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A New York real estate investor known for buying distressed malls has purchased one of Chicago's tallest skyscrapers, 311 West Wacker, for about 85% less than it traded for more than a decade ago, one of the biggest losses of value ever for a downtown office building.
Summary and audio linked here.
Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.
Expect no retraction or apology. This what they do.
The state’s existing buyout program for its own pensions is the precedent for Chicago, which should be a warning: Look out for similar exaggerated claims and shoddy analysis.
Full interview and summary linked here.
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15 cents on the dollar. Thanks Lori. You’re the gift that keeps on giving. Even after you’re gone.
They paid the fair market value of the property. Going to discount rents so that means other buildings will have to compete with a new pricing schedule. More lower price sales on the way.
As JB Potbelly says, “Imhave more work to do to destroy the Illinois economy” The mayor of Cnicago totally agrees and tellsJB Potbelly, “I agree”.
This has to be like the tenth marquee property essentially dumped in just the last few years. I haven’t seen anything like this except for Detroit, and Baltimore but those were all smaller properties.
Yes, these large office buildings selling for much less than their previous purchase prices is a bad omen for downtown Chicago. Of course, there’s not been much local media reporting on this phenomenon.
Spot on and soon a reduction in property taxes forwarded to the CC Treasurers office.
Here’s the full article: https://archive.ph/apHYf Some excerpts: “Kohan CEO Mike Kohan confirmed his namesake company closed on the purchase of 311 S. Wacker, but declined to share the price. He said he intends to maintain the tower as an office building and lease it up, leveraging his low purchase price to offer bargain rents to companies that want to be on Wacker Drive at a discount… Kohan said he and his team are “still getting our hands around” specifics of their plan for the tower, but that they don’t intend to convert any portion of the building into different uses…… Read more »
I can’t access the article and am wondering if they mention what the new buyer intends to do with this building. There had been rumors in the press a few months ago that the building might be demolished. Is that a possibility?
I also can’t view the article but what I did find out is the building was purchased for $45 million when it sold for $300 million 10 years ago. The new owners plan to keep it an office building and attract new tenants with lower rents.
Chicago Chicago that teetering town. And don’t blame covid
Cook County Assessor will claim: “temporary market fluctuation”
Doom loop.