Spirit Bascom Ventures acquires mixed-use project for $21.6 million

Chicago, IL Spirit Bascom Ventures, LLC a partnership between Irvine, California-based The Bascom Group, LLC and Stamford, Connecticut-based Spirit Investment Partners, LLC has acquired 5200 N. Sheridan Rd. for $21.6 million. The property is located in Chicago’s fast growing Edgewater/Andersonville neighborhood. Todd Stofflet of KIG CRE represented the seller. Andy Feinberg, Marc Schulder, and David Harte from Ackman-Ziff arranged the debt financing that was provided by MidCap Financial. The existing eight-story prewar building contains 223 rental units with unobstructed views of Lake Michigan and 9,000 s/f ground floor retail space. The property is located two blocks from the Berwyn St. stop on the Red ‘El’ Line and a short walk to the N Clark St. retail corridor and Foster Beach. The gentrifying neighborhood continues to attract transformative projects attracted to the improving demographics such as high end grocer Mariano’s, and the 198-unit high rise development at 5440-50 N. Sheridan Rd. revealed by Greystar Investment Group. The venture sees an opportunity to transform the property into a fully amenitized, Class A luxury rental building that will appeal to the large numbers of new affluent renters moving into the area.   A limited supply of large luxury properties exists in the submarket. The major repositioning will include the repair or replacement of major mechanical systems, windows and elevators, and borrow style and space planning elements from the boutique hotel space to curate an exciting new tenant lounge, fitness center, and rooftop deck.  The renovated apartments will feature modern, open floor plans with new all new kitchens and bathrooms with stone counters tops, stainless steel appliances, refinished hardwood floors, and contemporary urban fixtures and finishes throughout. Spirit Bascom Ventures has been focusing on acquiring value add multifamily properties along the eastern seaboard and Midwest, acquiring over $250 million in assets over the past three years.  The venture has also focused on neglected urban mixed use assets that can benefit from similar high end renovations and is seeking to add to their holdings in Chicago. Ian Hafner, a principal of Spirit Investment Partners, explains, “We are excited to restore the building to prominence as a luxury rental building and participate in the exciting transformation occurring in the Edgewater/Andersonville neighborhood.”  Scott Zwilling, principal of Spirit Investment Partners, adds, “We have an experienced, well capitalized team in place to replicate this business model and add to our growing portfolio of assets.”