Walton Street acquires Chicago tower for $370m
Walton Street Capital has agreed to buy the 35-story office building at 401 N. Michigan Ave. in Chicago for about $370 million, according to local sources.
The seller was Zeller Realty Group, which acquired the asset in 2001 for $120 million.
The 737,000-square-foot property is currently under construction and includes a large glass box Apple Store. Apple decided to move to the 22,000-square-foot store from its current Mag Mile location, at 679 N. Michigan Ave., about two years ago.
The building is 90 percent leased. Other tenants include the Accreditation Council for Graduate Medical Education, R1 RCM, the University of Chicago’s Booth School of Business, and BDT Capital Partners.
Chicago’s downtown office market opened 2017 with yet another strong quarter of tenant demand, posting 386,271 square feet of positive net absorption as the market continues to exude healthy fundamentals, according to Colliers International.
Leasing activity was robust during the first quarter, with the six largest leases of the quarter consisting of tenants expanding their footprints amidst an increasingly strong job market. While the trend of the city’s largest users reducing their overall footprints remains intact, the continued growth of Chicago’s technology sector, in addition to the local economy’s strong performance, has led a number of smaller users to increase their space requirements.
Chicago’s office sector experienced another slow quarter of investment sales activity, with four properties totaling 1,698,445 square feet trading during the first quarter.