CHICAGO — Real estate investment firm Real Capital Solutions (RCS) has acquired 401 N. Michigan Ave., a Class A office tower in Chicago, for $132.5 million.
Situated on the Chicago River’s north bank along the city’s Magnificent Mile, the property totals 35 stories and 747,522 square feet. According to RCS, the acquisition price represents a 77.8 percent discount relative to replacement cost.
The seller was not disclosed, but Crain’s Chicago Business reports that a joint venture led by locally based Walton Street Capital sold the tower. The news outlet also reports that the transaction represents the highest sales price for a Chicago office tower since 2022.
401 N. Michigan was roughly 87 percent leased at the time of sale. Tenants of the building include the Accreditation Council for Graduate Medical Education, the American Dental Association, Scion and private equity firm BDT & MSD Partners.
Since 2023, more than 275,000 square feet of leasing activity has been executed at the property. The building also recently underwent $17 million in renovations, including improvements to the lobby and amenity spaces.
“The acquisition of 401 N. Michigan represents a rare opportunity to secure a top-performing, institutional office tower in an irreplaceable riverfront location,” says Adam Abeln, chief acquisitions officer for RCS. “This investment reflects our confidence in Chicago’s well-established core market with deep talent, strong corporate demand and limited new supply, where well-located, Class A assets continue to benefit from the flight to quality.”
This marks RCS’s first downtown Chicago investment in the current business cycle. Bruce Miller, Jaime Fink and John Mason of JLL brokered the transaction.
Founded more than 40 years ago, Louisville, Colo.-based RCS has purchased and managed more than 400 real estate assets totaling approximately $5.1 billion in acquisition value.
— Hayden Spiess