X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Inland Real Estate Auctions Inc. will auction off 326 N. Michigan Ave. on behalf of seller Loukas Development. The site, which Inland touts as a prime location for high-rise development, is just two blocks from Millennium Park and currently houses a 20,000-square-foot, three-story Mather building.

The winner of the property in the sealed bid auction will also receive rights to any redevelopment of the site, which Inland says could involve retail, office, residential, hospitality or entertainment uses and could be valued at as much as $93 million.

The site has been characterized by Inland as the first developable parcel to become available on Michigan Avenue in years. “The whole dynamic in that area has changed since Millennium Park opened,” says Paul Rogers, SVP and managing broker of Inland, in a release. “New condominium developments nearby are drawing a residential component to the area that just wasn’t there before.”

The property sees about 16,000 pedestrians and 37,000 vehicles passing each day. “This activity spurs the need for goods and services including more retail, dining, entertainment and even more residential,” Rogers says. “The possibilities for the site are endless, and the auction presents retailers, investors and developers who never thought they could buy on North Michigan Avenue with a real once in a generation opportunity.”

Loukas was interested in auctioning the property because of the speed involved in the process. “Interest in the property is evident without any marketing and the sellers sought the auction process because it will bring that interest to a rapid and defining conclusion,” Rogers says. “It’s highly unusual for a building on this part of Michigan Avenue to be sold conventionally, let alone at auction. Increasingly, the owners of even high-profile properties are turning to auctions as a way to realize immediate value in a volatile market.”

The property is located in the East Loop submarket, where asking lease rates for Class A office space are around $37 per square foot gross, according to Cushman & Wakefield’s year-end market report. Occupancy rates for office in the submarket are around 88%.

This site is the second property with significant development potential to hit the market in recent weeks in Chicago. As GlobeSt.com reported last week, Van Buren Financial LLC has plans to sell 1035 W. Van Buren for $11 million. The 32,000-square-foot site has zoning and entitlements for a 23-story, 325-unit multifamily development with parking and retail. The total estimated cost of the development, including land and hard and soft costs, is around $81 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.