Harbor Group International LLC and its affiliates have acquired the One South Wacker office building in Chicago for $221 million.
Eastdil Secured served as the seller’s broker for the transaction. Harbor Group International’s major investment partner in the property was Clal Insurance Co., one of the largest insurance companies in Israel. Other investors included affiliates of New York-based Image Capital LLC.
“One South Wacker is a premier asset in a premier location,” said T. Richard Litton Jr., president of Harbor Group International. “This property represents a great opportunity to implement HGI’s proven leasing and management strategies and should provide excellent returns to our investors.”
The property is currently 80 percent leased to more than 40 office and retail tenants. HGI will undertake a capital improvements program that creates a new entry atrium winter garden, renovates the lobby (including a building concierge station), elevator cabs, common corridors and restrooms. On the mezzanine level will be the tenant only OSW Club with a signature Harbor Fit health & wellness center, conferencing facilities, the building management office and a tenant lounge overlooking the entry atrium.
“HGI looks forward to reintroducing this trophy asset to the leasing community,” Litton said. “We plan to focus our improvements on tenant retention and attracting new tenant interest from the desirable West Loop submarket.”
HGI also owns 300 S. Wacker, a 512,500-square-foot office tower located in the West Loop submarket; 111 W. Washington, a 580,000-square-foot office tower; and 2 N. LaSalle, a 715,000-square-foot office tower, all in downtown Chicago.