McMorgan Sells 303 W. Madison for $60M

CHICAGO-In the first Class A asset to sell downtown this year, McMorgan & Co. had sold its 311,000-square-foot 303 W. Madison. The 26-story building was purchased by an international real estate investor in a deal that closed Wednesday for a reported $60 million. Sold by CB Richard Ellis, which will continue to manage and lease the property, the building’s buyer is reported to be tequila maker Jose Cuervo.

“Our client is pleased to enter the Chicago market with the purchase of such a best of class asset,” says John Gaskin, principal, American Executive Developers LLC, the investor’s exclusive real estate advisor and execution agent in the US. “The 303 West Madison building fits perfectly our client’s strategy to acquire trophy properties in world class cities such as Chicago. McMorgan & Co. and CBRE have done an excellent job in upgrading, leasing and managing the building, which was all very important for our client, who intends to hold this property for the long term.”

The building was recently improved with renovated common area corridors and bathrooms and updated lighting to bring it closer to LEED certification. McMorgan has owned the 26-story office tower since 2004, when it acquired the property for $63 million from a partnership. The property is located in the West Loop submarket, where overall occupancy is around 87%, according to Transwestern’s Q3 office market report.