News release

Flagship Michigan Avenue Neiman Marcus sells

JLL Capital Markets arranged the sale and acquisition financing for the luxury department store chain’s flagship Michigan Avenue location

April 28, 2022

Kimberly Steele

Capital Markets, Agency Leasing and Valuation Advisory PR
+1 713 852 3420

CHICAGO, April 28, 2022 – JLL Capital Markets announced today that it has closed the sale of and arranged acquisition financing for the 195,500-square-foot flagship Neiman Marcus building located on Chicago’s famed Magnificent Mile.

JLL represented the seller and procured the buyer, Silvestri Investments Inc. Silvestri, a privately held, family-owned real estate investment firm, acquired the asset in a 1031 exchange. Additionally, working on behalf of the new owner, JLL arranged the seven-year acquisition loan.

Neiman Marcus, a luxury department store chain, has operated its flagship Chicago operation at this location since the four-story building was constructed in 1983. It is positioned on 1.22 acres at 737 N. Michigan Ave. and, with more than 200 feet, has the largest single-tenant continuous frontage on Michigan Avenue. It is located along the Magnificent Mile, Chicago’s premier commercial district that spans 13 blocks, at the corner of Superior Street. The district welcomes more than 30 million annual visitors to its high-street retail and upscale restaurants and hotels.

The JLL Retail Capital Markets team representing the seller was led by Managing Directors Amy Sands and Clinton Mitchell, Senior Managing Director Alex Sharrin and Director Michael Nieder.

“Neiman Marcus is one of only eight trades on Michigan Avenue within the last decade and was highly sought after by both domestic and international capital due to the rare flagship offering on one of the world’s most renowned and proven high-street corridors,” Sands said.

“There is no defined geography, asset class or transaction size for the ever-elusive 1031 investor,” Sharrin added. “Investors turn to this tax strategy to preserve equity and defer gains. The iconic Neiman Marcus building in the heart of Chicago’s famed Michigan Avenue underscores the preservation of capital, with long-term upside in the real estate.”

The JLL Capital Markets Debt Advisory team representing the new owner was led by Senior Director Christopher Knight.

In the wake of significant changes to consumer habits, this transaction demonstrates the market’s understanding of the resiliency of brick-and-mortar retail,” Knight added. “This is particularly evident when exceptional real estate and top operators like Neiman Marcus combine.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About Silvestri Investments

Silvestri Investments is a privately held, family-owned real estate investment firm with offices in Canada, Florida and Texas.