A Chicago firm that has spent nearly a quarter-century developing skyscrapers on a 28-acre site near Millennium Park could be getting a new partner for two big pieces of the project.
Brokers at real estate services firm CBRE are seeking buyers to take over a South Korean investor's ownership stake in land zoned for a huge, mixed-use tower at 193 N. Columbus Drive and for about 102,000 square feet of adjacent retail space at 333 E. Benton Place, anchored by a Mariano’s grocery store, according marketing materials and to David Carlins. He is CEO of the project's master developer, Magellan Development Group.
Stakes in the Lakeshore East properties can be sold together or separately, according to CBRE materials.
The properties for sale represent the partnership interest of Hanwha Engineering & Construction, Carlins said. He told CoStar News that a potential new partner does not affect the long-running vision to put a big, mixed-use tower on the site at 193 N. Columbus.
That is part of Magellan's continued mixed-use redevelopment on the site of a former nine-hole golf course on the site just along the eastern edge of the Loop business district. Magellan began the project in 2002.
Lakeshore East has made significant changes to Chicago’s skyline, with architect Jeanne Gang designing the 101-story St. Regis Chicago and 82-story Aqua mixed-use towers in years past.
Magellan and several partners have cashed in over the years by selling condos and commercial space within the project. Magellan sold the apartment portion of Aqua for $190.5 million in 2019, and that property was put on the market by its current owner late last year.
The land now for sale, known as Parcel O, is zoned for a huge tower that could include as many as 574 apartments, 239 hotel rooms and more than 10,000 square feet of retail, according to the CBRE materials.
CoStar News reported early last year that Magellan and Hanwha have an agreement to bring U.K.-based lifestyle brand Hoxton to the site in what would be its second Chicago hotel.
It’s unclear why Magellan's Seoul-based partner is now looking to sell its interest in the project. The company did not immediately respond to a request for comment from CoStar News.
The land is one of the last available sites within Lakeshore East. It also has the benefit of being zoned before the city’s affordable requirements ordinance, which requires 20% of units within new projects to be set aside with below-market rents, according to the CBRE materials.
A new tower at 193 N. Columbus would require just 33 new parking spaces to be constructed, with up to 329 existing parking spaces within Aqua available through an easement agreement, according to CBRE.
The retail space, known as Village Market, is 89% leased to tenants including a multilevel Mariano’s grocery store, with a weighted average lease term of about 4.5 years, according to CBRE. Other tenants include restaurants Avli on the Park, Eggy’s Diner, Gordo’s Tiny Taco Bar and Ming Hin Cuisine.
For the record
CBRE brokers Tom Svoboda and John Jaeger are marketing the land for sale. CBRE brokers Michael Wilson and Christian Williams are marketing the retail space for sale.