JLL facilitated the sale and financing of the 833,000-square-foot workplace part of Sullivan Middle, an iconic business advanced with coveted giant flooring plates within the coronary heart of Chicago’s Loop. The client was New York-based 601W Corporations. The sellers, a enterprise between New York-based non-public fairness agency KKR and Madison Capital, had owned the property since 2016. It’s at present 97 % leased.
Along with dealing with the sale, JLL additionally organized acquisition financing for the customer. The lender was Brookfield Asset Administration. Worldwide director Bruce Miller and managing director Nooshin Felsenthal led the sale course of. Managing director Keith Largay dealt with the financing.
“This asset acquired vital investor curiosity due to its glorious location, robust tenant base and the truth that it is among the few bigger flooring plate buildings catering to the progressive tenants driving demand on this market,” stated Miller. “At practically full occupancy, it’s clearly the kind of property that tenants covet.”
Designed by famed archiect Louis Sullivan and accomplished in 1904, Sullivan Middle gives inventive workplace house that includes lofted ceilings and flooring plates starting from greater than 100,000 sq. ft on the decrease ranges to between 22,000 and 79,000 sq. ft on the higher ranges. Previously a division retailer, the nationwide historic landmark constructing noticed its higher flooring transformed to workplace house within the early 2000s. Between 2001 and 2012, Sullivan Middle underwent greater than $200 million in renovations designed to modernize its mechanical programs and restore historic options.
“As rents for top of the range inventive workplace house have accelerated, traders acknowledged that Sullivan Middle additionally represented a wonderful alternative to extend rental earnings considerably over time,” stated Felsenthal.
The previous homeowners beforehand offered Sullivan Middle’s 176,000 sq. ft of retail house—the 2 decrease flooring and basement stage—to Acadia Realty Belief in a separate $147 million transaction in August 2016. That house is at present occupied by a Goal retailer.
“This was a aggressive lending alternative backed by an skilled sponsor and prime quality asset,” stated Largay. “We proceed to search out very aggressive capital within the debt markets for transactions of this caliber.”
Sullivan Middle’s State Avenue location, within the coronary heart of Chicago’s Loop submarket, offers tenants entry to all seven CTA “L” strains. The property can be densely served by CTA bus service alongside State Avenue and Michigan Avenue in addition to the brand new Loop Hyperlink BRT line and is inside a quick stroll of the Union, LaSalle Avenue, Millennium Park and Ogilvie Metra stations. Close by points of interest embrace The Artwork Institute of Chicago, Millennium and Grant Parks and the closely trafficked State Avenue retail hall.