Matt Garrison has spent years trying to get more people to flock to Goose Island. Now the 160-acre sliver in the middle of the Chicago River is finally starting to draw a gaggle of new users.
The commercial real estate broker who previously led leasing for trophy properties including Prudential Plaza, Aon Center and the redeveloped Old Main Post Office now faces a different kind of challenge: helping bring projects on Goose Island to life.
Former Telos Group executive Matt Pistorio has joined Chicago-based developer R2 as a principal, overseeing leasing for the firm’s 4 million square feet of properties throughout the Midwest, the developer confirmed.
While Lincoln Yards continues to grab headlines, Hogsalt Hospitality’s Brendan Sodikoff has been busy working on a dining and entertainment project that also uses land along the Chicago River. Sodikoff’s company runs restaurants including Au Cheval and Green Street Smoked Meats in West Loop, and the new Aster Hall along Michigan Avenue. Today, he confirmed plans for a massive dining and entertainment complex on a 3.5-acre boatyard site on Goose Island, in between Lincoln Park and Wicker Park.
“It’s the most exciting project I’ve had the pleasure to work on,” Sodikoff texted on Monday morning.
Milwaukee Business Journal
The Tannery business park in Milwaukee’s Walker’s Point neighborhood sold to Chicago developer R2 Cos., which intends to renovate and rebrand it as a “creative” office campus.
The Tannery property includes more than six historic brick buildings and about 250,000 square feet at 700 W. Virginia St. Formerly a Pfister and Vogel tannery, its major tenants now include Aurora Health Care.
Goose Island could get its first-ever residential development if a Canadian developer has its way with a high-profile site in the heart of the North Branch Industrial Corridor.
Onni Group is lining up a deal to buy an eight-acre maintenance facility site from bus company Greyhound on the southern tip of Goose Island, according to multiple sources.
THE REAL DEAL
R2 Companies bought a historic Old Town building with plans to upgrade the landmark’s retail and events spaces.
R2 Principal Matt Garrison said his company paid $10 million for the Germania Club building, a 129-year old former hall for German immigrants that sits at 108 West Germania Place, according to Crain’s. R2 bought it from Buffalo Grove-based Svigos Asset Management, which paid $7.9 million for the building in 2014.
R2 has plans to upgrade the three-story building’s ballroom in an effort to bring in more events. It is also considering facade upgrades including new lighting and signage.
One of the city’s most active real estate investors wants to spiff up an Old Town landmark with an eye on making it a premier event space on the Near North Side.
A venture led by Chicago developer R2 paid $10 million this week for the historic Germania Club building on the southern edge of Lincoln Park, R2 Principal Matt Garrison confirmed.
The R2 venture bought the 129-year-old building, which originally served as a social club for German immigrants and today houses retailers and a ballroom, from a venture of Buffalo Grove-based Svigos Asset Management. Svigos bought the three-story building for $7.9 million in 2014, according to Cook County property records.
Can I have your bridge?
That’s the question a Goose Island business organization is asking the city of Chicago. And the city may agree, if the details work out for both sides.
A group called Friends of Goose Island, formed by major employers and property owners on a lucrative patch of land just north of downtown, is talking to the city’s Department of Transportation about the idea of taking the 114-year-old Division Street bridge, which crosses the Chicago River west of the island, and moving it north to create a pedestrian and bike pathway at Blackhawk Street.
An R2-led venture is set to buy the 14-story Bell Federal Savings & Loan building for about $25 million, sources familiar with the deal said.
R2 is buying the leasehold interest in the 183,000-square-foot building at 79 W. Monroe St., known for its Weather Bell sign hanging over the corner of Monroe and Clark streets that changes color as it predicts temperature changes.
One of the nicest ways of getting around in and near the Loop are water taxis. These bright yellow or white boats cruise around the “Y” of the Chicago River, carrying commuters and tourists between the Metra stations and other downtown and near-downtown stops as far south as Chinatown and as far north as North Avenue.
THE REAL DEAL
REI leased a 40,000-square-foot building along the North Branch of the Chicago River.
e Washington-based outdoors apparel chain inked the 15-year deal for 1422 North Kingsbury Street with a joint venture of Chicago-based R2 and Goldman Sachs, according to Crain’s.
Outdoor gear chain REI is putting a new spin on experiential retailing in the Clybourn Corridor.
If you want to buy a kayak at a new store REI plans in the neighborhood, you can see for yourself how it handles on the water—by taking a test paddle on the Chicago River. The river’s North Branch Canal runs behind the building on North Kingsbury Street where REI recently signed a lease for the agship store.
Outdoor gear and apparel retailer REI has signed a 15-year lease on a waterfront building in the Goose Island neighborhood, according to documents led with the Cook County recorder’s o ce.
e new property is about a quarter mile from REI’s existing Goose Island store but sits immediately in front of the Chicago River’s North Branch Canal.
The Postal Service moved out of its longtime main post office in downtown Chicago in 1997, but ideas for remaking the Art Deco behemoth never gained traction. The huge building sat vacant, a far cry from the time when workers could sort up to 35 million letters a day there and residents posted mail in its elegant lobby, an airy space with stone floors and decorative panels.
Now, the real estate firm 601W Companies is taking a crack at reviving it. With a $500 million construction loan in hand, 601W is transforming a place once known for catalogs and stamps into a 2.8-million-square-foot office building called, simply enough, the Post Office.
One of the most recognizable buildings along the Kennedy Expressway is set to be transformed into a major riverfront mixed- use complex, but its most eye-catching feature will remain.
Adding another project to the fast-changing corridor along the North Branch of the Chicago River, a venture of developer R2 has purchased the 89-year-old Morton Salt warehouse at 1329 N. Elston Ave. and plans to turn it into an o ce, retail and entertainment venue—while retaining its distinctive branded roo op, the company said in a statement.
When it rains it pours. Morton Salt’s longtime advertising slogan takes on a new meaning as the company’s longtime Elston Avenue warehouse readies for a redevelopment that will continue the deluge of real estate projects along the Chicago River.
Chicago developer R2 Cos., which bought the site late last month, plans to convert the buildings, between the Kennedy Expressway and the river, into space for o ces, restaurants, retail and entertainment, Morton Salt and R2 Managing Principal Matt Garrison said. e price was $15 million, according to Cook County property records.
e redeveloped 4.25-acre property will be called the Salt District, and will preserve the company’s highly visible “Umbrella Girl” sign, which includes the company’s well-known slogan, along the expressway.
A beloved landmark to North Side commuters for eight decades, Chicago’s Morton Salt shed is preparing to start a new life as a mixed-use o ce, hospitality, and entertainment complex.
e once industrial property, known for its iconic “umbrella girl” rooftop logo, sold to developer R2 Companies late last year and is gearing up for a $20 million makeover, the Chicago Tribune reported.
A nearly century-old nonprofit organization has agreed to sell one Clybourn Avenue building to a developer while putting a larger structure across the street up for sale in deals that could bring in well over $20 million combined.
In a city where broad shoulders and a brawny industrial past are a civic cliche, there was always something magical about seeing sparks fly at Chicago’s A. Finkl & Sons Steel plant. In an industrial strip on the Chicago River, located in the near northwest side and sandwiched between two of the city’s hottest real estate markets, Lincoln Park and Bucktown, curious cyclists or drivers could roll down a rickety stretch of Cortland Street, bumping over embedded rail tracks and a paint-flecked bridge across the north branch of the Chicago River, and spy cylinders of red-hot, molten steel through the sliding doors of the century-old factory.
A developer has paid more than $22 million for the WGN studio on the North Side, where the television station will remain as a long-term tenant.
Chicago-based R2 today completed the purchase of the facility at 2501 W. Bradley Place, R2 Managing Principal Matt Garrison said.
JOURNAL & COURIER
When word got out this summer that the University Lutheran Church, across Chauncey Avenue from the bustle of Chauncey Hill Mall, was being eyed for the West Lafayette Village’s next high rise, the developer made it no secret that the idea was to “go pretty vertical.”
On the heels of what was being called West Lafayette’s tallest building yet – a 10-story student apartment complex called The Hub, waiting to break ground at Wood and Pierce streets – Matt Garrison said the project his Chicago-based firm had in the works would be taller. “Hub Plus,” Garrison, a principal with R2 Companies, said.
A construction boom of apartment towers, office buildings, retail spaces, roads, bridges, parks and trails is envisioned for a 3.7-mile stretch along the Chicago River that once was dominated by manufacturers.
A recently released proposal, backed by Mayor Rahm Emanuel, aims to address a long-brewing unease between industrial companies in the area, developers that are drawing up major real estate projects and residents of gentrified North Side neighborhoods that surround warehouses.
Hoping to reverse the fortunes of this small but distinctive area of Chicago, real estate development firm R2 Companies and urban planning group PORT Urbanism have teamed up to devise a plan to renew Goose Island.
FULTON MARKET — The city’s oldest fresh fish wholesaler has sold its buildings at Fulton and Halsted in Fulton Market, making way for retail at the high-profile site.
Isaacson and Stein Fish Company, a fish market open to the public, sold two connected buildings at 800-810 W. Fulton Market to R2 Companies, a West Loop development firm. The $9 million sale was finalized Sept. 30, confirmed Matt Garrison, R2 principal.
Chicago real estate investors R2 and Walton Street Capital have found a rare bird, seizing the chance to buy $86 million in smaller loft office properties in a single deal.
For Owen Deutsch, 76, the sale of his entire Loft Development office portfolio means he’ll have more time for his passion, photographing birds throughout the world.
WEST LOOP — After 2½ years in business, West Loop restaurant Más will close its doors for good this week.
The two-story building at Washington and Halsted was bought by West Loop-based R2 Companies for $5.3 million earlier this year. R2 Companies plans a compete a gut renovation of the building in 2017, said Matt Garrison, principal of the company.
Charles Adler knows a thing or two about startups. A founder of Kickstarter, Adler is now on the ground helping makers, architects, artists, and inventors get their hands dirty with a new experimental venture.
The Center for Lost Arts is a shared space dedicated to making and being around others with a penchant for working with their hands. Now in its second iteration, Lost Arts is using the next six months to test and tweak a membership model.
MILWAUKEE BUSINESS JOURNAL
Developer Matt Garrison wants to turn the streets around Milwaukee’s downtown U.S. Postal Service building into a 24/7 neighborhood where new towers can grow out of the ground.
Garrison, managing principal of R2 Cos. in Chicago, released details about an eventual redevelopment of the roughly 1-million-square-foot building on West St. Paul Avenue. Its first floor facing the sidewalk would become retail space. Its back facing the river would have restaurants, bars or event space with outdoor seating. Its top floor would become “creative office” space with access to a green, rooftop deck.
After wrapping up the sale of its iconic Tribune Tower on Michigan Avenue, Tribune Media is turning its attention to another potentially lucrative real estate deal about a mile to the northwest: its Freedom Center printing plant.
Tribune Media officials have been in preliminary talks with developers as it seeks a potential joint venture partner to redevelop a 30-acre site along the Chicago River on the North Side, according to real estate sources.
Investor appetite for Chicago office buildings has reached the low-rise level and buyers are willing to pay big bucks. R2 Cos has been dealing in the West Loop, River North and River West lately. On the heels of R2’s $24M sale of 770 North Halsted comes news the firm sold two office buildings in the West Loop and River North for $37M.
Another older West Loop industrial space will be transformed into new office space. According to a recent announcement from the West Loop Community Organization (WLCO), developer R2 Companies will be presenting their plan tomorrow evening to overhaul the building at 1210 W. Lake Street and add a mezzanine level. According to the zoning application, the developer is looking for a change in zoning “from a M2-3 Light Industry Distinct to a DS-5 Downtown Service District for the property located at 1210 West Lake Street.” The application also states that the plan is to add a 7,000-square-foot mezzanine level to the existing 11,000-square-foot property. No parking spaces are included in the redevelopment.
A California real estate investor paid more than $37 million for two downtown loft office buildings, a price that reflects fast-rising rents in the West Loop and River North.
Shopoff Realty Investments on Sept. 23 bought the buildings at 224 N. Des Plaines St. in the West Loop and 900 N. Franklin St. in River North for $37.5 million, or about $220 per square foot, from a venture of Chicago-based real estate investment firm R2, said R2 Managing Principal Matt Garrison.
A Chicago investor has scored big in River West, selling a loft office building there for nearly $24 million, more than double what it paid for the property in 2013.
R2 sold the 143,000 square foot building at 770 N. Halsted St. to an affiliate of York Capital, a New York hedge-fund manager, said R2 Managing Principal Matt Garrison.
Streeterville is the epicenter of Chicago multifamily sales this year, but other sectors have been flush with activity. R2 Cos and CLK Properties paid $4.8M for an 8k SF retail building in the neighborhood, a building R2 managing principal Matt Garrison says holds long-term promise. The space at 164 East Grand Ave, built five years ago, was most recently home to Chef’s Burger Bistro.
Tourists often take architectural boat tours on the Chicago River alongside kayakers and water taxis. People relax, sip on a cocktail and even fish from the riverwalk. Now imagine swimmers in the water.
That’s one of the activities envisioned for Chicago-area rivers in a report set to be released Wednesday by the Metropolitan Planning Council.
WICKER PARK/BUCKTOWN — Shuffleboard, anyone?
Royal Palms Shuffleboard Club, a Brooklyn-based company that focuses on the old-fashioned leisure sport, is eyeing an industrial warehouse at 1760 N. Milwaukee Ave. along the Wicker Park and Bucktown border for its second location and first Midwest outpost.
Two Chicago real estate investment firms bought a mostly vacant Fulton Market retail property whose value was boosted when McDonald’s confirmed plans to move its headquarters across the street.
A joint venture of Marc Realty Capital and R2 bought the retail space in the loft building at 1000 W. Washington Blvd. for $7.25 million, confirmed Baum Realty Group broker Danny Spitz, who represented the seller.
Charles Adler could have done a lot of things when he left Kickstarter in Brooklyn and returned to Chicago a couple of years ago.
He decided to launch a co-working space for people who do their hacking in wood, plastic or cloth instead of code. It’s called Lost Arts. Imagine 1871 focused primarily on workshop space for 3-D printers, precision computer-controlled cutters, standard power tools and sewing machines. If you like the smell of sawdust or solder, this will be a place for you.
A local investor group paid nearly $25 million for a mixed-use complex in downtown Deerfield, betting it can boost the property’s value by leasing up its empty office space.
A venture of Marc Realty Capital, R2 and Prime Quest Management acquired Deerfield Village Centre, a property with 56 apartments, 44,100 square feet of retail space and 20,200 square feet of office space, said Marc Principal David Ruttenberg. The group paid $24.5 million for the property at 625 Deerfield Road, he said.
After years of neglect, many of Chicago’s industrial corridors are making big comebacks. Areas like Fulton Market and River North have blossomed over the last 15 years, transforming from skid rows into some of the most popular spots for city dwellers and the businesses they work at. However, as these two areas reach critical mass, attention is moving up the Chicago River’s North Branch to places like Goose Island.
R2 Cos has been busy transforming Goose Island into a future creative office hotbed. Now it has its sights on the blistering-hot West Loop. R2 recently bought 800 W Washington, a 14k SF mixed-use property, for $5.3M. As with all of R2’s acquisitions in Chicago and beyond, the key to the deal is in the asset’s future potential.
Read more at: https://www.bisnow.com/chicago/news/mixed-use/r2-cos-loves-the-potential-of-its-latest-acquisition-59385?utm_source=CopyShare&utm_medium=Browser
Brad Keywell, the co-founder of Groupon and Lightbank, has ventured into bricks and mortar once again, buying a loft office building in the West Loop.
A venture led by Keywell last month paid $7.15 million for a three-story, 37,213-square-foot building at 1130 W. Monroe St., according to Cook County property records and Matt Garrison, managing principal of R2, the Chicago-based developer that sold the building. Keywell is also an investor in the Wrigley Building.
MINNEAPOLIS / ST. PAUL BUSINESS JOURNAL
A Chicago-based real estate investor has acquired the historic Flour Exchange Building in downtown Minneapolis.
R2 Cos. paid $7.5 million to buy the 11-story building at 310 Fourth Ave. S. from St. Paul-based Larson Properties, according to a certificate of real estate valuefiled in Hennepin County.
GOOSE ISLAND — Would you want to work in an industrial-turned-modern office with 25- to 30-foot-tall ceilings on Goose Island?
R2 Companies just snatched up a 132,000-square-foot industrial property at 1315 N. North Branch St., in the hopes of attracting either a creative office or distribution company.
A real estate investor that owns several Goose Island properties bought a site just across the Chicago River where it plans to build about 200,000 square feet of new offices near Lincoln Park.
Chicago-based R2 last week bought a 111,000-square-foot loft office building at 860 W. Evergreen St. and a one-acre property next door to it, at 1422 N. Kingsbury St., where it plans to add a new office and retail building connected to the existing structure, said Managing Principal Matt Garrison.
When executives at the Tie Bar began hunting for downtown space last year, their No. 1 concern was natural light. Previously working out of a Naperville warehouse, the mostly online retailer of price-friendly ties, socks, belts and pocket squares needed headquarters in the city to attract talent. They also required a light-filled office that could serve as a stylish backdrop for social media product shots. Since it plays a supporting role online, the HQ had to mirror the company’s textured, masculine persona.
MILWAUKEE JOURNAL SENTINEL
The downtown Milwaukee post office has been sold for $13 million, potentially setting the stage for a huge redevelopment project that would include retail stores, a high-end grocery, offices and restaurants along the building’s riverfront.
The 1.1 million-square-foot building at 341 W. St. Paul Ave. — one of the city’s largest buildings — was sold Friday to R2 Companies and Polsky Holdings, both of Chicago.
MINNEAPOLIS (AP) — A team of artists is working on a giant mural featuring a portrait of musician Bob Dylan on a building in downtown Minneapolis.
On Wednesday, the artists began painting the 60-foot tall, 150-wide portrait of Dylan, who originally hailed from Duluth and once owned the Orpheum Theatre in Minneapolis, the Star Tribune (http://strib.mn/1EjlJKI ) reports. The kaleidoscopic portrait will fill a whitewashed wall at the corner of Fifth Street and Hennepin Avenue.
R2 Cos managing principal Matt Garrison (pictured) says his company seeks out location when buying value-add properties, which accounts for 100% of R2’s recent projects. An example is a 110k SF building at 1165 N Clark St. R2 paid $11.5M for the seven-story building in 2013 and then in May partnered with Goldman Sachs on the development, a move that valued the property at $23M. Matt says value-adds on the property include improved tenant spaces and common areas.
Goose Island has always been a man-made creation; the artificial island was created in the 1850’s, when the Chicago Land Company, owned by the city’s first mayor, William B. Ogden, dug a 50-foot-deep channel in the soil. Ever since, the commercial fortunes of the 160-acre plot of land have fluctuated, from the industrial plants that belched enough smoke to earn the area the nickname “Little Hell” to the up-and-coming tech and manufacturing companies seeking to redevelop the island.
Developer R2 Companies (formerly South Street Capital) has returned to Goose Island yet again with plans on transforming an existing industrial facility into a contemporary commercial complex that could eventually host high-tech offices, a distribution center or a combination of the two uses. Last week, Crain’s announced the news, along with details of the $8.2 million deal.
CHICAGO, May 12, 2015 — R2 Companies (“R2”), a Chicago based real estate investment rm, and AIMS Real Estate (“AIMS RE”), a business unit of Goldman Sachs Asset Management, announced a strategic partnership to recapitalize the o ce property at 1165 North Clark Street in Chicago’sGold Coast.
Chicago-based interactive marketing firm Jellyvision Lab added office space in a building near its Lincoln Park headquarters amid plans to hire 100 employees this year, said CEO Amanda Lannert.
“Build it and they will come.” Well, actually, most urban futurists agree that they already are coming, and burgeoning populations around the globe are forecast to fill our cities like never before, both sooner and later. So, places like Chicago, Paris, Buenos Aries, Shanghai, Nairobi, and every other burg with at least one traffic light had best be ready.
CHICAGO, March 3, 2015 /PRNewswire/ — South Street Capital, a Chicago based real estate firm, announced that it is changing its name to R2 Companies effective today. The company will continue to be led by Managing Principal Matt Garrison.
The name R2 is loosely based on the coefficient of determination, a mathematical formula for determining how well data fits a statistical model, as well as a personal reference to Garrison’s daughters.”
Void of restaurants, parks, and retail properties, the only island on the Chicago River has always been known simply as “the place that brewery was named after.”
But Goose Island – the 160 acre artificial island in the Near North neighborhood – is having a renaissance. In fact, some are going so far as to call it “Chicago’s Silicon Valley.”
After buying two properties on Goose Island, Matt Garrison is going whale hunting.
Mr. Garrison’s Chicago-based investment firm, South Street Capital, is courting tenants for office developments it plans on the Goose Island sites, betting that the longtime industrial enclave on the city’s North Side will become a destination for technology firms and other businesses.
Like Silicon Valley, the hottest tech meccas are visible from outer space (i.e. Google Earth). CONLON Commercial prez Steve Horvath says Goose Island, with its identifiable geographic boundaries, will be the next to explode. (Nobody tell the geese, they’ll want stock options.)