230 West Monroe last traded in 2014 for $122 million. Image courtesy of Menashe Properties
Menashe Properties has entered the Chicago market, acquiring 230 West Monroe, a 707,000-square-foot office tower, for $45 million. The seller was Accesso Partners, which acquired the building in 2014 for $122 million, according to CommercialEdge data.
In 2019, the property became subject to an $87.7 million loan from Morgan Stanley, the same source shows. Eastdil Secured served as advisor to the seller. The transaction represents the biggest commercial real estate deal in the metro in the past year, according to Menashe.
Completed in 1971, the building rises 29 stories and features 24,000-square-foot floorplates and 10,000 square feet of retail space. It includes a fitness center, conference centers and an upgraded amenity lounge. The tower was completely renovated in 2004 and underwent an additional cosmetic renovation in 2013. Tenants at the property include Maxim Healthcare, One Medical, Realogic Analytics and Aprimo.
READ ALSO: Where the Smart Money Is Investing in CRE
Located at 230 W. Monroe, in Chicago’s West Loop neighborhood, the building is within walking distance of the Art Institute of Chicago. The property is also a block away from the Willis Tower, which comprises 300,000 square feet of retail. In its vicinity, there are numerous public transit options.
Chicago’s office market performance
Menashe Properties CEO Jordan Menashe said in prepared remarks that he believes office usage will eventually align with traditional averages. Following Labor Day, occupancy in office buildings across 10 major metros surpassed 50 percent nationwide for the first time since July, according to a recent Kastle report. Chicago reached an occupancy of 53.6 percent, up 3 percent over the previous week, according to the same source.
During the first four months of the year, office sales in the Chicago market have slowed down significantly, to an overall transaction volume of $354 million. The figure represents 25.3 percent of the $1.4 billion recorded in the same period of 2022, according to a recent CommercialEdge market update. As of April, the vacancy rate in the city was one of the highest in the U.S., at 18.8 percent, 2.1 percent above the national average.
