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Commercial
Chicago

Here’s a look at the 10 biggest investment sales in Chicago

Single-asset office building trades dominated the list

600 West Chicago Avenue and South Dearborn Street (Credit: 600westchicago, Hines)
600 West Chicago Avenue and South Dearborn Street (Credit: 600westchicago, Hines)

The 10 biggest investment sales in Chicago over the past year represented over $2.6 billion in deal value, according to a new analysis by The Real Deal. The commission spoils from those trades will be shared by Eastdil Secured, CBRE, HFF and JLL, who between them brokered all 10 deals.

In the 12-month period ending in March, the top of the investment-sales market was dominated by single-asset office building deals, the analysis, based on data from Real Capital Analytics and Cook County Records, shows. Sterling Bay emerged as the biggest buyer, teaming up with JPMorgan Asset Management to pay $510 million for 600 West Chicago Avenue. That’s the broad, low-slung 1.7-million-square-foot Groupon-anchored office building on the east bank of the Chicago River in River North. The company, lead by principals Andy Gloor and Keating Crown, is now making plays for trophy assets in the city’s downtown core, but made its name in the commercial real estate market largely by repurposing previously humdrum assets. These include Google’s Midwest headquarters in Fulton Market and a planned redevelopment of a large swath of former industrial property along the Chicago River on the border of Lincoln Park and Bucktown.

Other standouts in the top 10 list include Starwood Capital’s acquisition of 1 South Dearborn Street. Starwood announced itself locally in spanking fashion with this February purchase of the 828,000-square-foot tower for $360.5 million. Walton Street Capital was right behind it on the list, paying $360 million for 401 North Michigan Avenue in May. The firm is now hoping to sell the roughly 30,000-square-foot retail component of the property, which includes a 20,000-square-foot flagship Apple store, for nearly $175 million – just under what Walton paid for the entire 737,000-square-foot tower.

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See the entire list below. And keep an eye out for more signature rankings from TRD.

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Commercial Real EstateInvestment SalesOffice MarketSterling Bay