GLL Real Estate Partners, a Munich, Germany-based real estate firm, has completed the purchase of One11 West Illinois, a 99 percent leased, Class A mixed-use office and retail building in Chicago’s River North neighborhood. The Alter Group was seller and developer of the building in 2008, and the property was presented for sale by EnTrust Realty Advisors LLC. The sale price of the property has been reported as $75 million.
Alter Asset Management has provided property management services for One11 since its construction and will continue as property manager for GLL.
Christian Goebel, executive vice president of GLL Real Estate Partners, said the firm likes the location, the building and the quality of the tenants and believe this is an excellent addition to their portfolio in North America.
GLL’s purchase comprises 141,957 square feet of multi-tenant office space in the 227,604-square-foot building, as well as 10,243 square feet of ground floor retail space, and the land underlying the 10-story building. Approximately 75,000 s.f. of the building is owned by the Erikson Institute.
The multi-tenant office space is anchored by salesforce.com, the global cloud computing firm, which leases 77 percent of the leasable space. WeWork, a New York-based leader in the co-working sector, is the second largest tenant. Each tenant has its own ground floor entry and lobby area.
Retail tenants include Roka Akor, a Zagat and Michelin-rated steak, seafood, and a sushi restaurant named “Best Sushi Restaurant in the US” by Travel & Leisure Magazine.
The overall Class A office vacancy rate is approximately 6 percent, making it the submarket with the lowest office vacancy rate in the Chicago CBD.
This is GLL’s second major acquisition in Chicago, one of the firm’s preferred gateway markets in the U.S. this year. In January, GLL completed the purchase of 550 W. Adams, a 94 percent leased office tower anchored by the global headquarters of USG Corporation.
GLL currently manages more than 30 properties in the United States on behalf of its investors. Additionally, in the Chicago area, it also owns 444 N. Michigan, which it acquired in 2006.
