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Newmark has completed the sale of the retail component at 500 North Michigan Avenue, a high street retail asset along Chicago’s Magnificent Mile. The retail portion of the property traded for $41 million, underscoring investor interest in this flagship shopping corridor.
Newmark Senior Managing Director Keely Polczynski represented the seller in the transaction. The buyer is described as a private investor, and additional details on the parties were not disclosed in the announcement. The deal focused specifically on the retail portion of 500 North Michigan Avenue rather than the entire property.
The retail space totals approximately 21,565 square feet and is fully leased at the time of sale. The tenant mix includes nationally recognized brands such as Bank of America, Chick-fil-A, and Vans, providing a diversified income stream across financial services, food service, and apparel. The property was reported to have traded at a cap rate of 5.93%, offering a clear pricing marker for fully leased high street retail on the Magnificent Mile.
Commenting on the sale, Polczynski noted that opportunities to acquire scale on Michigan Avenue are rare, particularly when investment-grade tenancy is already in place. She indicated that the transaction is an example of ongoing investor confidence in high street retail locations that benefit from strong fundamentals. Those fundamentals, as described, include dense surrounding demographics, meaningful tourism activity, and constrained supply of comparable retail space.
The property sits along one of the world’s best-known retail corridors and benefits from significant visibility and pedestrian traffic. Its position within a tightly constrained five-block stretch of the Magnificent Mile further emphasizes the limited availability of similar assets. According to Newmark, these dynamics support the long-term outlook for this type of high street retail, even as broader retail markets vary by location and format.
While the announcement highlights pricing, tenancy, and location, it does not disclose additional information about the building’s overall size, any non-retail components, or future business plans for the property. Financing terms, if any were involved in the acquisition, were also not detailed. However, the combination of a fully leased retail asset, nationally known tenants, and a prominent position on Michigan Avenue signals that core high street retail remains an active segment for private investors seeking stability and long-term demand drivers.
The post Newmark Brokers $41M Sale of 500 N. Michigan Avenue Retail Space on Magnificent Mile appeared first on CRE Market Beat.
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