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Brookline finds prime deal for buyer, secures anchor tenant in 30 days

CHALLENGE

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.

ACTION

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

TESTIMONIAL

“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.

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