A returning client had specific requirements for a multi-tenant property that began with the need for a second generation restaurant space. They preferred to be within Chicago’s city limits. The idea was to attract a startup or existing food tenant to not only find the space lucrative, but to sign long-term and have success. The buyer also expressed the necessity for an up-and-coming neighborhood. They aimed to gain the benefits of a growing traffic area at a price point that had not yet peaked. Brookline’s challenge was to find the buildings in the right locations at the right price, without significant competition from other fast-casual restaurant tenants.
Brookline was chosen to represent the buyer and stay on as leasing broker and property manager once a purchase was complete. Dominick and his team scoured the market, eventually finding an opportunity near Chicago and Ashland Avenues in West Town where a Michelin-Starred restaurant, Mexique, had recently shut its doors. Including the vacant 2nd-floor residential unit, the property listed for $1,298,500. After several negotiations and a few hurdles, the deal ultimately closed at $600,000. Attention was immediately shifted to finding an anchor tenant while property management projects got underway. After extensive email and internet marketing, Brookline was able to acquire Fry the Coop - a Nashville Hot Chicken restaurant with two successful suburban locations - in under 30 days. Fry the Coop signed a fifteen-year lease, stabilizing the asset for years to come. As of this writing, the 2nd-floor residential unit is under renovation in order to secure higher-paying tenants.
RESULT - LEASING
• Brookline successfully negotiated a fifteen-year lease with Fry the Coop for their third Chicago MSA location
• The long-term, triple net lease stabilized the property almost immediately following purchase
• Brookline Property Management was enlisted to oversee interior and exterior renovation projects
RESULT - SALE
• Brookline analyzed the market, identified a void in the area for fast-casual restaurants, and was able to meet the criteria the buyer was searching for
• Brookline successfully negotiated to 54% below original asking price
• 1529 W Chicago Avenue closed for $600,000
“I really thought that the specific prerequisites I was looking for in my next investment would have us waiting around a while for the market to deliver. Dominick was able to find this building a lot sooner than I expected, and some unique circumstances allowed us to reach a very favorable price. Fry the Coop was a place I had heard about, but wasn’t really on my radar because they only had suburban locations. In the end, we have an up-and-coming restaurant on a long-term deal in an up-and-coming neighborhood. It’s really a great outcome. I’m excited for everyone involved.” - Michael S.
Brookline’s Dominick Cannata was named as one of this year’s recipients of the CoStar Power Broker Award for the transaction volume reached by his team in 2018 for the Chicago market. Dominick was recognized for the number of retail transactions he brokered in Chicago and the suburbs during the calendar year.