Brookfield seeks to unload another Mag Mile property

Brookfield Property Partners is looking to unload another property on the Magnificent Mile, months after handing over the keys to Water Tower Place,

Brookfield is looking for buyers for the vacant 117,400-square-foot building at 830 North Michigan Avenue, Crain’s reported. It’s been empty since a Uniqlo clothing store closed last August.

The New York commercial real estate firm was able to sell the Water Tower Place vertical mall, across the street at 835 North Michigan Avenue, to its lender through a deed-in-lieu of foreclosure. Brookfield decided not to redevelop the nine-story shopping center because it would cost too much.

Brookfield took over the most recently listed property in 2018 when it acquired GCP, which had paid $166 million for the property in 2013. The building, which doesn’t have any signed tenants, is worth far less than it had been almost a decade ago.

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Brookfield negotiated a one-year extension on the matured $85 million mortgage on the property in July 2020. A person familiar with the loan told Crain’s it’s been further extended.

Finding a buyer for a space in the city’s main shopping district and biggest tourist destination could be harder than it sounds. Retailers and investors haven’t been as taken with the Mag Mile since the beginning of the pandemic and a recent rise in shootings and other violent crimes in the area haven’t helped matters.

Brookfield also owns a four-story vintage office and retail property at 605 North Michigan Avenue, which is 100 percent leased with tenants that include Sephora and Chase Bank.

The buyer of 830 North Michigan could keep the property as it is or tear it down and build a high-rise in its place.

— Victoria Pruitt