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123 N. Wacker, Prentiss Assets Draw Multiple Bids

CHICAGO-Bids for the Dallas-based REIT's city and suburban office and industrial holdings are in, with the nearly three million sf likely to be sold to six or more buyers for a gross price between $500 million and $600 million.

By Mark Ruda | Updated on July 20, 2005

CHICAGO-Bids for Prentiss Properties Trust’s local portfolio, which includes 2.2 million sf of office space and 682,000 sf of wholly-owned industrial space, came in as expected with the gross price in the $500 million to $600 million range. President and chief executive officer Tom August says the properties will likely go to “six to eight” buyers, with closings expected over the next 90 days.

Although one industrial asset is vacant and at least two office assets have above-average vacancy rates, the overall capitalization rate for the portfolio is likely to be impressive. “It appears the number will start with a six,” August said in Wednesday’s earnings conference call.

The prize property is the 540,000-sf 123 N. Wacker Dr., which the REIT bought in 1999 for $87.25 million, saw major tenant Aon Corp. leave for the East Loop, then repositioned to a holding that is 97% occupied. Prentiss Properties Trust owns 616,000 sf in two buildings in the O’Hare submarket in One O’Hare Centre at 6250 N. River Rd. and O’Hare Plaza II at 8755 W. Higgins Rd. Four properties in the East-West Corridor total 512,000 sf and three assets in Lake County total 458,000 sf.

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