Chicago's Three First National Plaza Sold for $348M

Hines announced this week that its U.S. Core Office Fund sold the 57-story Three First National Plaza in Chicago for $349.3 million to a joint venture according to a GlobeSt.com article. The joint venture of the Korean Teachers Credit Union, the Korean Federation of Community Credit Cooperatives and Hong Kong-based Gaw Capital Partners has engaged Hines to continue as the property and leasing manager for the tower. Wells Fargo Securities Asia represented the buyer in the transaction, while Eastdil Secured represented Hines. Financials on the deal were not disclosed.

"Ongoing upgrades and enhancements to the property have enabled Three First National Plaza to continue to perform in the upper tier of Chicago buildings," said Hines Senior Vice President Tom Danilek. "We look forward to our new alliance with Downtown Properties as we continue our commitment to superior tenant service at the building."

"Three First National Plaza has been an excellent performer for our Hines U.S. Core Office Fund investors," said Charles Hazen, president of the fund. "We are pleased with this sale as we balance our portfolio holdings to meet future objectives."

Designed by Skidmore, Owings & Merrill, Three First National Plaza at 70 West Madison Street was developed by Hines in 1981. In 2005 Hines sold the building for $245.3 million to its office fund, a partnership with Osaka, Japan-based Sumitomo Life. The 1.4 million square foot sawtooth tower is currently 92% leased with major tenants including Madison Dearborn Partners, K&L Gates, Kaye Scholer, The PrivateBank and Fitch Ratings.

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