Angelo Gordon, Hines looking for big payday in Citadel Center sale

The joint venture reportedly is seeking $700 to $750M for the 37-story tower at 131 South Dearborn

Chicago /
May.May 22, 2019 09:00 AM
From left: Angelo Gordon CEO Michael Gordon, the Citadel Center at 131 South Dearborn Street, Hines Greg Van Schaak (Credit: Citadel Center)

From left: Angelo Gordon CEO Michael Gordon, the Citadel Center at 131 South Dearborn Street, Hines Greg Van Schaak (Credit: Citadel Center)

Angelo Gordon & Co. and Hines Interests are seeking a big reward for their bailout of the Citadel Center three years ago, reportedly seeking upward of $750 million for the Loop office tower.

New York-based Angelo Gordon and Houston-based Hines hired HFF to market the 37-story building at 131 South Dearborn Street, which they’re hoping will fetch between $700 and $750 million, according to Crain’s.

The joint venture took control of the building in 2016 with a $50 million equity investment when then-owners Robert Gans and Dearborn Capital were close to defaulting on a $472 million mortgage, Crain’s reported. The new owners were able to restructure the loan.

Gans and Dearborn bought the building in 2006 for $560 million. Dearborn maintains a small stake in the property.

Angelo Gordon and Hines spent $100 million upgrading the building, and have brought in Convene to provide events space. Convene also plans to open co-working space in the tower.

The building is anchored by hedge fund billionaire Ken Griffin’s Citadel, which leases more than 400,000 square feet. Other tenants include beer maker Constellation Brands with 130,000 square feet and social media firm Sprout Social at 128,000 square feet.

The building is 13 percent vacant, in line with the Downtown average. [Crain’s] — John O’Brien


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