$400M Bids Expected For Loop Office Tower
Bidders are expected to line up for a shot at 161 North Clark, which is now for sale, according to Crain's Chicago Business.
Given the strong sales numbers for downtown office assets the past two years, seller CBRE Global Investors expects bids of up to $400M. That would be a nice return for the 49-story building as CBRE Global Investors paid $331M for the building in late 2013.
CBRE hired HFF to market the building to buyers. The building ownership is led by South Korea's postal service, Korea Post, which has been active in U.S. commercial real estate. It bought a 47% stake in New York's 7 West 34th St. last year.
Class-A downtown office assets traded briskly in 2015 and 2016. One indicator that 161 North Clark could command mid-eight figure bids is the sales volume of office buildings in Q1. Four buildings changed hands, but the sales volume topped $549M, amid strong positive net absorption and low vacancy rates. If 161 North Clark sells for anywhere near $400M, it would top the $360M that HNA Group paid for 181 West Madison in February. That building's seller was CBRE Global Investors.
