Both buildings are in the Illinois Center office complex, developed in the early 1970s. The 32-story, 1-million-sf One Illinois Center building at the corner of Michigan Avenue and Wacker Drive is being sold by Lincoln Property Co. and Carlyle Group 86% leased, with Health Care Services Corp. being the anchor tenant with 202,000 sf leased through March 2017.

Just as it has done already with 233 N. Michigan Ave., Parkway Properties, Inc. expects to sell off a 75% stake in 111 E. Wacker Dr. later this year. Even though the building has undergone $18 million in renovations in recent years, Parkway Properties plans to spend another $3.7 million on improvements. Leasing vacant space is expected to cost another $12 million, according to the company, which will use third-party agents for both the office and retail space.

Although the purchase price represents a 6.3% capitalization rate, Parkway Properties, Inc. says it is buying One Illinois Center 23% below replacement cost. The REIT will use a $148.5-million mortgage at 6.27% to buy the building, which is considered a twin to Parkway's Two Illinois Center.

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