A four-story mixed-use building on Chicago’s Magnificent Mile that was last sold in December 2016 for $140 million has changed hands for $47 million, a two-thirds discount.
According to CoStar, North American Real Estate (NARE) acquired the 85,000-square-foot retail and office building from Brookfield Properties, which became the property’s owner through its 2018 acquisition of GGP, which purchased the property nearly six years ago.
NARE plans to make minor upgrades to the building and fill vacancies. Current tenants include a Chase bank branch, a Colores Mexicanos arts and food shop, a Sephora store and the architecture firm KTGY.
“With new buyers coming into the market at a lower basis, it will be easier to revive the avenue,” Savas Er, a principal at NARE. “This is a Main and Main corner on Michigan Avenue. We believe in Michigan Avenue, and we believe in Chicago.”
The sale marks the third time in three years that Brookfield Properties endured embarrassment on the Magnificent Mile – it returned the Water Tower Place to its lender, MetLife, in 2022 and in 2023 it transacted a $40 million sale for a 117,000-square-foot building it acquired in 2013 for $166 million.
Photo courtesy LoopNet
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