Acadia Realty Trust Pays $144M for Prime Retail Asset on Chicago’s Mag Mile
- Dec 08, 2014
By Ioana Neamt, Associate Editor
Acadia Realty Trust, a New York-based equity real estate investment trust, recently announced the acquisition of an 88.4 percent interest in 840 N. Michigan Ave., a prime street-retail property on Chicago’s Magnificent Mile, at a cost of $144.3 million. CBRE|U.S. Equities Realty represented the seller, along with Doris Holleb and Robert Gerstein. According to a news release, Acadia will partner with CBRE|U.S. Equities to manage the property.
Located across the street from Water Tower Place and The John Hancock Center, the 87,000-square-foot, four-story building is 100 percent occupied by H&M and Verizon’s largest Destination Store in the country. H&M has been operating at the location since 2003 and currently occupies 59,500 square feet of retail space, while Verizon opened its 10,000-square-foot, two-level Destination Store on November 15. The upscale retail building is valued at roughly $32 million, PropertyShark reports.
“Flagship locations, such as 840 N Michigan Ave, located in live-work-play-visit cities, enable our retailers to pair highly-visible branding with access to thousands of shoppers daily,” says Joel Braun, executive vice president and chief investment officer of Acadia Realty Trust. “In our experience, retailers have been highly motivated to invest their own dollars to uniquely merchandise these flagship stores.”
840 N. Michigan Ave. is conveniently located on a prime corner on Chicago’s Magnificent Mile, a world-famous upscale section of Michigan Avenue that stretches from the Chicago River north to Oak Street within the city’s Gold Coast. The Mag Mile is Chicago’s largest shopping district, with more than 3 million square feet of luxury retailers, world-class restaurants and hotels, condominiums and museums. Some of the country’s tallest buildings are located here, such as the John Hancock Center and the Trump International Hotel and Tower. Other famous Chicago landmarks located on the Mag Mile include the Wrigley Building, the Tribune Tower, the Chicago Water Tower, the Allerton Hotel, and the Ritz-Carlton Chicago.
Images courtesy of Stephen J. Serio via Crain’s Chicago Business
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