Sumitomo Corporation of Americas has acquired 581,107 square feet of office space within a 27-storey Class A mixed-use building located at 203 N. LaSalle in Chicago’s Central Loop district.
In addition, SCOA has designated Avison Young as the exclusive listing agent for the acquired office space, which comprises the building’s 13th through 27th floors.
The office sale transaction did not include the retail space on the first and second floors, nor the 10 levels of parking.
The seller in the transaction was a joint-venture partnership consisting of M&J Wilkow, which has held ownership in the building since its completion in 1985, and HCI Capital AG, which has shared in ownership since 2005. M&J Wilkow will continue to manage 203 N. LaSalle post-sale.
The transaction marks SCOA’s first acquisition in Chicago, a market that the company is targeting for more investment in the future. Terms of the acquisition were not disclosed.
“Sumitomo has been active on the coasts for years, and has always viewed Chicago as a world-class city,” said Tomonori Wada, senior vice president, Living Related Business Group, Sumitomo Corporation of Americas. “We have been looking for the right opportunity to invest in Chicago and hope to increase our presence here.”
Avison Young Principal Suzanne Martinez, based in Chicago, led the brokerage team that represented SCOA in the sale transaction.
“This was a complex deal not only due to the multi-tiered ownership of the building, but also because Sumitomo was seeking a 1031 exchange opportunity whereby capital gains taxes are deferred until a future date in accordance with federal law,” Martinez said. “We identified the property at 203 North LaSalle as a great asset to satisfy Sumitomo’s 1031, but also it gives Sumitomo the opportunity to acquire office space in a building that can be repositioned for today’s market.”
Designed by Skidmore, Owings & Merrill, the 29-year-old 203 N. LaSalle site is one of downtown Chicago’s premier buildings, due to its central location and an array of features and amenities. Locational factors include direct access to the Clark and Lake Chicago Transit Authority station and the Loop-spanning underground pedestrian walkway; proximity to restaurants and hotels; and the nearby River North work-live-play neighborhood just a bridge away. The property has also achieved LEED Gold certification and an Energy Star label signifying the building’s energy efficiency.
In addition, 203 N. LaSalle has large floorplates, in excess of 40,000 square feet, which provide efficiencies for larger-space users. The building also has 24-hour on-site security, an emergency generator and advanced life-safety systems, in-building restaurant and retail amenities, and indoor access to the 1,200-stall parking garage.
203 N. LaSalle’s tenancy includes DLA Piper, the University of Phoenix and Masuda Funai. Sumitomo intends to make substantial improvements to the lobby and elevators and install amenities such as a fitness center for tenants.
The Avison Young team of Eric Myers, Brad Despot and Michael Curran will serve as the exclusive leasing agents for the office tower.