ASB Real Estate Puts Chicago Property for Sale at $160M
ASB Real Estate Investments Puts Prime Chicago Property Up for Sale at $160 Million
ASB Real Estate Investments is in the process of selling a notable six-story building located at 15 East Oak Street in Chicago. The property, previously associated with Barneys, has undergone substantial renovations and is currently occupied by esteemed luxury tenants including Cartier and Balenciaga. With an asking price exceeding $160 million, this offering presents a captivating investment opportunity at the prominent intersection of Oak and Rush streets.
Key Takeaways
- ASB Real Estate Investments is planning to sell the property at 15 East Oak Street for over $160 million.
- Following Barneys' bankruptcy, the building underwent a $27 million renovation and now houses Cartier and Balenciaga.
- The marketed vacant upper floors are positioned for office use, potentially commanding rents above $40 per square foot.
- The location at Oak and Rush streets is being positioned as an optimal retail and office prospect.
Analysis
The decision by ASB Real Estate Investments to sell the property, valued at $160 million, suggests a strategic repositioning influenced by market saturation and lower-than-expected returns. The estimated value close to $120 million indicates a probable loss, influenced by both the purchase price in 2013 and recent renovations. The sale also introduces the potential to impact the luxury retailers residing within the building. Additionally, the available office spaces underscore the underutilization of the property and signify opportunities for new tenants.
Did You Know?
- ASB Real Estate Investments: A real estate investment management firm specializing in acquiring, developing, and managing domestic commercial and residential properties.
- Barneys' Bankruptcy in 2020: Barneys New York, a distinguished luxury department store chain, filed for bankruptcy in 2020, leading to the closure of many of its stores, including the one at 15 East Oak Street.
- Luxury Tenants like Cartier and Balenciaga: Internationally recognized luxury brands, Cartier is a French jewelry and watch manufacturer, while Balenciaga is a Spanish fashion house renowned for its avant-garde designs. Their presence significantly enhances the property's prestige and desirability.