Marcus & Millichap Capital Corporation has arranged acquisition financing for Kingsbury Center, a retail property in Chicago’s Lincoln Park neighborhood. The firm secured a $13.65 million loan for the purchase of the center, which totals 53,910 square feet and is located at 1415-35 North Kingsbury Street. The retail asset reportedly traded for nearly $20 million.
The financing was arranged by Dean Giannakopoulos, a senior managing director in Marcus & Millichap Capital Corporation’s Chicago office. He secured the loan with Great Southern Bank on behalf of the borrower, a joint venture partnership between Peerless Development and Honore Properties. The capital supports the partnership’s acquisition of the Kingsbury Center retail property.
Kingsbury Center is anchored by two national tenants, Sky Zone and PetSmart, providing a mix of experiential and pet retail uses at the property. The center’s tenancy, along with its location in the Lincoln Park neighborhood, positions it as a stabilized retail asset within a dense urban trade area.
In addition to the in-place retail improvements, the property carries significant development potential through its air rights. According to information provided, there are almost 500,000 square feet of available air rights above the site. Local regulations allow developers to transfer unused zoning capacity from one property to another, which can enable higher-density construction elsewhere.
The joint venture partners plan to leverage this zoning framework in a nearby multifamily project. They intend to construct a 28-story apartment tower across the street, using air rights from Kingsbury Center as well as from another low-rise property they own in the area. By aggregating air rights from multiple sites, the developers are able to support a taller residential building than would otherwise be possible on the development parcel alone.
The transaction at Kingsbury Center therefore serves both as a stabilized retail acquisition and as a strategic component of a broader development plan. The secured bank financing underpins the retail purchase while the site’s unused air rights contribute to the economics and entitlement strategy for the planned high-rise apartment project across the street.
