The bulk of the properties were purchased earlier this year aspart of a portfolio from Equity Office Properties Trust. Twoadditional properties from Blackstone's buy-out of CarrAmerica arealso said to be in the mix. Suburban properties in the portfolioreportedly include Oakbrook Terrace Tower; Corporate 500 Centre and500 Lake Cook Rd. in Deerfield; the three-building Commerce Plazaand 2001-2021 Spring Rd. in Oak Brook; Lincoln Center at 18W140Butterfield Rd. in Oakbrook Terrace; 1011 Butterfield Rd. in VernonHills; the five-building Westbrook Corporate Center in Westchester;and Parkway North Center in Deerfield. Some of the Chicagobuildings in the portfolio include the Mercantile Exchange at 10and 30 S. Wacker Dr., 161 N. Clark St., and 1 N. Franklin St. TheCivic Opera building, 20 N. Wacker Dr., is also being sold as partof the portfolio, as previously reported by GlobeSt.com. HollidayFenoglio Fowler is the broker for the sale. A spokesperson fromHolliday Fenoglio Fowler declined to comment.

Blackstone selected bidders that are well-respected and"substantial significant players," says Wood, a former vicepresident with EOP. "Tishman Speyer has a great reputation as bothan owner and an operator of properties," Wood says. "And,certainly, GE understands their investment criteria." Althoughportfolios in Los Angeles and New York have been sold off in piecessoon after closing on the sale of the portfolio, Wood believes thatTishman Speyer and GE will hold onto the properties. "I personallythink that the days of buying property, and then turning around andbeing able to flip those properties at a profit that make any kindof sense, have kind of passes us by in Chicago," he says. "Themarket in the past 60 days has started to feel a coolingeffect."

One of the benefits that have not been frequently talked aboutis that the properties have been owned and managed by EquityOffice, says Wood, who worked for the company until 1999. "Why youbuy something that has been managed and leased by EquityOffice/Blackstone, you are buying assets that you know have beenmanaged very well and have likely been leased very smartly," hesays. Additionally, the new owners would know that preventativemaintenance has been done, he says.With the acquisition, "TishmanSpeyer becomes one of the largest landlords in Downtown Chicago andthat provides them a unique ability to look at tenant situations alittle differently," he says. If Tishman Speyer cannot meet atenant's needs in one building, they have multiple options. "One ofthe interesting things about the portfolio, is you get a number ofdifferent kinds of assets," he says. The suburban assets areprimarily in the East West Corridor submarket which provides GEwith "a nice critical mass in one particular submarket," Woodsays.