Search
 

REIT Eyes JV for Illinois Center Assets

CHICAGO-A decision by a potential partner to back out of a joint venture on 233 N. Michigan Ave. allows Parkway Properties Inc. to offer a two-building, two-million-sf package with other interested partners. The attempt to sell a 70% to 75% stake in the Illinois Center properties is part of Parkway Properties' strategy to shift its emphasis from ownership to an operator.

By Mark Ruda | Updated on May 02, 2006

CHICAGO-Parkway Properties, Inc. officials admit they were disappointed last month when Orlando-based Estein & Associates backed out of a deal to buy 70% of 233 N. Michigan Ave. for $179 million. However, the REIT is optimistic about finding a joint venture partner for that one-million-sf office building as well as its twin, 111 E. Wacker Dr., which it has under contract.

Parkway Properties has agreed to pay Lincoln Property Co. and Carlyle Group $198 million for the 32-story, one-million-sf One Illinois Center building at the corner of Michigan Avenue and Wacker Drive. “This is a setback as far as the timing of a sale,” says Parkway Properties president and chief executive officer Steven G. Rogers during his company’s earnings conference call Tuesday. He adds the company already is discussing a package deal with 233 N. Michigan Ave. with other potential partners. A current Parkway Properties joint venture partner, Ohio Public Employees Retirement System, is a potential buyer of a majority stake in the Illinois Center buildings, Rogers suggests.

The attempt to sell a 70% to 75% stake in the Illinois Center properties is part of Parkway Properties’ strategy to shift its emphasis from ownership to an operator, Rogers says. That will help increase the company’s return on its investments, he notes.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.