Downtown office tower trades for $412M

Chicago /
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

arrow_forward_ios
111 N. Canal St. (Google Maps)

Potbelly may be booted from West Loop HQ

Potbelly may be booted from West Loop HQ
1247-1249 W. Madison Street (Photos via @properties)

Dwelle Properties pays $33M for West Loop mixed-use complex

Dwelle Properties pays $33M for West Loop mixed-use complex
Zev Salomon and 1034 West Madison Street (Linkedin, Google Maps)

ZSD Plans another West Loop condo project

ZSD Plans another West Loop condo project
A rendering of Bank of America Tower (Credit: Riverside Investment & Development)

Heitman inks 60K sf lease for HQ at Bank of America Tower

Heitman inks 60K sf lease for HQ at Bank of America Tower
225 W. Wacker Drive & Spear Street Capital founder John Grassi (Credit: Hines)

The price was right: Spear Street buying Downtown office tower at discount

The price was right: Spear Street buying Downtown office tower at discount
Ashkenazy CEO Ben Ashkenazy and 625 N. Michigan Avenue (Credit: Google Maps)

Ashkenazy scores $61M loan for retail portion of Mag Mile office tower

Ashkenazy scores $61M loan for retail portion of Mag Mile office tower
Managing director of Wanxiang American Real Estate Larry Krueger and CEO of Riverside Investment & Development John O’Donnell

Riverside JV looks to recap or sell 1.2M sf West Loop office tower

Riverside JV looks to recap or sell 1.2M sf West Loop office tower
W. P. Carey Inc. CEO Jason E. Fox, Pritzker Realty Group founder and Chairman Penny Pritzker, 150 N. Clinton St. (Credit: Google Maps)

WP Carey and Pritzker Realty make big moves in West Loop

WP Carey and Pritzker Realty make big moves in West Loop
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...