Update: HFF closed the sale of this property in 2016. It is no longer on the market.
HFF, on behalf of the owner, is pleased to present for sale 680 North Lake Shore Drive, a 493,064-square-foot, Class A mixed-use office building with ground-floor retail and garage parking in downtown Chicago’s North Michigan/Streeterville submarket.
At the time it was completed in 1926, the commercial property for sale totaled 1.95 million square feet and was the largest building in the world. Originally designed by noted Chicago architect Henry Raeder, 680 North Lake Shore Drive was known as the American Furniture Mart. From 1979 to 1984, the building was redeveloped, creating luxury condominiums along with office and retail components. Now, the 16-story (with a 29-story tower) art deco-style building is vertically subdivided into commercial, private residential and garage lots. The investment opportunity includes the 493,064-rentable-square-foot commercial component, which consists of 426,713 square feet of office/medical space, 66,351 square feet of retail/clinical space on the ground floor and 331 public garage parking spaces.
Reaching a height of 474 feet, 680 North Lake Shore Drive occupies the entire block between Lake Shore Drive and McClurg Court. Positioned at the epicenter of the Northwestern Medical Campus, the office building for sale is the preeminent medical office location, and the 87.7-percent-leased building is mostly occupied by tenants operating in the medical and healthcare sectors.
Mixed-Use Office and Retail Building Investment Benefits
- Long-Term Medical and Credit-Grade Cash Flow: The six largest tenants – excluding gourmet grocery store Treasure Island – are all renowned medical institutions with investment grade credit ratings and collectively account for 54.2 percent of the office building for sale’s rentable square footage. Notable tenants include Ann & Robert H. Lurie Children’s Hospital (Fitch: AA-), Northwestern Medical Group (Mody’s Aa2), Northwestern University Feinberg School of Medicine (Fitch: AAA) and NorthShore University HealthSystem (Moody’s: Aa2). Additionally, the building is home to retail tenants, including Walgreens (Baa2) and Fifth Third Bancorp (Baa1).
- Upside from Medical Campus Momentum: Situated between Lake Michigan and the Magnificent Mile, the Northwestern Medical Campus represents the main economic driver in the mixed-use Streeterville neighborhood. The campus has expanded significantly since 1997 with three new major hospital buildings with more than four million square feet and a major research building, and the campus has two significant projects currently underway. The diminishing supply of office space due to multi-family and retail expansion in the submarket coupled with swift growth in the healthcare sector make 680 North Lake Shore Drive a strong candidate for rapidly-expanding healthcare tenants in need of office or clinical space around the Northwestern Medical Campus.
- Rare Diversified Medical Office Investment Opportunity: A stabilized mixed-use asset, 89.4 percent of the building’s tenants have a medical and/or healthcare affiliation. Additionally, the property has a healthy mix of clinical and general office space uses along with significant revenue from parking. The ground floor predominantly consists of retail tenants catering to the building’s workers, condo residents and Streeterville neighborhood. The clinical office space is located throughout the ground floor and office portions of the building for sale, providing an array of services, including women’s health, orthopedics, ENT and general medicine. The remaining space serves as general office space used by tenants affiliated with nearby medical institutions for research, management and back office services related to their medical operations.
- Premier Live/Work/Play Neighborhood: The property’s Streeterville location puts it in a submarket highly desirable for its mix of area amenities. 680 North Lake Shore Drive is within walking distance to Chicago’s world-class shopping district, the Magnificent Mile, and its accompanying array of premier hotels and restaurants.
The iconic 680 North Lake Shore Drive presents potential buyers with a unique investment opportunity in downtown Chicago. For more information on this or other commercial real estate listings in the Chicago area, contact Jeff Bramson, Jaime Fink or Mark Katz.