"We think that Chicago is an interesting market right now and the timing on this purchase is very advantageous," says Loeb Partners Realty president and chairman Joseph S. Lesser. "Michigan Plaza has a solid tenant base, is well maintained yet it still offers a significant number of opportunities to update and improve. Our goal is to build Michigan Plaza into an 'A' building again and make it once again competitive with every other class A building in Chicago."

New York-based Witkoff Group, previous owner of the property, did not respond to a call seeking comment. Among the tenants are Channel 32, the local Fox Network affiliate, as well as Blue Cross Blue Shield, MCI, Midas and Unilever. The two buildings, part of the Illinois Center development, were constructed in the early 1980s by Metropolitan Structures.

Loeb Partners Realty plans to meet with tenants and brokers before embarking on an improvement project, Lesser says, as part of its buy-and-hold strategy. "We have always been long-term holders of quality real estate and have no intention of 'flipping' this property," he adds. "Our intention is to enhance the level of service and our relationship with our tenants as we upgrade this important property and hold it long-term as we do with CBD office buildings nationwide."