$168.25 million sale of and $133.96 million in financing arranged by HFF for 200 West Adams in Chicago's West Loop
CHICAGO, IL – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of and arranged acquisition financing for 200 West Adams, a 32-story, LEED Gold certified, 683,730-square-foot office tower in Chicago’s West Loop.
HFF was retained by the property’s owners, NY-based Sterling Equities and Lincoln Property Company, and facilitated the sale to Gerding Edlen for $168.25 million free and clear of debt. Additionally, HFF assisted the new owner in securing a $133.96 million, three-year, floating-rate acquisition loan through AEW Capital Management, LP.
200 West Adams is located at the northwest corner of Adams and Wells Street one block from the LaSalle Street corridor, which is the epicenter of Chicago’s financial institutions. The property has easy access to Ogilvie Transportation Center and Union Station providing commuter rail service, as well as proximity to Interstates 90, 94, 290 and 55 that link the greater Chicago metropolitan area to downtown. Originally built in 1985, 200 West Adams is 91 percent leased to tenants including the GSA, BMO Harris and Lowis & Gellen. The lobby retail space is leased to Starbucks, Walgreens and Au Bon Pain.
The HFF investment sales team representing the seller was led by senior managing directors Jeff Bramson and Jaime Fink.
HFF’s debt placement team was led by managing director Tim Joyce.
“AEW views Gerding Edlen as a well-heeled, best-in-class owner/operator with the ability to execute on the business plan, unlocking potential value at 200 West Adams,” said Dan Jacobson of AEW. “We were able to tailor the financing to meet the borrower’s specific needs in a fairly compressed time frame.”
“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,” added Bramson.
About Sterling Equities
Sterling Equities is a diversified, family-run group of companies guided by the values of partnership and civic responsibility. Its portfolio is focused on holdings in real estate, sports and media. Highlights include the New York Mets, SportsNet New York, real estate investment portfolios, related real estate services businesses and private equity. www.sterlingequities.com
About Lincoln Property Company
Lincoln Property Company was founded in 1965 as a developer and manager of high-quality residential communities. Over the next few years, the firm expanded its line of products and services to include commercial real estate. Its national reputation for successful management of its own properties quickly attracted a large client base of owners and investors who recognized the value that the firm could provide in development, property management and real estate consulting services. Today, Lincoln Property Company is one of the most respected and diversified service firms in the United States, employing thousands of experienced, dedicated people who serve a growing client base that reaches coast-to-coast, as well as into Mexico and Europe.
About Gerding Edlen
Gerding Edlen is a national real estate investment and development firm focused on urban, infill, office, apartment and mixed-use properties. The firm invests, owns and develops urban residential and commercial properties focused on sustainability, community and modern design creating exceptional places for people to live, work and learn. www.gerdingedlen.com
Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world’s leading real estate investment advisors, AEW and its affiliates manage over $50.4 billion of property and securities in North America, Europe and Asia (as of September 30, 2015). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Singapore, Hong Kong, Boston, Los Angeles, London, and Paris, as well as additional offices in nine European cities. For more information please visit www.aew.com.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.