R2, a Chicago-based private equity real estate and development firm, is in negotiations to purchase one of the city’s office towers for approximately $70 million. According to Crain’s Chicago Business , this amount would be 42% less than what the property sold for six years ago.
Situated at 150 North Michigan Avenue, the 41-story building offers 661,477 square feet of space with expansive views of Lake Michigan and Millennium Park. CBRE Investment Management acquired it in 2017 for $121 million before investing another $35 million into renovations. The 39-year old tower—now known as Crain Communications Building—is distinguished by its sloped diamond roof design. As reported by Crain’s , occupancy rate was 68 percent earlier this year which is below downtown average last quarter (78%).
This deal marks yet another downtown revitalization project from R2 who are also collaborating with Apollo Global Management on iconic Chicago Board of Trade building – a 44 story 1.4 million square foot office located at 141 West Jackson Street .
