The bulk of the properties were purchased earlier this year as part of a portfolio from Equity Office Properties Trust. Two additional properties from Blackstone's buy-out of CarrAmerica are also said to be in the mix. Suburban properties in the portfolio reportedly include Oakbrook Terrace Tower; Corporate 500 Centre and 500 Lake Cook Rd. in Deerfield; the three-building Commerce Plaza and 2001-2021 Spring Rd. in Oak Brook; Lincoln Center at 18W140 Butterfield Rd. in Oakbrook Terrace; 1011 Butterfield Rd. in Vernon Hills; the five-building Westbrook Corporate Center in Westchester; and Parkway North Center in Deerfield. Some of the Chicago buildings in the portfolio include the Mercantile Exchange at 10 and 30 S. Wacker Dr., 161 N. Clark St., and 1 N. Franklin St. The Civic Opera building, 20 N. Wacker Dr., is also being sold as part of the portfolio, as previously reported by GlobeSt.com. Holliday Fenoglio Fowler is the broker for the sale. A spokesperson from Holliday Fenoglio Fowler declined to comment.

Blackstone selected bidders that are well-respected and "substantial significant players," says Wood, a former vice president with EOP. "Tishman Speyer has a great reputation as both an owner and an operator of properties," Wood says. "And, certainly, GE understands their investment criteria." Although portfolios in Los Angeles and New York have been sold off in pieces soon after closing on the sale of the portfolio, Wood believes that Tishman Speyer and GE will hold onto the properties. "I personally think that the days of buying property, and then turning around and being able to flip those properties at a profit that make any kind of sense, have kind of passes us by in Chicago," he says. "The market in the past 60 days has started to feel a cooling effect."

One of the benefits that have not been frequently talked about is that the properties have been owned and managed by Equity Office, says Wood, who worked for the company until 1999. "Why you buy something that has been managed and leased by Equity Office/Blackstone, you are buying assets that you know have been managed very well and have likely been leased very smartly," he says. Additionally, the new owners would know that preventative maintenance has been done, he says.With the acquisition, "Tishman Speyer becomes one of the largest landlords in Downtown Chicago and that provides them a unique ability to look at tenant situations a little differently," he says. If Tishman Speyer cannot meet a tenant's needs in one building, they have multiple options. "One of the interesting things about the portfolio, is you get a number of different kinds of assets," he says. The suburban assets are primarily in the East West Corridor submarket which provides GE with "a nice critical mass in one particular submarket," Wood says.