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 June 9.
Quinn Signs Pension Reform Bill
Governor Pat Quinn has signed Mayor Rahm Emanuel’s pension reform proposal into law. The measure will cut pension benefits and raise retirement ages for some City Hall employees. Although property taxes may be raised in the future, Mayor Emanuel has emphasized that they will remain constant for a minimum of one year.
55 W. Monroe St. For Sale
A venture of Hearn Co. is seeking buyers for a 40-story tower at 55 W. Monroe St. The real estate investment firm has hired JLL to complete the sale. Hearn is ready to sell the property after two other recent acquisitions: the office portion of the John Hancock Center for $140 million and Three First National Plaza at 70 W. Madison St. for $375 million.
Florida Firm Doubles Investment in Chicago’s Loop
Florida-based office investor Beacon Investment Properties LLC is working to complete the purchase of a 29-story Loop office tower at 230 W. Monroe. Beacon has also recently acquired the 23-story tower next door at 200 W. Monroe St. for $100 million and a 36-story tower at 20 N. Clark St. for $63 million. The new purchase comes with considerable risk, as nearly one-third of space at 230 W. Monroe is unoccupied.
Citigroup Center Gains Momentum with New Tenant Leases
KBS Real Estate Investment Trust III has signed another set of leases at the 42-story Citigroup Center at 500 W. Madison St., where occupancy has reached 92 percent. The news comes after global investment bank Lincoln International’s recent renegotiation of its long-term lease in the building. KBS acquired Citigroup Center in December for $425 million.
JLL Commits to Long-Term Lease at the Aon Center
Chicago-based real estate firm JLL announced plans to extend its current lease for 165,000 square feet at the Aon Center at 200 E. Randolph St. The firm had considered alternative locations, including plans for a 53-story tower at 150 N. Riverside Plaza in the West Loop. A spokesperson said the Aon Center will allow JLL to continue to provide its employees with unique amenities and innovative office designs.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.