Cook County Hospital Mixed Use Redevelopment

Civic Health Development Group (CHDG) has been selected to redevelop Old County Hospital in Chicago, Illinois with a private redevelopment and land lease agreement to be presented to the Cook County Board of Commissioners on April 13. Cook County Board President Toni Preckwinkle's office unveiled the $550-$700 million development plan for the vacant and historic building, with a design to restore the old hospital's historic Beaux Arts façade as part of the project. The redevelopment will transform the former hospital into an office, residential and retail space, with a hotel to be built on a grassy field in front of the old hospital. After review by the Cook County Board's Commissioners and Finance Committee, the full Board may vote on the redevelopment agreement at a May 11 meeting.

Preckwinkle said that CHDG will invest $600 million and pay at least $2 million annual rent under a 99 year lease to the county, which will retain ownership of the land. Rent would go up as the years go on, and the county would have two 25-year options. Officials say the county won't have to make a capital investment or offer a subsidy to the developer. "I think that renovation of this facility will have a transformative effect on the Illinois Medical District," Preckwinkle said. The county also plans to build a new office building and clinic nearby, at a cost of about $113 million to taxpayers.

If the plans are approved, redevelopment construction would begin in 2017 and completion of the new building is anticipated in mid-2018. The project is expected to create more than 2,000 temporary and permanent jobs. CHDG is led by Real Estate Services and is comprised of a number of firms, including Plenary Group, Walsh Investors, Walsh Construction Company, Granite Development, Loop Capital, SOM, Health Management Associates and Legat Architects, according to Cook County records.

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KBS REIT III Buys Salt Lake Tower for $170.5M

KBS Real Estate Investment Trust III, a public non-traded REIT, announced this week that it had purchased 222 Main in Salt Lake City's Central Business District for $170.5 million plus closing costs, making it a record-setting deal for commercial real estate in Salt Lake City, on a cost per-square footage basis. The 426,657-square foot tower was sold by a joint venture of Bentall Kennedy, Hamilton Partners and Honeywell Retirees Pension. Marc Renard of Cushman & Wakefield, Kip Paul of Cushman & Wakefield | Commerce, and Tim Richey and Michael Winn of Cushman & Wakefield of Colorado coordinated the sale on behalf of the selling venture. The property was 85% leased at the time of sale.

"We believe 222 Main was designed to the highest standards with first-class finishes throughout which, along with its location in Salt Lake City's CBD, makes it a premier office property," said KBS Capital Advisors Senior VP Tim Helgeson. "This is an asset that benefits from unobstructed views of the Wasatch Range. Additionally, downtown Salt Lake City is just two blocks from the $2 billion City Creek Center mixed use development, which features numerous first-class amenities."

Designed by the international architecture firm Skidmore, Owings & Merrill, the 22-story tower at 222 Main was built in 2009 by Okland Construction and was the first Utah building to be LEED Gold certified. The sale drew national interest and multiple bids from local and out-of-state investors, according to one of a team of real estate brokers at Cushman & Wakefield | Commerce offices in Salt Lake, Denver and Los Angeles who were involved in the sale. "We had huge traffic on this," said Kip Paul, the firm's director of investment sales in Salt Lake. "I can't tell you how many people flew in to see this."

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.