LaSalle Completes Acquisition of 123 North Wacker Drive in Downtown Chicago
Class A office building with substantial repositioning upside acquired on behalf of LaSalle’s Income & Growth fund series
CHICAGO (January 19, 2017) – LaSalle today announced it has closed on the acquisition of 123 North Wacker Drive (“123 N. Wacker”), a 30-story Class A office tower located in Chicago’s West Loop, on behalf of the company’s closed-end, U.S. value-add fund, LaSalle Income & Growth Fund VII.
Situated on the southeast corner of Randolph Street and Wacker Drive, the property benefits from an A+ location within the upper portion of the city’s West Loop and is considered “ground zero” for tenant demand preference, as the wave of suburban corporate relocation to Chicago’s CBD remains strong.
The property is also located within direct proximity to mass transit hubs such as Union Station, Ogilvie Transportation Center and multiple CTA stations, while providing convenient access to both I-90/94 and Lake Shore Drive. The Randolph Street and Wacker Drive intersection is among the top Chicago Loop locations for foot traffic, with more than 25,000 pedestrians passing the property daily during the work week. In addition to numerous restaurants catering to the daytime work population, the property sits between the River North entertainment district, Randolph Street's popular restaurant row, and the rapidly expanding Fulton Market District.
Currently 57 percent occupied, the property has been essentially off the leasing market for the last 10 years for reasons that constrained operations and capital investment, and is a compelling candidate for full-scale improvements that will enable the asset to offer tenants the locational, physical and amenity benefits similar to newer development.
David Schreiber, Managing Director of Acquisitions at LaSalle, commented: “We are excited to complete the acquisition of 123 N. Wacker, as it represents a unique and attractive opportunity to reintroduce a Class A office building in a prime CBD location, where we can offer tenants high quality product at an exceptional occupancy cost value compared to new construction rents.”
Jim Hutchinson, President of LaSalle’s Income & Growth fund series, commented: “We are eager to embark upon a repositioning strategy of this well-known Chicago office building, given the substantial value that can be created for the fund’s investors. Our deep knowledge of the Chicago market combined with our extensive direct operational and renovation experience gives us confidence that the transformation of this building will be executed in an efficient and accretive manner.”
JLL Capital Markets provided brokerage services for this transaction on behalf of the seller.
About LaSalle Income & Growth Funds
The Income & Growth Funds are LaSalle’s flagship closed-end US value add fund series, launched in 1996. Aggregate fund series capital commitments total $2.1 billion, with over $5.0 billion invested over 89 property investments. The Fund seeks to acquire under-managed, under-capitalized, or mispriced assets to be repositioned as core assets. Property level investment strategies include lease up, renovation/repositioning and ground up development. Fund VII began acquiring assets in 2016.
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers with approximately $60 billion of private and public equity and private debt investments under management as of Q3 2016. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy any interests in any product offered by LaSalle, or for the advisory services of LaSalle, in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum. Securities offered by LaSalle Investment Management Distributors, LLC – Member FINRA/SIPC.