“The Chicago landlord of what Apple Inc. calls its ‘most ambitious store’ has put the building on the block in a sales process that will test the power of the popular brand name in a tempestuous retail climate,” Peter Grant reports for The Wall Street Journal. “Real-estate private equity firm Walton Street Capital has hired Eastdil Secured to market the Norman Foster-designed Apple Store that opened last fall and has become a popular new attraction along the reinvigorated Chicago River waterfront.”
“Walton last year paid $370 million for the Apple Store, which at the time was under development, along with 401 N. Michigan Ave., the 35-story office and retail building next door,” Grant reports. “Now the firm is hoping to sell the 20,000-square-foot Apple Store along with 10,000-square-feet of retail space in the office building for as much as $175 million, according to people familiar with the offering.”
“The sale comes at a time when retail real-estate in general is under enormous pressure because of competition from online shopping and the contraction and failure of many big name retailers. Values of many malls and shopping centers have been falling,” Grant reports. “But Apple Stores have long been the gold standard in the retail world because of the high traffic they attract. Not only do they ring up strong sales, but they also boost traffic and sales at neighboring stores.”
Read more in the full article here.
MacDailyNews Take: A coveted property. As we noted back in 2015:
A growing number of malls are actually paying Apple to build a store in theirs.
SEE ALSO:
Overall sales at shopping malls with an Apple Store are 10% higher – March 11, 2015
Why authorities waive rents and taxes to land Apple Retail Stores – May 20, 2012
So they bought the store for $370 million, and want to sell the store along with additional space for $175 million? Whatever happened to buy low, sell high?
John B – Did you read the article? They bought the store + a 35-story building next door for $350MM. They are selling only a portion of it.