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NY Investor Buys Reckless Records - Rodan Building in Wicker Park

Wicker Park- February 5, 2013 - New York investor Jenel Management continues their pursuit of Wicker Park and Bucktown real estate. In 2012, the investor spent $9.8 million dollars for multiple properties in the 1600 block of North Damen and now rents their street level retail spaces to high-end brands including: Diptyque, Scotch & Soda and David's Tea.

Jenel also owns: 1543 N. Milwaukee Avenue (retail tenant: Second Time Around) and 1480-1484 N. Milwaukee Avenue (currently leased to Covo Gyros and Native Foods Cafe).

Jenel Management's recent Milwaukee Avenue acquisition includes 1530 - 1532 N. Milwaukee Avenue for approximately $1.4 million; the building currently the home of Reckless Records and Rodan.

With the exception of Covo Gyros, it appears Jenel Management seeks higher end, large retail chains to fill their spaces like Scotch & Soda, Diptyque, David's Tea and Second Time Around. And that begs the question: Will Milwaukee Avenue commercial rents be affected like the Damen Avenue rents have been and how will this impact our small business owners?  Many small businesses have been forced off of Damen Avenue because of the skyrocketing rents. How does this affect a community committed to supporting indie businesses? Jenel Management has to honor the leases of its current commercial residents so Reckless Records and Rodan aren't going to be moving out today. But this purchase by Jenel sets the stage for an entirely different environment for those indie businesses when they need to negotiate/renew their leases in the future.

 

This news is even more disconcerting because it comes on the heels of another real estate update published earlier this year regarding the 1200 block of N. Milwaukee Avenue. Although we agree the old Wieboldt's building at 1272 N. Milwaukee Avenue needs an overhaul. The objective of the overhaul is to upgrade the area and demand higher rents. So if higher rents will be demanded on the North end of Milwaukee Avenue and higher rents are going to be demanded on the South end of Milwaukee Avenue, the small business owners in the middle are going to feel the squeeze ... and soon.

 

Let us know what you think.

 

Investor Amasses Retail Properties in Bucktown (Chicago Real Estate Daily)

Retail Investor Buys Wicker Park Building for About $1.4 million (Chicago Real Estate Daily)

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Posted on 05-Feb-2013 09:05 AM
bad news.
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