South Street Capital Sells Chicago Loft Office Building

Disposition Follows 2015 Office Building Exits in the Gold Coast and Goose Island Neighborhoods of Chicago

Jan 15, 2016, 08:15 ET from South Street Capital

CHICAGO, Jan. 15, 2016 /PRNewswire/ -- South Street Capital ("SSC"), a Chicago based, private equity real estate investment firm, today announced that it has sold a loft office building located in the West Loop neighborhood of Chicago for approximately $7.15 million.

The three-story, 30,000-square-foot loft office building located at 1130 W. Monroe Street was originally acquired in 2013. Following the acquisition, the building was improved with new common areas and mechanical systems. Marc Muinzer, South Street Capital's Founder, commented, "The transaction announced today was part of a successful culmination of a multi-year process. Earlier in the current economic cycle we felt that the loft office market in Chicago was on the upswing and made a strategic decision to acquire numerous office assets. Our market judgment proved correct and significant value was created across our portfolio. While the new owner might enjoy additional success with 1130 W. Monroe Street, we are pleased to exit this investment with a meaningful gain."

South Street Capital has sold over 700,000 square feet of loft office buildings representing roughly 80% of its office portfolio. "Following the disposition of a significant number of our office holdings located in Chicago, South Street Capital plans to patiently redeploy the sale proceeds back into real estate assets throughout the Midwest and West Coast," adds Muinzer. "In our view, increased tenant shadow space coupled with a surge in supply from new construction and proposed loft office conversions will present headwinds for the Chicago office market. In addition, if the current macro-economic volatility persists and a meaningful stabilization does not materialize, the effects of these headwinds may be exacerbated. As these scenarios unfold, we remain ready to quickly execute on new acquisition opportunities as they may arise."

Company Profile

South Street Capital ("SSC") is a Chicago-based, private equity real estate investment firm founded in 2002 by Marc Muinzer. SSC acquires under-performing assets at a discount to replacement cost in high barrier to entry markets. Once acquired, South Street Capital embarks on a series of processes to create value and turn these assets into stabilized, cash flowing properties. The firm has successfully invested its own capital alongside select institutions and high net worth individuals for over a decade.

Marc Muinzer, Founder
South Street Capital


SOURCE South Street Capital