NY-based Sterling Equities, owned by Fred Wilpon, majority owner of the New York Mets, and Lincoln Property Company have sold their 32-story high-rise 200 West Adams. The LEED Gold certified, 683,730-square-foot office tower in Chicago’s West Loop was acquired by Gerding Edlen for $168.25 million free and clear of debt. Holliday Fenoglio Fowler, L.P. (HFF) arranged the sale and assisted the new owner in securing a $133.96 million, three-year, floating-rate acquisition loan through AEW Capital Management, LP.
Designed by Fijukawa Johnson and Associates, 200 West Adams was completed in 1985. It’s a Class A office tower located at the northwest corner of Adams and Wells Streets in the heart of Chicago’s Central Business District. The Property features a contemporary streamlined design with a steel and glass façade. The efficient design includes 24,000 RSF floor plates that are virtually column free.
“AEW views Gerding Edlen as a well-heeled, best-in-class owner/operator with the ability to execute on the business plan, unlocking potential value at 200 West Adams,” said Dan Jacobson of AEW. “We were able to tailor the financing to meet the borrower’s specific needs in a fairly compressed time frame.”
The HFF investment sales team representing the seller was led by senior managing directors Jeff Bramson and Jaime Fink. HFF’s debt placement team was led by managing director Tim Joyce.
“200 West Adams was offered at a substantial discount to replacement cost with rents that are well below market rates. The wide gap between current in-place rents and current market rents combined with the near-term rollover of more than 50 percent provides an investor with a substantial return throughout the holding period,” added Bramson.
200 West Adams is currently 91% leased to an impressive tenant roster that includes BMO Harris (S&P: A+) General Service Administration, Lowis & Gellen, Burns & McDonnell and Nisen & Elliott. The lobby retail space is leased to Starbucks, Walgreens and Au Bon Pain.
Image courtesy HFF