North American Snaps up Southport Retail Trio in Chicago

Just months after buying the retail portion of Tribune Tower, North American Real Estate is expanding into Chicago neighborhood shopping, snapping up a three-building portfolio on the North Side.

The Chicago-based investor last week acquired three single-tenant retail properties along Southport Avenue in Lakeview, principal Savas Er told CoStar, which first reported the deal. The buildings, at 3337, 3358 and 3435 North Southport Avenue, sit a few blocks southwest of Wrigley Field in a bustling stretch of shops and restaurants.

The price was not disclosed and has not yet appeared in public records. The seller was Newcastle Investors, another Chicago firm, which was represented by Mid-America Real Estate brokers Joe Girardi, Emily Gadomski and Patrick Corrigan.

The deal gives North American a foothold on a corridor that landlords covet for one simple reason: It’s fully leased. CoStar reported that Southport Avenue between Addison and Roscoe streets has so far recorded zero vacant retail spaces in each of the past two years, according to Stone Real Estate’s annual survey.

The three Southport Avenue buildings total about 20,000 square feet and are fully leased. The 8,692-square-foot property at 3435 North Southport is occupied by Capital One Café, while Tuco & Blondie leases the 8,200-square-foot building at 3358 North Southport. Indira Salon & Spa occupies the 3,350-square-foot building at 3337 North Southport, according to a Mid-America marketing brochure.

The Southport acquisition follows North American’s purchase earlier this year of the retail component of Tribune Tower, as well as its purchase of the fully leased, multi-tenant Point at Clark property in Lakeview. Together, the moves highlight a strategy focused on dense neighborhoods and high-traffic retail strips.

Er told CoStar that the timing reflects a broader shift in tenant sentiment, even in parts of Chicago that have struggled in recent years. He pointed to conversations with retailers at last week’s International Council of Shopping Centers conference in New York, where interest in the city appeared to be heating up.

The sale also continues a gradual pruning of Newcastle’s portfolio. The firm bought the three Southport properties in separate deals in 2004, 2005 and 2015 for a combined $9 million, according to CoStar data. In recent years, it has been an active seller, including a $39 million disposition of retail at 1120 and 1130 North State Street in the Gold Coast, where buyer Convexity Properties is expected to pursue a residential tower with new retail. Newcastle last year also sold adjacent apartment buildings in Rogers Park for nearly $17 million.

— Eric Weilbacher