(To read more on the multifamily market, click here.)

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CHICAGO-The Inverbrass Funds LLC has purchased a 105,000-sfbuilding and an adjacent parking lot for approximately $10 millionwith the intent of renovating the building into work/live units.Inverbrass Funds, based in Chicago, purchased the building at 619S. LaSalle St. in Chicago's Printers Row neighborhood from "a localpartnership," says John Slivka, senior associate for CB RichardEllis.

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Slivka and Marcello Campanini, also with CB Richard Ellis,represented the seller in the transaction. The asking price for theproperty was $7.2 million. Slivka tells GlobeSt.com that it was"more of a business decision" as to why the local partnership wasselling the property. "There was a tenant that left a significantvacancy that allowed the ownership to work on repositioning it viacapital improvements," he says.

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Tabin Corp. purchased the building in 2001. Slivka would notconfirm that Tabin was the seller of the property. However, AymanKhalil, principal with Inverbrass Funds, did confirm Tabin was theseller.

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Inverbrass Funds purchased the building with the intent ofconverting it to work/live lofts because of its location, Khaliltells GlobeSt.com. "It was one of the few remaining actual printingpress type of buildings in the South Loop," he says. There arecurrently only a few tenants with the "two major tenants" being aprinter and a publisher, Khalil says. "Frankly speaking, I do notthink they will be staying," Khalil says. The two tenants arepaying "historic rates that were [between] $8 per sf to $9 per sf,"he says. "Even if I was not planning on doing any upgrades, anyrenting fees would basically price them out of that area," hesays.

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Geo. Lauterer Corp., which sells fraternal regalia, church ushersupplies and corporate awards, is the only tenant that has along-term lease, Khalil says. The business occupies approximately10,000 sf and has about five years remaining on their lease, hesays. "They told us that they want to stay and we are happy toaccommodate them," he says.

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Inverbrass Funds plans on initially converting "at least half"of the space into work/live rental units, Khalil says. Asignificant portion of the building will be renovated into unitsthat are between 1,000 sf and 1,500 sf with private baths,kitchenettes and individual heating and air conditioning, he says."We plan to focus on hardwood floors, timber beams, exposed ductwork and track lighting," he says. The lease rate for the unitswill be about $1,500 per month for the 1,000-sf units and about$2,000 per month for the 1,500-sf units, he says.

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Khalil tells GlobeSt.com he hopes to have the renovations startin about six months. "We are developing plans and permits now," hesays. The renovations should be completed in the beginning of 2008,he says.

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