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 September 1.
Acquisition and Sale for Hearn
Hearn Co. has sold 55 W. Monroe to John Hancock Real Estate for $241 million, which is $105 million more than Hearn and its partner, New York-based Mount Kellett Capital Management L.P., paid when they purchased the tower in December 2011. During the three years that Hearn owned 55 W. Monroe, vacancy decreased by 26%.
A Hearn Co. venture has acquired Three First National Plaza located at 70 W. Madison for $375 million with plans to spend upwards of $50 on future renovations. Hearn purchased the property from two investment partners, Chicago-based GEM Realty Capital Inc. and San Francisco-based Farallon Capital Management LLC.
More Financing for Riverside Development
A group of lenders has financed the 150 N. Riverside Plaza project with a $296 million loan. This 1.2 million square foot office tower, which is currently under construction and is expected to open at the end of 2016, is already 28% leased.
High Demand at GlenStar Property
GlenStar Properties has added yet another tenant to its renovated office space at 55 E. Monroe – Regus, the world’s largest shared office center operator. Regus signed a long-term lease for 21,000 square feet. The lease will start in January 2015. Tenants now occupy 88% of the office space at 55 E. Monroe.
Hines Sells Wacker Building
Hines Interests L.P. has sold 101 N. Wacker Drive to LaSalle Investment Management after spending $12 in renovations that include an updated lobby, a fitness center and a floor-to-ceiling glass curtain wall system. The 24-story tower is currently 90% leased. Hines will continue to serve as the property management company while JLL will serve as the building’s leasing agent. The purchase price has not yet been released.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.