Sterling Organization, a private equity real estate investment firm headquartered in Palm Beach, Florida, has acquired 10,051 square feet of vacant retail space at 110 E. Pearson Street in Chicago’s world-renowned “Magnificent Mile” shopping district. The asset was purchased on behalf of Sterling Organization’s institutional fund Sterling Value Add Partners II, LP for $15.1 million. The seller, Levy Restaurants, was represented by Derrick Almassy and George Good of CBRE.
“We see this high street retail property on Pearson Street as a rare opportunity to own what could be a trophy asset with proper execution through strategic lease up,” said Brian Kosoy, managing principal, president and CEO of Sterling Organization. “Considering the clear and permanently unalterable sightlines from Michigan Avenue and its proximity to the historic Water Tower, the vibrancy of the submarket, and its location in the premier shopping district in the Midwestern U.S. not to mention the country, we believe our team should be able to add tremendous value to this asset.”
Located directly north of the historic Chicago Water Tower and a half a block west of Michigan Avenue, the property is situated at the epicenter of trendy shopping and entertainment in the city’s Near North Side. The space was previously home to Bar Toma, a concept by chef Tony Mantuano (Spiaggia, Terzo Piano and River Roast), but has been vacant since January 2017. Approximately 30 million people visit Michigan Avenue annually, and over 100,000 people live within a 1-mile radius earning an average household income of $147,964. More than 335,000 people live within a 3-mile radius and earn an average household income of $132,521.
“We’d like to thank Derrick Almassy and George Good at CBRE for once again ushering us through what was a smooth transaction,” added Michael McCarthy, Sterling’s managing director, investments.
Sterling Organization’s Chicago MSA portfolio now contains five assets totaling more than 1.6 million square feet of gross leasable area. From coast to coast, the firm and its principals own almost 9.5 million square feet of primarily retail real estate approaching $2 billion in value.
