Newmark Arranges $41 Million Sale of Magnificent Mile Retail Space in Chicago

Newmark has arranged the $41 million sale of the retail portion of 500 North Michigan Avenue, a fully leased high-street asset situated along Chicago's Magnificent Mile, the firm announced April 9, 2026.

Deal Details

The approximately 21,565-square-foot retail space traded at a capitalization rate of 5.93%, equating to roughly $1,901 per square foot. The buyer is a private investor; the seller was not identified. Newmark Senior Managing Director Keely Polczynski represented the seller in the transaction.

The property is fully leased to a roster of nationally recognized tenants, including Bank of America, Chick-fil-A, and Vans. The asset is positioned within a tightly constrained five-block stretch of the Magnificent Mile, one of the world's most recognized retail corridors, offering exceptional visibility and foot traffic.

"Opportunities to acquire scale on Michigan Avenue are exceptionally rare, particularly with investment-grade tenancy already in place," said Polczynski. "This transaction reflects continued investor conviction in irreplaceable high street retail, where long-term fundamentals are supported by dense demographics, tourism and limited supply."

Market Context

According to Newmark Research, investor demand for high-street retail remains concentrated in top-tier urban corridors, where limited availability, tourism drivers and strong tenant credit continue to support pricing and liquidity. The firm noted that as capital selectively returns to retail, assets offering scale, credit tenancy, and irreplaceable locations are attracting heightened interest from both institutional and private investors.

The Magnificent Mile's constrained supply dynamic — with few opportunities of meaningful scale coming to market — underpins the asset's positioning. Newmark described the offering as a "generational opportunity" in a location where comparable assets seldom trade.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK) is a commercial real estate services firm that reported revenues of nearly $3.3 billion for the twelve months ended December 31, 2025. The firm operates from approximately 175 offices with over 9,300 professionals across four continents. Keely Polczynski, a Senior Managing Director at Newmark, led the assignment on behalf of the seller.