The high value of Lincoln Park real estate, as well as the high cost of real estate property taxes, has claimed another successful, long time Lincoln Park business. In fact, on Thursday all the fixtures, appliances and even tables and chairs already will be streaming out the door in an auction of everything moveable.
After 24 years of serving its unique brand of “Tucson comfort food,” the management of the Phil Stefani Restaurant Group made “an emotional and difficult decision” to close its flagship location at 1418 W. Fullerton Ave. One of west Lincoln Park’s best-known restaurants, Stefani’s, closed its doors to patrons on Oct. 2. At 10:30 a.m. on Oct. 14, Grafe Auction will sell to the highest bidder everything: six walk-in coolers/freezers, an 8' by 17' solid wood bar, three ranges, 195 bentwood chairs and 48 pedestal base tables, sinks, china, glasswork, artwork, decor, TVs and more. It is unknown if the large mural depicting the lovely view of Florence from the vantage point of a hill will be saved somehow or whether it will simply remain with the building to be torn down.
Company officials said the increased value of the real estate as well as higher real estate taxes had made it difficult to retain the integrity of what still had been a successful restaurant. A decision was made to close the restaurant and to sell the entire site to a developer rather than just to keep a portion of the restaurant open and to sell some of its property that fronts Fullerton Ave., as has been done by Lindo Mexico restaurant on the 2600 block of N. Lincoln Ave. Condominiums are slated to replace the restaurant.
“Emotionally it’s a tough thing to do. It’s a place that holds so many good memories for us but it’s strictly a business deal,” says Steven Hartenstein, the Chief Financial Officer/Chief Executive Officer of the Stefani Restaurant Group, who would not disclose the sales price. Lots along Fullerton Ave. in Lincoln Park have been fetching between $200 to $250 per square foot. Eight consecutive lots with B4 zoning could raise as much as $4 to 5 million depending on what the city and neighbors will allow to be built on the location.
Founder Phil Stefani (who in 1980 was a travel agent) started the restaurant as a place where his Uncle Lino as well as his own father could “keep themselves busy” by operating a family restaurant that served Italian “home-cooking.”
Soon after it opened, local customers flocked to Stefani’s to enjoy Italian food that “evoked the comfortable and festive atmosphere found in the Tuscan region of Italy.” In 1984 the Lincoln Park Chamber of Commerce presented Stefani's with their Cuisine Award, one of the first neighborhood restaurants to be recognized for excellence by the Chamber.
“They could work for 10 years selling pasta to make what they will by selling their property,” said a Lincoln Park area real estate developer who wished to remain anonymous. “I’m sure it’s not an efficient building and it’s a very desirable neighborhood. It’s a shame—Stefani’s was one of the few good Italian restaurants in Lincoln Park where you could go for a businessman’s lunch.”
Patrons included Mayor Richard M. Daley and the late Joseph Cardinal Bernardin. It also is a favorite with out-of-town visitors, such as former President Bill Clinton and his wife, Sen. Hillary Clinton.
Known for a menu that included rotisserie chicken, tender veal dishes and enticing pasta dishes, the restaurant occupied a three-story apartment building that was built in 1874. Its interior was known for its large mural of Florence, Italy, and the aroma of its wood-fired oven.
In 1980, its neighbors were warehouses, factories, DePaul University and the Coyne trade school. At the time of its closing, Fullerton had become a busy shopping, restaurant and residential district.
Hartenstein says the restaurant was still successful but it just wasn’t in the best interests of the company to keep the Fullerton location open. The restaurant and its parking lot occupied eight city lots of prime real estate in Lincoln Park. “Business has been terrific but from a financial standpoint, it just didn’t make sense to turn down the real estate deal,” adds Hartenstein.
Hartenstein says he and Phil Stefani are very proud of the reputation of the original Stefani’s. “We were very proud that it maintained its reputation as the place where you brought out-of-town visitors when they wanted to go to a restaurant where the locals went out to eat,” adds Hartenstein.
While the original Stefani’s has closed, Hartenstein says his company is looking at opening another restaurant in Lincoln Park within the near future. As for the restaurant’s staff, Hartenstein says most have been relocated to other company locations.
“We’re looking at the right location to relocate the concept,” says Hartenstein.
The Phil Stefani Signature restaurant group also includes multiple Tuscany restaurants, Tavern on Rush and 437 Rush.
The high value of real estate as well as high real estate taxes affects not just restaurants but other Lincoln Park businesses as well.
Dan O’Donnell, owner of Armitage Hardware at 925 W. Armitage Ave., says the area’s real estate costs were definitely a factor in his decision to reduce the size of his once-large hardware store. The high costs associated with land in Lincoln Park also forced a change in how his store operates.
“We once occupied the space of four stores and now we are down to two spaces. We found we could make more money by renting out two of our spaces and keeping just half of the floor space,” says O’Donnell. “We also changed how we do business. A lot of our business is now over the Internet! We do well with WeberGrill.com, Leathermantool.com and Combibabystroller.com.”
A shorter version of this story was printed in last week's issue of Inside.
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