CHICAGO—Acadia Realty Trust has just bought an 88.4% interest in 840 N. Michigan Ave., an 87,000-square-foot, four-story property on the Magnificent Mile for $144.3 million. The other owners include Nancy Pacher, Camille Julmy, and Bob Wislow of CBRE|U.S. Equities Realty, along with Doris Holleb.

840 N. Michigan Ave. anchors a corner of Michigan Ave. directly across the street from Water Tower Place. H&M and Verizon occupy 100% of the property. H&M has been in the building since 2003 and recently committed to a new 10-year term that also expanded its space by about 10,000-square-feet. The flagship store now totals 59,500-square-feet. Verizon selected this location to host about 10,000-square-feet of selling space – its largest store in the country.

“We worked with H&M to increase their selling space at this productive store and also brought in Verizon, whose engaging Destination Store concept also suits this landmark location,” says Julmy, vice chairman of CBRE, Inc. “Following the successful completion of this most recent re-tenanting, we felt that the time was right to recapitalize. Given its complementary, high-street portfolio and extensive footprint in Chicago's Gold Coast and Lincoln Park neighborhoods, Acadia was a natural choice as our majority partner.”

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

Acadia and CBRE|US Equities Realty will jointly provide property management services. CBRE|U.S. Equities Realty, along with Doris Holleb and Robert Gerstein, represented the sellers in this transaction.

 

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