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CHICAGO-Another Wacker Drive building has changed hands, with Walton Street Capital, LLC closing on its acquisition of the 1.28-million-sf crowned tower at 311 S. Wacker. Teachers Insurance & Annuity Association got $275 million for the 65-story building, which was 83% occupied at closing.

The deal follows the sale of UBS Tower at 1 N. Wacker Dr. for a reported $415 million, or more than $300 per sf. Besides higher occupancy, UBS Tower’s $100-per-sf premium over 311 S. Wacker Dr. also was a result of age. While UBS Tower was completed last year, 311 S. Wacker Dr. was completed in 1990.

TIAA also lost two tenants, Marchfirst and FINOVA Capital, when they filed for bankruptcy.

Walton Street Capital manages three funds totaling $1.1 billion, aiming to produce 20% returns for investors. The Chicago-based firm strategy includes buying larger assets that are undervalued. The buyers take over a building that houses a mix of legal, financial service, real estate, insurance and consulting firms.

Brian P. Nagle, Paul W. Lundstedt and John P. Gavin of Cushman & Wakefield’s Chicago office, as well as New York City colleague Cynthia L. Foster, represented TIAA.

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