JV Buys Chicago's Historic One North LaSalle, Plans Redevelopment

New York-based Chetrit Group has sold the historic landmark tower at One North LaSalle in Chicago's Central Loop to a joint venture between Hilco Real Estates, a unit of Northbrook-based Hilco Global, and two MB Real Estate Services (MBRE) executives. A purchase price for the 47-story office building and terms of the acquisition were not announced, though the property has been on the market for over a year. The property was appraised at $74 million in 2006, when Chetrit took out a $165 million loan on the building and two other downtown office towers it owned, 360 N. Michigan Ave. and 1 N. Dearborn St., according to a Crain's report. A multi-million-dollar capital budget is being put forth for the property redevelopment, with MBRE contracted to provide ongoing management, leasing, and construction oversight services.

"We are very familiar with One North LaSalle, having managed and leased it for various owners over the past 17 years," said Kevin Purcell, Executive Vice President and Chief Operating Officer of MBRE, in a press release. "Our planned redevelopment, combined with a hands-on ownership approach, will allow us to successfully position the property and unlock One North LaSalle's full potential. This is a tremendous and unique opportunity for all user types to lease space within a historic and highly visible Chicago office building that offers an ideal location in the Loop," said Purcell.

Originally built in 1930 and designed by Vitzthum & Burns, the 500,000 square foot building sits at the northeast corner of LaSalle and Madison streets. The Art Deco style building, known for its iconic exterior clock and 5th floor relief panels depicting the explorations of René-Robert Cavelier, Sieur de La Salle, was designated a Chicago Landmark in 1996 and added to the National Register of Historic Places in 1999. The JV said it has plans for an extensive redevelopment effort to introduce a variety of high-end tenant amenities including a rooftop deck, tenant lounge, conference facility, fitness center, and bike room.

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Developers Make Moves on Miami Riverwalk

Chetrit Group, the New York-based real estate investment and development firm led by Joseph Chetrit, has purchased 6.2 acres of real estate with Miami developer Ari Pearl with plans to build a major mixed-use development called Miami Riverwalk. According to a Miami Herald article, Miami-Dade property records show that CG Miami River, led by Chetrit Group and Pearl, bought the Finnegan's River property at 401 S.W. Third Ave. for $11.5 million, from Ocean Drive Clevelander.

The development is planned for a three-block area bordered on the north by the river, on the south by Southwest Seventh Street, on the west by Southwest Third Avenue and on the east by Southwest Second Avenue. The Miami Riverwalk, to be designed by Miami architect Kobi Karp, will create a major mixed-use development along the Miami River to include four 60-story condo towers with a combined 1,749 units, plus a marina and hotel, retail space and offices. Plans are still not finalized and will be revised within the month. Renderings of the project can be viewed here.

For more news and information visit Blumberg Capital Partners.

North America's Tallest Building Up for Sale/Investment

The Willis Tower in Chicago, formerly known as the Sears Tower and North America's tallest building, is on the block according to the Wall Street Journal as the owners are reportedly looking to recapitalize or sell the property. The owners of the property, Chicago's American Landmark Properties Ltd, New York Developers Joseph Moinian of the Moinian Group and Joseph Chetrit of the Chetrit Group, originally purchased the building for $900 million, or about $244 a square foot, in 2004. The building carries $780 million of debt on it said sources.

Completed May 3, 1973, Willis Tower stands 1,450 feet tall and is one of the most recognizable landmarks in the Chicago skyline . The building held the record for the world’s tallest building for 25 years until the Petronas Towers in Kuala Lampur, Malaysia were built in 1998. The 3.8 million square foot tower was designed by the architectural firm Skidmore, Owings & Merrill for Sears, Roebuck & Company. The building was renamed to Willis Tower in 2009 when UK insurer Willis Group Holdings leased 140,000 square feet at $14.50 per square foot. Watch an Associated Press video report on the marketing of the tower here.

For more news and information visit Blumberg Capital Partners.