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123 N. Wacker, Prentiss Portfolio Hitting Market

CHICAGO-The prize of the nearly 3-million-sf office and industrial portfolio offered by Dallas-based Prentiss Properties, Inc. is the 540,000-sf West Loop asset, now 98% leased. The properties could fetch as much as $600 million.

By Mark Ruda | Updated on April 19, 2005

CHICAGO-A nearly 3-million-sf office and industrial portfolio, led by a trophy West Loop asset that has made a comeback, is hitting the market. Dallas-based Prentiss Properties, Inc. has hired Holliday Fenoglio Fowler, L.P. to market its 16-building, 2.2-million-sf office portfolio as well as four industrial assets totaling 700,000 sf.

While the grand total will be affected by how much of a minority interest Prentiss Properties will keep in each asset, company officials suggest the sales could total $600 million. “As we look at that portfolio, it’d never be worth more than it is today,” says chairman Michael V. Prentiss, adding closings are likely in the second half of the year. “It clearly is, today, a seller’s market.”

The prize of the portfolio is 123 N. Wacker Dr., Prentiss Properties’ only Downtown office property. The 540,000-sf building, also the largest property in the portfolio, was acquired for $87.25 million in 1999, before major tenant Aon Corp. left it nearly empty in favor of 200 E. Randolph St. Morton International and Meckler Bulger were landed for a combined 136,000 sf, with smaller users in the financial services heavily courted. Occupancy is 96% now, according to the REIT’s most recent financial reports, with the average rent of $36.09 per sf is among the highest in the entire Prentiss Properties portfolio.

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