Bruce Miller, managing director with Jones Lang LaSalle, tellsGlobeSt.com that there's a historically low level of officeproperties for sale in Chicago. "Because of the current economicclimate, financing is more difficult to achieve than in the pastseveral years," Miller says. He says he can think of only one othersimilar-sized property on the market, the 1.1-sf Hartford Plaza,two buildings that include 150 and 100 S. Wacker, put up by ownerMarvin Herb. Rumor puts the possible price at a reported $275million. "There are plenty of active buyers circling aroundproperties with long-term, stable tenants with strong creditratings…this is the right time to leverage the lack of competitiveproduct in the market," he says.

|

There have been a few recent transactions that have closed inthis size category in Chicago. Gramercy Capital recently acquired amajority of the assets of American Financial Realty, including theone-million-sf Bank of America Center at 231 S. LaSalle, for $116.5million. Beacon Capital Partners sold four major Downtown parcels,including 200 S. Wacker, 120 S. Riverside, 10 S. Riverside, OneFinancial Place, for $832 million, about $265 per sf, to BehringerHarvard.

|

Miller says that SLB's are becoming a national trend. AT&Tdid a similar sale-leaseback with Kushner Cos. for its almostone-million-sf West Loop Office building for $276 million, or about$284 per sf. "Corporations are wisely converting real estate tocash to increase their capital ratios," he says.

|

The 135 S. LaSalle building has multiple tenants, though Millersays he can't identify the occupancy or lease rate in the 44-storybuilding. The building suffered a multi-story fire in December2004, and three years underwent a multimillion restoration thatincluded a complete façade restoration, a new building automationand air distribution system, and a building-wide life safety systemthat allows early detection of smoke, fire, natural gas and carbonmonoxide within the tower. Miller is joined in representing BofA byJim Postweiler, managing director with JLL, as well as EVP BruceWestwood-Booth and VP Peter Harwood.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.