875 N Rush Street, 902 N State Street, 1139 N State Street - Gold Coast - Chicago, IL

Gold Coast Collection

Asset Description

JLL is pleased to present the opportunity to acquire “The Gold Coast Collection,” three premier street retail assets, currently 92% leased to top tier tenancy comprised of national fashion brands and investment grade financial service tenants as well as luxury bridal, fitness, and medical aesthetics users. Investors interested in The Gold Coast Collection will have the opportunity to bid on individual properties as well as a portfolio basis.

The Offering features three prime corner locations housed in charming and modern jewel boxes totaling 42,358 square feet in the heart of Chicago’s Gold Coast. The investment grade tenants, Chase Bank, PNC, and LensCrafters (Luxottica) collectively offer 5.3 years of WALT and comprise 26% of the in-place revenue. These three credit tenants along with the portfolio’s additional national brands (Peter Millar, Abercrombie & Fitch, and Rumble Fitness) combine to offer 5.7 years of WALT and are responsible of 84% of the in-place revenue. All leases include contractual escalations, offering secure and accretive cash flow that result in a 4.9% CAGR over a 5-year hold and 6.2% when lease up of the vacancy is considered.

The Gold Coast is one of the most desirable luxury submarkets in the country. International fashion maisons, bespoke jewelers, brands showcasing flagships, and the city’s hottest food and beverage establishments flock to this submarket seeking best-in-class co-tenancy and sales volumes that are not seen anywhere else in the Midwest. The immediate vicinity draws from the wealthiest-in-class shoppers searching for top quality indulgent products, high-end jewelry, and fine dining options that boast the most robust sales figures in the city and in some cases, the entire country. Incredibly well-served by public transit, the area boasts the Red Line, averaging nearly 250 million annual riders, as well as Chicago’s famous Lake Shore Drive which allows for convenient driving access to and from the northern and southern parts of the city and state. Similarly, the area features an abundant amount of CTA bus options as well as numerous parking and hotel options with over 25 hotels within a 1-mile radius.

Accepting bids on the full portfolio, sub-portfolios, and individual assets.

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Attributes

WAULT

5.4 years

Building area net

3,935 m²

Occupancy

92%

NOI

€3,041,000

Media

Investment Highlights

Portfolio Investment Highlights

Rare Ability to Acquire Gold Coast Assets in Scale

Exceptional Credit Across World Renowned Brands

26% of Income Attributed From Investments Grade Tenancy

- Chase, PNC, LensCrafters

84% of Income Attributed from National Tenancy

- Abercrombie & Fitch, Peter Millar, Rumble

Secured and Accretive Cash Flow

- 5.4 Years WALT

- 6.2% CAGR over 5-year Hold

Value-Add Opportunity Through Leasing

- 92% Portfolio Occupancy Allows for Upside

Gold Coast Investment Highlights

Exceptionally Tight Urban Submarket

- Post-pandemic leasing velocity has outpaced other national desirable urban neighborhoods such as Soho, Design District, Williamsburg, Newbury Street and more

Generational Buying Opportunity

- Trailing 10-year comparable gold coast retail trades have averaged $2,405 PSF / 4.4% cap rate

- Investors are being offered the chance to acquire 3 trophy assets at an attractive basis and a discount to trailing 10-year trades

Mark-to-Market Opportunities

- $95.62 PSF Average In-Place Rents across Gold Coast Portfolio

- $428.72 PSF Most Recent 1st Floor Deals in Gold Coast

- $177.51 Most Recent Multi-Story Deals In Gold Coast

Notable Signed Leases over Past 12 Months

- Cartier, Balenciaga, Bottega Veneta, Lowe, Montblanc, On Running, TheRealReal, Burdeen's Jewelry