- Ashkenazy Acquisitions defaulted on a $61M loan for the property at 625 North Michigan Avenue, which has struggled since the pandemic.
- The property was taken over by lender Barings via a deed-in-lieu of foreclosure after numerous attempts to sell it.
- Despite the setback, Ashkenazy’s firm continues to invest in the Chicago area, particularly in suburban markets like Rogers Park.
New York developer Ben Ashkenazy, known for doggedly holding onto his real estate assets, has walked away from a retail property on Chicago’s Magnificent Mile, as reported in The Real Deal.
Mag Mile Millstone
The decision came after Ashkenazy Acquisition defaulted on a $61M loan for the property at 625 North Michigan Avenue, a site that has struggled to recover from the economic impacts of the COVID-19 pandemic.
The retail corridor on Michigan Avenue, once a vibrant shopping destination, has contended for years now with rising vacancy rates and falling property values, making it difficult for landlords to retain tenants and attract new ones.
At 625 North Michigan, major brands like Timberland and Coach have left, leaving the majority of the retail space vacant, with only Garrett Popcorn remaining as a tenant.
Lender Takeover
Last year, after Ashkenazy Acquisitions defaulted on the loan, lender Barings considered putting the property on the market.
Instead, in a deed-in-lieu of foreclosure agreement finalized last month, Barings took control of the property, signaling an end to Ashkenazy’s involvement.
Suburban Sunshine
Despite this setback on Michigan Avenue, Ashkenazy remains confident in the broader Chicago market, particularly in the suburbs.
The firm recently purchased the Gateway Centre retail development in the Rogers Park neighborhood, which borders Evanston, showing continued interest in the region outside of downtown Chicago.
Mixed Fortunes
While Ashkenazy exits the Magnificent Mile, other investors have found success.
Late last year, landlords Feil Organization and Nakash secured a $55M refinancing for a property at 645 North Michigan Avenue.
Additionally, the luxury watchmaker A. Lange & Söhne recently leased space in the Tribune Tower, highlighting ongoing interest in select areas of the historic shopping district.
