News
B and C Make the Grade
August 31, 2011
| While B's and C's on report cards might not get you $10 from your parents, Class-B and C buildings are starting to get a few more dollars behind them as investors look to get off the sidelines, says Marcus & Millichap's Jason St. John. |
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| Jason and partner John Abuja sold 205 W Randolph to The Farbman Group for an undisclosed sum, wrapping up the Michigan-based buyer's second Chicago office buy in a year. The 23-story 1928 building is home to a lot of lawyers because of its proximity to the courthouse and the Thompson Center, and the biggest tenant is Kaplan. With Class-A and B rents becoming more competitive in the CBD, Jason says that tenants have more options and many will stay put in their Class-C space as long as landlords are willing to make some concessions. Farbman plans to do some renovations on the 82%- leased building, like completing a new sprinkler system and elevators but mostly wants to hold as is. Jason says because of strong tenants and it's close to the L, this is part of a flight to safety: Many investors are now looking for stability and good locations, not necessarily a trophy building. |
