Ya' Learn Something New…

Have a spare $120 million? You can purchase the land under the Drake. That’s right – not the historic hotel itself, but the land beneath.

Since 1979, the hotel’s been leasing the ground it sits on to the tune of about $6 million a year. At that rate, the purchase would definitely be a long-term, low-risk investment. However, every five years the rent can be raised to reflect 10% of the fair market value, and the next valuation is in 2009. The icing on the cake would come in 2039 (and possibly 2059), when ownership of the hotel goes to the land owner.

Now that’s what I call a prime piece of real estate.

(Get the nitty gritty in Chicago Real Estate Daily.)