CHICAGO—Acadia Realty Trust has just bought an88.4% interest in 840 N. Michigan Ave., an 87,000-square-foot,four-story property on the Magnificent Mile for $144.3 million. Theother owners include Nancy Pacher, CamilleJulmy, and Bob Wislow ofCBRE|U.S. Equities Realty, along withDoris Holleb.

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840 N. Michigan Ave. anchors a corner of Michigan Ave. directlyacross the street from Water Tower Place. H&Mand Verizon occupy 100% of the property. H&Mhas been in the building since 2003 and recently committed to a new10-year term that also expanded its space by about10,000-square-feet. The flagship store now totals59,500-square-feet. Verizon selected this location to host about10,000-square-feet of selling space – its largest store in thecountry.

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“We worked with H&M to increase their selling space at thisproductive store and also brought in Verizon, whose engagingDestination Store concept also suits this landmark location,” saysJulmy, vice chairman of CBRE, Inc. “Following the successfulcompletion of this most recent re-tenanting, we felt that the timewas right to recapitalize. Given its complementary, high-streetportfolio and extensive footprint in Chicago's Gold Coast andLincoln Park neighborhoods, Acadia was a natural choice as ourmajority partner.”

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“Our core portfolio growth strategy centers on the selection ofhigh-quality, retail real estate locations, primarily in ournation's top urban markets, where we are able to achieve strongrental growth, today, and where we believe we are better positionedto create outsized shareholder value over the next 5, 10, and 15years,” says Kenneth F. Bernstein, president andchief executive officer of the White Plains, NY-based Acadia.“Including this transaction, our 2014 core acquisition volume nowtotals $450.4 million.”

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Acadia and CBRE|US Equities Realty will jointly provide propertymanagement services. CBRE|U.S. Equities Realty, along with DorisHolleb and Robert Gerstein, represented thesellers in this transaction.

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Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.