Investor Closes $13M Retail Deal on Southport
Four buildings now belong to L3 Capital, including the soon-to-be empty space where J. Crew is rumored to be setting up shop.
L3 Capital, a Chicago-based retail real estate investment firm focused on urban retail, recently purchased four properties for $13 million on Southport Avenue in Lake View.
The transaction marks L3’s first foray into the Chicago retail real estate investment market. Formed three years ago in Chicago by former investment professionals from Transwestern, Vornado Realty Trust and RREFF, the firm has been steadily active in the New York and Los Angeles markets.
“Chicago will be an important part of L3’s strategy moving forward,” said Greg Schott, co-founder and managing principal of L3. “We were attracted to this deal because of the strength of this retail corridor. The properties on Southport represent the type of deals that we are looking for—quality retail assets in prime urban locations.”
Encompassing 28,000-square-feet at 3430, 3442-46, 3447-49 and 3550-56 N. Southport Ave., the purchased properties are 100 percent leased and house retailers such as lululemon, Southport Grocery, Homemade Pizza Co., Free People and Southport Athletic Club. The deal also includes eight residential apartments.
“There is tremendous opportunity in Chicago and we are poised to make significant moves in this market in the coming year.”
The transaction comes shortly after Southport Athletic Club announced it will close permanently. Rumors that J. Crew is planning to fill the space are heating up after the Lake View Chamber of Commerce made a subtle hint on their Southport-focued Facebook page.
Gap recently announced its plans to open a new store along the corridor as well.
L3 Capital, which stands for the age old real estate adage “location, location, location,” focuses on retail real estate investment assets in the $5-$50 million price range. The firm’s portfolio includes single tenant, multi-tenant and mixed-use properties.
Let Patch save you time. Get more Lake View news like this delivered right to your inbox or smartphone with our free newsletter. Join us here!
For the past three years, L3 has been active on the East and West Coast, completing several deals in high-end urban markets. Its most recent deal was a 42,000-square-foot property in New York’s SoHo neighborhood that fetched a price of $41.5 million. The firm also did a two-property, $20 million deal on North Beverly Drive in Beverly Hills, CA.
“We are a highly focused retail real estate investment firm,” said Domenic Lanni, managing principal. “By carefully reviewing only specific geographies and retail assets, we are able to identify the subtlest changes in the markets in which we operate. We target high-quality assets in top urban locations. You will not see us in markets outside of that established criteria.”
In Chicago, the retail real estate investment firm is targeting the Lincoln Park, Lakeview and Bucktown neighborhoods, as well as main retail corridors such as State Street and Michigan Avenue.
“There is tremendous opportunity in Chicago and we are poised to make significant moves in this market in the coming year,” said Schott. “We are excited to begin investing in our hometown.”
Editor's Note: Parts of this article were provided via a L3 Capital press release.