Low Class A Office Vacancy Rate Equals Good News for Real Estate Investors
- Aug 26, 2011
ChicagoRealEstateDaily.com reports that a 40-story office tower located at 55 W. Monroe St. will be sold for about $140 million to Hearn Co., a local investment company that teamed up with an undisclosed New York-based capital partner. Hearn Co., whose representatives declined to make any comments regarding the sale price, was founded in 1974. The company hasn’t owned any downtown buildings since the late 1980s but, given the low vacancy for Class A office buildings in Chicago and little hope of new office developments in the near future, it recently started closing office deals. Data from Jones Lang LaSalle shows that the downtown average vacancy rate has increased 0.3 percent compared to 2010 when it was 13.8 percent.
The 807,882-square-foot building at 55 W. Monroe St. tower, whose current owner is Jones Lang’s investment advisory arm LaSalle Investment Management, was designed by Helmut Jahn and completed in 1980.
In residential news, Patch.com reveals that Community Housing Advocacy and Development officials broke ground last week on a $1.5 million affordable housing development in Glen Ellyn. The project is expected to be complete by November and consists of a six-unit apartment community meant for homeless and low- to moderate-income residents.
The project is financed by the Illinois Housing Development Authority, who offered a $785,522 zero-interest loan; the remaining $750,000 was offered by the DuPage County.