SHVO, Deutsche Finance Acquire Iconic ‘Big Red’ Office Tower in Chicago for $376M
CHICAGO — A joint venture between SHVO and Deutsche Finance Bank has acquired the CNA Center, more commonly known as “Big Red” due to the bold color of the 45-story office tower, for $376 million. The 1.2 million-square-foot property is situated at 333 S. Wabash Ave. in Chicago’s East Loop district.
At the time of sale, the property was leased to CNA Insurance, financial services company Northern Trust and the Chicago Housing Authority. Graham, Anderson, Probst & White originally designed the tower in 1973, and it underwent renovations in 2019. Amenities include a new food hall open to the public, a fitness center and childcare facilities.
“Big Red is among the most recognizable towers in the Windy City’s skyline — the birthplace of the skyscraper and home to so much rich architectural history,” says Michael Shvo, chairman and CEO of SHVO. “We’re proud to now be a part of that Chicago tradition with this addition to our national portfolio of super-prime core properties. We look forward to not just maintaining Big Red’s stature but elevating it in the years to come.”
The joint venture entered into a contract agreement with the sellers, Morgan Stanley and The Morgon Cos., in the first quarter of this year. A group led by AIG and Goldman Sachs provided acquisition financing, but did not disclose details on the loan.
SHVO and Deutsche Finance Group have invested in several high-profile properties over the past two years. The group purchased the former Coca-Cola Building at 711 Fifth Ave. and 530 Broadway in Manhattan’s SoHo neighborhood. The partners also purchased the historic Raleigh, Richmond, and South Seas Hotels in Miami Beach, and launched a new venture that will see properties at 9200 Wilshire in Beverly Hills and 685 Fifth Avenue in Manhattan sold as luxury Mandarin Oriental residences.
— Alex Tostado