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CHICAGO-McMorgan & Co. has retained CB Richard Ellis to sell the 311,000-square-foot 303 W. Madison. The company has owned the 26-story office tower since 2004, when it acquired the property for $63 million from a partnership. Michael Vesper and Blake Johnson of CBRE’s Downtown Chicago Investment Properties Institutional Group will oversee the sales advisor assignment.

“The sale of 303 presents a rare opportunity for investors to acquire a core, Class A West Loop asset at a price below $75 million,” Vesper says. “The building’s location enjoys extensive foot traffic as thousands of professionals travel to and from the commuter trains and in and out of downtown.” Offering 12,500-square-foot floor plates, the property is 90% occupied with tenants representing an average lease term of seven years.

The building was recently improved with renovated common area corridors and bathrooms and updated lighting to bring it closer to LEED certification. Designed by Skidmore, Owings & Merrill and completed in 1987, the property offers marble and granite finishes as well as amenities including conference rooms, business equipment, a WiFi coffee bar, parking and on-site retail. The property is located in the West Loop submarket, where overall occupancy is around 87% and asking lease rates around $39 per square foot gross, according to Cushman & Wakefield’s Q1 office market report.

“With investment capital focused on core office assets in first tier downtown markets like Chicago, an asset like 303 West Madison allows McMorgan & Company to raise capital by selling to the market segment that is most active,” Vesper says. “The core nature and size of 303 West Madison should also be attractive to lenders.”

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