Beacon Capital Selling Chicago Office to Real Capital Solutions

A Colorado firm buying offices on the cheap locked onto another big prize in the Loop.

Real Capital Solutions, based in the Denver suburb Louisville, has a preliminary agreement to buy the 40-story office building at 190 South LaSalle Street from Boston-based Beacon Capital Partners, CoStar reported. The deal is not yet finalized but likely will mark another steep-discount acquisition by the firm, which has pledged to spend $3.5 billion in all-cash office deals across the U.S. in the coming years.

The building was marketed by Cushman & Wakefield on behalf of Beacon and U.S. Bank, which are trying to recoup some losses amid mounting pressure on office landlords.

Terms were not disclosed, but the 798,800-square-foot tower last traded for $230 million ($288 per square foot) in 2019, when Beacon bought it just before the pandemic upended the office sector. The building also secured a $167.5 million loan from U.S. Bank and others in early 2020. A deal is expected to be a fraction of either figure.

Real Capital has snapped up major office towers in Dallas, Washington, D.C., and Denver at fire-sale prices recently. Its strategy hinges on buying Class A properties at deep discounts in gateway markets, then holding or repositioning them while distress continues to wash through the sector.

The LaSalle tower stands out for its design and recent upgrades: designed by Philip Johnson and John Burgee and topped with a distinctive green gabled roof, it underwent $13.6 million in renovations last year, updating the lobby and amenities. It’s about 85 percent leased, but major tenants including Bain & Co. are expected to depart soon.

Beacon has had a mixed run in Chicago. It recently unloaded 303 East Wacker Drive at a loss and is facing foreclosure at AMA Plaza, while scoring a deep-discount to buy 333 West Wacker Drive.

The LaSalle corridor is one of Chicago’s most stressed office submarkets, though developers and city officials are betting big on future momentum. Mark Goodman, a local developer that considered making a deal for 190 South LaSalle, said the area’s evolution, especially with Google’s incoming arrival at the Thompson Center, could ultimately reset downtown values.

— Judah Duke