Willis Tower Sold for $1.3B to Blackstone

Blackstone and 233 South Wacker LLC announced that they had signed a definitive agreement for Blackstone Real Estate Partners VII to acquire the second tallest building in the country, the Willis Tower in Chicago, for $1.3 billion. The sellers of the 110-story skyscraper, formerly known as Sears Tower, are a group including New York-based investors Joseph Chetrit and Joseph Moinian, and American Landmark Properties Ltd. They paid $841 million for the tower in 2004, while Blackstone's purchase price of $1.3 billion is, according to Crain's Chicago Business, set to become the highest ever paid for a U.S. office building outside Manhattan. Douglas Harmon of Eastdil Secured LLC was the broker for the sale to Blackstone. Further terms of the transaction were not disclosed.

"We are bullish on Chicago as companies expand within and move into the city and look for first-class office space," Blackstone managing director Jacob Werner said in a statement. "We see great potential in further improving both the building's retail operations and the tourist experience for one of the most popular destinations for visitors to Chicago."

The Willis Tower is a 3.8 million square-foot office building in downtown Chicago and, at 110 stories, is the second-tallest office building in the United States and the fifth-tallest office building in the world. The building also features a top Chicago tourist attraction in the Skydeck on the 103rd floor, which provides 1.6 million visitors per year with unmatched views of Chicago and the surrounding area including from the "Ledge", glass cubes which extend from the building. The New York-based company plans to spend as much as $150 million to improve the tower's retail portion and 103rd-floor observatory, according to a Boston Globe article.

For more news and information visit Blumberg Capital Partners.

SL Green Sells One Court Square for $476M

SL Green Realty Corp. announced this month that it and its joint venture partner reached an agreement to sell One Court Square in Long Island city for $476 million, or roughly $340 per square foot, to a consortium of private investors. According to SL Green, which expects to realize $42.8 million in net proceeds from the sale, the transaction includes $315 million of existing debt to be assumed by the purchaser.

The 50 story skyscraper is fully leased to Citigroup Inc. and was originally acquired in part by SL Green in conjunction with its 2007 acquisition of Reckson Associates Realty Corp. The building was completed in 1989 and designed by Skidmore, Owings & Merrill.

SL Green also recently formed a joint venture with owner Joseph Moinian to refinance debt on the AIG Headquarters in lower Manhattan, purchasing a a 49.9% stake in 180 Maiden Lane according to a Businessweek article.

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.