Chicago Real Estate Worth Purchasing, Even From Across the Globe

July 20, 2011

An Israeli real estate firm is investing in Chicago real estate, and from the look of the numbers, it seems like a pretty sound investment.

Tel Aviv, Israel-based Property & Building Corp. has signed on to purchase a 17-story office building at Block 37 in the Loop for $187 million. That comes out to about $426 a square foot.

22 West Washington in Chicago

22 West Washington in Chicago

The 439,434-square-foot building, located at 22 W. Washington St. in Chicago, is fully occupied. Two of the site’s largest tenants include CBS Broadcasting and Morningstar, Inc.

Income on the property is expected to total about $12.5 million in the first year and increase by an average of 2.5 percent each year.

Property & Building, a part of the IDB Group and one of the largest real estate companies in Israel, put down $7.5 million in trust on the property and will pay the rest when the deal is finalized in the beginning of September.

The IDB Group is considered one of Israel’s largest holding companies with a portfolio of more than $30 billion in assets.

Recently, an associate of the IDB Group bought the new Barneys building on Oak Street in New York from two Chicago developers, Mark Hunt and Fred Latsko, for $117 million. That comes out to more than $1,000 a square foot.

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