CIM, Golub land German watchmaker on Magnificent Mile
A. Lange & Sohne leasing 1,400 sf in Tribune Tower
The developers behind the repositioning of Chicago’s Tribune Tower have given the struggling Magnificent Mile retail market something to hang its hat on going into 2024.
German watchmaker A. Lange & Sohne has leased more than 1,400 square feet in the historic Tribune Tower at 435 North Michigan Avenue, following CIM Group and Golub & Company’s massive overhaul of the building from newspaper offices into luxury condos, CoStar reported.
Odyssey Retail Advisors brokers Sharon Kahan and Amy Sider represented A. Lange & Sohne in lease negotiations, while CBRE’s Todd Siegel, Phillip Golding and Kimberly Wiskup represented the CIM-Golub venture, which purchased the 36-story building for $240 million in 2016 ahead of its conversion into condos.
While it’s a relatively small lease, the watchmaker will likely be welcomed with open arms given the slew of retailers to vacate the Mag Mile in recent years, some of which have relocated to Oak and Rush streets in the Gold Coast neighborhood.
“It doesn’t really move the needle in terms of vacancy on the avenue, but it is significant in terms of co-tenancy,” Stone Real Estate broker John Vance, who was not involved in the recent deal, told the outlet. “It’s good for the avenue. Today, Rush and Oak have all the momentum for luxury retail. If you get more of these deals, that could put the Mag Mile back on the map for these luxury tenants.”
Household brands such as Banana Republic, Gap, Macy’s, Uniqlo and Timberland have all ditched their Mag Mile storefronts since the pandemic hit, and triggered an increase of online shopping while reducing foot traffic in the downtown area.
It’s unclear if A. Lange & Sohne will exit its Gold Coast store at 11 East Walton Street, or if its new Michigan Avenue digs will be its second Chicago location. Regardless, the watchmaker is one of few companies to lease Mag Mile space this year, joining the likes of luxury retailer Paul Stuart and athletic apparel retailer Alo Yoga.
In March, Swedish apparel chain H&M recommitted to the Mag Mile by signing a four-year, 30,000-square-foot lease at 679 North Michigan, albeit in a downsize from its previous lease.
— Quinn Donoghue