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One North State Street retail property for sale

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Retailers have lost enthusiasm for the streets since the pandemic began. old navy, DSW and Urban Outfitters are closing stores. Negative narratives do not facilitate the sale of the property known as One North State.

But the property is holding up for now.The retail space at the base of the vintage office building is 93.2% rented, with tenants such as TJ Maxx and Burlington, A broker hired to sell the property, according to CBRE.

The venture, led by New York investor Isaac Shalom, has invested in One North since 2004, when it paid $54.5 million for the four-story retail complex surrounding Wabash Avenue, according to Securities and Exchange Commission filings. CBRE executives declined to comment.

Built in 1900 and 1912, the State Street Building has two towers and approximately 533,000 square feet of office space on the upper floors.San Francisco-based Shorenstein Properties paid approx. $80 million Office space in 2016.

TJ Maxx, with 70,000 square feet on the second floor, and Burlington, with 60,100 square feet below ground, are the largest retail tenants in the group, which includes Chipotle, Dunkin’ and The Body Shop. A Circle K convenience store will soon open on the corner of Madison and Wabash.

Over the past few years, the property has performed slightly worse. According to Bloomberg data, the retail space earned him $7.58 million in 2021, up from $7.68 million in 2015. Net operating income last year he reached $4.46 million, compared to $5.31 million in 2015.

One question for new owners is Burlington’s status. The retailer’s lease expires at the end of February, leaving some risk that the chain will relocate. However, Bloomberg reports that Shalom representatives are “working with tenants on lease renewals.”

It is unknown how much this property will sell for today. When Shalom refinanced her new $60 million mortgage in 2013, he was valued at $101 million, according to Bloomberg. The investment has already paid off well for Shalom, who was able to withdraw $21.3 million through the 2013 refinancing, according to SEC filings.

But that was well before the pandemic hit the town, driving up Central Loop vacancy rates. Up to 23.4% It will end 2021, up from 14.7% in 2019, according to Stone Real Estate. State Street recently added a few retailers like Five Below and JD Sports, but it has lost more than it gained. One North State could be an attractive acquisition for investors who believe State Street’s market can only go up from here.

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