The three-story building at 1025 W. Sunnyside Ave., which is fully leased, was sold to Resource Innovation Office REIT for $7.25 million on Nov. 22, according to Crain's.
“The Uptown submarket in which the property is located is the focus of significant investment by the city, and is undergoing a process of rapid gentrification. The Innovation Office REIT intends to focus on retaining current tenants and growing revenue as the surrounding neighborhood continues to improve," said Innovation Office REIT Chief Investment Officer Martin Caverly.
REIT is a non-traded real estate investment trust sponsored by Resource Real Estate, Inc., according to a press release from Cedar Street.
The building features more than 27,000 square feet of office and retail space. Its includes exposed wood beams, high ceilings, open floor plans and an abundance of natural light, the release said.
“We acquired the building from the Salvation Army, which was vacant and an abandoned building... We fully gut rehabbed it and made it into a very cool creative office, along with prime retail,” said Alex Samoylovich, a partner with Cedar Street.
It was bought for $1.2 million in June 2012 and the companies total investment was more than $5 million, according to Crain's.
Over the last five years, Cedar Street has bought dozens of buildings on the North Side including 1025 W. Sunnyside Ave., 1325 W. Wilson Ave., 5718 N. Winthrop Ave., 5411 N. Winthrop Ave., 5051 N. Kenmore Ave., 4875 N. Magnolia Ave., 5050 N. Broadway and Agudas Achim Synagogue, 5029 N. Kenmore Ave.
In June, Cedar Street announced it had sold six of its buildings on the North Side to CLK Properties. The buildings included properties at 875 N. Magnolia Ave., 5051 and 6134 N. Kenmore Ave. and 5411 and 5718 N. Winthrop Ave.
"It's all about the future and recycling some of the proceeds," said Cedar Street Managing Partner Mark Heffron Heffron at the time.
While a lawsuit has challenged the sale of the synagogue, the next step for the building is to secure zoning changes from the city, Ald. Harry Osterman (48th) said in a newsletter last week.
The building is slated to become a 40-unit residential building with a mix of studio and one-bedroom apartments and 21 parking spaces, Osterman said.
The former Aon Building, 5050 N. Broadway, will be a 710-unit mixed use building with commercial tenants on the first floor. Fifteen-percent of the units will be affordable units provided on-site, Osterman said.
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