California investor buys distressed office building near Willis Tower at fire-sale price – Crain’s*

A California real estate investor has purchased a distressed office building half a block from Willis Tower for 89% less than it traded for more than a decade ago, the latest example of the extreme losses that remote work and higher interest rates have dealt to office property values. Los Angeles-based Brog Properties this week paid $2.5 million in cash for the vintage 10-story office building at 216 W. Jackson Blvd.

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billy boy
2 years ago

I’ll bet this would have been cheaper if they waited to buy after the Dem convention

debtsor
2 years ago

The risk Brog is taking is that he still believes there are small employers want low-cost, no-frills downtown office space. Those tenants are few and far between, especially when they can lease cheaper and nicer office space closer to home for the same or less cost. But that’s what investors do, they take investment risks, and they pan out or they don’t. If they aren’t investing, then there’s no reason to even come into the office. The larger issue is that now, four years after the start of ‘rona, is that the downtown office model is a HUGE PITA. My… Read more »

Fullbladder
2 years ago

Man is Chicago in trouble.

Ex Illini
2 years ago

Chicago will end up looking like Detroit on steroids before this thing is all over.

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