TMW made its first acquisition here on behalf of a German closed-end public fund. It may not be the company's last, according to a broker involved in the deal.
"My impression is this is an entity interested in good real estate investments," Mark Goodman of Mark Goodman & Associates tells GlobeSt.com. Goodman, also involved in office development Downtown and in the suburbs, represented TMW in the deal.
Although it approaches the upper echelons of prices paid in the Loop, TMW acquisitions officer Zeb Bradford says $265 per sf is below replacement cost. "Given the quality of the building and tenancy, this investment fits into our portfolio of closed-end fund assets perfectly," Bradford says in a statement. "An added benefit is that we are also assuming the existing Fleet National Bank mortgage on this building."
The Davis Cos. financed its purchase with $170 million from Fleet. Tenants at the 13-year-old building include Paine Webber, ABN-AMRO and the Northern Trust Co.
Originally scheduled to close on his purchase Sept. 11, Marvin Davis went ahead with the purchase two days later from Tokyo-based Yasuda Mutual Life Insurance Co., saying at the time, "I think we are doing the right thing." However, the building was being marketed privately this summer.
"That was never really revealed to me," Goodman tells GlobeSt.com about the seller's motivation, adding he could only speculate The Davis Co. thought it had better investment opportunities for its capital elsewhere.
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