Sterling Bay, Magellan List Portion of Downtown Chicago Tower

Sterling Bay and Magellan Development Group have listed the residential and retail portions of their 47-story tower in Chicago’s Loop.

The Chicago developers, led by Andy Gloor and David Carlins have tapped CBRE to find buyers for the 289-unit apartment property and 25,000-square-foot retail space at 300 North Michigan Avenue, Crain’s reported.

CBRE brokers John Jaeger, Jason Zyck and Justin Puppi are handling the apartment listing, while Christian Williams and Michael Wilson are responsible for marketing the vacant retail space. The price wasn’t listed.

CitizenM owns the 280-key hotel occupying floors six through 15 of the building. The Dutch hotel brand purchased the 10 hotel floors for more than $74 million ($265,000 per key) upon their completion in 2022.

The apartment portion, branded as Millie on Michigan, boasts an average rental rate of $4.13 per square foot. Units range from 550 square feet for studios to 1,140 square feet for two-bedroom units.

The apartments have flourished due to the ongoing demand for housing in the supply-constrained downtown area. However, the retail space, on the tower’s first two floors, presents a different story, with retail vacancy in the Loop reaching a record high of 30 percent in 2023, and the Magnificent Mile seeing vacancies of over 34 percent.

The two developers, along with Wanxiang America Real Estate Group, invested $250 million to build the tower. After selling the hotel portion for $74 million, Sterling Bay and Magellan would need to secure over $176 million from the overall sale to recoup its costs.

Sterling Bay has been actively selling its Chicago properties to ease financial pressures stemming from its stalled Lincoln Yards project.

Notable parcels that have been put on the market include 1200 West Carroll Avenue, 370 North Carpenter Street, and 345 North Aberdeen Street. Additionally, the firm is divesting its 25,600-square-foot bioscience building at 2430 North Halsted Street as it continues to look for investors to contribute funds for the Lincoln Yards megadevelopment.

— Andrew Terrell