Real Capital Solutions acquired 401 N. Michigan Ave. in Chicago for $132.5 million, representing a 77.8% discount to replacement cost.
The 35-story, Class-A office tower and subterranean parking garage is located along the Chicago River’s north bank in downtown Chicago and marks RCS’s first investment in the downtown Chicago market this cycle.
401 N. Michigan totals approximately 747,522 square feet and is about 87% leased, supported by a diversified, creditworthy tenant roster spanning healthcare, education, finance, investments and technology, mirroring the depth and diversity of Chicago’s economy. Major tenants include Accreditation Council for Graduate Medical Education, American Dental Association, private equity firm BDT&MSD and Scion.
The property has benefited from more than $17 million in recent renovations, elevating the building’s lobby, amenities and tenant experience. RCS will address near-term building capital needs and capitalize on recent renovations to continue leasing momentum and maintain its status as a preeminent riverfront destination.
401 N. Michigan offers a hospitality-oriented amenity package with a focus on sustainability and wellness, including modern fitness facilities, tenant lounges and on-site food and beverage offerings. The building’s location is at the front door of the vibrant Magnificent Mile, steps from retail, entertainment and a mixed-use atmosphere.
Since 2023, the building has executed more than 275,000 square feet of leasing activity, reflecting continued flight-to-quality trends among office tenants and reinforcing its position as one of the Chicago River’s premier office addresses.
The transaction aligns with RCS’s national investment strategy of acquiring institutional-quality assets in major U.S. markets and creating value through disciplined underwriting, hands-on asset management and long-term ownership. JLL’s Bruce Miller, Jaime Fink and John Mason brokered the transaction.
