HFF Brings in Buyer, Financing for Chicago Tower

HFF closed the sale of 200 W. Adams. on behalf of Sterling Equities and Lincoln Property, while also securing acquisition financing for the buyer, Gerding Edlen.
  • by Barbra Murray | Dec 11, 2015

200 West Adams, ChicagoHFF recently pulled double duty at 200 West Adams in Chicago, closing the $168.3 million sale of the 683,800-square-foot office building on behalf of Sterling Equities and Lincoln Property Co., and securing acquisition financing  for the buyer, Gerding Edlen.

Sited in the West Loop area, the 32-story 200 West Adams first opened its doors to tenants in 1985, offering 32 stories of office accommodations and ground-level retail space. Today, the LEED Gold-certified building is 91 percent leased to a list of occupants that includes the U.S. General Services administration, BMO Harris and Lowis & Gellen. The investment community responded well to the offering—and for good reason.

“200 West Adams was offered at a substantial discount to replacement cost with rents that are well below market rates.  The wide gap between current in-place rents and current market rents combined with the near-term rollover of more than 50 percent provides an investor with a substantial return throughout the holding period,” Jeff Bramson, senior managing director with HFF, said in a prepared statement.

Gerding Edlen, with the assistance of HFF, secured a $134 million, three-year, floating-rate loan through AEW Capital Management L.P. for the purchase of the property.

HFF has closed more than a few deals in Chicago this year. Transactions include the sale of the 522,800-square-foot building at 525 W. Van Buren, which fetched $135 million, and the $185 million sale of 550 West Adams, a 484,000-square-foot tower.