Deutsche Bank, Synovate and Contigroup Cos. are among the tenants in the building along the Chicago River, which was 92% leased at closing and underwent a recent renovation. Occupancy is well above average for the submarket, where 18.6% of office space is available, according to US Equities Realty's most recent report. Published net lease rates in the building, which has access to Union Station, start at $16 per sf.
At $175 per sf, the sale appears to be a discount compared to another recently sold West Loop property built in the 1970s. Sears Tower commanded a total price of $242 per sf. "Excluding the observatory and sky deck, the price for the office portion of Sears Tower drops to approximately $165 per sf," according to US Equities Realty.
Beacon Capital, which takes a value-added approach to its acquisitions, swung the purchase with a $145.5-million mortgage from MetLife, sellers of Sears Tower.
VEF Advisors, LLC, an affiliate of Apollo Real Estate Advisors, bought out from the Lend Lease Corp. earlier this year. Its Value Enhancement Fund V already had a majority stake in the property.
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