New York City investors scoop up trophy properties in Chicago

A pair of investors from the Big Apple, Mark Karasick of 601W Companies and Michael Silberberg of Berkley Properties LLC, is taking a controlling interest in Chicago’s Prudential Plaza, Crain’s Chicago Business reported. The venture will invest up to $100 million for the 2.2 million-square-foot property in hopes of saving it from a $470 million loan default.

Karasick and Silberberg, who declined to comment on the deal, are not alone: Crain’s writes that a group of New York real estate investors have bought up downtown Chicago commercial properties since the market began its recovery. Since 2007, New Yorkers have invested $1.27 billion in the downtown Chicago market — nearly 10 percent of the $13.17 billion in transactions there that have taken place since that time.

The Karasick–Silberberg venture would take the controlling interest from BentleyForbes Holdings LLC, a real estate investment firm that’s based in Los Angeles, which bought Prudential Plaza in 2006. Prudential Plaza contains two buildings. [Crain’s] — Zachary Kussin