CRE Midwest

'Clal Insurance' buys University of Chicago building for $112 million

university-of-chicago-headquarters
University of Chicago Headquarters

Clal Insurance Group this week closed another significant deal, which cements the role of real estate as an integral part of its investment activity.

Clal Insurance Group this week closed another significant deal, which cements the role of real estate as an integral part of its investment activity.

The company bought from the University of Chicago a new 12-story office building whose construction was completed in July 2013. The high-standard modern building is located on the main street of Chicago’s Hyde Park neighborhood (where President Barack Obama has a home) and is fully leased to the University of Chicago for a period of 20 years.

Situated close to the university’s home in Hyde Park, the 46,000-square-meter building was bought from the university in a sell and leaseback deal, under which the university will lease the building for 20 years at an average annual rent of $6.7 million with an option to extend the agreement for an additional 20 years. Maintenance costs will be borne by the university. Clal did not bring in partners for the acquisition and bought the property without any bank financing.