Marcus & Millichap brokered the sale of a Chase Bank-anchored retail building located on the Southport Corridor of Chicago, according to David G. Bradley, regional manager of the firm’s Chicago Downtown office. The asset sold for $3,725,000.
Mitchell Kiven, an investment specialist in Marcus & Millichap’s Chicago Downtown office, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, a New York-based developer who specializes in boutique hotels, was also sourced by Mitchell Kiven as a result of a call for offers campaign.
The property went under agreement at the end of February, when the buyer was at the very end of their 1031 identification period after having sold a historic warehouse building in Detroit. As the COVID-19 pandemic worsened and both Chase and European Wax temporarily closed their doors, the buyer grew wary of proceeding, despite the fundamental strength of the property and their professed commitment to core, urban real estate.
The buyer had intended to refinance post-closing with a CMBS loan; however, as that market imploded, the debt piece of the transaction began to appear impossible. Dean Giannakopoulos, of Marcus & Millichap Capital Corporation, stepped in and together, all parties labored to restructure the transaction over the next several months, while the tenants planned their reopening and the shape of the post-COVID commercial real estate market began to emerge. At the beginning of July, the property finally went under contract and the transaction closed 14 days later.
Located at 3730 North Southport Avenue in Chicago’s Lakeview neighborhood, the asset is surrounded by numerous high-end boutiques, national retailers and a dense population. The historic bow-truss building is 6,000 square feet and occupied by both Chase Bank and European Wax Center.