The Real Deal Chicago

Sterling Bay’s $300M deal for former John Hancock Center falls apart

Developer had been working with Hearn to acquire the office and parking portions of skyscraper at 875 North Michigan Avenue
December 24, 2018 09:00AM

Sterling Bay’s Andy Gloor and shots of 875 North Michigan Avenue (Credit: Sterling Bay, 875North MichiganAvenue, and Pinterest)

Sterling Bay’s $300 million deal to buy the office and parking portions of the former John Hancock Center from Hearn fell apart.

The two Chicago-based real estate investment firms “mutually agreed” to call off the deal for the property at 875 North Michigan Avenue, a Sterling Bay spokesperson told Crain’s. No further details were given. The pending sale was first reported in July.

The Magnificent Mile skyscraper would have been the third purchase of a trophy Downtown office building this year for Sterling Bay after its acquisition of the Groupon headquarters at 600 West Chicago Avenue and Prudential Plaza.

Sterling Bay earlier this year launched a $500 million funding round as it continues its string of developments and works to win approval for its massive Lincoln Yards project. [Crain’s]John O’Brien