Magellan Lakeshore East Stake Hits Market

Nearly 25 years after breaking ground at Lakeshore East, Magellan Development Group could soon have a new capital partner for one of the megaproject’s last major pieces.

CBRE brokers are marketing for sale a South Korean investor’s stake in land at 193 North Columbus Drive, where a massive mixed-use tower is planned, along with about 102,000 square feet of adjacent retail at 333 East Benton Place, according to marketing materials and Magellan CEO David Carlins.

CoStar reported that the interests, held by Seoul-based Hanwha Engineering & Construction, can be sold together or separately. CBRE’s John Jaeger and Tom Svoboda are marketing the development site, while Michael Wilson and Christian Williams are handling the retail listing.

Carlins told the publication that a new partner would not alter Magellan’s long-standing vision for a high-rise on the Columbus Drive parcel, known as Parcel O. The site is zoned for up to 574 apartments, 239 hotel rooms and more than 10,000 square feet of retail. Magellan and Hanwha struck a deal last year to bring U.K.-based Hoxton to the project for what would be its second Chicago hotel.

Parcel O is one of the last remaining development sites within the 28-acre Lakeshore East campus, built on a former nine-hole golf course east of the Loop. Since 2002, the master-planned community has reshaped the skyline, most notably with Jeanne Gang’s 82-story Aqua tower and 101-story St. Regis Chicago.

The zoning predates the city’s Affordable Requirements Ordinance update, mandating that 20 percent of units in new projects be set aside at below-market rents. Only 33 new parking spaces would be required, with up to 329 spaces available through an easement in Aqua, according to CBRE.

The retail portion, known as Village Market, is 89 percent leased and anchored by a multilevel Mariano’s grocery store. Other tenants include Avli on the Park, Eggy’s Diner, Gordo’s Tiny Taco Bar and MingHin Cuisine. The space has a weighted average lease term of roughly 4.5 years.

Magellan has monetized portions of Lakeshore East before, including a $190.5 million sale of Aqua’s apartment component in 2019.

— Eric Weilbacher