X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-A fund by Apollo Real Estate Advisors, headquartered in New York City, has sold the Citicorp Plaza to Jackson, MS-based Parkway Properties Inc. Apollo Real Estate Advisors’ Value Enhancement Fund IV LP sold the three-building complex to Parkway Properties Office Fund LP for $100 million, according to released statements from Apollo and Parkway. An Apollo spokeswoman says that $100 million had always been the figure, in a deal that GlobeSt.com previously reported.Parkway expects to spend an additional $9.2 million on “closing costs, building improvements, leasing costs and tenant improvements during the first two years of ownership,” according to a Parkway released statement.

The 11-story office buildings have a total of 600,446 sf. The property is at the intersection of Interstate 90 and Cumberland Avenue and has direct access to the Chicago Transit Authority’s Blue Line. The buildings were constructed between 1980 and 1982 and have a total of 1,988 parking spaces. The lobbies and elevators were renovated in 2007. The building is 86% leased with major tenants including US Cellular Corp., Citicorp North America, CareerBuilder.com and the American Production & Inventory Control Society. “Roughly 63% of the rentable square footage is going to be expiring within the next four years,” Steven Wolf, partner with Apollo who oversees the firm’s value enhancement funds, tells GlobeSt.com. “It was the perfect window to either sell it at the right price or hold it through that window for the rolls expiration.”

The buildings are at 8410, 8420 and 8430 W. Bryn Mawr Ave. The fund had acquired the buildings in 1999 for $65 million.

The cap rate for this deal was 5.8% with a leveraged internal rate of return of approximately 11.8%, according to a Parkway released statement. Representatives from Parkway did not return phone calls seeking comment. Babson Capital Management LLC provided a $60-million first mortgage with a fixed interest rate of 5.5%.

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?

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