CBRE Strategic Partners U.S. Value 6, a fund sponsored by CBRE Global Investors, has acquired 181 W. Madison, a 50-story, 953,000-square-foot trophy-quality office tower located in downtown Chicago. The transaction was sourced off-market through Eastdil, who represented the seller.
The property, which is 83 percent leased to high-quality tenants with limited rollover, is located within three blocks of two major public transportation hubs – Ogilvie Transportation Center and Union Station – in addition to being walking distance to multiple Chicago Transit Authority commuter rail stations. Constructed in 1990, the property is an award-winning office tower with efficient floor plates, a five-story main lobby and Energy Star designation.
The fund team is planning to implement a significant capital campaign to enhance the existing amenities package to its signature 5-Star Worldwide standards, make select cosmetic improvements to building common areas, perform elevator modernization, upgrade building systems, replace portions of the roof and obtain LEED certification. Additionally they will engage a leasing team to market the new 5-Star Worldwide amenities and strength of new ownership as well as promoting contiguous blocks of available space and a “spec suite” program.
“Chicago is a target market for the Strategic Partners U.S. Value 6 fund, as it is forecasted to see significant improvement in absorption and rental growth rates over the next five years, and this asset is in line with our strategy,” said Vance Maddocks, president of CBRE Strategic Partners U.S.
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