Sept. 28 (Bloomberg) -- A joint venture including Tishman Speyer Properties LP sold a 45-story office tower in downtown Chicago to real estate equity fund Multi-Employer Property Trust for $217.5 million.
The 928,040-square-foot (86,218-square-meter) building at 200 W. Madison St., was built in 1983 and renovated in 2006, according to New York-based Tishman’s website. The property is 88 percent leased, Washington-based Multi-Employer said in a statement today.
Sales of downtown Chicago office properties have risen 48 percent to $1.12 billion this year as investors purchase buildings outside the prime markets of New York, San Francisco and Washington, according to real estate research company Real Capital Analytics Inc.
“As those coastal markets have become really competitive in many cases, and in some people’s views overpriced, more people are moving to Chicago,” Ben Thypin, director of market analysis for New York-based Real Capital, said in a telephone interview. “There’s so much capital chasing high-quality properties in primary markets.”
CommonWealth REIT, based in Newton, Massachusetts, bought 600 West Chicago, a 1.5 million-square-foot building where online-coupon provider Groupon Inc. has its headquarters, for $390 million, broker HFF Inc. said earlier this month.
The owners of Willis Tower in downtown Chicago are seeking to sell North America’s tallest building or a stake in the skyscraper, two people familiar with the plans said in June. The building is owned by a partnership that includes New York investors Joseph Moinian and Joseph Chetrit and American Landmark Properties Ltd. of Skokie, Illinois. In 2004, the group paid $841 million for the property, then known as the Sears Tower, according to Real Capital.
Multi-Employer, the buyer of 200 W. Madison, is a $5.1 billion real estate fund that is owned by more than 350 pension plans. It has properties in 30 major U.S. metropolitan markets.
--With assistance from David M. Levitt in New York. Editors: Daniel Taub, Christine Maurus
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