Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of July 23.
- Prudential Real Estate Investors purchased retail and restaurant space in the John Hancock Center. Prudential paid nearly $142 million for 206,000 square feet of space occupied by retailers such as The North Face and Best Buy, as well as the 96th-floor space housing the Signature Room restaurant. Separately, Montparnasse 56 Group, a Paris-based observation deck operator, purchased the John Hancock Observatory to more aggressively compete for tourists with the Willis Tower Skydeck.
- Chicago-based Sterling Bay Cos. is selling 300 W. Adams for close to $51 million, twice the amount it paid for the property in 2007. The impressive jump in value can be attributed to Sterling Bay’s renovations, increased occupancy and the building gaining landmark status from the City of Chicago in 2009.
- Chicago City Council overwhelmingly passed an ordinance allowing food truck operators to prepare meals aboard their vehicles. Forty-four aldermen voted in favor of the ordinance, which restricts food trucks from parking closer than 200 feet from any restaurant.
- AJ Capital Partners and Jay Pritzker purchased the Chicago Athletic Association building at 12 S. Michigan Ave. for $13 million. The companies will invest $47 million to turn the marquee building into a boutique luxury hotel. According to Jonathan Fine, executive director of Preservation Chicago, the building’s rare Venetian Gothic facade and location along the city’s Michigan Avenue Historic District facing Grant Park makes a boutique hotel an ideal use for the building.
- According to a new survey by KPMG LLP, a majority of commercial real estate executives are not expecting a full economic recovery until at least 2014. Although the survey noted the European crisis, tepid job growth and rising operation costs are contributing to economic uncertainty, it reveled that 58 percent of executives expect to add jobs in 2013.
What headlines caught your attention this week? Leave us a comment and let us know.