Gap is lining up a high-profile return to Chicago's Magnificent Mile, with the retailer in advanced talks to lease an 8,325-square-foot ground-floor space at 700 North Michigan Avenue. If the negotiations cross the finish line, it would mark Gap's first brick-and-mortar spot on the avenue since the chain closed its three-level flagship at 555 North Michigan in early 2021.
Where the space sits and who owns it
First reported by The Real Deal, the prospective store would sit at the base of the 49-story residential tower at 100 East Huron, in a storefront most recently occupied by T-Mobile. The property belongs to a joint venture between New York-based Ashkenazy Acquisitions and Aurora Capital Associates, whose retail roster at the site already includes Saks Fifth Avenue and Zara.
Why brokers say this matters
Leasing watchers say the Magnificent Mile is finally shaking off its recent slump, with Spain's Mango and Japan's Uniqlo signing on for sizable spaces. That wave of commitments could push retail availability down to about 23.5 percent by year-end after it climbed to roughly 33.9 percent at its peak, according to CoStar News. The corridor's troubles in 2020 and 2021 were hard to miss, and Macy's decision to close its Water Tower Place anchor in early 2021 became a defining moment, documented at the time by the Chicago Sun-Times.
Owners, lenders and the finance behind this push
Property records indicate the building's owners paid down substantial portions of their debt last year, and Aareal Capital reworked a $33 million senior mortgage tied to the roughly 300,000-square-foot asset. Those moves helped firm up control of the retail podium just as leasing momentum began to build, according to The Real Deal. The financing shuffle mirrors a broader push by Magnificent Mile landlords to turn dark storefronts into long-term deals in a market still leaning on a slow return of tourists and downtown office workers.
Deal status and what to watch next
People familiar with the talks caution that the lease is not signed and could still unravel. The prospective tenant is being represented by Stone Real Estate and Newmark, while the landlord side is working with JLL, according to CoStar News. Should Gap commit, it would create a boomerang moment for the brand on a prominent stretch of North Michigan where recent deals suggest the fight for prime frontage is heating back up.
