Kinship Capital is again trying to sell an office tower in the Loop, three years after it failed to find a buyer.
The Chicago investment firm, which bought the 28-floor building for $69 million in 2010, could bring in offers as high as $95 million, Crain’s Chicago Business reported. A formal listing price wasn’t released,
Kinship last listed the 490,000-square-foot property, at 225 W. Washington St., for $120 million in 2018 Back then, downtown office demand was strong and the building was 86 percent occupied. Now, the office vacancy rate in the central business district is at an all-time high and the building will be just 62 percent leased by the end of 2021.
Kinship hired Cushman & Wakefield’s capital markets team to find a buyer. The tower’s largest tenant, insurer Allianz, has a long-term lease for more than 73,000 square feet. It’s set set to expire by March 2031.
Kinship acquired the property through a deed-in-lieu of foreclosure after the previous owners, Anglo Irish Bank and Golub & Co., faced default on more than $100 million of loans they had on the property. Over the years Kinship invested more than $10 million in capital improvements and spent over $3 million to build 35,000 square feet of office space.
Office sales in the Chicago area fell 22 percent in August from the previous years according to data from Real Capital Analytics.
[Crain’s] — Victoria Pruitt