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CHICAGO-In the first Class A asset to sell downtown this year, McMorgan & Co. had sold its 311,000-square-foot 303 W. Madison. The 26-story building was purchased by an international real estate investor in a deal that closed Wednesday for a reported $60 million. Sold by CB Richard Ellis, which will continue to manage and lease the property, the building’s buyer is reported to be tequila maker Jose Cuervo.

“Our client is pleased to enter the Chicago market with the purchase of such a best of class asset,” says John Gaskin, principal, American Executive Developers LLC, the investor’s exclusive real estate advisor and execution agent in the US. “The 303 West Madison building fits perfectly our client’s strategy to acquire trophy properties in world class cities such as Chicago. McMorgan & Co. and CBRE have done an excellent job in upgrading, leasing and managing the building, which was all very important for our client, who intends to hold this property for the long term.”

The building was recently improved with renovated common area corridors and bathrooms and updated lighting to bring it closer to LEED certification. McMorgan has owned the 26-story office tower since 2004, when it acquired the property for $63 million from a partnership. The property is located in the West Loop submarket, where overall occupancy is around 87%, according to Transwestern’s Q3 office market report.

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. Offering 12,500-square-foot floor plates, the property was about 90% occupied in June with tenants representing an average lease term of seven years.

McMorgan was represented by Michael Vesper and Blake Johnson of CBRE in the sale. “CB Richard Ellis will, on behalf of the owner, continue to focus on providing complete satisfaction to the tenants of 303 W. Madison and to attracting new occupants with unprecedented personal attention and support,” Jack Houze, director of asset services for CBRE, says. “We have a long history with this asset, and look forward to building on our success with the new owner.”

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