Pebblebrook Trades Retail Portion of Westin Michigan Avenue
Pebblebrook Hotel Trust said Monday that it closed on the sale of 909 N. Michigan Ave., a 5,860-square-foot, three-tenant high-street retail parcel, adjacent to the company’s Westin Michigan Avenue Chicago. The sale price was $27.3 million.
Although Pebblebrook didn’t disclose the identity of the buyer, Crain’s Chicago Business reported it as a venture of Los Angeles-based Blatteis & Schnur. 909 N. Michigan is one of the only Mag Mile retail properties to trade since the start of the COVID-19 pandemic, according to Crain’s.
Based on the retail parcel’s net operating income for the year ended Dec. 31, 2022, the sales price reflected an approximately 7.7% cap rate, Pebblebrook said. Proceeds from the sale will be used for general corporate purposes, which may include reducing the hotel REIT’s outstanding debt and repurchasing the company’s common and preferred shares.