CHICAGO—CBRE Strategic Partners U.S. Value 6, a fund sponsored by CBRE Global Investors, has just acquired 181 W. Madison, a 50-story, class A, 953,000-square-foot tower in downtown Chicago.
Colliers reported earlier this year that the property was under contract, and that CBRE would pay about $300 million, or $319.15 per-square-foot, to GE Asset Management, the investment management arm of the GE Company, the owner. At the same time, CBRE also had 190 S. LaSalle St., a class A, 798,782-square-foot tower under contract, and was set to sell it for $211 million, or $264.15 per-square-foot, to Tishman Speyer.
The transaction was sourced off-market through Eastdil, who represented the seller.
“Chicago is a target market for the Strategic Partners U.S. Value 6 fund, as it is forecasted to see significant improvement in absorption and rental growth rates over the next five years, and this asset is in line with our strategy,” said Vance Maddocks, president of CBRE Strategic Partners US. “With our strength of ownership and ability to execute, we believe we can add value for both the tenants and our fund investors.”
The new owners plan to start a capital campaign and make enhancements, such as cosmetic improvements to building common areas, elevator modernization, an upgrade to building systems, replacing portions of the roof and obtaining LEED certification. In addition, CBRE officials said “they will engage a leasing team to market the new 5-Star Worldwide amenities and strength of new ownership as well as promoting contiguous blocks of available space and a “spec suite” program.”
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