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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%.

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