Hines Buys 1M-SF-Plus UBS Tower for $540M

CHICAGO-A subsidiary of Hines has acquired the UBS Tower, 1 N. Wacker Dr. The building was acquired from a German investment fund managed by Rreef, a unit of Deutsche Bank AG. The sales price was $540 million, sources say. The 51-story office tower was acquired by a subsidiary of Hines US Core Office Fund LP, according to a Hines released statement. Representatives from Rreef did not respond to requests for an interview.

Eastdil Secured represented Rreef in the sales transaction and Hines represented itself. Rreef acquired the building in 2002 for $415 million. Hines is assuming Rreef’s $215 million mortgage, sources say. The 1.4-million-sf office building was designed by architectural firm Goettsch Partners and was constructed in 2001 by John Buck Co., based here.

“We consider this building to be one of the top buildings in Chicago, specifically one of the top Class A buildings in Chicago,” says Tom Danilek, a SVP in the Chicago office of Hines. Due to the building’s “young age” and being “such a high performing building as it is,” Hines is not planning any renovations for the building at this time, Danilek says. The property is located near the Ogilvie and Union commuter train stations and is located at North Wacker Drive and Madison Street. Building amenities include a 9,000-sf conference center, health club and a 230-space parking garage.