CHICAGO, Jan. 10, 2014 /PRNewswire/ -- REDICO is pleased to announce the acquisition of the historic 10 North Dearborn Building in downtown Chicago.
The national real estate development and investment company - headquartered in Southfield, Michigan - plans to renovate the 11-story boutique office building with its red stone facade in the heart of the Loop. Once known as the Covenant Club building, 10 N. Dearborn was originally constructed in 1925 and underwent extensive renovations in the mid-1980s.
The building has some 69, 000, sf of office space and more than 11,000 sf of retail space. It is home to six office tenants and to two iconic Italian restaurants, Trattoria No. 10, and Sopprafina, Marketcaffe.
With the hiring of Robert D. Horne as Senior Vice President of Investments, who will be based in Chicago, the combination marks a milestone for REDICO in entering the Chicago real estate marketplace.
"We are excited to move into the Chicago market in 2014 and broaden our Midwest base of properties," said President and Chief Executive Officer Dale Watchowski. "Considering the investment cycle and capital flow into Chicago, we think an expansion into the Chicago market at this time makes sense for REDICO."
James Solomon of Ravinia Investment Group acted as the exclusive financial advisor to REDICO. REDICO has engaged JF McKinney & Associates as listing agent and has developed plans to upgrade the building to create a high-quality office environment for existing and future tenants. Terms of the transaction were not disclosed.
In addition to 10 North Dearborn, REDICO is pursuing several other development and acquisition opportunities in Chicago. "Our core discipline is value-add acquisition and development opportunities in the office, retail and healthcare sectors," said Dietrich Knoer, Chief Investment Officer of REDICO. "When entering a new market, we are looking for opportunities in all our core disciplines and market sectors."
REDICO plans to demolish several walled offices along the exterior of the building's three vacant floors to take advantage of floor-to-ceiling windows and to create the more open layout many startups prefer, said Robert Horne.
"By opening up the floors, the building will be well-suited for creative and tech users who will benefit from this Central Loop location," Horne added. "We're going to renovate these floors and show tenants what the full potential of this building can be."
REDICO plans to use some 2,000 s.f. to 3,000 s.f. of the building for its local offices add additional employees as it buys and develops more properties in Chicago and secures property management assignments, Horne said.
REDICO is a full service real estate operating company. Founded in 1967, REDICO has established itself as a major owner and manager of institutional quality real estate throughout the United States. Through its affiliated company "American House", REDICO also is one of the largest operators and owners of senior living communities with 34 in the Michigan market alone.
In the rebounding Detroit commercial real estate market REDICO is the developer of the newest and largest retail shopping center in the city in two decades, REDICO opened the Gateway Marketplace in the summer of 2013 and will add additional retailers to the site in early 2014. Gateway Marketplace is anchored by Grand Rapids-based Meijer's first Supercenter in the City of Detroit.
The major $72 million shopping development at 8 Mile and Woodward is a ground-up development located on a 36-acre site featuring national chain stores in food, clothing and unique local service and apparel retailers. REDICO is also the developer of a 157-acre mixed-use development known as the Fairgrounds adjacent to the Gateway Marketplace location. The former Michigan State Fairgrounds site project is in the early phases of development
"We are investing in Detroit's resurgence and its future from the city limits to Downtown. REDICO has proudly been active in building commercial projects in this city for several decades and we look to take our development expertise to the Chicago market," said Watchowski.