After KBS REIT III acquired the 1.5 million-square-foot tower located at 500 West Madison Street in downtown Chicago earlier this month, another skyscraper has changed owners in Chicago. The 40-story 200 South Wacker has been acquired by John Hancock for $214.5 million. The property was marketed by HFF on behalf of the seller, a joint venture composed of Equity Group Investments, Pearlmark Real Estate Partners and TIER REIT. The HFF team representing the seller was led by senior managing directors Jaime Fink and Jeff Bramson and managing director Mark Katz.
The iconic tower was designed by architect Harry Weese & Associates and built in 1981. Situated in Chicago’s West Loop, the 754,750-square-foot office building is close to numerous public transit options at the Union, Ogilvie and Rock Island commuter rail stations. The EGI/Pearlmark/TIER REIT joint venture had purchased the building in June 2011 and invested approximately $10 million in a capital improvement program. With the help of leasing agent J.F. McKinney & Associates, the team brought the property from 63 percent occupancy to 96 percent. Apart from the recent capital improvements, amenities at the tower include the tenant-only Club 200 Fitness Center, conference facilities, a heated executive parking garage and a news and sundries shop.
John Hancock, the U.S. division of Manulife Financial Corporation, announced the purchase of 200 South Wacker together with the purchase of another two high-profile buildings 100 William Street in New York City and Wellesley Office Park in Greater Metropolitan Boston.
“These properties represent the type of high quality assets we acquire in key markets as a priority for our strategic plan. The strong tenant rosters and superb locations make these excellent additions to our investment portfolio,” says Ted Willcocks, global head of asset management for Manulife Real Estate.
Photo Credits: Mike Oropeza via Wikimedia Commons.