UPDATED, Nov. 5, 2:31 p.m.: Golub & Company is about to pick up a Loop office building at a deep discount from its asking price but would nonetheless be the priciest Downtown office sale of the year so far.
The Chicago-based development firm will join an unknown family office in paying about $80 million to acquire the 585,000-square-foot Burnham Center from Pennsylvania-based Alliance HSP, according to Crain’s. The seller had reportedly sought more than $100 million for the 105-year-old building at 111 West Washington Street when it hit the market in March.
Alliance HSP paid just under $95 million to buy the property in 2012, before splitting ownership of the 12-story building from the land underneath it. Its interest in the building was valued around $73 million, while Shidler Group, a Hawaii-based entity controlled by Alliance managing partner Jay Shidler, took ownership of the underlying land.
The landlord grew the building’s occupancy from 80 percent to 92 percent, in part due to a lease expansion by anchor tenant Grubhub, which now occupies more than 156,000 square feet in the complex.
Golub, which is also collaborating with Los Angeles-based CIM on a wholesale transformation of the area surrounding Tribune Tower, joined Farpoint Development this month to buy the 1,675-unit Prairie Shores apartment complex on the city’s Near South Side in a reported $180 million deal.
Dan Deuter, Cody Hundertmark and Tom Sitz of Cushman & Wakefield are representing Alliance HSP in the sale. [Crain’s] — Alex Nitkin