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TIC Properties Pays $72M for Burnham Center

CHICAGO-A pool of tenant-in-common investors, most of them involved in Section 1031 exchanges, put up $27.5 million in equity to buy the 90-year-old building at 111 W. Washington St. for just $118 per sf.

By Mark Ruda | Updated on March 02, 2005

CHICAGO-Greenville, SC-based TIC Properties, LLC has acquired the historic Burnham Center at 111 W. Washington St. for $71.9 million or $118 per sf. Zeller Realty Group and ING sold the 27-story property 84% leased to more than 120 tenants.

While LaSalle Bank is providing a $50.5-million mortgage, TIC Properties raised $27.5 million in equity from tenant-in-common investors, most of them involved in Section 1031 exchanges, according to TIC Properties president Trevor L. Gordon. “Investors from around the country looking to defer the capital gains liabilities from the sale of investment property invested an average of $750,000 in cash proceeds and assumed a pro-rate share of the debt on the property,” adds Gordon, whose company has made two acquisitions in the Midwest US before its first in Chicago.

CB Richard Ellis senior vice president Mike Vesper represented Zeller Realty Group and ING. CB Richard Ellis also takes over as leasing agent and manager of the property designed by famed Chicago architect Daniel Burnham. However, Zeller Realty Group and ING were praised for their stewardship of the 90-year-old building on the National Historic Register.

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