Chicago-based L3 Capital scooped up the 51K SF retail space at the base of the Palmolive Building at 919 N. Michigan Ave.
L3 paid $64.5M for the property, a 28% discount from the $89.9M that seller TIAA, the parent company of Nuveen, acquired it for in 2012, Crain's Chicago Business reported. The discounted deal comes as the Mag Mile has slowly begun to climb out of its rough patch in the wake of the pandemic.
"This acquisition reflects L3 Capital's continued commitment to investing in exceptional retail real estate and reinforces our long-term conviction in the strength of Chicago's Magnificent Mile," the company stated in a LinkedIn post.
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The strip has seen major leases in 2026, most notably the National Confectionery Sales Association’s 60K SF deal for the Candy Hall of Fame at 830 N. Michigan Ave. in April — the largest lease inked on the Mag Mile in over a decade.
The Mag Mile's most iconic property, Water Tower Place, also received a major boost in April, when landlord MetLife Investment Management announced it would invest more than $170M in redeveloping the property. It will offer small- to medium-size retail footprints for retailers.
Newmark's Keely Polczynski and Conor Lalor represented L3 Capital in the 919 N. Michigan deal, while Mid-America Real Estate's Joe Girardi represented the seller.
“The strength of the asset and its position within one of the country’s most recognized retail destinations generated significant investor interest,” Polczynski said.
