NelsonHillCreating Maximum Value in Real Estate

property overview

*Zoning and FAR restrictions are subject to City of Chicago approval and are not guaranteed.

4

PROPOSED DEVELOPMENT

EXISTING SITE

1234 W. Randolph Street, is an existing 28,106 Sq. Ft. building on an 18,000 Sq. Ft.

land site with 125’ of frontage along Randolph Street. The property is currently

improved with three (3) Class C warehouse buildings. Much like its surroundings,

this property has been used for food production. It is zoned C1-3 Commercial

and is within the City of Chicago’s new downtown expansion area allowing for an

increased FAR to promote higher density.

1234 W. Randolph StreetFOR SALE

BUILDING SIZE + 103,500 SF

LAND SIZE + 18,000 SF

STORIES 6

ZONING* DX-3

OFFICE + 85,500 SF

RETAIL + 18,000 SF

MAX FAR / BONUS FAR* 3.0 / 2.75

BUILDING SIZE: 1220 W. RANDOLPH ST + 13,248 SF

BUILDING SIZE: 1234 W. RANDOLPH ST + 14,858 SF

LAND SIZE + 18,000 SF

ZONING C1-3

2015 TAXES $2.53 PSF (LAND)

PIN(S) 17-08-326-022 — 17-08-326-025

SALE PRICE SUBJECT TO OFFER

RANDOLPH STREETRESTAURANT ROW

LOU MALNATI’S

CITY WINERY

property overview 5

NelsonHillCreating Maximum Value in Real Estate

SITE

CTA GREEN ANDPINK LINE TRAINS

ALHAMBRA

W. R

ANDOLPH ST

property overview 6

Birdseye Property Aerial

Birdseye Streetview from W. Randolph St.

SITE

SITE

www.NelsonHill.com

W. RANDOLPH ST

N. RACINE AVE

ZONING EXPANSION

1234 W. RANDOLPH STREET LOCATION

CITY OF CHICAGO ZONING PROPOSAL

The subject property benefits from its location in the thriving West

Loop neighborhood and visibility on Randolph Street, adjacent

to City Winery Chicago. This neighborhood has seen a dramatic

shift in the past five (5) years from food production warehouses

to creative loft office, retail and high-end restaurant conversions.

Redevelopment is the highest-and-best use for many properties in

this submarket.

Furthermore, the City of Chicago recently released a proposal

promoting higher density redevelopment in this neighborhood. In

addition to the number of new developments in the neighborhood

including 1K Fulton, Morgan MFG, Fulton West, and various boutique

hotels like SoHo House, Nobu and Hoxton Hotels, high density

redevelopment is being considered by new development currently in

planning such as the McDonald’s Corporate Office development on

the former Harpo Studios site.

This Spring, 2016, the City of Chicago announced a new zoning

expansion proposal to increase high density development in four

designated areas surrounding the Central Business District (CBD).

While each individual project will still need to seek a zoning variance,

highrise redevelopment, increased FAR and height restrictions for

these designated areas are being promoted by the City.

CURRENT ZONING C1-3

PROPOSED ZONING DX-3

CURRENT FAR X

PROPOSED FAR 3.0

NEIGHBORHOOD OPPORTUNITY BONUS 2.75

FULTON MARKET

MCDONALD’SCORPORATE

FULTONWEST

REVEL

CITYWINERY

SOHOHOUSE

RESTAURANTROW

1K FULTON

LOU MALNATI’S

UNIONPARK

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FULTON

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RANDOLPH

WASHINGTON

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ELIZA

BETH

AD

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JUSTIN

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WELCOME TO THEWEST LOOP

neighborhood analysis 9

www.NelsonHill.com

OVERVIEW

FULTON MARKET GROWTH

NEIGHBORHOOD SHIFT TO CREATIVE LOFT OFFICE

The Fulton Market District in Chicago’s West Loop neighborhood was historically a meat-packing district and

Chicago’s first marketplace. The rich history and character of this neighborhood is embodied in the loft warehouse

construction seen in many West Loop and Kinzie Corridor buildings. As the tech scene rises in Chicago and suburban

corporations continue their downtown migration, the West Loop has become a prime location for redevelopment.

The emerging West Loop, located immediately west of Chicago’s

Central Business District (CBD), boasts a number of world renowned

restaurants along Randolph Street, mass transit with a new CTA

Station at Morgan and Lake (completed in 2012) and a collection of

new office and residential developments. The neighborhood has seen

explosive growth in real estate value and is quickly transforming from

a meat-packing district into a desirable and walkable entertainment

and tech-focused corridor. Projects like 1K Fulton, Fulton West,

Morgan Manufacturing and the former Harpo Studios land site have

piqued the interest of suburban corporations and are creating a

snowball effect for future growth.

1K FULTON DURING CONSTRUCTION

14,200POPULATION GROWTH

SINCE 2000

70%PROFESSIONAL

WORKFORCE

$106,902AVERAGE ANNUAL

HH INCOME

67%RESIDENTS HOLDING A

BACHELOR’S DEGREE

NEW DEVELOPMENT

Given the increasing demand for loft office and residential conversions,

developers have specialized in adaptive reuse redevelopment; a prime

example being 1K Fulton, completed in 2014 by Sterling Bay Companies. 1K

Fulton, formerly Fulton Cold Storage, now houses corporate giants Google

and SRAM. A number of new projects are currently underway, including Fulton

West, Revel Events, Blue Plate, Harpo Studios and more.

To accommodate the influx of tech executives, a number of boutique hotels

including the Nobu Hotel, Hoxton Hotel and Ace Hotel are sprouting up to

meet the needs of corporate business travelers.

In addition, local high-end amenities like the SoHo House have been added to

the neighborhood to provide executives with exclusive club access to

a private roofdeck, coworking spaces, pool and fitness facilities.

SOHO HOUSE

NOBU HOTEL

1K FULTON

FULTON

LIFE BOOK

MAP LEGENDNELSONHILL TRANSACTIONS

DIVVY STATION

CTA STATION

PLANNED

5.0 BASE FAR, 7.7 MAX FAR

PROPOSED ZONING EXPANSION

HISTORIC OVERLAY DISTRICT

ZONING EXPANSION

N O

GD

EN A

VE

W GRAND AVE

N M

OR

GA

N S

T

N R

AC

INE

ST

W FULTON MKTW FULTON MKT

W LAKE STW LAKE ST

W RANDOLPH ST

W MADISON ST

W HUBBARD ST

W KINZIE ST W KINZIE ST

W OHIO ST

W OHIO ST

N U

NIO

N S

T

N G

REE

N S

TN P

EOR

IA S

T

W WAYMAN ST

N U

NIO

N A

VE

W CARROLL AVEW CARROLL AVE

W CARROLL AVE

W ARBOUR PL

W KINZIE ST

MACELLORISTORANTE

SAWTOOTH

MONTESSORISCHOOL

LUXEGREATAMERICANBAGEL

CROSSROADSBAR & GRILL

MADISON STREET KITCHEN

G2 MEN’SSALON

BREW &GROW

MERIT SCHOOL OF MUSIC

ULTABEAUTY

GREEN ST.SMOKED MEATS

HAROLD’SCHICKEN

WCIU-TV

TAKHOLDESIGN

LECOLOMBE

STUBHUB

MUSICBOXFILMS

COLUMBUS MEAT

QUALITYFOODS

AMITYPACKINGLAKE ST

LOFTS

JOHN R.MORREALE

ECONOMYPACKING

PICKENSKANEPAGODA

RED

TERRY’STOFFEE

ABERDEENTAP

CASA DELSOL

COOPERTECHNICA

MARTANTHONY

SALERNO’S

BERT’SCAR WASH

D’AMATO’SBAKERY

GREAT LAKES TATTOOS

TWISTEDSPOKE

THEOGDEN

TWO

EMMIT’SIRISH PUB

PICCOLOSOGNO

LA SCAROLA

IGUANACAFE

BARTAKITO

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FULTON MKTKITCHEN

LATINOMEAT

BENNETT DAY SCHOOL

PARAGONSTUDIOS

THE MID

MOMOTARO

PADDYO’FEGAN’S

TURNINGLEAF COMM.

DE CERO

MAUDE’S LIQUOR BAR

NOBU

HAYMARKETPUB

AUCHEVAL TANOSHII

BARSIENA

THIRDRAILTAVERN

MADISONCLEANERSFIRST

EAGLEBANK

PLUMBER’SLOCAL UNION

WESTEND

THE GARDNERSCHOOL OFCHICAGO

JOHNNY’SICEHOUSE

GRACIE’SCAFE

220

N31

8 N

350

N

351 N

W WASHINGTON BLVD W WASHINGTON BLVD

HISTORIC DISTRICT OVERLAY

UNIONPARK

N A

BER

DEE

N S

T

N M

AY

ST

N N

OB

LE S

T

N A

DA

ST

N A

RM

OU

R S

T

N S

AN

GA

MO

N S

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N P

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N C

AR

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W RUNDELL PL

W ARCADE PL

N M

AY

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ST

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ISH

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ST

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AN

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REE

N S

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IN S

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STN J

UST

INE

ST

1500 W

1200 W

1015 W

945 W

905 W

1001 W

450

N

315

N

172

N

1516 W

E’S

N OGDEN A

VE

N MILWAUKEE AVE

N H

ALS

TED

ST

N H

ALS

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ST

N R

AC

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ST

materials marketing

PEORIAPACKING

FOUR STAR FOODS

RIZESPRODUCE

JUPITEROUTPOST

CRISTINAFOODS

ABERDEENAUTO

ASPENFOODS

FABRI SAUSAGE

ATKFOODSINTERNATIONALSEAFOOD

METHODBICYCLE

MCDFOODS

TUCKERPUP’S PET RESORT

FM HAIRPRODUCTS

SAM’SMEAT

CONSUMERSSUPPLY CO.

SOUTH CENTRAL BANK

A & AAUTOMOTIVE

TETECHARCUTERIE

MIDTOWNTRANSFER

ADMMILLING

PIZZERIADEL MERCATOCDT

MAHZELMETALSH.O.M.E.

MEDACTA

VICTORYRECORDS

GENIECO

LYON &HEALY

GREENBEGINNINGS

BAGGIAAUTO

RELIABLEPLATING

COBRALOUNGE

RICKARDBINDERY

KUNZGLOVE

LESLIE HINDMANAUCTIONEERS

1229 W

1217 W

1134 W

PEREZFLOYD’SBARBERSHOP

GRANGE HALL BURGER BAR

SUBJECT PROPERTY

FULTON MARKET | WEST LOOP AMENITIES MAP

RESTAURANT ROW

www.NelsonHill.com

The Fulton Market District in Chicago’s West Loop has a rich history in meat-packing as Chicago’s original marketplace. The area is experiencing substantial growth in loft-office conversions, attracting corporate brands and multi-tenant developments such as: 1K Fulton, Morgan Manufacturing and Fulton West (under construction).

The subject property is a combined 18,000 SF land site located on Randolph Street, or Restaurant Row and is surrounded by high end restaurants and famous chefs.

1234 W. RANDOLPH ST

Restaurant Row, along Randolph Street, has become a hub for world renowned restaurateurs. This transitioning neighborhood is home to the trendiest bars and restaurants in Chicago and a popular destination for “foodies.”

neighborhood analysis 11

RANDOLPHRESTAURANT

ROW

DEVELOPMENTOPPORTUNITY

property management services 13

CONTACT

MARK A. NELSON, SIOR

312.267-1101

Mark@NelsonHill.com

MICHAEL D. NELSON, SIOR

312.267-1102

Mike@NelsonHill.com