Investment Overview

Marcus and Millichap is pleased to present the opportunity to purchase the +/-7,400 square foot, ground floor, 3-tenant retail component of the Legacy at Millenium Park, a vertical subdivision that is also home to 41,000 square feet of classroom space for the School of the Art Institute of Chicago, as well as 360 luxury residential condominiums. Sandwiched between Millennium Park and Jeweler’s Row, this retail property caters to both the hustle and bustle of this storied neighborhood (designated a Chicago Landmark in 2003), as well as to the durable tourist traffic driven to the area by Chicago’s most popular community green space. The rent roll offers a rare combination of both stability and near-term upside. The weighted average lease term is over 6 years, and all tenants’ leases feature annual rent bumps. The leases are Triple Net and provide for all tenants to report sales. The reported sales underscores the inherent strength of the real estate and demonstrates what is possible for retailers to achieve along this corridor. There is one pending lease renewal, for Reckless Records, whose lease expires in October of 2027. Ownership had signed this lease while the submarket was still recovering from the pandemic and agreed to a below-market rent of $25 per square foot. The recent signing of the Prasino lease at $47 per square foot demonstrates where the current leasing market is, as well as the degree to which this trade area has bounced back. Reckless Records’ option rent is at fair market value, which allows a new owner to mark its rent to market and boost the in-place cap rate significantly. This strategy unlocks hundreds of thousands of dollars of value within roughly a year of the next owner’s hold period. The residential density of this submarket can often be overlooked – but should not be. 94,000 people live within one mile, but the daytime population swells to over 770,000 people. Given the area traffic drivers – whether it’s Millenium Park, the School of the Art Institute and their +4,000 students and faculty, the Washington/Wabash “L” station that is 200 feet away and claims an annual ridership of 2.1M commuters, or even the 180 historic jewelry stores that have populated this corridor for over 100 years – it is no wonder that restaurants and other retailers thrive here. This is an excellent opportunity to acquire a stable retail property that also provides investors the ability to achieve significant mark to market rental upside within their first year of ownership.