Block of Oak Street snags top price paid for a Chicago retail asset in five years

A block that lists Chanel, Van Cleef & Arpels, and Moncler on its retail roster has been purchased by Union Investment Real Estate for an undisclosed price--though the broker of the deal, CBRE, claims it’s the biggest number on a retail deal in Chicago since 2016.

CBRE represented the seller, Jenel Real Estate, when it originally made the purchase of two separate parcels on 59-65 East Oak Street five years ago. The company demolished the existing structures and replaced them with a 32,000-sq.-ft. LEED-certified building.

“This sale represents a new benchmark for the Chicago market. Properties along Oak Street rarely become available, and 59-65 East Oak represents best-in-class tenancy, state-of-the-art construction, ample frontage, visibility, and an irreplaceable location,” said Keely Polczynski of CBRE Capital Markets.

The acquisition is one of the first to be made in the United States by Hamburg, Germany-based Union Investment over the last two years.

“We have found it challenging to invest in the U.S. market due to increased hedging costs and travel limitations because of the COVID-19 pandemic,” said the company’s American investment head Matthew Scholl. “We are now able to acquire once more and look forward to realizing future opportunities in this very dynamic market,”

CBRE did not reveal the earlier retail record-breaker in the Windy City, but Real Capital Analytics reported that, among three big Chicago retail deals done in 2016, the retail space in the Sullivan Center in the Loop sold for $147 million.

New York-based Jenel owns more than 90 high-street retail, hotel, and mixed-use properties, including two other buildings on Oak Street in Chicago.