HFF has closed the $185 million sale of 550 West Adams, a Class A office tower totaling approximately 483,677 rentable square feet in Chicago’s West Loop.
HFF marketed the property on behalf of the seller, SEB Asset Management, an established real estate asset manager based in Frankfurt, Germany. GLL Real Estate Partners purchased the asset free and clear of existing debt for $382 per rentable square foot.
550 West Adams was designed by DeStefano + Partners to be approximately 87 percent glass to allow natural light into the lobby and tenant spaces. Completed in 2006, the 18-story tower has ground retail space. An adjacent parking garage located at 125 South Jefferson provides 18 indoor executive parking spaces along with 16 additional reserved spaces. 550 West Adams is anchored by the global headquarters of USG Corporation. Other major tenants include law firm Lewis, Brisbois, Bisgaard & Smith LPP; Humana Health Plan; and JP Morgan. Situated on .698 acres at the northwest corner of Adams and Clinton Streets, the building is across the street from Union Station and two blocks south of the Ogilvie Transportation Center.
The HFF investment sales team representing the seller was led by senior managing directors Jaime Fink and Jeffrey Bramson, managing director Mark Katz and real estate analyst Bryan Rosenberg.
“550 West Adams is an excellent example of the strong demand by global investors’ desire to acquire office towers in Chicago,” said Fink. “The diversification of capital, both domestic and global, has never been greater than in the past few years.”
“In addition to domestic capital, HFF has or is currently transacting with Asian, Canadian, European, Middle Eastern and South American capital sources,” Fink added. “Investors realize the benefits of investing in Chicago’s growing economy and diverse employment base. Furthermore, Chicago has attracted strong interest in the redevelopment of vintage office properties into alternative uses, like hotels or multi-housing. Coupling this reduction in office supply with limited office development in the pipeline creates an environment that should bode very well for Chicago’s office markets and office owners.”
HFF recently named Fink co-head of HFF’s national office platform, and he assumed the leadership role in January 2015 alongside senior managing directors Stephen Conley and Michael Leggett. Fink has more than 18 years of experience in the commercial real estate industry and, since joining HFF in 2004, has closed more than $19.4 billion of commercial real estate sales for office, retail, industrial and land transactions in the Chicago area.