CHICAGO—Harbor Group International LLC, supported by Clal Insurance Co. and affiliates of Image Capital LLC, has purchased the 1.2-million-sq.-ft. One South Wacker office building here for $221 million.
TIAA-CREF, the seller, bought the property at Madison and Wacker in 2002 for less than $210 million. Eastdil Secured represented the seller in the recent transaction. The 40-story tower is currently 80 percent occupied to tenants such as Stout Risius Ross.
T. Richard Litton Jr., president at Harbor, said the building is in a premier location in downtown Chicago. “This property represents a great opportunity to implement HGI’s proven leasing and management strategies and should provide excellent returns to our investors,” he said in a statement. “We plan to focus our improvements on tenant retention and attracting new tenant interest from the desirable West Loop submarket.”
The company also owns three other downtown Chicago office buildings: 300 South Wacker, a 512,500-sq.ft. office tower, the 580,000-sq.-ft. 111 West Washington and Two North LaSalle, a 715,000-sq.-ft. tower.
Litton said his firm will start a capital improvements program at One South that creates a new entry atrium winter garden and renovates the lobby (including a building concierge station), elevator cabs, common corridors and restrooms. Harbor is also creating a suite of tenant-only amenities, including a club, fitness center, conferencing facilities, a building management office and a tenant lounge overlooking the entry atrium.
