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Baum Development sells $55M stake in Logan Square office redevelopment

The development firm had listed the 230K sf office building for $75M last year

David Baum (inset) has given an unknown partner a $55 million stake in its Green Exchange building. (Credit: Baum Revision and LoopNet)
David Baum (inset) and Baum Development has given an unknown partner a $55 million stake in its Green Exchange building. (Credit: Baum Revision and LoopNet)

Last September, Baum Development listed its Logan Square office building, the Green Exchange building, for $75 million. In 2005, the company acquired the 230,000-square-foot property — the former Frederick Cooper Lamp Co. factory — for $7.5 million. It then poured $60 million into a complete rehab at the 2545 West Diversey Avenue location, which was completed five years later.

A year after putting the property on the market and without a buyer, Chicago-based Baum shifted its strategy. The firm has brought on an investment partner after selling off a $55 million stake in the property, records show.

The building now counts freight shipping company Coyote Logistics as its biggest tenant.

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Baum and its new partner — identified only as an alternative investment manager from Asia — also refinanced the property with a $40 million loan from TCF National Bank.

David Baum, managing principal at Baum Development, said the company will continue to be an operating partner on the property. Baum declined to identify the partner beyond its position as an investment manager. He said it was the partner’s first investment in the Chicago office market.

Baum’s portfolio includes multifamily construction, hotels and retail centers.

Logan Square office rents have climbed in the last year due to limited supply and landlords who have upgraded their spaces with better amenities, according to a Marcus & Millichap second-quarter report.

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