West Loop Office Tower Sells At Reported 76% Discount
Chicago-based Glenstar, in partnership with a high net worth private investor, has acquired the skyscraper at 500 W. Monroe St. in the West Loop.
The reported sales price would be one of the steepest discounts in downtown Chicago's history.
The 967K SF, 46-story Class-A tower was acquired in an all-cash purchase.
While Glenstar and its partner, believed to be Minnesota-based Patrick Halloran, didn’t disclose the purchase price, Crain's Chicago Business reported the group spent less than $100M buying the property’s $270M distressed loan in lieu of foreclosure.
That would be a 76% discount from what the building traded for in October 2019.
Its most recent owner, Spear Street Capital, purchased it from Piedmont Office Realty Trust for $412M, according to a Securities and Exchange Commission filing. When Spear Street failed to pay its $270M debt as the loan matured in January, JPMorgan Chase hired JLL to sell the loan.
Glenstar plans to undertake a "hospitality-driven renovation," according to a press release. That includes modernizing the lobby, upgrading other common areas and adding amenities.
“Flexibility and speed are critical in the market. With our distinctive ownership structure, decisions are made in real time, allowing us to deliver tailored solutions that align with the evolving needs of today’s tenants,” Glenstar co-founder and Managing Principal Michael Klein said in the press release.
Formerly known as the Heller International Building, the multitenant property has served as the corporate headquarters of Motorola Solutions since 2016.
