CHICAGO—The building at 137 S. State in downtown Chicago is known to most passersby as the location of the CVS Pharmacy, but above the ground-floor space the rest of the building is a cooling plant that provides critical services to more than 100 commercial properties throughout the Loop. And now the land beneath, subject to a long-term ground lease, is up for sale. Newmark Grubb Knight Frank has just been appointed as the property's exclusive broker by the owner, a private family trust. The building itself is owned and occupied by Enwave Energy Corp. whichis also the tenant on the ground lease.

Investors are always on the lookout for mission-critical facilities, but 137 S. State presents a rare opportunity to buy a property that has a premier location, a long-term ground lease and that performs critical functions for a vast array of institutional owners. The four-story structure was constructed in 1993 by Exelon Corp. and includes a 50,530-square-foot cooling plant. The ground lease does not expire until December 2043 and features rental increases every 10 years.

“We anticipate several premium offers, given the strength of the market and the mission-critical nature of the property,” says Geoffrey Kasselman, executive managing director, and head of NGKF's national industrial practice. “The property is being offered on an all cash, 'as is' basis to qualified investors.”