Chicago continues to draw foreign investors with its valuable properties and potential for development. Investors from across the world have spent billions of dollars on commercial real estate in the Windy City in the past few years, and while the numbers have dropped, sales and profits remain high. A recent exchange continues the trend of foreign investors banking on Illinois for their real estate success.
An American mall developer purchased a 24-story office building on the desirable Magnificent Mile. After paying about $71 million for the property, his intent was to link it to the chic retail-entertainment district, Shops at North Bridge. However, more than five years later, the property remains unchanged, and its owner has decided to sell it to a group of foreign investors.
The buyers, from Israel and Switzerland, have plans of their own for the building, hoping to upgrade its retail and office space. Paying nearly $87 million, the investors demonstrate that the values of property in the area are not waning, and investing in commercial real estate in Illinois can be lucrative, if the project succeeds. In fact, the building’s former owner still plans to develop a huge parking lot near the North Bridge district.
Whether buying or selling commercial real estate, there is much at stake when dealing with a multi-million dollar investment. Mistakes causing delays can cost money, eating into profits and postponing the starts of potential retail tenants. Rather than take these chances, many investors rely on the assistance of an attorney with experience in all areas of commercial transactions, including buying, selling, leasing and litigation.
Source: Chicago Tribune, “Mag Mile offices selling for $87 million“, Ryan Ori, July 14, 2017