Sterling Bay to Buy Another Chicago Icon
The developer has remade whole neighborhoods, and will now add the former John Hancock Center to its portfolio.
CHICAGO—Sterling Bay is best known for launching massive redevelopment projects that help expand the city’s office market into new neighborhoods such as Fulton Market and Lincoln Park. But in the past year it has also snapped up several iconic office properties within the CBD. And according to a report in Crain’s, it is set to pocket a significant portion of 875 N. Michigan, formerly known as the John Hancock Center, perhaps Chicago’s most notable skyscraper.
The newspaper reports the developer and a partner will pay Hearn more than $300 million for the roughly 900,000 square feet of office space located within the 100-story building, along with a 710-car parking garage.
Hearn acquired the tower’s office space and garage for $140 million in 2013. Since then, it replaced the mechanical systems, renovated the entries and lobbies on Chestnut and Delaware streets, and added a new 13th floor lounge, fitness center, and conference facility. It also redesigned the common areas on each floor and refurbished the bathrooms.
Sterling Bay’s plans for the tower remain unknown. The company recently purchased 600 W. Chicago in River North, the sprawling headquarters for Groupon, for $510 million, and Prudential Plaza on Michigan Ave. for $680 million.
It recently began Lincoln Yards, the firm’s most significant project, which will transform the former Finkl Steel plant along the north branch of the Chicago River in Lincoln Park into a 70-acre mixed-use district that many have touted as the possible home for Amazon’s HQ2.