Deutsche Bank, Synovate and Contigroup Cos. are among the tenants in the building along the Chicago River, which was 92% leased at closing and underwent a recent renovation. Occupancy is well above average for the submarket, where 18.6% of office space is available, according to US Equities Realty's most recent report. Published net lease rates in the building, which has access to Union Station, start at $16 per sf.
At $175 per sf, the sale appears to be a discount compared to another recently sold West Loop property built in the 1970s. Sears Tower commanded a total price of $242 per sf. "Excluding the observatory and sky deck, the price for the office portion of Sears Tower drops to approximately $165 per sf," according to US Equities Realty.
Beacon Capital, which takes a value-added approach to its acquisitions, swung the purchase with a $145.5-million mortgage from MetLife, sellers of Sears Tower.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.