Deutsche Asset & Wealth Management (Deutsche AWM) has acquired 222 South Riverside Plaza in Chicago in an off market transaction on behalf of one of its investment funds. The seller, Dallas-based TIER REIT Inc., had retained HFF to market the property last year, but Deutsche AWM moved quickly to secure a deal.
The $300 million transaction included swapping a $64 million Dallas building, which Deutsche AWM owned, along with cash. TIER, formerly known as Behringer Harvard, bought the high-rise for $277.5 million in 2006.
Located between Adams Street and Jackson Boulevard, the project includes a 34-story office tower and three story annex at 444 West Jackson comprising 1,111,073 square feet in total. The property is 90% leased to a strong tenant roster. A full interior and exterior renovation is planned.
The property, situated above Chicago Union Station, is well positioned along the west bank of the Chicago River in the West Loop submarket of the Central Business District providing excellent transport links, and access to a strong amenity base of restaurants and retail.
“Our ability to negotiate an off market transaction of this nature has resulted in an attractive pricing outcome relative to other recent Chicago office trades,” said Todd Henderson, Head of Real Estate, Americas at Deutsche AWM. He added, “This demonstrates the strength of our market position to identify an opportunity and leverage our existing portfolio to achieve a desirable outcome for our investors.”
JLL currently handles leasing at the property.
Image courtesy: JLL