CHICAGO—The economic recovery has largely been slow and steady, but it has now gone on so long that investors are scrambling to bid on the dwindling number of distressed properties. And other investors have decided that the market is so strong they can turn away from class A properties, many of which have already recently changed hands, and instead focus their attention on healthy class B properties. This was illustrated by several recent deals that were announced this week.

LaSalle Income and Growth Fund VII, for example, purchased 123 N. Wacker Dr., a 549,941-square-foot building in the West Loop that had fallen into foreclosure before getting taken over last year by LNR Partners, LLC. Deals like this were much more common just a few years ago, and although there are a few remaining value-add opportunities in the CBD, this building still stands out. The occupancy rate is just 57%, lower than other buildings in a similar situation, and that means LaSalle will have the opportunity to pick and choose the best tenants.