The Blackstone Group agreed to purchase the Willis Tower, formerly known as the Sears Tower, in Chicago for $1.3 billion from Joseph Chetrit, Joseph Moinian and American Landmark Properties. The deal marks the highest-ever price paid for a U.S. office tower outside of New York City.
The partnership between Chetrit, Moinian and American Landmark bought the property for $841 million in 2004, according to the Wall Street Journal.
But while purchase price is impressive, the $340-per-square-foot breakdown is still modest compared to many major cities. Blackstone plans to invest $150 million more in the space and build it up as a stronger tourist attraction. While the tower hosts 1.6 million visitors per year for revenues of $25 million, the Empire State Building hosts 4.3 million visitors per year for an intake of $82 million.
Eastdil Secured‘s Douglas Harmon represented the sellers in the deal.