Inland Real Estate Sales Inc.'s Joe Esselman, who co-brokered the sale with Kevin List, notes that potential downzoning of two one-story buildings and a 32,328-sf parking lot put a damper on the ultimate sales price. He and List had to say "no" to would-be developers who made higher offers that were subject to zoning changes.

The parking lot at 1220 N. Wells St. is zoned C2-3. While multifamily units would be allowed above the first floor, the floor-area-ratio of 3.0 would allow for a project of less than 95,000 sf. The two buildings totaling 47,500 sf at 1233 and 1241 N. Well St. are on property zoned C1-4, which allows for a floor-area-ratio of 5.0. That would allow for buildings up to 100,000 sf.

"While we were able to get our sellers one of the highest prices per sf for a property in this neighborhood, we know we could have gotten a higher price from a developer if it were clear that a high-rise could be built on the site," Esselman says. "In the end, the seller got an excellent price, and Grossinger knows it's a location with a great track record for an auto dealership."

Grossinger moves from 711 W. Jackson Blvd. in the West Loop, an area also dealing with high-rise development proposals.

"There's relief in the Old Town neighborhood for some, as there has been a debate over the last several years as to whether to ban high-rise buildings along Wells Street," List notes. "Many people in the area have been waiting to see who bought the property and what would happen if the new owners were to try to develop a high-rise on the site."