The joint venture is renovating and repositioning the propertywith a focus on the design and furniture industries. The estimatedcost for the center is $10.5 million. The joint venture received$9.2 million in financing, which includes the acquisition,construction costs and tenant improvement allowances, Levinsonsays.

The Kinzie Design Center is about 60% leased but the jointventure is in talks with a possible tenant that could bring theproperty to more than 80% leased, Levinson says. Other tenantsinclude furniture retailer Haute Living, restaurant Aigre Doux,architects and interior designers. Smallbone of Devizes, a kitchendesigner based in the United Kingdom, has signed a 12-year leasefor 3,200 sf on the first floor of 220 W. Kinzie St., Levinsonsays. Paris Ceramics, an affiliate of Smallbone, leases space inthe Merchandise Mart but this will be only Smallbone's thirdlocation in the United States. Smallbones' other two locations arein Manhattan and Greenwich, CT.

Ed Carr, with Alliance Real Estate Group, is the leasing agentfor Kinzie Design Center. The asking lease rate is in the low $20'sper sf, modified gross, for office space and a blended rate of $35per sf, net, for the remaining retail space.The property is locateddirectly across from the Merchandise Mart. "We consider that it isa very rare opportunity to buy an assemblage of four buildings inRiver North that have been assembled over 50 years," Levinson says.The buildings, which were constructed in the late 1800's, are inthe process of being renovated. Levinson and Levin, who arebrothers-in-law, are both self-proclaimed architecture buffs andwanted to redevelop the property as opposed to tear down thestructures. The exterior is being tuck pointed and the masonry isbeing restored. The buildings systems and interior spaces are alsobeing renovated and upgraded, such as painting and upgrading theelevators and electrical service. The exterior renovations areexpected to be complete within 90 days.