181 West Madison Sells For $360M
2016 was a cool-down year for downtown office building sales and foreign investment in Chicago real estate. The first major office deal of 2017 may signal a rebound for both. A venture led by HNA Group acquired 181 West Madison from CBRE Global Investors for $360M.
CBRE placed the 50-story tower on the market in December 2015, as a record-breaking year in Chicago real estate was winding down. CBRE paid $302M for the building in October 2013. While it turned a profit on the sale, the firm was expecting bids reaching $400M when it retained Eastdil Secured to court buyers, Crain's reports. In the interim, CBRE refinanced $191M in maturing debt on the asset last February.
HNA's investment comes after a huge slowdown in foreign investment in Chicago and across the country last year. After a record $4B in 2015, foreign investment in Chicago real estate fell short of $3B last year. The sale could be a sign that President Donald Trump's economic policies may create ample real estate opportunities for foreign investors. [Crain's]