Hines Buys 1M-SF-Plus UBS Tower for $540M

Eastdil Secured represented Rreef in the sales transaction and Hines represented itself. Rreef acquired the building in 2002 for $415 million. Hines is assuming Rreef's $215 million mortgage, sources say. The 1.4-million-sf office building was designed by architectural firm Goettsch Partners and was constructed in 2001 by John Buck Co., based here.

"We consider this building to be one of the top buildings in Chicago, specifically one of the top Class A buildings in Chicago," says Tom Danilek, a SVP in the Chicago office of Hines. Due to the building's "young age" and being "such a high performing building as it is," Hines is not planning any renovations for the building at this time, Danilek says. The property is located near the Ogilvie and Union commuter train stations and is located at North Wacker Drive and Madison Street. Building amenities include a 9,000-sf conference center, health club and a 230-space parking garage.

UBS Tower is 98% leased. Major tenants include UBS, PricewaterhouseCoopers and Citadel. Other tenants include private equity firm Adams Street Partners LLC, which leases 47,504 sf, and consulting firm L.E.K. Consulting, which leases 15,134 sf, which renewed leases in the building last year as previously reported by GlobeSt.com. The tower recently received LEED-Existing Building certification from the US Green Building Council, according to a press release from Rreef. The building had been leased and managed by John Buck Co. Hines will assume the leasing and management of the building, according to the statement.

Hines also owns or manages several other buildings in the CBD including 333 W. Wacker, One South Dearborn, Three First National Plaza, 321 N. Clark and 101 N. Wacker. "It will be a very attractive addition to our portfolio here in Chicago," Danilek says. Hines Core Fund is focused on core office buildings in a geographically diverse portfolio in the US, according to the released statement from Hines. The fund owns interests in 25 office properties with a total of 14.9 million rentable sf.