Michigan Plaza consists of two adjacent and interconnected high-rise office buildings with associated retail spaces (aggregating 2,000,000 square feet) and underground parking garages located at 205 and 225 North Michigan Avenue in the East Loop submarket of the Chicago, Illinois CBD. RAK initially acquired the mortgage note on 205 North Michigan Avenue, which was subsequently converted into an equity position. Shortly following the acquisition of 205 North Michigan, RAK negotiated a joint venture with the ownership of 225 North Michigan Avenue to capitalize on the operating economies attending to operating the two properties as one (rebranded as “Michigan Plaza”), shared capital improvements and leasing synergies.
RAK conceived, designed and implemented a complete $10,000,000 renovation of the outdoor plaza fronting North Michigan Avenue, the shared common lobby and retail concourses, and elevator cabs.RAK also spearheaded a new leasing and marketing program that increased occupancy above 90% in a challenging East Loop market, and also implemented changes that increased revenue in the 500 car garage.
Today Michigan Plaza is a well performing asset in Chicago’s East Loop.