CHICAGO-The 156,718-sf office building at 19 S. LaSalle St. has been sold for $29.9 million. The 16-story property, built in 1893, includes 19,562 sf of retail space at street level. It was designed by architect William Le Baron Jenny and was originally known as the Central YMCA Building.

The building has been well-maintained and has a stable tenant history, according to James Walsh, vice president/investments at Marcus & Millichap. Walsh, along with Howard Wiese and Bruce Harris of the Chicago office of Marcus & Millichap, represented the seller in the transaction, a private business that had owned the property since 1980. The buyer, 19 South LaSalle Street, LLC, a German investor, was represented by Deanne Draeger, an associate in the Manhattan office of Marcus & Millichap. The buyer needed to complete a 1031 exchange.

The property is currently 94% occupied, according to Walsh. It has approximately 50 tenants. Walsh tells GlobeSt.com that the building recently underwent a $3 million capital improvement program that included mechanicals, the elevators and the building’s facade. “The buyer, as soon as he looked at it, wanted to own it,” Walsh says. “The property went on the market May 1 and was under contract within 15 days. The all-cash sale was concluded within 30 days,” Walsh adds.

Walsh says that the property sold at a cap rate of about 6%. Average asking price for office space in the building is $20.50 per sf. Trammell Crow’s First Quarter 2006 Chicago Downtown Market Report lists the average asking price for office space in the Central Loop goes for $26.76 per sf.

He says that the buyer has no immediate plans to make any changes to the building. “The only thing he might have to do is if the city insists that the building has to be sprinklered.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.