Lululemon plans new Gold Coast store
(Crain's) — Lululemon Athletica Inc. is planning a store in the Gold Coast that could open this fall at the corner of Rush and Walton streets.
The women's athletic apparel retailer signed a lease late last year for 2,930 square feet in a standalone store to be built at 930 N. Rush St., a now-vacant corner that was once a Gino's pizzeria.
One of the project's developers, Chicago real estate investor Fred Latsko, says a construction permit is pending and that work on the new building should begin soon.
The development comes as many retail deals — including two locally by Lululemon itself — are falling victim to the harsh recession and pullback in consumer spending.
Lululemon, which is publicly held and based in Vancouver, Canada, has three city locations but recently sued to terminate its lease for a planned downtown store at State Street's Block 37.
Related story: Apple not coming to Block 37: lawsuit
The retailer also was close to signing a lease last year for another 3,000-square-foot store on Southport Avenue in Wrigleyville but walked away in October as the financial and retail markets cratered. Lululemon apparently liked the Rush-Walton corner enough to ink its deal in November at a rent sources say exceeds $350 a square foot.
A Lululemon spokeswoman declines to comment.
The retailer has Chicago locations in Bucktown and Lincoln Park and another Gold Coast store in the Bloomingdale's-anchored mall at 900 N. Michigan Ave. That store is on the third floor near local clothier Mark Shale, which recently filed for bankruptcy protection. It's not known whether Lululemon will keep that location.
"They're doing a lot of business out of the 900 N. Michigan building," Mr. Latsko says. "They definitely want to be out on the street and on the corner, and it's a great corner."
Mr. Latsko, a principal with Structure Management Midwest LLC, teamed up with fellow Chicago developer Mark Hunt of M Development LLC to buy the site for $8.25 million in September from a venture managed by Gino's former owner, according to property records.
The Latsko-Hunt venture then took out an $8.44-million loan from Bridgeview Bank that Mr. Latsko says will fund the less than $2 million in construction costs for the new Lululemon store.
Messrs. Latsko and Hunt also were in advanced talks with edgy men's designer John Varvatos for the site, with plans to build a 6,000-square-foot store for the New York-based designer.
Related story: Varvatos plans boutique at former Gino's site
A Varvatos spokesman says in an e-mail that the firm "will continue to keep our eye" on the Chicago market.
In Wrigleyville, Lulelemon was close to signing a lease for a planned retail building at 3510 N. Southport, says the project's developer, Evan Oliff of Chicago-based Preferred Development Inc.
"They (Lululemon) were going to sign in October, and then the market crashed. What are you going to do?" Mr. Oliff says. "Rush-Walton is a great corner. I think Lululemon will do very well there."
