CBRE Global Investors‘ U.S. Managed Accounts Group has acquired 161 N. Clark St., a 49-story trophy-quality office building located in the Central Loop submarket of downtown Chicago, on behalf of a consortium of Korean investors led by Korea Post. The seller was Tishman Speyer.
The property, which totals more than 1 million square feet, is 93 percent leased to a diverse roster of tenants with limited rollover.
The U.S. Managed Accounts team plans to implement a $14 million capital campaign to upgrade existing amenities and building systems and to maintain the property’s existing LEED Silver Certification. They also plan to aggressively market the improvements to attract and retain existing tenants and accommodate existing tenants’ expansion needs.
The property features a subterranean pedway connection to the Clark/Lake elevated train station which houses the five primary train lines in the Central Business District and has direct train access to both Midway and O’Hare airports.
“This trophy-quality asset in one of the largest office markets in the United States is a strong fit with the fund’s investment strategy,” said Jeffrey Torto, managing director and portfolio manager for the fund. “Downtown Chicago and the Central Loop have experienced significant absorption since 2011 with demand being driven by the migration of companies from the suburbs and out-of-state markets to downtown Chicago along with the growth of new and established technology firms. These companies have relocated to the market citing a young, educated labor pool, access to transportation and proximity to amenities as the strengths of a downtown office location.”
“This transaction spotlights the growing interest that foreign-based investors have in diversifying their real estate investments by looking abroad,” said Peter DiCorpo, president of the U.S. Managed Accounts Group. “We are pleased to work with our cross-border capital partners to execute such an attractive investment in the U.S.”
The investment was executed by the U.S. Managed Accounts Acquisitions Team led by Vic Bucchere. Gary Jaye, managing director, was the lead acquisition director, assisted by Brian Cosentino, senior associate.