May 20 2012
According to Chicagorealestatedaily.com, the owners of one Chicago business recently took out a hefty loan – $145 million to be exact.
The borrowers are Chicago-based McCaffery Interests Inc., and Los Angeles’s Canyon-Johnson Urban Funds, the owners of The Roosevelt Collection, a large South Loop property that is home to apartments and retail space. The due bought the building from Centrum Properties in a short sale last year.
According to the article, while the apartment units are mostly leased, the owners have struggled to find retail tenants. The only current retail tenant is a movie theater. Although a spokesperson for McCaffery has stated that the retail units are around 50% leased, he said that the future tenants will not be announced until the property is around 75% rented.
The loan in question will be used to pay down some of the equity on the $160 Chicago project, and will also finance some improvements to the building, including a new escalator and the formation of an attractive plaza.
John Brayshaw of Prime Finance calls the property “a terrific asset.” Other similar projects are also in the works, including a building housing over 450 apartments as well as 200,000 square feet of retail space, being developed by Chicago’s Bond Cos.
As evidenced here, many Chicago business transactions involve significant sums of money and require the guidance of a knowledgeable Chicago-area business lawyer. Denice Gierach, the founder of The Gierach Law Firm in Naperville, Illinois, is a skilled business attorney and also holds her MBA. Chicago business owners seeking expert legal representation should contact The Gierach Law Firm for a no-obligation consultation today.
Apr 29 2012
Plans are in the works for a 260,000 square-foot privately-funded development to potentially be built just east of the United Center, home of the Chicago Blackhawks and Chicago Bulls. Led by the Bull’s owner, Jerry Reinsdorf, the development is envisioned to include a team store, restaurants, bars, and possibly team offices, parking, and a green roof.
The project’s proponents point out that the area currently consists of “a sea of parking lots” and say that the neighborhood’s residents would appreciate the addition of these types of establishments. The also expect that the project could bring nearly 800 jobs to the area – 300 during the building’s construction and another 500 long-term.
Satellite view of the United Center (photo courtesy of NASA)
They also point to the fact that the United Center brings nearly a-million-and-a-half fans to the area each year, many of whom eat and drink at West Loop businesses that offer shuttles to the United Center. They envision the area surrounding the United Center becoming an entertainment district in itself, similar to the neighborhood surrounding Wrigley Field. The once-gritty area does seem to be on the rise, with a 2010 survey showing that the median income rose by over 16 percent in the past decade.
However, there are hurdles to overcome. First, the possibility that the developers would be required to fund a new bus line to accommodate the area. Second, property tax issues involving the extension of a property tax abatement set to expire in 2017. Additionally, the owners of the Chicago Cubs are seeking support for a large-scale Wrigley Field renovation.
Real estate developers, business owners, and those considering starting a business in the Chicago area need the guidance of a top business and tax law attorney. Denice Gierach of The Gierach Law Firm has years of experiences representing Chicago and Naperville businesses, and, as she holds her Masters Degree in Business Administration, also has a firm grasp on the numerous issues related to owning a business in Chicago.
Apr 23 2012
According to Globest.com, suburban Chicago shopping mall The Yorktown Center was recently sold for $196 million. Located in Lombard, Illinois, the mall was once the largest mall in the country, and despite undergoing many changes since its opening in 1968, remains a popular Chicago-area shopping destination. The property was sold by the family of Ed Pehrson, who built the mall. It was purchased by two investment companies – Kohlberg Kravis Roberts & Co. LP out of New York City, and YTC Pacific from El Segundo, California.
The Yorktown Center includes a 500-room Westin hotel, several restaurants, and a revamped Shops on Butterfield lifestyle center. Other popular tenants include Victoria’s Secret, JCPenney, American Eagle, the Gap, and AMC Theaters.
The new owners are planning for numerous improvements, including upgrading the lighting, signage, entrances and food court. Ralph Rosenberg, a member of Kohlberg Kravis Roberts & Co. LLP said that their long-term goals for the Chicago property include improving the tenant and merchandising mix, ultimately benefiting the local community and economy.
Chicago commercial property sales can be extremely complex and require the assistance of an top Naperville business attorney. When millions of dollars are at stake, those buying or selling a business in Chicago need a strong negotiator on their side. Not every Naperville, Illinois business lawyer has the experience necessary to handle large-scale commercial business transactions. Denise Gierach and The Gierach Law Firm’s knowledgeable Naperville business attorneys provide competent representation in all types of business law issues, including buying and selling a business, business tax planning, and business succession planning.
Apr 07 2012
A Chicago family-owned business recently went up against the owner of the Chicago Cubs in a legal battle regarding the sale of Cubs memorabilla. The dispute revolved around the right to sell Cubs souveniers at an intersection across the street from Wrigley Field’s front gate, and according to WLS am, the parties recently reached a “amicable settlement.”
Chicago Sports and Novelty, Inc., says that it’s sold memorabilia from the corner of a McDonald’s parking lot at Clark and Addison since 1970, and that their valid lease was canceled when the Ricketts family – the Cubs Owners – bought the property from McDonald’s last fall. The Rickettses, meanwhile, wanted to sell their own Cubs merchandise from the spot.
Daniel Ryan, the attorney for Chicago Sports and Novelty, Inc., says that the settlement allows an investment group controlled by the Rickettses now has the full right to use the property for memorabilia sales, but declined to mention if Chicago Sports received a financial settlement from the Ricketts family.
According to the WLS, the Ricketts family has purchased numerous other properties around the stadium, apparently also to sell Cubs souvenir, and that they’ve said they “have some great offerings for fans” at the location at the heart of the recent dispute.
In most disputes between Chicago businesses, reaching a settlement is preferable to engaging in costly and time-consuming litigation. Chicago-area businesses should ensure that their business attorney is both a skilled litigator but that he or she also has superior negotiation skills.
Mar 07 2012
Buying or selling commercial real estate is far more complex than the process of buying and selling residential property. While most home sales follow the same general procedure, and use many standard forms and contracts, the same cannot be said for commercial real estate transactions – offers to purchase, purchase contracts, commercial leases, and other important documents are often drafted specific to each transaction. There are many other issues unique to commercial real estate transactions, such as zoning, potential mechanic’s liens, any required permits, and previous use of hazardous materials on the premises.
Commercial property purchases usually involve a significant investment. Additionally, commercial borrowers aren’t always subject to the same consumer protection laws against abusive lending practices that those purchasing residential properties are. It’s critical to have an attorney with extensive experience in commercial real estate transactions review documents related to the financing of a commercial property purchase.
If you’re purchasing a commercial property in Chicago, it’s also extremely important to carefully consider the tax implications for your business. Although a real estate broker can be an essential part of your team if you’re buying or selling commercial real estate, it’s best to consult a Chicago business lawyer who has a strong understanding of tax law to discuss these issues.
Naperville business attorney Denice A. Gierach has been practicing business and tax law in Illinois for over 30 years, and is experienced in representing buyers and sellers in all types of commercial real estate dealings. Call (630) 756-1160, or click here, to contact Denice to discuss the legal aspects of your commercial real estate transaction.