(Crain’s) — A South Loop development site is headed to the auction block as its owner tries to woo investors even as the neighborhood is still working to climb back from the recession and condo crash.
The parcel of more than five acres, which borders Roosevelt Road and the Chicago River near Roosevelt Collection, has 837 feet of river frontage and 216 feet along Roosevelt Road. It is zoned for 1,500 residential units and a half-million square feet of retail space.
Jos. Cacciatore & Co. Real Estate, which owns the site, has hired Diliberto Real Estate Services LLC to auction the property. Seminars for potential bidders will begin in the next week, says Frank Diliberto, president of Orland Park-based Diliberto Real Estate.
“I think the consensus is there is a window of opportunity,” Mr. Diliberto says.
The site secures two loans. The first is $13-million loan from Bank of America Corp. that last year was extended to July 30 and includes options for two additional one-year extensions, to 2013, according to a loan document.
That loan was extended as part of a modification of a $95.5-million loan to a separate Cacciatore family Florida venture called Ocean View Developers LLC. The Ocean View loan is held by Bank of America as an agent for a group of banks, property records show. That loan also comes due in July but also includes two one-year extensions.
The Roosevelt Road property was apparently added as security to the Ocean View loan, property records show. Peter Cacciatore, president of Chicago-based Jos. Cacciatore & Co., was not available for comment Monday.
While the South Loop has a lot of potential, the timing isn’t good right now, says Walter A. Rebenson, CEO of Chicago-based Ascend Real Estate Group LLC, a local real estate developer. “The only buyers we’ve seen buying land is people with very deep pockets and a lot of patience,” Mr. Rebenson says.
Access to the property could also be an issue — it’s at an awkward crossing where the varying road heights of Roosevelt Road converge, Mr. Rebenson says. In addition to residential, office and retail, the property could be developed for other uses, including a hotel or restaurants. The owners are open to all kinds of buyers, Mr. Diliberto says.