He says that with the extreme resurgence of the avenue due to park redevelopment and a retail boom on Chicago's prized top retail and residential strip, also known as the Magnificent Mile, the more-than-100-year-old buildings are more valuable torn down. "This is one of the few parcels left on Michigan that hasn't been redeveloped or protected by a landmark designation," Huzenis tells GlobeSt.com. "Whoever buys the property will want to tear down the buildings." Currently, a Walgreens, Radio Shack and other small retail tenants occupy the properties.
Huzenis says the ownership has received a great number of unsolicited offers, mostly from hotels, but that apartment builders are also showing interest. Ownership will put the buildings on the market in December and will examine offers in January, Huzenis says.
The Chicago hotel market has been an explosion of activity this year, and is expected to have one of its best years in 2007. Local hotel experts say the demand can be attributed to the city's growing economy and a slowdown in new construction, though the high-rise Mandarin and Shangri-La hotel projects are near the Michigan Avenue properties.
Sales of Chicago hotels have also skyrocketed in 2006, including DiamondRock Hospitality Co. paying $117 million for the Conrad Chicago, $295 million for the Chicago Marriott Downtown and LaSalle Hotel Properties acquiring the Westin Michigan Avenue for $214.7 million.
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