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Chicago

Dubai-based investor pays $72M for stake in Mag Mile office tower

CIM Group cashed out of the 290K-sf building after renovating and boosting occupancy

Shaul Kuba, Co-Founder and Principal of CIM and 625 North Michigan Avenue
Shaul Kuba, Co-Founder and Principal of CIM and 625 North Michigan Avenue

A Dubai-based investment firm bought into a Magnificent Mile office tower, allowing the seller, CIM Group, to cash out its stake with a substantial return on investment.

Neo Capital paid $72.4 million for LA-based CIM’s minority share in the 625 North Michigan Avenue building, according to Crain’s.

In 2015, CIM partnered with Chicago-based Golub & Company to buy the 290,000-square-foot tower for a combined $48 million. CIM took a minority stake in the acquisition of the 27-story building. Golub will hold its portion, and the sale to Neo does not include the retail space on the first few floors.

Neo took out a $50.6 million loan on the building, according to Crain’s.

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After CIM and Golub bought the building four years ago, they spent almost $10 million on renovations and boosted occupancy from 67 to 88 percent, roughly in line with the Downtown office market’s vacancy rate.

A couple of blocks away, CIM and Golub are converting the former Tribune Tower complex into a mixed-use development that could eventually include the city’s second-tallest building.

Across the street from Tribune Tower, CIM late last year bought the 36-story office buildings at 444 North Michigan for $138 million from Munich-based GLL Real Estate Partners.

HFF’s Jeff Bramson and Jaime Fink represented CIM in the 625 North Michigan sale. [Crain’s] — John O’Brien

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CIM GroupCommercial Real EstateGolub & CompanyOffice