At $263 per sf, the price is about 3% higher than Los Angeles-based Davis Cos.' $239-million purchase of 181 W. Madison St. in the Central Loop submarket. That deal was in the works at the time of the Sept. 11 terrorist attacks, and closed shortly thereafter.

"Chicago is a deep and strong market and this is a prime asset within one of Chicago's most attractive submarkets," says chairman and chief executive officer Douglas Shorenstein, whose company's three-building, 4-million-sf Chicago portfolio includes the mixed-use John Hancock Center and Prudential Plaza.

The West Loop ended the year with an 11.6% direct vacancy rate in class A space, according to research by US Equities Realty, but the firm reports the submarket has nearly 1.8 million sf of class A sublease space available. That adds up to a 19.7% class A availability rate in the West Loop. A Cushman & Wakefield report is a bit more favorable, noting a 15.3% availability rate in the West Loop.

Jones Lang LaSalle managing directors James Hanson and Bruce Miller represented Tishman Speyer. "Even in the current economicenvironment, the offering of 500 W. Monroe generated a number of offers from highly qualified investors," Miller says. "This is a testament to the fundamental attractiveness of Chicago to investors from around the world."

Built in 1992, the 44-story tower at Monroe and Canal streets is 100% occupied with a tenant roster than includes GE Capital Corp., GATX Corp., Marsh USA and the Federal Deposit Insurance Corp. Although it is located within blocks of two major Metra commuter rail terminals, the building boasts a 10-story, 1,330-car garage. When space was available, Tishman Speyer was asking $22 per sf to $25 per sf on a net-lease basis.

The new owner does not intend to stand pat with its acquisition on behalf of its sixth, $610-million investment fund. "While 500 W. Monroe is a top quality physical asset and is already delivering strong numbers, we feel we can add significant value to the property over the holding period through proactive and strategic management and leasing," Shorenstein says.