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Home » Expertise » Capital Investing » Conlon Real Estate Funds » 417 South Dearborn |
417 South Dearborn: Chicago, IL |
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Description
417 South Dearborn is a 37,334 sf, 11-story building located in Chicago’s Central Loop. CREOF purchased the property in shell & core condition in November of 2008 from a regional bank, who had taken over the property in a foreclosure after a failed conversion from office use to residential condominiums by the previous developer. Originally constructed in 1898, the property has unique characteristics that make it very attractive for adaptive redevelopment.
Business Plan Summary
» The original business plan contemplated redeveloping the property as office condominiums. The general design of the building, including smaller floor plates and a plethora of oversized windows, supported such an adaptive re-use
» Most recently, as office fundamentals declined significantly under the weight of the current economic crisis, CREOF adapted to the changing environment by re-evaluating the business plan and opting to pursue redevelopment of the building as student housing.
» The property is located within five blocks of eight universities with over 38,000 students enrolled, collectively.
» Student housing is considered somewhat recession-resistant, as college enrollment still increases during down economies
» CREOF is now in the midst of the pre-development process for what will be a boutique 80-bed student housing project, with construction expected to kick off in Spring 2010.
» While CREOF intends to maintain many of the unique historical attributes of the building and attain tax benefits under a local preservation program, the building will contain state-of-the art building systems, substantial amenities, and is being designed in a sustainable manner with the goal of receiving LEED certification.
» The asset will be sold upon completion of construction and stabilization. |
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