Cushman & Wakefield’s Chicago Retail Investment Advisors and Retail Services team represented the seller of 10 South State Street in the recent $60 million sale of the property to a joint venture of two East Coast real estate investment groups, Madison Capital and ASB Capital Management LLC. The seller was 10 South State Street Property Investor LP.
The 54,934 square foot retail building at 10 South State Street is 100% occupied by retail tenants Urban Outfitters, Forever 21 and Office Depot. Situated on Chicago’s iconic State Street in the heart of Chicago’s central business district (CBD), the property is surrounded by some of the country’s leading retailers. Brands such as Target, H&M, Nordstrom Rack, American Apparel and many others have stores located within a one block radius of 10 South State Street.
“State Street is back…in a very big way. The sale of 10 South State underscores a renaissance occurring along Chicago’s most historic shopping district and demonstrates how coveted urban retail corridors are pricing today,” said Michael Marks of Cushman & Wakefield. “This asset crosses core fundamentals with opportunistic features, a combination which puts pressure on going-in yields.”
10 South State Street has a dense mixed-zoning designation which would allow a potential redevelopment of up to 16 times the floor/area ratio. While this means there is significant expansion potential, there is no known plan for immediate redevelopment of the property under new ownership.
