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Chicago Firm in Negotiations for Michigan Avenue Office Property
R2, a Chicago-based private equity real estate and development firm, is negotiating a deal to buy one of the city’s office towers for approximately $70 million. If the deal closes, that number would be 42% less than the property sold for six years ago, according to Crain’s Chicago Business.
Located at 150 North Michigan Avenue, the 41-story, 661,477-square-foot property offers expansive views of Lake Michigan and Millennium Park. CBRE Investment Management paid $121 million for the property in 2017 and then completed a $35 million renovation.
The 39-year-old tower—now known as the Crain Communications building—is known for its unique and sloped diamond-shaped roof. Per Crain’s, the building was 68 percent leased as of earlier this, well below the downtown average last quarter of 78 percent.
This is another downtown revitalization for R2, which is collaborating with Apollo Global Management on the iconic Chicago Board of Trade building, a 44-story, 1.4 million-square-foot office at 141 West Jackson Street.
