Commercial Real Estate Direct Staff Report
A venture of Madison Capital and KKR & Co. is offering for sale the 833,000 square feet of office space at the Sullivan Center mixed-use building in Chicago's Central Loop.
JLL has the listing.
The offering follows the venture's sale last September of the property's 176,000 sf of retail space to Acadia Realty Trust for $146.9 million, or $834.65/sf. The venture had purchased the 15-story building a year ago for $267 million from El-Ad Canada Inc.
The office space is 98 percent leased, but most of it is subject to leases that roll within three years. That could pose an opportunity for prospective investors, as class-A office rents in downtown Chicago are substantially greater than they were before the market crisis in 2008.
Asking rents, according to Reis Inc., are now $39.10/sf, up nearly 16 percent from where they were in 2007. And the New...
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