Lugano Diamonds is nearing a deal to secure its first store in Chicago’s Gold Coast shopping district.
The luxury brand, led by co-founder and CEO Moti Ferder, has a deal to occupy 100-104 East Oak Street, Crain’s reported, citing people familiar with the matter.
Ponte Gadea USA, the real estate investment arm of Spanish billionaire Amancio Ortega, founder of fast-fashion giant Zara, owns the building. The property has been a fixture of Oak Street’s retail scene since 2014 when it was redeveloped from the former Esquire Theater into a 54,000-square-foot commercial space.
JLL’s Peter Caruso and Jose Gonzalez represented Ponte Gadea USA in lease negotiations.
The building’s previous tenants are vacating. French boutiques Maje and Sandro occupied 4,700 square feet at 100 and 102 East Oak Street, and have since closed. Mediterranean restaurant Fig & Olive took up 12,400 square feet at 104 East Oak and is closing after this weekend.
The Newport Beach-based jeweler has built a reputation for exclusive and luxurious shopping experiences, often tailored to the individual preferences of its affluent clientele. Lugano also operates locations in Aspen, Colorado; Greenwich, Connecticut; South Florida; Houston; and Washington, D.C. It recently opened its first international store in London.
The Chicago location is expected to follow the company’s successful “salon” concept, which offers a private, bespoke shopping experience. While Lugano has yet to confirm its plans, its move into Oak Street would cement the area’s status as a premier shopping destination.
Despite challenges faced by other retail districts in the city, Oak Street has maintained a low vacancy rate. Chicago-based Stone Real Estate estimates the vacancy at under 10 percent, with only three storefronts available.
“It’s fundamentally luxury and contemporary brands having their moment, and those brands either require wealthy customers or customers who are willing to spend,” Stone Principal John Vance said, emphasizing the resilience of the Gold Coast shopping corridor.
Vance is not involved in the Lugano deal, but his comments highlight the appeal of Oak Street for high-end brands like Lugano Diamonds.
Other luxury brands to set up shop on Oak Street in recent years include Burdeen’s Jewelry, a Chicago-based fine jewelry shop that open a two-story location at 120 East Oak Street, as well as the family behind Razny Jewelers securing th 6,300-square-foot building at 107 East Oak for $16.4 million, or about $2,600 per square foot.
— Andrew Terrell
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