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L3 Capital buys 51,000 sf Mag Mile retail space for $64.5M
The acquisition marks a 28% discount to the $89.9M TIAA, a Nuveen parent, paid in 2012, and the property is 68.8% occupied.
Chicago-based L3 Capital has acquired a 51,000-square-foot retail asset at the base of the Palmolive Building on 919 N. Michigan Ave. on Chicago's Mag Mile. Bisnow reports L3 paid $64.5 million for the property.
The deal price represents a 28% discount versus the $89.9 million that TIAA, the parent company of Nuveen, acquired the building for in 2012. The Palmolive Building, built in 1929 and renovated in 2005, has about 11,000 square feet of available retail space.
The retail space is 68.8% occupied, with anchors including Louis Vuitton, Breitling, and David Yurman. Bisnow also notes the Mag Mile has begun to recover in the wake of the pandemic, with major activity including a 60,000-square-foot lease for the Candy Hall of Fame in April.
In the transaction, Newmark’s Keely Polczynski and Conor Lalor represented L3 Capital, while Mid-America Real Estate’s Joe Girardi represented the seller. L3 said in a LinkedIn post that the acquisition reflects its commitment to retail real estate on long-term conviction in the Magnificent Mile’s strength.