Two Equity Commonwealth Office Assets Fetch $670M
- Feb 27, 2018
In two separate deals this month, Equity Commonwealth has sold office properties at 600 W. Chicago Ave. in Chicago, and 1600 Market St. in Philadelphia, for a combined $670 million.
Sterling Bay acquired the 1.6 million-square-foot Chicago office tower, once the Montgomery Ward catalog warehouse and currently home to Groupon’s headquarters, for $510 million.
“This purchase marks an exciting milestone in our firm’s growth and expansion,” Andy Gloor, Sterling Bay’s managing principal, said in a prepared statement.
The building is currently 94 percent leased, with a tenant roster that includes the Big Ten Network, Echo Global Logistics, Uptake Technologies, Jump Trading and Lightbank.
The historic building was originally founded in 1872 and is considered a landmark among the North Branch of the Chicago River, thanks to its dramatic, curving, 600-foot-long, trapezoidal form. The property is classified as a National Historic Landmark due to its significance in the history of American retailing and association with A. Montgomery Ward.
Philly High-Rise Sold for $160M
The 1600 Market St. sale fetched $160 million from American Real Estate Partners for the 825,968-square-foot property. The 39-story dark glass office tower in Center City is currently 99.2 percent leased.
It’s located in Philadelphia’s central business district and is close by Suburban Station. It offers onsite banking, a conference facility and on-site parking.
HFF’s Doug Rodio and Brett Segal represented the seller and procured the buyer in the latter transaction.
Equity Commonwealth’s portfolio now comprises 15 properties representing 7.1 million square feet.
Sterling Bay broke ground on Fulton West in 2016 and it’s one of the most anticipated developments in the city of Chicago. The 286,800-square-foot office development located at 1330 W. Fulton St. in Chicago’s West Loop, features nine stories, with approximately 20,000 square feet of retail space on the first level.
Image courtesy of Equity Commonwealth