The Shidler Group will ask $35 million for the 22-story office tower at 200 South Michigan Avenue while potentially keeping the land beneath it, four years after it bought the land and building separately for a combined $69 million.
Built in 1958, the 360,000-square-foot Borg-Warner building is now about 79 percent leased, down from 92 percent when Hawaii-based Shidler bought the property in 2014, according to Crain’s.
The Shidler venture that owns the building paid more than $1.6 million in rent to the entity that owns the underlying land between Feb. 1, 2017 and Jan. 31, 2018. The 2014 deal stipulated the rent would tick up by 3 percent every year until 2060.
The building now counts 30 tenants, none of whom occupy more than 12 percent of the space.
CBRE is advertising the building as a leasing opportunity, noting in a brochure that the building’s 21 percent vacancy rate is nearly double the Downtown rate.
Its largest tenant, architecture firm CallisonRTKL, is leased through 2023 for about 44,000 square feet.
In July, Shidler paid $143 million to acquire Triangle Plaza near O’Hare Airport from Sam Zell, who spent the year liquidating his Chicago office assets. [Crain’s] — Alex Nitkin