T
he Shops at North Bridge, a 678,000-square-foot retail property on Chicago's Magnificent Mile, has been surrendered to its lender Pacific Life Insurance through a deed-in-lieu of foreclosure. This move comes as the iconic retail destination faces growing financial strain.

    The property was last refinanced in 2016 with a $375 million loan, but its current value is significantly lower, according to the deed-in-lieu. The Alaska Permanent Fund, which owns the property, had acquired it for $515 million in 2008 and sold its partner's stake for just $21 million in 2020.

    This surrender is not an isolated incident; other prominent Magnificent Mile properties have also struggled with debt. Brookfield Property Partners handed over Water Tower Place to its lender in 2022, while a New York investor defaulted on a loan at 625 North Michigan Avenue.

    Despite efforts to revitalize the area, including new retail developments like Harry Potter and Mango locations, property owners are unlikely to see immediate relief. Pacific Life Insurance has yet to outline its plans for the site.

    The Alaska Permanent Fund, which manages $80.5 billion in assets, including $9.3 billion in real estate, is redirecting resources from the struggling property to more profitable investments.