Peter L. Block, executive vice president; Brad R. Teitelbaum, senior associate, and Eric M. Suffoletto, senior associate, all with the Investment Services Group of Colliers International | Chicago, recently represented a private investor in the sale of the Lululemon Athletica store at 930 N. Rush St., Chicago. The 2,930-square-foot asset is located at the northwest corner of Rush and Walton streets. The sale transaction closed on April 9 at a capitalization rate of 5.3 percent, which translates to a per square foot sale price in excess of $7,000. The buyer is Acadia Realty Trust.
The property is a single-tenant retail building completed in 2009 as a build-to-suit specifically for Lululemon Athletica, a yoga-inspired athletic apparel company founded in 1998 and headquartered in Vancouver. The company has a remaining lease term of seven years at the property.
The property is located in the heart of Chicago’s Gold Coast neighborhood, an area situated approximately one mile north of the Central Business District. The Gold Coast submarket, with just more than 2.5 million square feet of retail space, currently features just a 4 percent direct vacancy rate, nearly half of Chicago’s overall vacancy rate and well below the national average.
The building at 930 N. Rush St. is situated across the street from the brand new Elysian Hotel, which was purchased in late-2011 by Sam Zell. The property also sits kitty-corner from the full-block 900 N. Michigan Ave. mall that is anchored by Bloomingdales. Additional retailers within one block of the property along Rush Street include Prada, Hermes, Barney’s New York and Marc Jacobs.
