Blackstone Weighs Willis Tower Sale

Blackstone may be ready to test the market for one of Chicago’s most recognizable assets.

The world’s largest private real estate firm is exploring a potential exit from Willis Tower, the 110-story, 4.5-million-square-foot skyscraper at 233 South Wacker Drive it has owned for a decade. In recent months, Blackstone has quietly approached a small group of investors willing to assume the building’s $1.3 billion securitized mortgage, according to a Green Street’s Real Estate Alert. Eastdil Secured is running those conversations, sources told the outlet.

Blackstone declined to comment on a possible sale but pointed to recent operational gains in a statement to Bisnow. The firm highlighted more than 600,000 square feet of leasing over the past two years and over 1.2 million annual visitors to the Skydeck, the 103rd-floor observation deck that has become a major revenue driver.

The outreach comes as Willis Tower’s valuation remains a moving target. As previously reported in The Real Deal, the property was appraised at $1.4 billion about a year ago, though public and private estimates throughout 2025 have ranged from roughly $999 million to $1.4 billion. The variance in appraiser opinions on the value has been chalked up to different methodologies for how to account for the Skydeck’s contributions.

Blackstone paid $1.3 billion for the tower in 2015, assuming existing debt as part of the deal. It refinanced with the $1.3 billion loan now attached to the property. The building’s loan isn’t distressed, but Blackstone has spent a lot on top of its initial purchase.

After pouring roughly $670 million into renovations — including a sweeping office overhaul and the creation of the 300,000-square-foot Catalog retail and entertainment complex — Blackstone lifted occupancy and revenue. The property was 84 percent leased as of late September, and recently buoyed by deals with tenants like Adtalem Global Education and Zurich North America. Skydeck revenue rose 15 percent last year.

Blackstone also secured breathing room on the capital stack. Last year, the firm modified the floating-rate loan, extending its maturity to March 2028 with two one-year extension options. Loan servicer reports show the property is generating enough cash flow to cover debt service, according to Green Street.

But the numbers are getting tighter. Rising interest rates pushed annual debt service to $91.4 million in 2024, up from $66.4 million in 2018, according to the outlet. Real estate taxes have surged as well, running far ahead of underwriting. While cash flow is meeting or exceeding original projections, the debt-service coverage ratio has deteriorated, falling through the first nine months of 2025 from its underwritten origination.

— Eric Weilbacher