CBRE has arranged the purchase and sale of 59-65 E. Oak Street—a one-block stretch of high-end retail located in Chicago, Illinois.
Keely Polczynski of CBRE Capital Markets represented both the seller, Jenel Real Estate, and the buyer, Union Investment Real Estate, in the transaction that closed on October 26, 2021 for an undisclosed price. The transaction represents the stability and strength of the Gold Coast Chicago retail market and is the largest price paid for any retail asset sold in Chicago since 2016.
CBRE represented Jenel Real Estate in the original acquisition of two separate parcels in 2016. Jenel subsequently demolished the existing structures, built a state-of-the-art 32,000 sq. ft. LEED certified building that now houses flagship high-end retailers CHANEL, Van Cleef & Arpels (Richemont), Moncler, and Le Colonial.
“This sale represents a new benchmark for the Chicago market. Properties along Oak Street rarely become available, and 59-65 East Oak represents best-in-class tenancy, state-of-the-art construction, ample frontage, visibility and an irreplaceable location,” said Polczynski.
“East Oak Street is the number one destination in Chicago for luxury goods and fashion. High-profile tenants include brands such as Hermès, Prada, Giorgio Armani, and Dior. Due to the demand for space, vacancies are historically low, and rents are stable,” said Henrike Waldburg, Head of Investment Management Global at Union Investment Real Estate.
Union Investment is a leading international investment manager specializing in open-ended real estate funds for private and institutional investors. Based in Hamburg, Germany, Union Investment has €48.0 billion worth of assets under management.
“Over the last couple of years, we have found it challenging to invest in the U.S. market due to increased hedging costs and travel limitations because of the COVID-19 pandemic. While our U.S. team has remained active throughout this period, we are now able to acquire once more and look forward to realizing future opportunities in this very dynamic market,” said Matthew Scholl, Executive Director and Head of Investment Management Americas at Union Investment.
