Downtown Office Tower Nears Sale Agreement: The Chicago Deal Sheet
Menashe Properties is nearing a deal to buy the 31-story office tower at 125 S. Wacker Drive.
The purchase price for the pending deal hasn’t been released, but sources told Crain's Chicago Business that Menashe will reportedly pay close to $50M for the 577K SF tower. That would mean a substantial loss for La Caisse, the real estate arm of a Canadian public pension fund that bought the building in 2017 for $145M.
Menashe got a similar bargain when it bought 230 West Monroe, a 623K SF office tower two blocks from Chicago’s Willis Tower, for $45M in September 2023. That property had last sold in 2014 to Accesso Partners for $122M.
SALES
A local private investor scooped up Eola Crossing, a retail strip in Aurora, for about $2.8M in an all-cash purchase. The property at 2380 S. Eola Road spans 14K SF and features service and restaurant tenants. Marcus & Millichap's Austin Weisenbeck and Sean Sharko represented the buyer.
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Digital Design Corp. paid $1.5M for a 15K SF industrial building at 3860 N. Ventura Drive in Arlington Heights from AmBeed. This will be the company's second location in the business park. Lee & Associates Dustin Albers represented the seller.
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Lennar paid $6.5M for 84.4 acres at 325 Umbdenstock Road in South Elgin from Spohr Family Trust for residential use. Lee & Associates’ John Cassidy, Jay Farnam and Ken Franzese represented the seller.
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An undisclosed buyer purchased a 133K SF industrial building at 8200 Ridgefield Road in Crystal Lake. Entre Commercial Realty's John Joyce and Sam Deihs brokered the deal.
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An out-of-state investor paid $33.8M for The Avondale, a 52-unit luxury townhouse community at 4200 W. Belmont Ave. The property was 92% occupied at the time of sale. The buyer plans to reposition the asset by selling the units individually as townhome condominiums. Kiser Group's Andy Friedman, Jake Parker and Viktor Radzieta brokered the deal.
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An undisclosed owner-occupier purchased a 25K SF industrial building at 6364-6366 W. Gross Point Road in Niles to expand its services in the area. Entre Commercial Realty's Marc Bartolini, Dan Jones and Dan Benassi represented the buyer, and NAI Hiffman's Joe Bronson, Paddy Dwyer and Mike McFadden represented the seller.
LEASES
Worldwide Flight Services signed a full-building lease for The Cubes at ORD in Franklin Park from CRG. Avison Young's Brian Colson and Brian Pomorski represented CRG in the 66K SF deal, while CBRE's Matt Mulvihill represented WFS.
CONSTRUCTION AND DEVELOPMENT
Peak Construction Corp. started work on two tenant improvement projects in NorthPoint Development’s Third Coast Intermodal Hub Building 1 in Joliet. The first project totals 303K SF, and the second is an expansion adding 431K SF. Both projects are expected to be completed in the fourth quarter.
FINANCING
Matthews Real Estate Investment Services announced the offering of a performing loan pool secured by multifamily assets in Chicago. The sealed-bid auction is for two performing first lien mortgage notes with a combined unpaid principal balance of $3M. The collateral properties are two mid-rise apartment buildings totaling 51 units in South Shore.
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BWE secured an $11M first mortgage loan to recapitalize Kingsbury Center, an office and retail building in River North. The building, at 350 W. Hubbard St., spans 135K SF, consisting of 92K SF of office and 43K SF of retail. BWE's Daniel Rosenberg, Tim Caffrey, Logan Petersmeyer and Isabella Barrios advised sponsor Next Realty on the financing.
