JV Buys 625 N. Michigan for Nearly $112M

CHICAGO-A joint venture between Anglo Irish Bank, based in Dublin, and Golub & Co., based here, has purchased 625 N. Michigan Ave. for nearly $112 million, according to sources. The 27-story, mixed-use tower had been owned by BPG Properties Ltd., based in Philadelphia, with a minority interest by Golub & Co.

Anglo Irish Bank is providing more than $92.9 million in acquisition financing for the deal. “It is obviously a great location, we like the office market in Chicago and we have a lot of very active clients who like to get exposure to major US cities,” says Eddie Byrne, head of lending for Anglo North America. “We see this as a good opportunity with a very good partner.”

BPG purchased the 349,409-sf building in 2003 for $62.7 million, says Joseph Neverauskas, senior vice president with BPG. When BPG bought the building, the occupancy rate was about 82%. In 2005, BPG had renovated the building’s corridors, restrooms and life safety features in addition to work on the building’s facade. “We are 94% leased right now and, with capital markets and so forth, it is a good time to sell. We created our value,” Neverauskas says.