Cushman & Wakefield's global headquarters in Chicago is reportedly close to trading hands in a sale valued at around $120M.
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Prime Finance, primarily a CRE lender but occasional buyer, has a preliminary agreement to acquire the 31-story building at 225 W. Wacker Drive from Spear Street Capital, CoStar News first reported. The deal, while one of the highest-priced office trades in the city in the last few years, would still represent a haircut of about 43% since Spear Street bought it for $210M in May 2020.
The parties haven't yet finalized the deal, and it could still fail to be completed, according to CoStar.
Prime Finance and Spear Street couldn’t immediately be reached for comment.
The sale price wouldn't be enough for Spear Street to pay off its loan on the property. The company borrowed $158.1M from RBC Real Estate Corp. in 2020, then paid it down to $143.1M in a 2023 modification, CoStar reported.
Cushman & Wakefield began marketing the property in February, and when the building went up for sale, the 651K SF building was 86% leased. The property also had a weighted average lease term of 6.5 years.
The brokerage is the building's largest tenant, taking up more than 83K SF in the building, and the average tenant size in the building overall is about 18K SF.
Spear Street has also been involved in other recent Chicago-area office deals. Glenstar and Patrick Halloran reportedly agreed to buy the 46-story tower at 500 W. Monroe St. for between $100M and $110M. Spear Street acquired the Monroe Street property for $412M in 2019.
Spear Street is also slated to buy a smaller office building at 1201 W. Lake St. in Fulton Market for $40M.
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