Sumitomo Corporation of Americas Acquires Chicago’s Trophy 203 North LaSalle
- Apr 11, 2014
Commercial real estate services firm Avison Young announced that it has completed an office property acquisition on behalf of Sumitomo Corporation of Americas within a trophy-class building in downtown Chicago.
The acquisition comprises 581,107 square feet of office space within the 27-story class A mixed-use building located at 203 North LaSalle in Chicago’s Central Loop. The transaction refers solely to office space, which comprises the building’s 13th through 27th floors, and does not include the retail space on the first and second floor, nor the 10 levels of parking. Sumitomo Corporation of Americas has named Avison Young as the exclusive leasing agent for the acquired office space.
The office space was acquired from a joint-venture partnership consisting of M&J Wilkow, which has held ownership in the building since its completion in 1985, and HCI Capital AG, which has shared in ownership since 2005. 203 North LaSalle will continue to be managed by M&J Wilkow.
“Sumitomo has been active on the coasts for years, and has always viewed Chicago as a world-class city,” says Tomonori Wada, senior vice-president, Living Related Business Group, Sumitomo Corporation of Americas. “We have been looking for the right opportunity to invest in Chicago and hope to increase our presence here.”
Avison Young Principal Suzanne Martinez, who led the brokerage team that represented Sumitomo Corporation of Americas in the sale transaction says: “This was a complex deal not only due to the multi-tiered ownership of the building, but also because Sumitomo was seeking a 1031 Exchange opportunity whereby capital-gains taxes are deferred until a future date in accordance with federal law. We identified the property at 203 North LaSalle as a great asset to satisfy Sumitomo’s 1031, but also it gives Sumitomo the opportunity to acquire office space in a building that can be repositioned for today’s market.”
The 29-year-old building was designed by Skidmore, Owings & Merrill and has achieved LEED Gold certification and an Energy Star label. The building offers direct access to the Clark and Lake Chicago Transit Authority station and the Loop-spanning underground pedestrian walkway.
Sumitomo plans to make improvements to the lobby and elevators and install amenities such as a fitness center for tenants. Tenants at 203 North LaSalle include the University of Phoenix, Masuda Funai and DLA Piper.
Photo Courtesy of: www.wilkow.com