Newmark Grubb Knight Frank (NGKF) has been appointed as the exclusive broker in the sale of the real property located at 137 S. State Street in Chicago (the Property), together with the seller’s interest as landlord under a triple net ground lease of the Property.
With its strategic use and rare State Street location, this offering represents a unique opportunity to acquire a long-term ground lease on a premier in-fill location. The original ground lease, executed in 1993, expires on December 14, 2043 and features rental increases every 10 years. The Property is occupied by a 50,530-square-foot cooling plant operated by Enwave Energy Corporation, a division of Brookfield Infrastructure Partners, L.P.
“Located in the heart of Chicago’s Central Business District, this Property provides energy and resources to over a hundred other institutional properties in the Loop, making this a strong investment opportunity,” said Geoffrey Kasselman, SIOR, executive managing director, and head of NGKF’s national industrial practice. “The Property is being offered on an all cash, “as is” basis to qualified investors. With our eye on how to position and market the Property, we anticipate several premium offers, given the strength of the market and the mission-critical nature of the Property.”
Situated on .26 acres at the corner of State Street and Adams Street in the Loop, the four-story cooling plant was constructed in 1993 by Exelon Corporation, and is occupied by building owner, Enwave Energy Corporation. The ground floor of the property is leased to CVS Pharmacy with floors two through four reserved for the plant’s chillers, pumps and ice machines. The plant provides chilled-water cooling services to over a hundred commercial buildings throughout the Loop via an underground network of pipes.
Kasselman will lead NGKF’s brokerage team representing ownership on the NNN ground lease, which also includes Andy Gallas, senior managing director, Boris Shraybman, managing director and Gino Tabbi, managing director.
