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Investors Buy Bank-Owned Office Tower for $350M

Investors Buy Bank-Owned Office Tower for $350M

CHICAGO—A group of investors has purchased 540 West Madison in Chicago for a reported $350 million.

The partnership includes Joseph Mizrachi, David Werner, Eyal Ben-Yosef, David Alcalay, Bruce Wisbaum and Dr. Zvi Sharf, Carlton Associates Inc. and the investment division of Independent Health. The partnership also secured senior mortgage and mezzanine financing from Deutsche Bank to acquire the 1.1-million-sq.-ft. tower. The 31-story property is 91 percent occupied.

Jones Lang LaSalle Capital Markets officials secured fixed-rate, interest-only five-year loan for a reported $250 million through Deutsche Bank for the transaction. JLL Senior Vice President Dustin Stolly, Vice President David Krasnoff and managing directors David Hendrickson and Peter Nicoletti participated in the deal.

Bank of America sold the property, and reportedly plans to vacate more than half of its 750,000 sq. ft. of offices.

Stolly said in a statement that the purchase is a key part of the New York City-based partnership’s investment strategy. “This property offers some of the most technologically advanced office space in the entire city, making it extremely appealing to a variety of tenants and we expect their return on investment to be quite considerable in the years to come,” Stolly said.

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