Downtown office tower trades for $412M

Bids reportedly ranged from $415 million to $425 million

Dec.December 06, 2019 02:00 PM
500 West Monroe Street and Spear Street Capital founder John Grassi (Credit: Google Maps)

500 West Monroe Street and Spear Street Capital founder John Grassi (Credit: Google Maps)

The numbers are in: Spear Street Capital paid $412 million for a West Loop office building in one of the city’s biggest investment sales deals of the year.

When it was reported in October that Spear Street was under contract to buy the 46-story 967,000-square-foot building at 500 West Monroe Street from Georgia-based Piedmont Office Realty Trust, the sale price was unknown, but bids reportedly ranged from $415 million to $425 million, putting the sale price somewhere around $440 a foot. Records show it closed for slightly lower than estimated, at about $426 a foot.

Piedmont initially sought upward of $490 million when the building was put on the market in May.

Piedmont, which was once the mezzanine lender on the property, took full ownership in 2011 at foreclosure auction. At the time, Piedmont valued the property at $227.5 million.

Piedmont put $84 million worth of renovations into the building, according to Crain’s. The real estate investment trust also added some large tenants who signed big leases, including Motorola Solutions and GE Healthcare, which moved from offices in the suburbs.

Spear Street Capital, based in San Francisco, has interests in about two dozen office properties throughout the U.S., Canada and Europe.

Related Articles

From left: Renderings of 800 W. Lake, 400 N. Aberdeen and 1400 W. Randolph (Credit: Chicago DPD via Twitter)

476-key Fulton Market hotel project wins key approval

The former McDonald's headquarters building in Oak Brook (foreground) and a rendering of the new HQ (Credit: NAI Hiffman, iStock)

Suburban office market still scuffling amid companies migrating to city

Belgravia co-CEO Jonathan McCulloch and 1147 W. Jackson Boulevard (Credit: Google Maps)

Belgravia plans another West Loop condo building

John Buck (inset), Michael Shvo and 333 South Wabash Avenue (Credit: TJBC)

Michael Shvo-led group buying “Big Red” office tower for $370M

Ald. Walter Burnett Jr. (27th) and Steven Fifield, with a rendering of the project

‘Cap the Kennedy’ plan may be revived thanks to real estate money

181 W. Madison St. and HNA Group Founder Chen Feng (Credit: Google Maps)

Embattled Chinese firm HNA Group refinances Loop skyscraper

Tishman Speyer’s Rob Speyer & 320 North Sangamon rendering (Credit: Tishman Speyer)

Tishman Speyer lands $81M loan for Fulton Market spec office project

900 West Fulton Market (Credit: Google Maps, iStock)

Fulton Market isn’t full yet: Developer plans new office building