http://chicagobusiness.com/cgi-bin/news.pl?id=25547
Edgewater Dominick's site up for sale
A Dominick’s Finer Food LLC store near the lakefront is being marketed as a development site, where the
grocery chain would anchor a new, 400-unit residential project.
The 2.3-acre parcel, at the corner of
Foster Avenue and Sheridan Road in the Edgewater neighborhood, could accommodate a nearly
500,000-square-foot development under current zoning, according to a brochure distributed by real estate firm Holliday Fenoglio Fowler L.P., which is handling the sale.
Oak Brook-based Dominick’s has leased the store, at 5235 N. Sheridan Road, since the late 1970s when it was built, says Ernest Schwartz, who developed it.
Mr. Schwartz says Holliday has been hired by Chicago-based Ansonia Properties LLC, which has a contract to buy the store from him.
“That area is prime for redevelopment,” says Mr. Schwartz, who is now retired, but has owned the property since the early 1950s. “It’s a very nice area, and the area needs that grocery store.”
Matthew Lawton, senior managing director in Holliday’s Chicago office, declines comment. An executive with Ansonia could not be reached for comment.
While the new-construction condominium market is in a steep decline, many developers have turned to apartment projects, in part because condo conversions have reduced the supply of top-quality apartment properties in the area.
“There are so few rental buildings east of Sheridan that are truly lakefront type assets,” says Lee Kiser, a principal in Chicago-based Kiser Group, which specializes in the sale of apartment buildings.
Under one possible scenario, the existing Dominick’s, would be demolished, replaced by one of the chain’s “lifestyle” stores, a format that emphasizes fresh produce, baked goods and prepared food, according to the Holliday brochure.
The plan also
proposes two residential towers on the north end of the site, with retail shops on the ground floor. The terms of Dominick’s lease could not be determined.
A spokeswoman for Dominick’s, a subsidiary of Pleasanton, Calif.-based Safeway Inc., declined comment on the terms of the lease but confirmed that grocery chain is considering "options for updating the store."