CHICAGO-A joint venture of the Korean Teachers Credit Union, the Korean Federation of Community Credit Cooperatives and Hong Kong-based Gaw Capital Partners has finalized the $349.3 million buy of the 57-story Three First National Plaza. The Hines US Core Office Fund was the seller.
The building, at 70 W. Madison in the Central Loop, is 92% leased with tenants such as Bell Boyd & Lloyd, Kaye Scholer, Fitch Ratings. Hines will continue to manage the property.
The Houston-based firm developed the building as its first entry into the Chicago market in 1981. Hines sold the building to its office fund, a partnership with Osaka, Japan-based Sumitomo Life, in 2005 for $245.3 million. Hines now has a portfolio of owned and managed properties that totals 10 million square feet and includes One South Dearborn, One North Wacker, 300 North LaSalle and the Citadel Center.
Charles Hazen, president of the office fund, tells GlobeSt.com that sale “supported our objectives of having a balanced diversification among the major markets.” However, he refused to elaborate on how this diversification will be achieved.
Sources who confirmed the sale price also said that the Korean Teachers Credit Union will hold a 63% share in the building, the cooperative will hold a 35% share and Gaw will hold 2%. Wells Fargo Securities Asia represented the buyer in the transaction, while Eastdil Secured represented Hines.
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