Foreign Investors Buying 500 North Michigan
Macerich, best known as owner of the Shops at North Bridge on Michigan Avenue, is cashing out on another Mag Mile property. Macerich is selling 500 North Michigan to a group of foreign investors for $87M, according to the Chicago Tribune. The buyers are Swiss and Israeli investors, who will work with developer David Bossy to renovate the property into mixed-use retail and offices.
Macerich is making a nice return on its investment, even though it was never able to carry out its bold vision for the building. The firm acquired the 347K SF tower for $71M in 2012 and wanted to connect it to the Shops at North Bridge, while converting the lower floors into retail. The Tribune reports Macerich is now focusing on developing a parking lot on Wabash Avenue into a North Bridge expansion.
Despite a relatively quiet first half of 2017 for downtown office building sales, foreign investment has continued to pour into the Loop. HNA Group paid $360M for 181 West Madison in February.