December 14, 2017 Comments Off on Zell Divesting Groupon’s Chicago HQ for $520M Views: 1688 Illinois, Midwest, National News

Zell Divesting Groupon’s Chicago HQ for $520M

Sterling Bay and JP Morgan Asset Management are acquiring Groupon’s sprawling 1.65-million-square-foot headquarters along the Chicago River from Equity Commonwealth for a price reportedly in the $520 million neighborhood. Though the transaction hasn’t yet closed, it would qualify as one of the biggest office sales in Chicago this year.

The deal involving the former Montgomery Ward catalog building at 600 W. Chicago Ave. reflects different buyer and seller strategies. Sterling Bay is adding a stabilized trophy asset rather than pursuing a redevelopment play. The divesture by Equity Commonwealth REIT adds to the nearly $2-billion war chest built since Sam Zell took over as chairman in 2014. Three years ago, Equity Commonwealth held 156 properties, and at the end of Q3 2017 the portfolio stood at 20 assets.

Eastdil Secured’s Stephen Livaditis was hired to sale the downtown asset. The roughly 95% leased building includes such tenants as Groupon, Echo Global Logistics and Lightbank.

Read more at Wall Street Journal

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