Investor Closes Second Million-Dollar Deal on Southport

Chicago-based real estate investment firm L3 Capital has purchased three properties for $6 million on Southport Avenue Lake View, the company confirmed Monday.

This mark's the company's second million-dollar acquisition in the last six months, bringing the firm’s total investment in the Southport corridor to approximately $19 million.

“This purchase reinforces our commitment to investing in Chicago,” said Greg Schott, principal at L3. “This market is an important part of our overall strategy. Quality urban retail locations like this are exactly the type of properties we are targeting to bring value to our portfolio.”

Located at 3434 N., 3423-25 N. and 3451-53 N. Southport Ave. and encompassing 9,000 square feet, the acquired properties are already leased and contain tenants such as Standard Bank, Cerato boutique, Cuban restaurant Coobah and confectioner Candyality. 

In December of 2012, L3 purchased a total of 28,000 square feet at 3430 N., 3442-46 N., 3447-49 N. and 3550-56 N. Southport Ave. for $13 million. Those properties include such retailers as Lululemon, Southport Grocery and Cafe, Homemade Pizza Co. and Free People. The deal also included eight residential apartments.

“We have seen strong tenant demand for our existing Southport properties,” said Timothy Phair, principal for L3. “The opportunity to add to this portfolio was very enticing. Retailers are performing very well on this street and we believe that the properties we have acquired hold significant long-term value.”

All of the properties now owned by L3 are concentrated on a two-block stretch between Roscoe St. and Addison Ave.

Now that L3 has assembled a sizable portfolio in Chicago’s Southport corridor, the firm can turn its attention to marquee leasing opportunities, said Phair.

A key floor plate among the Southport properties will be available for lease as the former Southport Athletic Club recently closed at the 3442 N. Southport location, leaving 5,600 square feet vacant.

“We have received a lot of unsolicited interest for this space already,” said Phair. “Depending on the opportunities that are presented, we can either divide up the space for multiple retailers or lease the entire property to one user. With the market as strong as it is, we are able to consider several strategies.”

L3 Capital focuses on prime urban retail assets in the $10-$100 million price range. The firm’s portfolio includes single tenant, multi-tenant and mixed-use properties in Boston, Chicago, Los Angeles, and New York.