An investment group, led by Mark Karasick of 601W Companies and Michael Silberberg of Berkley Properties, is investing more than $100 million to recapitalize and take a controlling interest in Chicago’s Prudential Plaza Office Towers.
The investment marks the beginning of a new partnership with BentleyForbes, the long-time owner and operator of the towers that continues forward as an ownership partner in the agreement. Jaime Fink and Jeff Bramson in HFF’s Chicago office helped broker the deal.
The new partners have immediate plans to move forward with a significant asset improvement program, including redevelopment of the property’s retail concourse and common areas, along with significant reserves for leasing commissions, marketing and future tenant improvements.
Moving forward on an immediate basis, the partnership will first focus on modernizing the Prudential Plaza One office tower, originally built in 1955 when it became one of the most familiar landmarks on the city’s downtown skyline. Additionally, the partners plan to invest significant capital in both the Prudential Plaza towers in a broad initiative, with the intent of attracting the best of Chicago’s professional community through these dramatic improvements.
Prudential Plaza occupies a full city block overlooking North Michigan Avenue at its intersection with East Randolph Street. Occupying the center point between Illinois Center, the Loop Business District and Grant Park, the Prudential Plaza complex features approximately 2.2 million square feet of Class A office space in two distinctive towers, of 41 and 64 stories. It also includes 90,000 square feet of retail space.