Wells REIT Closes on $475M AON Center Buy

The buy is at $188 per sf, and 11 years after the third-tallest building in the US underwent an $80-million exterior renovation.

AON Corp. subleases 544,623 sf at the 82-story white granite tower at 200 E. Randolph St., across the street from Millennium Park, from the previous namesake tenant, BP Amoco Corp. The oil company leases 776,810 sf in the East Loop building constructed in 1972 and nicknamed "Big Stan," referring to BP Amoco's previous corporate identity as Standard Oil.

While half of the space is leased to two high-quality tenants on long-term leases, AON Center will eventually lose Deloitte & Touche to 111 S. Wacker Dr., a 50-story West Loop tower being built by The John Buck Co. and Lend Lease. However, the tenant roster boasts national ad agency DDB Needham, national public relations firm Edelman Worldwide and real estate advisory firm Jones Lang LaSalle.

"AON Center provides the strong combination of qualities that we look for in all of our acquisitions--a high-quality, landmark real estate asset with long-term quality tenants, in the form of a transaction that makes terrific economic sense for our investors," says Wells REIT chief investment officer David Steinwedell. "In every way, AON Center aligns with the interests of our investors and helps to further diversify our portfolio of class-A assets."

While AON Center was being sold, tenant Jones Lang LaSalle was marketing the neighboring Prudential Plaza I and II, but Shorenstein Realty Services has since pulled the assets off the market.