JV Closes on Purchase of John Hancock Center

CHICAGO-A joint venture of affiliates of Golub & Co. and New York-based Whitehall Street Real Estate Funds has closed on its purchase of the 100-story John Hancock Center, with more than one million sf of office and retail space. The building reportedly sold for $385 million, or roughly $350 per sf. Michael Newman, president and chief executive officer for Golub & Co., would not confirm or deny that number. “We are not announcing the price so I cannot say yes or no,” Newman says.

The Hancock, 875 N. Michigan Ave., is the third tallest building in Chicago and the 16th tallest in the world. The building was completed in 1969 and was extensively renovated in 1998. Included in the sale, which was first reported by GlobeSt.com in December, are the building’s 880,000 sf of office space, 153,000 sf of retail space on the lower levels, a 710-space parking garage, an observatory and rooftop broadcast antennas. About 700 residential condominiums are not included in the sale.

Newman tells GlobeSt.com that the various aspects of the building are part of what made the building so attractive. “It really has got different components. We look at it as almost five different pieces: Office, retail and the parking along with the antenna and the observatory,” he says. “We figure that we are really going to look at each one individually and try to figure out how to improve on what we think is already a great asset.”