Lululemon has secured a lease for a space on Chicago’s prestigious Magnificent Mile, marking a notable move for the company as it adjusts its expansion strategy in the US. According to reports from Crain’s Chicago Business, the athleisure brand will occupy approximately 12,000 square feet at the iconic Tribune Tower, situated at the intersection of North Michigan Avenue and East Illinois Street.
This new location will complement Lululemon’s existing footprint in Chicago, where the company already operates six other stores. Despite adopting a more cautious approach to growth, Lululemon continues to invest in its physical presence. The Tribune Tower, a historic landmark, has long been a prominent feature on the Magnificent Mile.
Earlier this month, during an earnings call, interim co-CEO Meghan Frank stated that Lululemon intends to adopt a “very measured” approach to expanding its store network. The company aims to open a net total of 35 new stores throughout the year. This strategy is reflected in the company’s decision to lease space in the Tribune Tower.
Recent Activity in Chicago’s Commercial Real Estate Market
Beyond Lululemon’s lease, Chicago’s commercial real estate sector has seen significant activity. Stream Realty Partners has secured leases totaling over 100,000 square feet at the renowned Wrigley Building. These agreements include both new leases and renewals, such as Perkins&Will’s extension of its 48,000 square-foot lease until 2038 and Oil-Dri’s new 15-year lease for approximately 20,000 square feet.
In the financing sector, Darwin Investment Group has completed a $130 million refinancing of a 39-building industrial portfolio. The portfolio, which spans over 2 million square feet across Chicago and Wisconsin, was financed by Wells Fargo Commercial Banking’s middle market real estate team. As part of the deal, Darwin’s George Cibula and Matthew Lewandowski acquired a 49% ownership interest from their partners, bringing their total ownership of the portfolio to 100%.
PEOPLEDevelopment Solutions Inc. has appointed Mitch Green to lead its expanded focus on restaurant, retail, and entertainment. Green will serve as business development executive, bringing over a decade of experience in construction project management and account leadership.
Morgante Wilson Architects has named Renata Buenrostro as its newest partner. Buenrostro has served as the firm’s director of architectural interiors since 2017 and joined the firm in 2000 as an architectural project manager. She will continue to lead her department, overseeing all architectural interior projects and mentoring team members.
Chicago Sales and Acquisitions
An affiliate of Equus Capital Partners has purchased Ashford at Geneva, a 226-unit apartment community in Geneva, for an undisclosed sum. The affiliate acquired the property on behalf of a programmatic joint venture with a US-based public pension plan. At the time of sale, Ashford was approximately 97% occupied.
A private investor has acquired High Point Plaza, located at 1230 E. Chicago St. in Elgin, in an all-cash deal. The 33,000 square-foot property is occupied by a mix of tenants, including Subway and State Farm. Marcus & Millichap’s Adrian Mendoza, Sean Sharko, and Austin Weisenbeck represented both parties in the deal.
HMS Apartments has spent $24.3 million on Lakeside Village Apartments, a 155-unit garden-style apartment community in Mundelein. The property features 25 studios, 96 one-bedroom units, and 34 two-bedroom units. Essex Realty Group‘s Brian Karmowski and Anthony Citriglia represented both the seller, Bear Peak Capital, and HMS Apartments in the deal.
A long-term owner of properties in La Grange has paid $6.3 million for a three-building, medical-anchored retail portfolio in downtown La Grange. The property, located at 500-522 W. Burlington Ave., spans a downtown block and comprises 34,000 square feet and 12 suites.
A confidential buyer has acquired 1701 W. Chicago Ave., a mixed-use building in West Loop, for $2.1 million. All residential and commercial units were fully occupied at the time of closing. Interra Realty’s Craig Martin and Harrison Pinkus represented both parties.
A private buyer has purchased 1560 N. Damen Ave., a three-story property in Wicker Park, for $3.2 million. The building features ground-floor retail occupied by Stan’s Donuts and Coffee. Greenstone Partners’ Danny Spitz and Brewster Hague represented both parties.
Time Equities Inc. has acquired 33 S. Wabash Ave. for $3.9 million from Newcastle Investors. The three-unit retail property is fully leased and includes tenants such as Goddess & the Baker, Reckless Records, and Prasino.
Additional Transactions and New Ventures
Transwestern Investments has acquired 320 Overland Drive, a 408,000 square-foot industrial facility in the I-88 Corridor, on behalf of a separate account. The fully leased property, built in 2023, features a cross-dock configuration, 36-foot clear heights, and dedicated car and trailer parking.
3650 Capital and Aquarian Real Estate Partners have provided $72.3 million in financing for the acquisition of Randhurst Village. The financing comprises a $45.6 million senior loan and a $26.7 million mezzanine loan. Rhino Investments Group acquired the 932,000 square-foot Randhurst Village in Mount Prospect from DLC Management for $95 million.
