilton-branded hotels, Hampton Inn, Home2 Suites, and Hilton Garden Inn. Plans also call for a sizable retail component including a two-story structure occupying the site’s western portion. Apparently reliant solely on public transportation, taxis, and existing nearby garages, the project will have no parking of its own.

August 01, 2017 Former Bear to buy Motor Row building By DANNY ECKER

Former Chicago Bears defensive end Israel Idonije has a new target to tackle: a vintage Motor Row building on the Near South Side.

Betting on the emergence of a new entertainment district near McCormick Place, Idonije and a group of investors that includes another former Bears pass rusher, Julius Peppers, have agreed to buy the vacant Hudson Motor building one block west of the convention center for an undisclosed price.

Idonije’s group has likely agreed to pay more than the $5.8 million the 1920s-era building sold for in January, when an affiliate of real estate investment firm Echelon Capital bought it as its previous owner was facing foreclosure.

Idonije, who spent most of his 11-year NFL career with the Bears, was tight-lipped on his plans for the 115,000-square-foot former auto showroom at 2222 S. Michigan Ave. but said he envisions “a number of uses for the property” designed for what he expects will become one of

“I think the area (near McCormick Place) specifically is one of the key next growth areas of the city,” said Idonije, who owns two other mixed-use properties in the South Loop. “I think in the (near) future as an entertainment district for the city that the area will be comparable and similar to what we see in the West Loop.”

Motor Row, a landmark, largely idle stretch of South Michigan Avenue that was once a hotbed of car dealerships, has seen incremental investment in recent years from developers hoping it will begin to thrive.

Boosting Idonije’s confidence in his bet is the imminent debut of 10,387-seat Wintrust Arena—home of DePaul basketball and future home of the Chicago Sky WNBA franchise—and an adjoining 1,205-room Marriott Marquis Chicago hotel nearby. A 466-room tri-branded hotel is also under construction along Cermak Road across the street from the convention center’s west building.

City officials hope those publicly funded projects spur a surrounding entertainment district with nightlife, retail and restaurants. The agency that owns McCormick Place created the name “McCormick Square” last year in an effort to reposition the district, which includes Motor Row, east Cermak Road and part of Bronzeville.

Idonije played in 134 games over nine seasons with the Chicago Bears and also played for the Detroit Lions. He and Peppers, who now plays for the Carolina Panthers, overlapped in Chicago from 2010 through 2012.

Source: chicagobusiness.com

August 26, 2017 The hottest neighborhood you’ve never heard of By DANNY ECKER Milan Rubenstein was nervous when he spent $19 million on a slew of mostly vacant properties on the Near South Side three years ago. Historic Motor Row on South Michigan Avenue and the area surrounding the McCormick Place convention center were so plagued by developmental false starts that even a new CTA train stop, 10,387-seat arena, 40-story hotel and a vow from the city of Chicago to transform the neighborhood into an entertainment district were no guarantee that his big bet would pay off.

“I was scared to death,” says the partner at Windy City RE, which has historically specialized in buying and selling apartment complexes but splurged on mixed-use properties on and near Motor Row in 2013 and ‘14. Beyond the money he spent to purchase the properties, he had to spend millions more to fix them up. “Now I’m no longer scared. I’m very excited.”

Motivated in part by the addition of Wintrust Arena and the 1,206-room Marriott Marquis Chicago hotel set to open in coming weeks, Rubenstein has in the past 18 months signed more than 15 leases with businesses to fill his retail and office space. His historic properties that once housed auto showrooms but sat empty for years have been filled in recent months with tenants that hint at gentrification: bars, restaurants, a day care, a boutique gym and even a dog grooming business. Residential units above the retail properties are getting snapped up as well, some for 20 percent more than he underwrote them for when he purchased the properties three or four years ago, he says.

These are early signals that the entertainment hot spot he envisions for the area with year-round activity instead of ebbs and flows of traffic from convention-goers may be starting to form—though the road ahead is still long.

The unproven arena’s two current sports tenants—DePaul University and Chicago Sky basketball—don’t guarantee big crowds. And the Near South Side has plenty of competition for entertainment dollars from places like Fulton Market District, the rest of the West Loop and even the transforming area around Wrigley Field.

“But if you don’t plant the seed, you can’t expect it to grow,” Rubenstein says.

The tenant trickle along Motor Row, Cermak Road and the surrounding streets is an encouraging sign for real estate investors betting on the neighborhood’s future. In addition to the new arena, the hotel and the Green Line CTA station, development creeping south of 18th Street from the South Loop neighborhood and the city’s new plan to redevelop the former Michael Reese Hospital site just south of McCormick Place have complemented notable recent investments in the area.

In the mix are former Chicago Bears Israel Idonije and Julius Peppers, who recently agreed to acquire the Hudson Motor Building at 2222 S. Michigan, a 115,000-square-foot property in the heart of Motor Row for which they envision “a variety of uses,” Idonije says. Next door, Chicago businessman Richard Driehaus paid almost $8.7 million for the historic Marmon Building, which he plans to redevelop. Around the corner from them is a 466-room hotel that Rosemont-based First Hospitality Group and developer James McHugh are currently building between Motor Row and McCormick Place along Cermak Road. The south end of Motor Row has also started to come alive, with event spaces Row 24 at 2411 S. Michigan Ave. and Revel across the street.

Source: chicagobusiness.com