A joint venture of Chicago-based real estate firms bought the Union at Roosevelt mixed-use apartment complex and the adjacent lot and office building with plans to redevelop the lot into the second phase of the project.
The 80-unit apartment complex on Roosevelt Street and First Avenue — which includes nine studio, 60 one-bedroom and 11 two-bedroom units with an average size of approximately 830 square feet — was sold for $23 million, according to real estate database Vizzda. The adjacent parcel was purchased for $4 million.
The buyers, Randolph Street Realty Capital and Origin Investments plan to build a second phase with an additional 105 apartment units on the adjacent parcel. The acquisition and construction project will total about $55 million.
The ground floor of the apartment complex includes 9,100 square feet of retail space, which is 33% occupied by Fatty Daddy Ice Cream and Genuine Wine Bar. Robert Tanaka, founder of Randolph Street Realty Capital, said the firm will first focus on leasing the remaining retail space.
Tanaka said the firm is designing the second phase to be consistent with the first, and the company is aiming to fit in with the existing community.
“We’re excited to be in the Roosevelt neighborhood,” Tanaka said. “We want to bring a property to market that’s consistent with the neighborhood.”
The second phase will include 4,000 square feet of ground-floor retail, as well as amenities for residents, including a fitness center, pool and rooftop deck.
Tanaka said the firm has submitted plans to the city for the project’s second phase and expects to break ground during second-quarter 2020. The new units will be available in early 2022. Randolph Street will be the second phase’s operating partner and developer.
The property is in a qualified opportunity zone, which provides tax breaks on capital gains invested into buildings in the zones.
“On its own merits, the first phase of Union at Roosevelt represents an excellent investment vehicle,” said Thomas Briney, director of acquisitions for Origin Investments, in a statement. “That initial phase will anchor the investment and provide stable cash flow as phase two is developed. Ultimately, given the high-quality construction standards and the addition of a modern, state of the art amenity center available for both phases, Union at Roosevelt will be a vibrant first-class asset.”