Aon Center Under Contract at $450M-Plus

Kukral confirms the 82-story building is under contract, though declining to comment on published reports on the sales price. However, GlobeSt.com has learned the building is expected to sell for more than $450 million, or $180 per sf.

The building has been competing against the adjacent Prudential Plaza I and II, which Jones Lang LaSalle has been marketing for Shorenstein Realty Services. However, that did not dampen interest in Aon Center, Kukral reports.

"There's been significant interest in the building," says Kukral, declining to offer an specific number of bidders.

"You always wonder what really is a bid and what's not a bid," he explains. "We were pleased with the interest, and the pricing. The price is at a very good price per sf. In Chicago, for a high-rise building, it works as good as any, especially compared to the John Hancock Building and Sears Tower. It's a very efficient building, with good floor plates."

Floor plates are 33,000 sf at the alabaster tower overlooking Millennium Park. John Hancock's tapered design results in floor plates ranging from 25,000 sf to 34,000 sf, while Sears Towers' range from 11,000 sf to 50,000 sf.

Standard Oil, predecessor to Amoco and BP Amoco, was the original main tenant of the building, originally nicknamed "Big Stan" when it was built in 1972. Insurance company Aon, however, is the main long-term tenant in the building now, which is 91% occupied.

"There's still a fair amount of upside in filling the vacancy," Kukral notes. "So you have a good base of solid cash flow, plus the ability to add value."

Wells Real Estate Funds, which debuted in this market a year ago with its $89-million purchase of Windy Point I and II in Schaumburg, declined comment. The company paid $183 per sf for the northwest suburban office buildings.