An apartment and retail complex across the street from Wrigley Field on Chicago’s North Side has sold for $100 million in a deal that wipes out most of the developers’ equity.

The sale of Addison & Clark demonstrates the lingering effects of COVID-19 and ongoing economic concerns — even for a property that is just feet from a major attraction such as the Chicago Cubs’ historic ballpark.

An affiliate of The Dinerstein Cos. and the project’s developers, local firms M&R Development and Bucksbaum Properties, paid $100 million for the property at 1025 W. Addison St. in late April, according to Cook County property records.

That is far below the amount it took to build the complex, which opened less than two years before the start of the health crisis that shut down retail and entertainment businesses throughout the world.

M&R and Bucksbaum developed the project, which includes 148 apartments, almost 145,000 square feet of retail and about 400 parking spaces. Those firms stayed in the deal by putting up new equity and finding a new investor, replacing an affiliate of Swiss investment bank UBS Group, which provided the debt and most of the initial equity on the project that opened in 2018.

“It’s not just an apartment building, it’s an entertainment complex,” M&R Chairman Tony Rossi told CoStar News. “Unfortunately, the worst thing that can happen to an entertainment complex is a pandemic.”

Addison & Clark cost about $180 million to develop, Rossi said. He estimates the developers lost another $10 million when retail tenants stopped paying rent or reduced their payments during the depths of the pandemic.

A UBS fund’s equity is wiped out in the sale, but it pays off a nearly $97 million loan by a UBS affiliate, Rossi said.

The developers had a 20% stake in the initial ownership venture. That stake has increased in the new deal, said Rossi, who declined to specify by how much.

The recapitalization provides a fresh start for the developers at a time when Chicago weather is warming, huge crowds are descending on the ballpark and neighboring bars, and retailers are showing more interest in new spaces than they have at any time since the pandemic, Rossi said.

The opening of an Alamo Drafthouse movie theater a few months ago has added foot traffic and business for the complex’s public parking spaces, Rossi said.

“We’re seeing an excitement level,” Rossi said. “We feel like everything’s headed in the right direction now. That’s why we still believe in it, particularly at this lower cost basis.”

Representatives of Houston-based Dinerstein and UBS did not immediately respond to request for comment on Tuesday.

The apartments are 90% occupied, a figure set to increase to 94% when newly signed residents move in, Rossi said.

The retail portion of the property is 90% leased, according to CoStar data. Tenants include the movie theater, a Lucky Strike bowling alley and live music venue and a Harley-Davidson store.

Nashville-based bar chain Tin Roof has leased almost 10,000 square feet. The developers await permits from the city to begin building out that space, Rossi said.

The ownership group borrowed just over $65 million from Nationwide Life Insurance, according to county records. That leaves the owners with a smaller loan at a higher interest rate than they previously had, Rossi said.

The deal was completed after nearly a year of interest rate increases that have slowed real estate deals throughout the country, and following recent bank failures and other economic worries that have further complicated transactions.

“Finding a loan was exceedingly difficult,” Rossi said.

M&R and Bucksbaum were represented by Berkadia broker Pete Evans in finding a new equity partner and by Berkadia’s Jason Bond in securing the new loan.