Namdar, Mason Strike Deal for 190 S. LaSalle

Two Long Island investment firms known for scooping up distressed shopping malls are back at it in Chicago’s troubled office sector — this time with a deal for one of the Loop’s marquee high-rises.

Namdar Realty Group and Mason Asset Management reached a preliminary agreement to buy the 40-story tower at 190 South LaSalle Street, according to Costar. The sale is still in flux and could fall apart amid tight financing conditions, but the Great Neck, New York–based partners are known for paying cash to close even large, complex deals.

The price for the 798,000-square-foot building hasn’t been disclosed. The sellers — Beacon Capital Partners and U.S. Bank, which also occupies space in the tower — are being represented by Cushman & Wakefield’s Tom Sitz and Cody Hundertmark. A previous buyer, Colorado-based Real Capital Solutions, walked away from a deal for the property earlier this year.

If the deal closes, it would mark Namdar and Mason’s third major office acquisition in downtown Chicago in less than a year. The duo picked up the 57-story 70 West Madison tower and the 47-story 1 North LaSalle by buying out its loan and taking title to the property — both believed to have traded for a combined $100 million. They’ve also been active on the retail side, paying $23 million for a Magnificent Mile storefront and striking an $8.3 million deal for the retail component of 1 North State, according to Crain’s.

Built in 1987 and designed by Philip Johnson and John Burgee, 190 South LaSalle is known for its green gabled roof and postmodern profile on the Chicago skyline. Boston-based Beacon bought it in 2019 for $230 million — or $288 per square foot — financed by a $167.5 million loan just before the pandemic upended the office market. Beacon later invested another $13.6 million in renovations before putting it on the market this spring.

Any new owner faces a steep climb. The tower has significant vacancy and will soon lose key tenants, including Bain & Co, which is relocating to 131 South Dearborn Street. Still, for Namdar and Mason — who last year paid $45 million for Cleveland’s 200 Public Square tower — Chicago’s discounted towers are in line with their high-risk, high-reward business model.

The 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 798,800-square-foot tower has experienced high vacancy in recent years, and Real Capital Solutions was expected to buy the building for less than the $167.5 million loan, provided by U.S. Bank, that Beacon Capital took out on it in 2020.

— Eric Weilbacher