Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-A venture of Hines Interests and Levy Investment Group have signed the deal to sell One South Dearborn, the 40-story office building for more than $420 per sf, or about $350 million to Newport Beach, CA-based Olen Properties Corp. The 830,000-sf building opened in October 2005, and is anchored by the law firm Sidley Austin LLP. The property is home to the US headquarters for Barton Brands and Mittal Steel, as well as Hines’ Midwest Regional Office.

A Hines spokeswoman said the company will still manage and lease the building. Olen officials did not return calls for comment. The building is 92% leased, about 2% more occupied than when it was put on the sales block in December, the spokeswoman told GlobeSt.com.

“Our development strategy was to sell when the market was optimum,” said Greg Van Schaack, a senior vice president with Hines. “Well-designed and well-executed office developments attract the best tenants and strong investor interest.” Wachovia Bank financed the purchase. Holliday Fenoglio Folwer LP represented Hines, and Olen was not represented, says the Hines spokeswoman.

One South was also recently honored with the Downtown Office Development of the Year award by the Chicago branch of NAIOP. The building was one of four office projects completed in 2005, and was seen during construction as one of the super class A developments that would create large office vacancy in a then-fragile market. However, a recent report by Transwestern shows more than 35,000 new office jobs were added this year, boosting office occupancy more than expected in Chicago, and keeping vacancy rates at about 13.8%.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.