Distressed Chicago Office Tower Sells to Investor at Huge Discount
A venture of Chicago-based investor Igor Gabal has acquired the 12-story West Loop office building at 300 West Adams Street for $4 million. The deal represents a staggering discount of nearly 90 percent from the building’s $38 million appraised value when it was last sold in 2012, reported Crain’s. The 240,000-square-foot building traded for less than $17 per square foot.
An entity tied to Morgan Stanley was the seller of the previously distressed building. JLL brokers Bruce Miller, Jaime Fink, Pat Shields and Sam DiFrancesca marketed 300 W. Adams for sale. The property, which is about 50 percent leased, generated nearly $1.7 million in net operating income in 2022, less than half the amount it generated in 2019, per the outlet.
In 2012, Pennsylvania-based Alliance HP paid $51 million for the property and split the building from the land. The firm ultimately had to surrender the building via deed in lieu of foreclosure in 2021, while it maintained its ownership of the land. Gabal is now subject to the terms of the 99-year ground lease.
Jasmine Kilman is Content Director of Connect Commercial Real Estate, covering Chicago and greater Chicagoland, the Midwest, Seattle, and the Pacific Northwest. She covers industry trends, transaction deals, market research, and produces daily news stories.
With experience in marketing and communications for academic nonprofits and corporate clients, including Hearst Media, Hilton, and Coldwell Banker, Kilman has written about commercial real estate, environmental, social, and corporate governance (ESG), technology, healthcare, and philanthropy. She was born and raised in California and graduated with a degree in public relations. In her spare time, Kilman enjoys hiking and traveling to new locations with her family.