Saturday, December 12, 2015

HFF closes $168.25 million sale of and secures $133.96 million in financing for 200 West Adams in Chicago’s West Loop

Jeff Bramson
CHICAGO, IL –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has closed the sale of and arranged acquisition financing for 200 West Adams, a 32-story, LEED Gold certified, 683,730-square-foot office tower in Chicago’s West Loop.

HFF was retained by the property’s owners, NY-based Sterling Equities and Lincoln Property Company, and facilitated the sale to Gerding Edlen for $168.25 million free and clear of debt.  

Additionally, HFF assisted the new owner in securing a $133.96 million, three-year, floating-rate acquisition loan through AEW Capital Management, LP.
200 West Adams is located at the northwest corner of Adams and Wells Street one block from the LaSalle Street corridor, which is the epicenter of Chicago’s financial institutions. 

The property has easy access to Ogilvie Transportation Center and Union Station providing commuter rail service, as well as proximity to Interstates 90, 94, 290 and 55 that link the greater Chicago metropolitan area to downtown. 

Jaime Fink
Originally built in 1985, 200 West Adams is 91 percent leased to tenants including the GSA, BMO Harris and Lowis & Gellen.  The lobby retail space is leased to Starbucks, Walgreens and Au Bon Pain.

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.

“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.” 

“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.

For a complete copy of the company’s news release, please contact:

Kristen M. Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |

No comments: