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R2 Puts North Side REI Store on the Market
A joint venture of Chicago-based developer R2 and Goldman Sachs has hired JLL to sell a 40,085-square-foot REI store on Chicago’s North Side at 1422 N. Kingsbury St., which R2 converted from industrial use. Crain’s Chicago Business reported that the sellers hope a long-term lease with steady cash flow will lure a buyer at a difficult time to sell commercial property.
Outdoor equipment retailer REI opened the store along the North Branch of the Chicago River in 2019, relocating from a nearby building on Halsted Street. There is no asking price listed for the building, which REI has leased through July 2034.
However, a source familiar with the offering told Crain’s that bids are expected to come in between $20 million and $25 million based on the property’s NOI. The listing comes amid a big slowdown in commercial property sales, with sales of retail properties through July down 48% from the same period in 2022 to $31.4 billion, according to data from MSCI Real Assets.
Photo courtesy of R2.
- ◦Sale/Acquisition
