The joint venture led by SHVO and Deutsche Finance America closed today on the acquisition of 333 South Wabash Avenue in Chicago’s East Loop—an iconic fixture in the city’s skyline affectionately known as “Big Red.”
The JV went into contract to purchase the office building from Morgan Stanley and The John Buck Company in the first quarter of 2020, and secured financing from a group led by AIG along with Goldman Sachs. The deal closed for $376 million.
“Big Red is among the most recognizable towers in the Windy City’s skyline—the birthplace of the skyscraper and home to so much rich architectural history. We’re proud to now be a part of that Chicago tradition with this addition to our national portfolio of super-prime core properties,” said Michael Shvo, chairman and CEO of SHVO. “We look forward to not just maintaining ‘Big Red’s’ stature but elevating it in the years to come.”
333 South Wabash features approximately 1.2 million square feet of office space over 45 floors in Chicago’s central business district. The building features high-quality tenants including Northern Trust, the Chicago Housing Authority and CNA. The modernist building was designed by Graham, Anderson, Probst and White and completed in 1973; it was renovated and updated in 2019. It features state-of-the-art offices and amenities, including a curated dining experience in a new food hall open to the public, a world-class fitness center, childcare facilities and ample gathering spaces for tenants.
“333 South Wabash is a landmark building of unmatched quality and offers our investors the security of long-term, in-place cash flow from investment-grade tenants,” said Jason Lucas, managing partner of Deutsche Finance America.
SHVO and Deutsche Finance Group have invested in several iconic properties over the last two years. The group purchased two office buildings in Manhattan, the former Coca-Cola Building at 711 Fifth Avenue and 530 Broadway in SoHo. The partners also purchased the historic Raleigh, Richmond, and South Seas Hotels in Miami Beach, in addition to a new venture that will see properties at 9200 Wilshire in Beverly Hills and 685 Fifth Avenue in Manhattan sold as luxury Mandarin Oriental residences.
