717 North Michigan Avenue is a four-story, 61,600 sf mixed-use retail and office building located on the Magnificent Mile, Chicago’s main retail corridor. Cotter was engaged as part of a multidisciplinary team by Acadia Realty Trust to evaluate best and highest use of the building. Acadia’s goal was to maximize the asset’s value, balancing revenue, investment, and return on investment over various timeframes.
The team reviewed a series of options, ranging from demolishing the structure and developing in its place a 30-story mixed-use building containing several alternative uses, including retail, office, hospitality, hotel, and multi-family residential. At the opposite end of the spectrum, the team conducted studies focused on repositioning the existing building to maximize attractiveness to prospective tenants. Ultimately, Acadia decided to reposition the existing building. Cotter performed project management on the repositioning project, ensuring minimal disturbance to the high value anchor tenant.
The asset was sold in 2017 for a considerable profit relative to the acquisition cost and repositioning investment. After the sale, Cotter was engaged by the building’s new owner to provide feasibility studies around a Phase II project to build a vertical addition to the building.