The strong downtown office market has now reached to Class-C properties. GK Development bought 123 W Madison from Cagan Management Group for $10M.
The deal with GK is a strong return on Cagan's investment; the building sold for more than twice what the primarily residential developer paid for it. It was the building's receiver at the time of that sale and snagged the 22-story, 79k SF tower for $4.9M in 2013.
The market for Class-C properties is competitive, as developers seek out vintage buildings for repositioning. Over 4M SF of Class-C inventory in the CBD has been bought and repurposed in the past five years. [Crain's]
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