Categorized | Commercial

Chicago Tower Sells for $217 Million

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In what is reported to be the second largest commercial real estate transaction in Chicago in the past month alone, Multi-Employer Property Trust purchased a forty-five-story office building in downtown Chicago for more than two hundred and seven million dollars. The real estate equity fund purchased the commercial property from Tishman Speyer Properties.

The commercial office building, which is eighty-eight percent leased, is a strong indication of the growing demand of the market in Chicago. The commercial properties in many prime coastal markets such as New York and San Francisco have out-priced many investors. As such, secondary markets like Chicago are reaping the benefits.

Chicago has seen nearly a fifty percent increase in commercial property sales in the past year. Sales during this time period have brought in over one billion dollars.

Earlier this month, the city saw a commercial property sell on an even grander scale. A one and a half million square foot office building that serves as the home of Groupon Inc. was purchased for nearly four hundred million dollars by CommonWealth REIT of Massachusetts.

These two most recent commercial property sales may actually pale in comparison to an expected future sale. It is being reported that the continent’s tallest building, Willis Tower, is up for sale by its owners. The building is valued at nearly one billion dollars. If the partnership that owns the commercial property is not able to sell the building as a whole, it will likely opt to sell a partial share of it.

Cities like Chicago are certainly benefitting from the recent commercial real estate boom. However, there are still doubts regarding how such cities will fare in the coming months with a fairly dismal real estate forecast being projected.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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