Chicago’s tallest tower Willis Tower is for sale, and may soon owned by a big real estate firm, Blackstone Group LP. Blackstone Group is considered as world’s topmost private equity real estate owner and is going to own the Willis Tower for almost $1.5 billion.
Representatives from New York based firm have been visiting the 1,451 foot building for owning it, with one of its funds. It is clearly stated that, it is a very big deal for the real estate firm, even it worth for $81 billion. If the sale occurs, then it will the 24th deal in the history of the United States to reach $1 billion level. And it’s the first deal away from the coasts, but the fourth one outside the New York City.
The sale shattered the record of $850 million that happen last year in Chicago, and it beats the sale of 60 story tower at 300 N. LaSalle St. The $1.5 billion worth sales will be a record in the Chicago city with the rate of $652 per square foot. Willis Tower has almost 3.8 million square feet of office space and it will provide an immense level of profit for the investors.
The expected price quoted from the Blackstone started a debate regarding whether the real estate market has gone too shallow during the past few months, and Blackstone has already taken a lead by selling some of its assets in the past few months.
At the same time, Willis Tower was built in the year 1973 and almost 84 percent of the space was already leased. This made the new owner to invest a sum of money to maintain and modernize the building, also to fill the large block of space. But this sale is in under dilemma, and the Willis ownership group has hired Eastdil Secured to find a better buyer for the Willis Tower and Blackstone spokesman has said that he has no comment about this issue.
[ Via ]