A joint venture of Chicago-based developer R2 and Goldman Sachs has listed a 40,085-square-foot REI store on Chicago’s North Side at 1422 N. Kingsbury St., which was converted from industrial use, for sale. Crain’s Chicago Business reported that the sellers are hoping to attract buyers with an attractive long-term lease and steady cash flow despite the current difficult market conditions for commercial property sales.
Outdoor equipment retailer REI opened its new location along the North Branch of the Chicago River in 2019 after relocating from a nearby building on Halsted Street. There is no asking price listed for this building, which REI has leased through July 2034; however, sources familiar with this offering have indicated bids between $20 million and $25 million based on its net operating income (NOI). MSCI Real Assets data shows that retail property sales through July 2020 were down 48% compared to those during same period in 2022 at $31.4 billion due to overall slowdown in commercial real estate activity .
Photo courtesy of R2
