Sumitomo Corporation acquires Chicago's 203 North LaSalle in 1031 Exchange
Avison Young represents buyer in office transaction, also named exclusive leasing agent
CHICAGO, April 3, 2014 /PRNewswire/ - Avison Young, the world's fastest-growing commercial real estate services firm, announced today that it has completed an office-property acquisition within a trophy-class building in downtown Chicago on behalf of Sumitomo Corporation of Americas (SCOA).
The unique acquisition comprises 581,107 square feet (sf) of office space within a 27-storey class A mixed-use building located at 203 North LaSalle in Chicago's Central Loop district. In addition, SCOA has designated Avison Young as the exclusive listing agent for the acquired office space, which comprises the building's 13th through 27th floors.
The office sale transaction did not include the retail space on the first and second floors, nor the 10 levels of parking.
The seller in the transaction was a joint-venture partnership consisting of M&J Wilkow, which has held ownership in the building since its completion in 1985, and HCI Capital AG, which has shared in ownership since 2005. M&J Wilkow will continue to manage 203 North LaSalle post-sale.
The transaction marks SCOA's first acquisition in Chicago, a market that the company is targeting for more investment in the future. Terms of the acquisition were not disclosed.
"Sumitomo has been active on the coasts for years, and has always viewed Chicago as a world-class city," comments Tomonori Wada, Senior Vice-President, Living Related Business Group, Sumitomo Corporation of Americas. "We have been looking for the right opportunity to invest in Chicago and hope to increase our presence here."
Avison Young Principal Suzanne Martinez, based in Chicago, led the brokerage team that represented SCOA in the sale transaction.
"This was a complex deal not only due to the multi-tiered ownership of the building, but also because Sumitomo was seeking a 1031 Exchange opportunity whereby capital-gains taxes are deferred until a future date in accordance with federal law," says Martinez. "We identified the property at 203 North LaSalle as a great asset to satisfy Sumitomo's 1031, but also it gives Sumitomo the opportunity to acquire office space in a building that can be repositioned for today's market."
Designed by Skidmore, Owings & Merrill, the 29-year-old 203 North LaSalle site is one of downtown Chicago's premier buildings, due to its central location and an array of features and amenities that appeal to today's tenants. Locational factors include direct access to the Clark and Lake Chicago Transit Authority (CTA) station and the Loop-spanning underground pedestrian walkway; proximity to the city's top restaurants and hotels; and the nearby River North work-live-play neighborhood just a bridge away. The property has also achieved LEED Gold certification and an Energy Star label signifying the building's superior energy efficiency.
In addition, 203 North LaSalle is distinctive for its large floorplates, in excess of 40,000 sf, which provide great efficiencies for larger-space users. The building also has 24-hour on-site security, an emergency generator and advanced life-safety systems, in-building restaurant and retail amenities, and indoor access to the 1,200-stall parking garage.
203 North LaSalle's tenancy includes DLA Piper, the University of Phoenix and Masuda Funai. Sumitomo intends to make substantial improvements to the lobby and elevators and install amenities such as a fitness center for tenants.
The Avison Young team of Eric Myers, Brad Despot and Michael Curran will serve as the exclusive leasing agents for the office tower.
About Sumitomo Corporation of Americas
Established in 1952 and headquartered in New York City, Sumitomo Corporation of Americas (SCOA) has 10 offices in major U.S. cities. SCOA is the largest subsidiary of Sumitomo Corporation, one of the world's leading traders of goods and services. As an integrated business enterprise, the firm has emerged as a major organizer of multinational projects, an expediter of ideas, an important international investor and financier, and a powerful force for distribution of products and global communications through a network of offices worldwide. For more information visit www.sumitomocorp.com.
About Avison Young
Avison Young is the world's fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,500 real estate professionals in 56 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.
• Please click on link to view and download photo of 203 North LaSalle, Chicago
For further information/comment/photos:
• Sherry Quan, Principal, National Director of Communications & Media Relations, Avison Young: 604.647-5098; mobile: 604.726-0959
• Vanessa Goldschneider, Public Relations Manager, Sumitomo Corporation of Americas: 212.207.0567
• Suzanne Martinez, Principal, Avison Young: 312.957.7617
• Eric Myers, Principal, Avison Young: 312.265.3717
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SOURCE Avison Young Commercial Real Estate (BC)