Urban-High Street
Bank of America Anchored Gold Coast Retail
1167 N State St, Chicago, IL 60610
Listing Price: $15,750,000
Investment Overview
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a definitionally core, trophy asset located on Chicago’s Gold Coast. Positioned at the signalized intersection of State and Division, 1167 N. State St. is a two-story high-street retail property anchored by Bank of America (S&P Credit Rating of “AA-”). The property is steps from both Michigan Avenue and the Oak and Rush Street retail corridors, and it services the kinds of dense, wealthy demographics that compel retailers to pay among the highest rents in the city at many of the neighboring properties.
With a weighted average lease term of nine years, the property’s rent roll is stabilized and poised to deliver consistent cash flows over the course of the next market cycle. Three of the four tenants also have annual rent increases structured into the primary terms of their leases, providing meaningful rent growth as those increases compound over the same period. Bank of America’s investment grade credit guarantees 45 percent of the property’s total income, and they have a 10 percent rent increase at the start of each of their three remaining five-year option periods. BofA has occupied their suite for over 20 years and just exercised their first renewal option at the option rent outlined in their original lease.
The Gold Coast has one of the lowest vacancy rates in the city, with a submarket vacancy of 3.7 percent. New leases for comparable ground-floor space are signed significantly in excess of $100 per square foot.
In addition to being located so close to the fashion boutiques on Oak, Rush and Michigan Avenue, the intersection of State and Division has the added benefit of close proximity to both an ‘L’ stop as well as to the high-end condo towers and co-ops that line the residential streets between this property and Lincoln Park. Such a strategic location allows the property function more as a service-oriented retail building, rather than as a pure retail play, the fashions of which come and go with the seasons, which serves to enhance the durability of the tenancy at 1167 N. State St.
Bank of America Anchored Gold Coast Retail
Investment Highlights
- Generational Asset Anchored By High-Performing Bank of America Branch Located at Signalized Intersection of State and Division on Chicago's Gold Coast
- Bank of America Has Operated Here for Over Two Decades and Recently Exercised a Renewal Option at the Option Rent Agreed to in Their Original Lease
- Bank of America (Moody's Credit Rating of "AA-") Guarantees 45 Percent of the Property's Total Income
- High Foot Traffic Location With a 99/100 Walk Score, Two Blocks From the Clark/Division Street 'L' Station
- Weighted Average Lease Term of 9 Years With Three of the Four Leases Featuring Significant Annual Rent Steps
- In 2023 Sola Salons Executed a 15-Year Lease for the Desirable Second Floor Space With 3 Percent Annual Increases
- Staggering Demographics With 99,000 People Living Within One Mile, a Daytime Population in Excess of 200,000 People Within the Same Radius, and Average Household Incomes Over $150,000
Exclusively Listed By
Financing By
Listing Price: $15,750,000
Investment Highlights
- Generational Asset Anchored By High-Performing Bank of America Branch Located at Signalized Intersection of State and Division on Chicago's Gold Coast
- Bank of America Has Operated Here for Over Two Decades and Recently Exercised a Renewal Option at the Option Rent Agreed to in Their Original Lease
- Bank of America (Moody's Credit Rating of "AA-") Guarantees 45 Percent of the Property's Total Income
- High Foot Traffic Location With a 99/100 Walk Score, Two Blocks From the Clark/Division Street 'L' Station
- Weighted Average Lease Term of 9 Years With Three of the Four Leases Featuring Significant Annual Rent Steps
- In 2023 Sola Salons Executed a 15-Year Lease for the Desirable Second Floor Space With 3 Percent Annual Increases
- Staggering Demographics With 99,000 People Living Within One Mile, a Daytime Population in Excess of 200,000 People Within the Same Radius, and Average Household Incomes Over $150,000
Investment Overview
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a definitionally core, trophy asset located on Chicago’s Gold Coast. Positioned at the signalized intersection of State and Division, 1167 N. State St. is a two-story high-street retail property anchored by Bank of America (S&P Credit Rating of “AA-”). The property is steps from both Michigan Avenue and the Oak and Rush Street retail corridors, and it services the kinds of dense, wealthy demographics that compel retailers to pay among the highest rents in the city at many of the neighboring properties. With a weighted average lease term of nine years, the property’s rent roll is stabilized and poised to deliver consistent cash flows over the course of the next market cycle. Three of the four tenants also have annual rent increases structured into the primary terms of their leases, providing meaningful rent growth as those increases compound over the same period. Bank of America’s investment grade credit guarantees 45 percent of the property’s total income, and they have a 10 percent rent increase at the start of each of their three remaining five-year option periods. BofA has occupied their suite for over 20 years and just exercised their first renewal option at the option rent outlined in their original lease. The Gold Coast has one of the lowest vacancy rates in the city, with a submarket vacancy of 3.7 percent. New leases for comparable ground-floor space are signed significantly in excess of $100 per square foot. In addition to being located so close to the fashion boutiques on Oak, Rush and Michigan Avenue, the intersection of State and Division has the added benefit of close proximity to both an ‘L’ stop as well as to the high-end condo towers and co-ops that line the residential streets between this property and Lincoln Park. Such a strategic location allows the property function more as a service-oriented retail building, rather than as a pure retail play, the fashions of which come and go with the seasons, which serves to enhance the durability of the tenancy at 1167 N. State St.
Exclusively Listed By
Financing By
To view property details and documents, sign up for a free MyMMI account.
Explore exclusive listings, access research insights, and set up automated alerts for a personalized experience. Sign up now to elevate your property search.
