Six Big Deals Along Michigan Avenue
In 1947, Arthur Rubloff dubbed his plan to transform Michigan Avenue into a commercial hub the “Magnificent Mile,” a nickname that stuck. Today, some notable transactions and projects along Boul Mich continue that tradition.
1. Meyer Bergman's Record-Setting Retail Buy
Meyer Bergman made waves over the holidays with its $295M purchase of 663 N Michigan, 669 N Michigan and 673 N Michigan. It’s the fifth-highest price recorded for a Chicago-area retail property and the first transaction with a sub-4% cap rate. The buildings are home to name retailers like Nike and Cole Haan, and zoning is in place to add another 229k SF through redevelopment.
2. Oxford Capital Buys Atlantic Bank Building
Oxford Capital acquired the former Atlantic Bank Building at 168 N Michigan last month for $20M. The building is two blocks south of Oxford's Londonhouse project and gives Oxford a sizable hospitality footprint along the Chicago River. Oxford CEO John Rutledge says it's a prudent time to be investing in real estate on Michigan Avenue, especially between the Chicago River and Millennium Park.
3. John Buck Delivering Mila
We included Mila on our list of eight hotly anticipated buildings opening this year, and with good reason. The John Buck Co is looking for its piece of the multifamily pie with this 41-story, 402-unit apartment building at 200 N Michigan when it opens in summer. Buck scored an $89M loan for the project, which includes nearly 25k SF of retail.
4. Apple Store Moving To 401 N Michigan
Another project that will change the face of the river is Apple’s relocation of its flagship store to 401 N Michigan Ave. The move will make Apple a retail anchor between the Mag Mile and Millennium Park, and the company has plans to significantly improve both Pioneer Court and the riverwalk. Renderings revealed by Apple at a recent Chicago Plan Commission Meeting shows the move will add 4,300 SF of public space around the building.
5. BJB Partners' Slender Mixed-Use Plan
Michigan Avenue is a hotbed of multifamily and hotel activity. BJB Partners hopes to cash in on both sectors with a 41-story hotel and apartment tower just south of BJB's Millennium Park Plaza apartments. The lot at Michigan and Randolph is the size of a tennis court, so any project slated for that site will be slender. Very slender.
6. New Illinois Center Owners
In a year of bombshell office transactions, Sam Zell's $376M sale of Illinois Center can't be overlooked. But Zell was a seller in 2015 and Illinois Center's new owner, AmTrust Properties, may have a jewel of an office asset once it completes renovations.