CHICAGO-Tishman Speyer has completed the acquisition of 353 N.Clark for $385 million, about $35 million less than it cost sellerMesirow Financial to build the tower that was finished in October2009. Mesirow had owed roughly $374 million from construction loansthat were coming due.

|

The 1.2-million-square-foot tower in the city’s River Northsubmarket was pre-leased to tenants that include anchors Jenner& Block and Mesirow itself. However, the property never gotfurther than its current occupancy of 79%. Bruce Miller, managingdirector with Jones Lang LaSalle, tells GlobeSt.com that it wasjust the perfect storm for the developer.

|

“The building was delivered in a tough leasing market, it wasreally one of the worst times we’ve seen in more than 10 years,”Miller says. “We took it from 65% to 79%, but just getting thatextra bit wasn’t possible in the market that we’re in.” Miller, JimPostweiler and Jascint Vukelich from JLL represented Mesirow in thesale, while Dave Hendrickson, Mike Melody and Jimmy Board arrangedacquisition financing. JLL had also managed and leased theproperty.

|

Mesirow had owned about $330 million in construction financingto Munich-based Hypo Real Estate Holding, as well as $44 million ina mezzanine loan to locally-based Transwestern Investment Co.Mesirow had partnered with Friedman Properties Ltd., also based inChicago, in building the tower.

|

Tishman is making inroads into investing in Chicago, alreadyowning One North Franklin, 161 N. Clark, 10 & 30 South Wacker,the Civic Opera Building and 30 N. LaSalle. The company is thelargest owner in the city of class A buildings, said Casey Wold,senior managing director with the company. “This property is agreat addition to our world-class office portfolio and theacquisition demonstrates our confidence in the Chicago market,” hesaid in a statement Wednesday.

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.