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CHICAGO-VEF Advisors, LLC has paid $43 million for 311 W. Monroe St., a 14-story West Loop office building 69% occupied by Harris Bank. The Atlanta-based affiliate of Apollo Real Estate Advisors LP paid $110 per sf for the 36-year-old asset formerly owned by John Buck Co.'s Acquisition & Development Fund I, LP.
Recent upgrades to the 390,000-sf property include three electrical substations and back-up generators. John Buck Co. has been asking $23.50 per sf for 110,704 sf, or 31% of the building.
John Buck Co. added one million sf to the West Loop submarket with 111 S. Wacker Dr., which has a direct competitor one block north in the 1.5-million-sf Hyatt Center. In addition, Fifield Cos. is building 479,000 sf of office space at 550 W. Adams St., and has nearly half the building available for lease.
"Most new developments have done well, in spite of generally weak office demand, as tenants are attracted to the efficient floor plates in the new buildings," concedes VEF Advisors chief executive officer Jim Ryan, whose company bought the building for its Value Enhancement Fund VI. "Class B and C space continues to be reinvented through renovations and conversions to residential and office condominiums."
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