The operator of the Medieval Torture Museum has bought a four-story building on Chicago’s South Street for a fraction of its previous sale price, with plans to launch new museum concepts in the property.
An affiliate of the museum’s parent company, Benaur LLC, and that company’s owner, Yevgeniy Grach, earlier this month paid $1.5 million for the mostly vacant property at 131-133 S. State St., according to online property records and the buyer.
That is a steep drop in price from the $10.15 million that Chicago-based L3 Capital paid in 2017 for the late-1800s building, according to Cook County property records. The lower two floors were leased to tenants Journeys and Icing by Claire’s, Crain’s Chicago Business reported at the time.
Benaur CEO Polina Moroz said the company plans to use all or most of the space in the building to unveil three or four new museum concepts, with the Medieval Torture Museum to remain in its nearby home since 2021 at 177 N. State St.
That Middle Ages concept, featuring torture devices and artifacts from medieval Europe, also has locations in Los Angeles and St. Augustine, Florida.
“The new project is an independent concept and a further development of the company’s entertainment direction, focused on creating original museum spaces,” Moroz wrote in an email to CoStar News.
Concepts being considered for the State Street building in Chicago include the Crime and Mob Museum, the Museum of Sex — Sexibit, and the Museum of Illusions, Moroz said in the email.
Moroz said that it was “a strategic choice” to buy rather than rent new space on State Street.
“We view the building as a long-term investment in the growth of our entertainment business,” Moroz said. “Owning the property provides us with greater flexibility, stability, and control over the space.”
Chicago has a well-known network of museums and other public attractions, such as the Field Museum, Art Institute of Chicago, Griffin Museum of Science and Industry, Shedd Aquarium and Adler Planetarium.
Wave of tourist spots
In recent years, as part of a national trend, the city also has welcomed a wave of privately operated, hands-on attractions that range from edgy to touristy.
That includes Talking Heads Frontman David Byrne’s “Theater of the Mind” multisensory production in a historic building along the Chicago River, digital art projections such as the popular “Immersive Van Gogh” in the Germania Club Building, the Color Factory within the Willis Tower skyscraper, the Museum of Ice Cream at the base of Tribune Tower and a Harry Potter-themed store just north of there on the Magnificent Mile. In June, Universal Destinations & Experiences announced plans to bring an immersive horror experience to a vacant building across from the Bally's casino complex under construction in the River West neighborhood.
If Benaur successfully rolls out new concepts on State Street, it would provide a boost to one of Chicago’s historically best-known retail corridors, which has been hit by store closures and large vacancies in recent years.
“We are confident that our new concepts will be a valuable addition to the city’s cultural and entertainment landscape, and we are actively working on their launch,” Moroz said.
L3 Capital did not respond to requests for comment on the sale.
The firm is a longtime retail real estate investor in Chicago neighborhoods including the Gold Coast and Fulton Market.
Recent L3 projects include the redevelopment of the longtime Carmines Bar & Lounge property at 1043 N. Rush St. and a recent purchase of a Wintrust Bank branch at 1000 N. Rush with plans to bring in Kim Kardashian’s Skims shapewear brand as a tenant.
For the record
The property was marketed for sale by Mid-America Real Estate brokers Joe Girardi and George Ghattas.