Aon Center, the third-tallest building in Chicago, has sold for $712 million, reports Crain's Chicago Business.
A firm called 601W Cos., led by New York real estate investor Mark Karasick, struck the deal to buy the 83-story tower located next to the two-tower Prudential Plaza, which it already owns. The tower was sold by Piedmont Office Realty Office Trust, which purchased the building in 2003 for $462.5 million.
The tower attracted bids from a large number of investors across the country and around the world, driving up the value, says Chicago Business. The building is selling for $260 per square foot--a significantly higher price than the $650 million range estimated when Piedmont introduced its sale earlier this year.
The deal comes a week after Kraft Heinz signed a deal for a 170,000-square-foot headquarters in the tower, which also drove up its price, says Chicago Business. The tower recently renewed Aon, JLL, AT&T and Edelman as tenants, Piedmont President and CEO Donald Miller said in a statement. According to the company, the building is 86% leased.
When marketing the tower to potential buyers, JLL advertised using new sources of revenue to add an observatory to the tower and converting some higher floors to residential condominiums.
After purchasing Prudential Plaza in 2013, 601W and another N.Y.-based company Berkley Properties added a large roof deck overlooking the adjacent Millennium Park and has signed several new tenants to the area, bringing in nearly $100 million in fresh capital, says Chicago Business.
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