Apple’s flagship store @ Chicago most expensive retail real estate deal

[tacobell fan]

Since opening in October 2017, Apple Michigan Avenue on the Chicago River has become a must-see destination for Apple fans, architecture enthusiasts, and creative professionals. The Foster + Partners-designed store draws visitors from the Magnificent Mile shopping corridor, offering stunning views of the river and a glass-wrapped performance space like no other. The site’s popularity and visibility have now earned it a pricey real estate deal.

Crain’s Chicago Business reports that property owner Walton Street Capital has agreed to sell to the flagship store to investment firm Invesco for roughly $79 million. According to the report, the transaction would be the fifth-most-expensive retail real estate deal that Chicago has ever seen.

Last March, The Wall Street Journal learned that the property had been put up for sale by Walton Street. Apple’s 15-year lease currently stipulates a $2.5 million annual rent, with rates increasing 10 percent every five years. While Walton Street Capital originally purchased the store in a deal that included the 35-story office building next door at 401 N. Michigan Avenue, Apple’s space has been split from other assets for the sale to Invesco in hopes of a greater long-term return. Just a few months after the building was listed for sale, Apple Michigan Avenue won an IALD Award for innovative lighting design.