The mystery buyer of a $5 million empty lot on Chicago’s North Side that was once slated for development by Quest Realty has been revealed as Nick Anderson of Fern Hill, but Quest still has chips on the table.
Quest Realty owned the site at 5950 North Sheridan Road for almost seven years, and was greenlighted in 2021 to advance on plans to build a five-story apartment building there. But the local developer sold it to Anderson last month, property records show.
Jason Vondrachek of Quest Realty said in marketing materials that Quest was willing to finance an acquisition, and Anderson took that offer, public records indicate.
Anderson took out two mortgages on the site — one for $3.5 million and another for $500,000 — from an LLC headed by Vondrachek shortly after purchasing the lot, property records show.
In return, Anderson agreed to use rental revenue generated from any future tenants on the property to help pay back the loan from Quest, naming Vondrachek’s LLC as an “assignee,” records show.
That suggests Anderson will move forward with Quest’s project proposal, or with another proposal for multifamily development, and that Quest will be involved.
Quest’s plan was for a 59-unit building called Loft Lago, and it partnered with Hanna Architects, according to Chicago YIMBY. The building was to offer one-, two- and three-bedroom apartments as well as a rooftop deck with views of the lake.
Its entitlements were a huge selling point. When landowners have already gone through the work of planning, zoning and community meetings, it makes the site more valuable.
If Anderson wants to use Quest’s project proposal, he may have to hurry to avoid going through the process again, as developers typically have six years from the time of city approval to line up construction financing and start construction.
Fern Hill and Quest Realty did not respond to requests for comment Tuesday.
Anderson bought the 0.7-acre site for $5 million, or about $166 per square foot, with Vondrachek representing both the seller — his development firm, Quest — and Anderson, according to Redfin.
The property is a rare empty lot on the increasingly built-up North Side. Neighbors believe the site, which is near Kathy Osterman Beach in Edgewater, has been empty for at least 30 years, and possibly more, Vondrachek told Crain’s back in 2019.
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Developer sells Edgewater site once slated for housing for $5M