Paragon Real Estate buys retail condo in historic Loop tower

The $16M acquisition is the San Diego-based firm’s first in Chicago

Paragon Real Estate Investments bought the retail portion of a Loop tower for $16.05 million.

The San Diego-based firm acquired the 13,000-square-foot retail condo in the historic Roanoke Tower at 11 South LaSalle Street from The Prime Group, a Chicago-based real estate development firm.

The 103-year-old building houses a 381-key Residence Inn hotel on its upper floors, and the retail space bought by Paragon houses a Citibank branch, the Roanoke Restaurant, a 7-Eleven and a T-Mobile store. It is 91 percent occupied, according to HFF.

HFF’s Amy Sands and Clinton Mitchell represented The Prime Group in the sale.

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The deal is Paragon’s first acquisition in the Chicago market.

Another out-of-state investor, the Palm Beach, Florida-based Sterling Organization, earlier this year bought another retail property at 209-227 South State Street a couple blocks away from the Paragon site for $8.1 million.

Overall, the amount of available retail anchor space hit an all-time high of 12.3 million square feet in the Chicago area in the first quarter, up from 10.8 million last year, according to a report from CBRE.