JV Purchase with KTC Properties Allows Golub to Regain 484,000-SF Chicago Office Building
- Oct 21, 2010
October 20, 2010
By Barbra Murray, Contributing Editor
Golub & Co. just recently lost ownership of the premier office building at 225 West Washington Street in downtown Chicago to its lender, but the company has now reclaimed a stake in the asset. KTC Properties joined forces with Golub and braved a heated bidding process to acquire the building through the purchase of the first mortgage and mezzanine loans from Anglo Irish Bank.
Sited in downtown’s coveted West Loop, 225 West Washington was designed by architectural firm Skidmore, Owings & Merrill, and first opened its doors in 1987. The 28-story tower offers a list of amenities that includes a tenant-only fitness facility, a conference center and a sundry shop. Today, the property is 85 percent leased with a tenant roster featuring such names as DeVry University, which renewed its lease and expanded to 37,000 square feet during the third quarter, and Allianz, the building’s largest occupant.
Golub had acquired 225 West Washington with joint venture partner Quinlan Private in 2005, snapping up the property from USAA Real Estate Co. and the Tennessee Consolidated Retirement System for about $100 million. But a turbulent financial market and failed restructuring talks after Golub and Quinlan defaulted on the loans led to Anglo Irish’s decision to sell the notes on the property in September. The bank relied on real estate services firm Eastdil Secured to facilitate the disposition process, from which Golub and KTC emerged victorious. The two new–and old–owners did not get their hands on the notes without a fight; over 10 investors put in bids.
Golub will continue its role as manager of the property on behalf of the joint venture.