A proposed condominium project for North Oakland Avenue has been altered to instead feature apartments and retail space, under a revised developer’s agreement approved Monday by the Village Board.
WiRED Properties plans to break ground at the vacant lot at 4533 N. Oakland Ave. sometime this fall. The four-story, $6.6 million development, coined the Ravenna, includes 22 apartments and 7,500 feet of retail space. It will be built across from WiRED Properties' last development, the Cornerstone, which features 24 apartments and an Alterra coffee shop.
It will be built about the same time The Mandel Group starts construction on a $34.8 million, six-story apartment and retail development in the parking lot at 4027 N. Oakland Ave. will move across East Kenmore Place into the Mandel Group development.
After the collapse of the condo market, WiRED Properties President Blair Williams asked village officials to amend their earlier agreement and allow a switch to apartments. The change would reduce the minimum assessed value of the project, as guaranteed by the developer, by about 10 percent, from $7.7 million to $6.9 million.
Additionally, the amendment changes the developer’s obligation to share profits with the village. In the original agreement, it was outlined that WiRED would share any profits greater than 13.5 percent of its investment with the village.
The change stipulates that the village will receive a portion of profits only under two conditions: the developer sells the property within five years, or the developer converts the apartments into condos within 10 years. Under either of these conditions, if profits exceed 15 percent, the village will get 50 percent.
WiRED will fund the development through a loan and equity. The village said it will sell the lot to WiRED for $230,000, which is market value.
In addition, Shorewood has spent $1.2 million purchasing the lot, razing structures and helping relocate a business owner to other location in the village back in 2005. The village will recoup the costs through property taxes from the developments in its already existing special tax district on North Oakland Avenue.
Ravenna's monthly rents will be around $1,650 for two-bedroom units and $2,800 for three-bedroom units.
Williams has promised one spot to Shorewood's , 4401 N. Oakland Ave., and said he is conversing with two other potential retailers that would be new to Shorewood.