CHICAGO—Cushman & Wakefield officials say they have begun marketing a three-building retail asset on N. Michigan Ave. that could bring in more than $300 million, which would make it one of the city's most lucrative retail sales ever.
The company will market the properties, located at 663, 669, and 673 N. Michigan Ave. and currently home to Nike, Cole Haan and Garmin, as “669 Mag Mile.” The offering consists of two land parcels totaling 23,598 square feet at the northeast corner of Michigan Ave. and Erie St. C&W officials add that the three buildings, which span about 148,000 gross square feet, have "advantageous zoning and no historic landmark restrictions."
“669 Mag Mile is a coveted collection of real estate at the center of a world class urban retail destination,” said Michael Marks, senior director of retail investment advisors for the firm in Chicago, in a prepared statement. He was not available for further comment by press time. “This is a hyper-core asset with compelling value-add features and future development rights. The Chicago market has not seen this blend of opportunity along one its high streets in quite some time. These attributes will attract investors from around the globe.”
The property benefits from long term credit tenancy, near term rental rate upside, and vertical development potential, he added. Garmin intends to vacate its 15,607 square-foot storefront at 663 N. Michigan Ave., giving any buyer the ability to quickly re-tenant the space. Ground floor rents on N. Michigan Ave. – which average about $485 per square foot per year – are the eighth-highest amongst markets in North and South America, according to C&W's recently-released Main Streets Around the World research report.
“Any time a building on N. Michigan Ave. becomes available to trade, it's a rare occurrence,” according to Luke Molloy, senior director of retail services for C&W in Chicago. “The size, upside potential and irreplaceable location of this particular asset will make it the one of the most high-profile retail assets ever sold in Chicago's history.”
The national team from C&W representing the seller includes Marks, Molloy, Steve Soutendijk, Nat Rockett, Evan Halkias, Trisha Connolly, Daniel Jacobson, Mark Gilbert and Steve Kohn. C&W is handling the transaction on behalf of institutional investors advised by J.P. Morgan Asset Management.
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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.
