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CBRE, as exclusive agent, is pleased to announce the opportunity to acquire 912 West Armitage Avenue, a 7,500-sf retail and residential property in the heart of one of the nation’s most renounced corridors for omnichannel retailers, Armitage Avenue, in the affluent and densely populated northside neighborhood of Lincoln Park in Chicago. The building is currently leased on a long-term basis to POGO, a growing footwear company based out of Michigan. In addition, two newly renovated residential units sit above the retail space, both paying market rents in the range of $3,700 - $4,100 per month. Leased until 2027, POGO is currently paying $57 psf, well below other recent leases on the street that have been executed in the mid $70 psf range. 912 W Armitage provides an investor the opportunity to penetrate a market with virtually no vacancy and what has become a mecca for growing omnichannel brands that continue to gobble up space at a rapid pace.

Investment Highlights

LONG TERM TENANT WITH SIGNIFICANT CASH FLOWPOGO began its ten-year lease in March of 2017. The footwear company is paying $57 psf, and the two apartment units are paying annual rent of $95,000 for a total rental revenue of $233,508.

STRONG MILLENIAL FOLLOWINGPOGO, which offers the newest women fashion trends, has cornered the millennial market of high-fashion sneakerheads. With daily releases of the newest shoes on the market, POGO strives to offer shoes in the price range of $100 to $200. This allows a young base to splurge on the newest trends while not breaking the bank.

CHICAGO’S E-TAIL CORRIDORArmitage Avenue, the e-tail flagship corridor of Chicago, continues to attract the hottest fashion startup’s around the world. Warby Parker, Indochino, The Tie Bar, Allbirds, and many more have all signed long-term leases in recent years.

AFFLUENT DEMOGRAPHICS Lincoln Park, one of Chicago’s most affluent neighborhoods, continues to attract a wealthy millennial base that appeals to both recent college grads as well as young families and wealthier retirees. The immediate area features a median household income of $144,346, and an average housing value of $752,381.

LARGE INFLUX OF RESIDENTIAL DEVELOPMENTS UNDERWAY Just west of Armitage Avenue, Sterling Bay’s Lincoln Yards development recently secured $1.3 billion in tax incremental funding. This was the last remaining hurdle for the mega project, which plans on delivering over 15M sf in mixed-use space and over 6,000 residential units. The development is scheduled to break ground in the summer of 2019. South of Lincoln Yards, The River District, a 30-acre, $2.5 billion development will start construction on nine buildings at the old Chicago Tribune site in the summer of 2019.

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Current Retail MarketArmitage Ave, which starts at the Lincoln Park Zoo, runs east to west, through the heart of Lincoln Park, Wicker Park and Bucktown. The street features some of the most significant e-tail brands in the United States, such as Warby Parker, Indochino, Interior Define, Bonobos, Lush Cosmetics, The Tie Bar, Serena & Lily Design Shop, Marine Layer, and many more. The current trade area sees rents from $60 to $85 psf, with brands like Indochino, which is adjacent to the subject property, is paying $78 psf. A few blocks south of Armitage Ave sits the Clybourn and North Ave corridors, two of the highest grossing retail thoroughfares in the city. The submarket consists of longtime big box anchor tenants such as Costco, Target and Whole Foods. In recent years new retailers have moved to the area as NEWCITY a multi-million-dollar development was completed in 2015. The retail/residential project delivered Dick’s Sporting Goods, Arc Light Theatres, Mariano’s Grocers, and many more.

E-Tail Brands Opening Flagship Locations Along ArmitageIn 2013 Warby Parker opened its first location at 851 W Armitage Ave. The sun glass concept that was started in 2010, focuses on millennials who do not wish to splurge on high-end luxury brands such as Oliver Peoples or Ray Band, but still desire a quality product at a reasonable price has thrived along the thoroughfare and because of this, opened additional locations throughout North Chicago. With e-tailers gobbling up small retail space along Armitage, another e-tail brand opened its first physical store along the street. In 2018, The Tie Bar opened its first permanent store at 918 W Armitage, where it operated a pop-up test concept throughout 2017. Tie Bar offers Ties, Pocket Squares, Laces, and other additional men’s dress accessories. Started in Chicago in 2010, the local brand has exploded, opening stores along Michigan Avenue and other prominent Chicago thoroughfares in recent years. Newest to the street and start up world is San Francisco-based Allbirds, which opened its first Chicago store at 843 W Armitage Ave. The foot ware-lifestyle brand leased 2,000-sf of space that allows shoppers to browse from its collection of wool running shoes, high-tops, loungers and other styles. Founded in 2016, the company has made a major splash in Silicon Valley, and has raised more than $70 million to date and is valued at $1.4 billion.

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321 N. Clark Street, Suite 3400

Chicago, IL 60654+1 312 935 1400

Keely Polczynski Senior Vice President +1 312 861 7870keely.polczynski@cbre.com

For more information, please contact:

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. PMStudio_May2019

Oliver Jackson Analyst+1 312 540 4640 oliver.jackson@cbre.com

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