CHICAGO, Oct. 20 /PRNewswire/ -- KTC Properties, a Chicago-based real estate investment firm, in joint venture with Golub & Company, has closed on the purchase of 225 W. Washington Street, a 28-story Class A office building in downtown Chicago.
The 483,497-square-foot property is currently 85 percent leased and is located in the West Loop in the heart of Chicago's downtown. Nick Thomson and Ethan Meers, both vice presidents of KTC Properties with shared responsibility for acquisitions, were the lead executives on the deal.
"Current market conditions offered an attractive opportunity to add this well-situated Chicago property to KTC Properties' portfolio," said Thomson. "The location, building and tenant occupancy are consistent with our strategy of investing in high-quality real estate in premier U.S. markets."
"We are excited to partner with KTC Properties in acquiring 225 West Washington," said Michael Newman, Golub's president and CEO. "The building's extraordinary architecture, interior and tenant base create a compelling value proposition upon which our ownership group plans to build."
The property's architectural features include bay windows, and marble floors and accents. Amenities include a fitness center exclusively for tenants, a conference facility and a sundry shop. The building was designed by Skidmore, Owings & Merrill and completed in 1987.
"By successfully completing this complex transaction we are able to recapitalize and revitalize a great asset that offers superior amenities for tenants," added Meers. "We will continue to enhance the building and are ready to meet the needs of current and prospective tenants."
On Oct. 8, the KTC Properties/Golub joint venture purchased the first mortgage and mezzanine loans secured by the building from Anglo Irish Bank, which put them up for sale in September 2010. The loans were in payment and maturity default. KTC Properties was selected as the buyer at the culmination of a competitive bidding process involving more than 10 parties. Stephen Livaditis of Eastdil Secured represented Anglo Irish Bank in the sale of the notes.
On Oct. 14, the joint venture secured the title to 225 W. Washington. KTC Properties and Golub now have full ownership of the property, and Golub will continue to manage and lease the building. Key tenants include Allianz, an international insurance firm and the largest tenant in the building, and DeVry University, who recently expanded its large footprint in the building.
About KTC Properties
KTC Properties, based in Chicago, provides investors with superior risk-adjusted returns by identifying, acquiring and adding value to high-quality commercial real estate assets in premier U.S. markets. The company offers a long investment horizon, substantial financial strength, access to preferred financing vehicles, and a team with rapid decision making and due diligence capabilities. The principals of KTC Properties have sourced, underwritten and executed numerous acquisitions, developments, dispositions and financings. For more information, please visit www.ktcpropertiesllc.com.
About Golub & Company LLC
Chicago-based Golub & Company and its affiliates are active internationally in real estate development, acquisitions, asset and property management, leasing and corporate real estate services. Since its founding 50 years ago, the company has owned, leased or managed more than 45 million square feet of commercial and multifamily real estate properties valued in excess of $7 billion. More information is available at www.golubandcompany.com.
SOURCE KTC Properties