CHICAGO — A private fund sponsored by Brookfield Asset Management (NYSE: BAM) has purchased 175 West Jackson, a 22-story office tower in downtown Chicago’s Central Loop district, for $305 million. JLL Capital Markets represented the seller, a high-net-worth European family advised by Extell Development.
Built in 1912 and designed by Chicago-based architect Daniel H. Burnham, the Class A office tower spans 1.4 million square feet, encompassing a full city block. The property features rooftop decks, conference facilities and a recently renovated, 7,500-square-foot athletic club. The building also features retail and dining space, including Starbucks Coffee, Fifth Third Bank and CVS on the street level.
The office tower provides tenants access to public transit and is one block from the Brown, Red, Blue, Pink and Purple El lines. The building is also within walking distance to Chicago Union Station and Ogilvie Transportation Center.
Extell Development invested heavily in the redevelopment of 175 West Jackson after purchasing the neo-classical building in the late 1990s, according to Crain’s Chicago. The redevelopment included the addition of a two-story atrium lobby, exterior restoration and common area upgrades, according to Extell’s website. Lucien Lagrange Architects Studio designed the upgrades to include wood, granite, marble and metal finishes.
Bruce Miller and Nooshin Felsenthal led the JLL Capital Markets team handling the marketing assignment.
“The next stage of 175 West Jackson’s life as a progressive downtown Chicago work environment will be exciting to see,” says Miller. “Brookfield is a globally recognized asset manager with an innate ability to find and execute value-add strategies that redefine buildings.”
Based in Chicago, JLL Capital Markets completed $170 billion in investment sale and debt and equity transactions globally in 2017 alone. The team comprises more than 2,000 specialists operating all over the globe.
Founded in 1989, New York City-based Extell Development has developed more than 25 million square feet of high-rise residential and office towers in New York City and other gateway markets. The company owns or has interest in at least 35 other high-rise assets, including One Manhattan Square, W Hotel Times Square, Park Hyatt New York and International Gem Tower, all in New York City.
Brookfield Asset Management employs more than 80,000 people in more than 30 countries. The Toronto-based alternative asset management firm has roughly $285 billion in assets under management as of year-end 2017.
The firm’s stock price closed on Monday, April 30 at $39.68 per share, up from $37.03 a year ago.
— John Nelson