Bank of America Anchored Gold Coast Retail 1165 N State St 19 061 pi² 100% Loué Commerce de détail Immeuble Chicago, IL 60610 21 919 275 $ CAD (1 149,95 $ CAD/pi²) 6,50% Taux de capitalisation

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a definitionally core, trophy asset located on Chicago’s Gold Coast. Positioned at the signalized intersection of State and Division, 1167 N. State St. is a two-story high-street retail property anchored by Bank of America (S&P Credit Rating of “AA-”). The property is steps from both Michigan Avenue and the Oak and Rush Street retail corridors, and it services the kinds of dense, wealthy demographics that compel retailers to pay among the highest rents in the city at many of the neighboring properties.
With a weighted average lease term of nine years, the property’s rent roll is stabilized and poised to deliver consistent cash flows over the course of the next market cycle. Three of the four tenants also have annual rent increases structured into the primary terms of their leases, providing meaningful rent growth as those increases compound over the same period. Bank of America’s investment grade credit guarantees 45 percent of the property’s total income, and they have a 10 percent rent increase at the start of each of their three remaining five-year option periods. BofA has occupied their suite for over 20 years and just exercised their first renewal option at the option rent outlined in their original lease.
The Gold Coast has one of the lowest vacancy rates in the city, with a submarket vacancy of 3.7 percent. New leases for comparable ground-floor space are signed significantly in excess of $100 per square foot.
In addition to being located so close to the fashion boutiques on Oak, Rush and Michigan Avenue, the intersection of State and Division has the added benefit of close proximity to both an ‘L’ stop as well as to the high-end condo towers and co-ops that line the residential streets between this property and Lincoln Park. Such a strategic location allows the property to function more as a service-oriented retail building, rather than as a pure retail play, the fashions of which come and go with the seasons, which serves to enhance the durability of the tenancy at 1167 N. State St.