The Hearn Company has closed on its $136 million acquisition of the 803,000-square-foot 55 West Monroe office tower in Chicago from LaSalle Investment Management for $136 million.
Hearn plans street-level changes to the entries, as well as significant upgrades to the amenities and common areas of the 40-story tower, once known as Xerox Center.
“Seldom is there an opportunity in a top tier market to acquire an asset of this quality with the potential to execute a realistic business plan and add significant value,” Hearn President & CEO Stephen Hearn said in a statement. “After a considerable amount of investing in the West and Southwest over the past decade, this acquisition gives us the ability to return home to this great city and recapitalize an iconic Downtown Chicago asset.”
Managing Directors Bruce Miller, Jim Postweiler and David Hendrickson led the transaction for Jones Lang LaSalle, along with Senior Vice President Keith Largay, Vice President Jascint Vukelich and Associate Nooshin Felsenthal. JLL also arranged acquisition financing of $86.5 million in senior debt through Wells Fargo Bank and $21.5 million in a mezzanine facility through Redwood Trust for the new buyers.
“The Chicago market continues to show strong recovery, especially with the lack of new construction expected to be delivered to the market in the near future,” said Miller. “This core-plus property will offer significant in-place cash flow to the new owners with additional value provided upon further lease up.”
Located at Dearborn Street, 55 West Monroe overlooks Chase Plaza, Lake Michigan and the city skyline. The 803,000-square-foot building features meeting and conference facilities, a fitness center, bike storage and a staffed, on-site concierge service for the exclusive use of tenants. Lobby retail includes a coffee shop, deli and sandwich shop, custom men’s suit maker, sundry store and banking services.
The tower, completed in 1981, underwent a 2002 modernization that introduced the city’s first destination-based elevator system and a contemporary lobby design by Chicago architect Lucien Lagrange. 55 West Monroe was named The Office Building of the Year in 2007 by Chicago’s Building Owners and Managers Association and received LEED Gold certification in 2010.
The Hearn Company will manage, construct, and oversee the leasing and marketing program at 55 West Monroe. Available space in the building ranges from 850 square feet to 50,000 contiguous square feet, including five full floors.