Sunday, April 6, 2008

$386 a foot - not bad for a "down market"

Here's a little Chicago tidbit I stumbled across: a Hines L.P. fund just picked up One North Wacker Drive from a German investment fund advised by RREEF for $540 million, or $386/sf.


Let's see: great location, excellent tenant mix (and 98% occupancy), LEED certification...a couple of years ago a building like this might have been buried in some mega-portfolio deal and no one would have talked much about it. But as a single asset deal, I mention it because it is, in my view, a decent price for a great A-building in a market that is supposed to be in the tank. Here's the difference of this "bad" market: I'm sure the buyer didn't have to sign a contract without changes, do cursory due diligence lasting a week or two and close immediately thereafter.

In other words? Gee, back to normalcy. And good property is always good property.

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