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Old Posted Jul 16, 2019, 1:35 PM
brian_b brian_b is offline
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Join Date: Oct 2005
Location: Chicago
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The former Michael Reese site gets a boost...

Golub and Farpoint Development have agreed to pay $180 million, or about $107,000 per unit, for Prairie Shores, buying it from Draper & Kramer, the Chicago firm that built the five-tower complex, according to real estate data provider Real Capital Analytics. It would be the largest Chicago multifamily property to change hands since the 2007 sale of Presidential Towers, a 2,346-unit project in the West Loop.


Farpoint’s interest in Prairie Shores likely stems from its involvement in Burnham Lakefront, a massive mixed-use development planned on the site of the former Michael Reese Hospital next door. Chicago-based Farpoint is part of a joint venture including Draper & Kramer and non-profit Chicago Neighborhood Initiatives that wants to build as much as 12 million square feet, including housing, office and retail space, on roughly 100 acres on the Reese site and neighboring parcels. Farpoint could potentially integrate Prairie Shores into those plans.

In another interesting twist, Prairie Shores sits within an opportunity zone, part of a federal program created in the 2017 tax-cut bill to attract investment to poorer neighborhoods. Under the program, investors can limit capital-gains taxes if they invest in opportunity zones. Farpoint, launched three years ago by former Sterling Bay partner Scott Goodman, recently co-founded a venture, Decennial Group, to raise $1 billion for opportunity zone investments.
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