Menashe Buying Discounted Chicago Loop Office Tower

Jordan Menashe isn’t done shopping for bargains in Chicago’s Loop.

In its third downtown office acquisition in less than three years, his Portland, Oregon-based firm Menashe Properties is in contract to buy the 38-story tower at 180 North LaSalle Street for between $55 million and $60 million, CoStar reported.

The seller, Canadian pension fund La Caisse — formerly called Ivanhoé Cambridge — is set to take a brutal haircut on the 862,000-square-foot property. La Caisse paid $198.5 million for the building in January 2016, meaning the pending sale represents a nearly 70 percent drop from its pre-pandemic value.

But Menashe sees upside where others see distress. The tower sits directly across from the James R. Thompson Center, which is currently undergoing a $300 million redevelopment to serve as Google’s future Chicago headquarters. Investors are banking heavily on the tech giant’s halo effect to breathe new life into the central Loop.

“The Chicago office market, for well-located assets with ample capital available to do new deals, is continuing to show massive signs of strength,” Menashe told the outlet.

The transaction deepens a burgeoning relationship between Menashe and the Canadian pension fund. Just late last year, the Oregon firm scooped up a 31-story tower at 125 South Wacker Drive from La Caisse for $51.5 million.

Menashe’s strategy of hunting for Chicago office distress began in September 2023 with an all-cash, $45 million purchase of 230 West Monroe Street. The firm recently managed to pull off a rare feat by landing a $45 million loan that matched its full purchase price on the property — a financing milestone that signals a potential comeback for well-capitalized landlords in the Windy City.

If the off-market LaSalle Street deal closes as expected, it cements Menashe’s status as one of the boldest bargain hunters betting on a Chicago office rebound. The 1976-built tower is currently about 64 percent leased.

La Caisse, which has previously pointed to Chicago and New York office struggles as a drag on its earnings, still holds local buildings including 10 and 120 South Riverside Plaza and 515 North State Street.

— Sam Lounsberry