Ivanhoé Cambridge and Callahan Capital Properties have closed on 125 South Wacker Drive, a 570,000-square-foot office building in downtown Chicago for about $145m, or about $252 per square foot. Although officials at Ivanhoe Cambridge and Callahan Capital declined to comment, market players said the deal is a good core acquisition opportunity. “[The buyers are] two very sophisticated and smart owners,” said Eric Foster, a principal at Avison Young. “[This is] an opportunity to continue to purchase core quality product in a major urban area that’s thriving.”
In 2012, MetLife bought the office tower from New York-based Tishman Speyer Properties for $210 per square foot, or about $109m, according an article in to Crain’s Chicago Business. Tishman Speyer bought 125 S. Wacker for just $44m in January 2005, when it was 60 percent leased, and then spent about $33m renovating the tower.
The 1974 vintage property is a 31-story office tower at the corner of South Wacker Drive and West Adams Street in Chicago’s West Loop. It’s one block from Union Station, less than three blocks from Ogilvie Transportation Center and two blocks from a major CTA L stop, and is also close to major highways and CTA bus lines. The property’s tenant amenities include a fitness center, conference center, quick serve restaurant and financial services. It was originally constructed as the headquarters for Northern Trust.
|125 South Wacker pricing snapshot|
|Year||Owner||Price (in millions)||Price per square foot|
|2017||Ivanhoe Cambridge, Callahan Capital Partners||$145||$252|
|2005||Tishman Speyer Properties||$44||$79|
|Source: REFI, RCA|