Brookfield Asset Management was behind two of the three highest-priced sales recorded in the Chicago area so far in 2018. Entities of the Toronto-based firm paid a combined $52 million to buy a pair of buildings from Macy’s, just months before Brookfield’s shareholders sealed its $15 billion deal to buy out Chicago-based General Growth Properties.
But an Iowa public employee pension fund racked up the highest individual sale of the year, paying more than $50 million for a Jewel-Osco-anchored strip mall across the river from the site of The 78 in the South Loop.
Also included among the top five retail sales were a $28 million deal for a Jewel-Osco supermarket in Lakeview and the $22 million sale of abtwo-story retail complex in Logan Square.
The Real Deal compiled the list through an analysis of Cook County property records through Dec. 6. The five investment sales combined for more than $143 million in total transactions.
1. 1254 South Canal Street | $50.1 million
The Iowa Public Employee Retirement System paid nearly twice as much for the 125,000-square-foot strip mall as any other Chicago-are retail buyer this year. The system invests about 7.5 percent of its funds in private real estate assets, according to its website.
The seller, Tucker Development, bought the strip mall in 2005 for $36.3 million. It sits across the South Branch of the Chicago River from the 62-acre stretch of barren land where Related Midwest has been approved to begin building The 78. Also nearby are retail sites including The Maxwell, the Roosevelt Collection and a 77,000-square-foot lot recently bought by developer GW Properties.
Tucker and Related have proposed co-developing a 36-story condo tower at 900 West Randolph Street in Fulton Market.
2. 103-137 North State Street | $27 million
The real estate arm of Brookfield bought the top half of the Daniel Burnham-designed State Street Macy’s building in June, taking some 700,000 square feet spanning seven floors. It was the second of two local properties the asset manager bought from Macy’s Retail Holdings this year, resulting from a 2016 deal between the two companies to help the retailer sell or redevelop dozens of its stores.
In February, Macy’s chief financial officer Karen Hoguet told investors Macy’s would receive a percentage of profits earned by Brookfield from the floors it bought.
Eastdil Secured brokered the sale.
3. 1555 Lake Cook Road, Northbrook | $22 million
In January, Macy’s sold its space inside the Northbrook Court shopping mall to General Growth Properties, the owner of the mall. At that time, Brookfield owned a roughly 34 percent share of GGP and was negotiating to acquire the company.
In September, Brookfield announced a sweeping plan to overhaul the property, possibly by demolishing the Macy’s store and replacing it with apartments and a food hall. It’s now seeking $27 million in incentives for the $250 million project.
4. 3614-3654 North Southport Avenue | $22.7 million
Cardinal Capital Partners acquired a Jewel-Osco supermarket complex along Lakeview’s busy Southport retail corridor, and across the street from the historic Music Box Theater.
5. 2310 West Logan Boulevard | $22 million
In April, Novak Construction Company acquired a 50,000-square-foot retail complex at the intersection of Logan Boulevard and Elston Avenue in Logan Square, across the street from a Target superstore. The seller was Zurich-based AFIAA, which paid $21 million to buy the two-story building from Joseph Freed & Associates in 2007.
The building was fully occupied when the sale went through, with tenants including Panera, Xsport Fitness and Mattress Firm. In October, Mattress Firm announced it would close up to 700 retail stores nationwide.
The top 5 Chicago retail sales in 2018
|1||1254 South Canal Street||South Loop||$50,050,000||Iowa Public Employee Retirement System||Tucker Development Corporation|
|2||103-137 North State Street||The Loop||$27,000,000||Brookfield Asset Management||Macy's Retail Holdings|
|3||1555 Lake Cook Road||Northbrook||$25,000,000||Brookfield Asset Management||Macy's Retail Holdings|
|4||3614-3654 North Southport Avenue||Lake View||$22,716,500||Cardinal Capital Partners||Fortress Investment Group|
|5||2310 Logan Boulevard||Logan Square||$21,300,000||AFIAA||Novak Construction Company|