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 December 31.
- The largest downtown office transaction of 2012 in both overall price and cost-per-foot occurred this week. A venture of New York investors purchased 540 W. Madison St. for $350 million, or nearly $315 per square foot. The 30-story tower is more than 92 percent leased, although its seller and largest tenant, Bank of America Corp., is poised to vacate about 400,000 of its 750,000 square feet. The bank has the option to vacate the space as part of the sale-leaseback deal, which would make the property only 56 percent leased.
- After months of hard-fought negotiations, Congress approved a tax deal that narrowly averted a “fiscal cliff.” While the deal focuses on tax increases for wealthy individuals and protects 99 percent of Americans from an income tax increase, most will pay more federal taxes in 2013.
- J.P. Morgan Chase plans to open a flagship branch at the Wrigley Building at 400-410 N. Michigan Ave. Chase is in talks to lease 5,000 square feet of ground-floor retail space, which would be the building’s first big new retail tenant since a venture led by Chicago investor Byron Trott purchased the Wrigley Building from the Wrigley Co. more than a year ago.
- The Chicago Bears and their home, Soldier Field, are both undergoing major management changes. While the Chicago Bears pursue options for a new head coach, a contract to manage Solider Field is up for bid. The proposal includes stadium operations, food service and maintenance obligations. The contract is a minimum 10-year deal, with up to five one-year extensions, for a maximum term of 15 years. The contract winner is also responsible for negotiating sponsorships and preferred vendors and recommending capital changes.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.