Chicago-based investor Igor Gabal has acquired the 12-story West Loop office building at 300 West Adams Street for a mere $4 million, representing an astounding discount of nearly 90 percent from its appraised value in 2012. According to Crain’s, the property was previously sold for $38 million and is subject to a ground lease.
The seller of this distressed building was an entity tied to Morgan Stanley. JLL brokers Bruce Miller, Jaime Fink, Pat Shields and Sam DiFrancesca were responsible for marketing the property. Despite being only half leased, it generated over $1.7 million in net operating income in 2022 – less than half of what it generated in pre-pandemic times.
In a previous transaction back in 2012 by Bryn-Mawr based Alliance HP who paid $51 million split ownership between land and building but ultimately had to surrender ownership via deed-in-lieu-of-foreclosure while retaining control over the land itself. Now under new management through Gabal’s venture on terms that are subject to their existing long-term ground lease agreement.
This article originally appeared on Connect CRE.
