AEW Capital Management provided a $134 million, three-year, floating-rate loan to Gerding Edlen for the acquisition of 200 West Adams, a 32-story, LEED Gold certified, 683,730 sq ft office tower in Chicago’s West Loop.
Gerding Edlen paid New York-based Sterling Equities and Lincoln Property Company $168.25 million for the property, free and clear of debt. Holliday Fenoglio Fowler (HFF) closed the sale of and arranged acquisition financing on the deal.
“200 West Adams was offered at a substantial discount to replacement cost with rents that are well below market rates,” according to a statement from an HFF sales team led by senior managing directors Jeff Bramson and Jaime Fink.
“The wide gap between current in-place rents and current market rents combined with the near-term rollover of more than 50 percent provides an investor with a substantial return throughout the holding period.”
HFF’s debt placement team was led by managing director Tim Joyce.
200 West Adams is located at the northwest corner of Adams and Wells Street, one block from the LaSalle Street corridor, an epicenter for Chicago’s financial institutions.
Originally built in 1985, the property is 91 percent leased to tenants including the GSA, BMO Harris and Lowis & Gellen. The lobby retail space is leased to Starbucks, Walgreens and Au Bon Pain.
“AEW views Gerding Edlen as a well-heeled, best-in-class owner/operator with the ability to execute on the business plan, unlocking potential value at 200 West Adams,” said Dan Jacobson of AEW.